DN HOLDINGS CO., LTD.【JP:7377】Stock Price

DN Holdings is a business group that operates primarily in civil engineering and construction consulting, offering survey, design, and construction management services along with related consulting. The company handles the full spectrum of projects, from upstream processes such as surveying and geological and soil investigations, to planning and construction management.

The company's main clients are public sector organizations such as national and local governments, construction companies, and private developers. Revenue is primarily generated through project-based consulting fees. Through subsidiaries and affiliated companies within the group, DN Holdings serves domestic and international projects and maintains stable income through continuous contract acquisition.

The business is divided into two main segments: construction consulting and geological surveying. Construction consulting covers planning, design, and construction management for social infrastructure projects, while geological surveying conducts investigations and analysis of ground conditions, groundwater, and natural resources. The group structure includes specialized companies that perform excavation and on-site testing, overseas offices, and affiliated companies involved in power generation projects, enabling the company to meet diverse client needs.

The company has announced a three-year Medium-Term Management Plan 2026, with the fiscal year ending June 2024 as its first year, aiming for sustainable growth and strengthened management foundations. Financially, the company targets maintaining an equity ratio of approximately 50%, while continuing to secure a return on equity (ROE) of 10% or higher. Specific numerical targets include a fixed asset ratio of 80% or below and a consolidated dividend payout ratio of 30% or higher, reflecting management practices that prioritize capital costs and stock price performance.

Priority investment areas are the structural engineering and geological/geotechnical fields. The company aims to strengthen its market leader position in these sectors while creating new leadership domains. Specifically, it will leverage its strength in providing integrated services from upstream survey, planning, and design through construction supervision, while pursuing synergies through collaboration with specialized subsidiaries and selective business portfolio management. On the human resources front, the company is maximizing talent value through the integration of former Dai Nippon Consultants and former Dia Consultants, as well as expanding telework options. Governance enhancements include achieving a female hiring ratio of 30% or higher and appointing female directors.

For new market development and business expansion, the company targets projects related to domestic social infrastructure investment, natural disaster mitigation, and decarbonization (green transformation). It aims to expand a stable order base for public sector clients and private developers by leveraging group resources including overseas offices, power generation-related investments, and specialized drilling and field testing companies. The strategy focuses on creating new market leaders through business consolidation and horizontal expansion from core operations.

In technological innovation, the company is prioritizing operational efficiency improvements and new service creation through digitalization (DX). Specific initiatives include productivity gains from digital utilization of design and survey data, enhanced employee information literacy, and promotion of sustainability-related planning and disclosure. While emphasizing strengthened risk management and shareholder dialogue, the company seeks to establish competitive advantage by advancing DX and environmental initiatives in parallel.