KYOWA ENGINEERING CONSULTANTS Co., Ltd.【JP:9647】Stock Price

Kyowa Consultants is a construction consulting firm that handles a wide range of services—from planning and design to surveying and construction management—for infrastructure projects including cities, ports, and airports. The company specializes in civil engineering and architectural survey and design work, and participates in infrastructure development projects both domestically and internationally. While construction consulting is its core business, the company operates diversified operations that also include information processing services and real estate rental and management.

The Kyowa Consultants Group consists of the parent company, Kyowa Consultants, and three consolidated subsidiaries, each serving as different revenue sources. The construction consulting business provides specialized civil engineering and architectural services in both domestic and international markets, forming the group's primary revenue base. Clients are primarily government agencies and private companies, with the company serving a wide range of projects from public infrastructure to private development.

The business is divided into three main segments, with construction consulting at its core. In the information processing business, subsidiary K.D.C. handles information processing services, personnel dispatch, and software development and sales, while also providing IT support for the construction industry. In real estate rental and management, subsidiary KEC Shoji generates stable rental income and contributes to overall group revenue stability.

Kyowa Consultants is pursuing an ambitious growth strategy targeting the fiscal year ending November 2028. The company has set clear numerical targets: consolidated net sales of 8.8 billion yen, consolidated operating profit of 1.15 billion yen, consolidated ordinary profit of 1.14 billion yen, and net income attributable to parent company shareholders of 740 million yen. The company aims to achieve medium-term sustainable growth by implementing comprehensive strategies centered on its core construction consulting business, spanning from securing orders to improving profitability.

The company's priority investment areas include disaster prevention and mitigation, national resilience-related projects, and defense ministry base development initiatives. Demand is particularly expanding in defense facility development, supported by the defense ministry's record-high budget requests, creating a stable order environment. As a differentiation strategy, the company is strengthening technical proposal-based sales through collaboration between technical and sales divisions, in addition to conventional sales methods, to differentiate from competitors in both volume and quality of orders.

Regarding new market development and business expansion, the company is taking a flexible approach to changing social needs and actively pursuing projects in new technical domains. Leveraging its stable business foundation with government agencies as primary customers, the company aims to expand market share by steadily building track records through improved technical capabilities and quality. Simultaneously, the company is strengthening order and production capacity while developing next-generation talent through both securing experienced engineers and actively recruiting junior technical staff.

In technological innovation efforts, the company plans to actively utilize cutting-edge tools such as generative AI to improve productivity and reduce production costs, particularly outsourcing expenses. Additionally, the company is preventing human errors through active ICT utilization while ensuring rigorous quality management through reliable ISO 9001 operations centered on the headquarters production management division. The company is also promoting cross-functional collaboration within the technical division to level workload distribution across departments and simultaneously advance company-wide efficiency improvements.