Asunaro Aoki Construction Co.,Ltd. (E00174) Stock Price

Aoki Asunaro Construction is a comprehensive construction company with construction and real estate as its core businesses. Operating as a subsidiary of Takamatsu Construction Group, the company provides a wide range of services spanning from construction project execution to real estate development.

The company group consists of the parent company and eight subsidiaries, with construction operations serving as the revenue core. The company handles diverse construction projects ranging from public works to private sector projects, maintaining a stable order base. Real estate operations also generate revenue through sales of self-developed properties and rental business activities.

Business segments are divided into two categories: construction and real estate. In construction, the company has accumulated expertise in both civil engineering and building construction, with particular strength in community-focused projects. While pursuing business diversification across the group, the company leverages synergies with its parent company, Takamatsu Construction Group, to advance its operations.

Aoki Asunaro Construction has established a medium-term management plan for fiscal years 2019 through 2021, with the basic policy of "responding to environmental changes while pursuing sustainable growth." The company has set numerical targets of 160 billion yen in revenue and 8 billion yen in operating profit for fiscal year 2021, aiming for steady growth from fiscal year 2018 results (revenue of 152.4 billion yen, operating profit of 6.7 billion yen). Under this plan, the company is promoting business expansion beyond traditional construction contracting, using "flexible thinking and strong operational foundation" as key concepts.

A priority investment area for the company is strengthening its renovation-related business. As social infrastructure continues to age, the company anticipates growing demand for renovation and renewal of existing buildings and structures, and is focusing on improving technical capabilities and expanding orders in this field. As a differentiation strategy, the company aims to develop proprietary technologies to enhance productivity, positioning itself to compete effectively against rivals.

As new business opportunities, the company is actively pursuing entry into new contract formats such as PFI (Private Finance Initiative) and EPC (Engineering, Procurement, and Construction). These business models have revenue structures different from traditional construction contracting and enable delivery of higher value-added services. Through accumulating experience in these new business areas, the company is diversifying its business portfolio and strengthening its revenue base.

Regarding technological innovation, the company positions i-Construction (improving construction productivity through information and communication technology) as a critical management priority. The company has set a consolidated operating profit margin of 5% as a management target, and is promoting productivity improvements through digital technology to achieve this goal. Facing challenges such as shortages of construction engineers and the need to adapt to work style reforms, efficiency gains through technological innovation are essential to the company's sustainable growth.