Gifu landscape architect Co.,Ltd.

Business Details

The landscaping and greening business operated by the Gifu Zoen Group, founded in 1927. It comprises two segments: "Garden Exterior" (exterior landscaping for detached houses and multi-family residences) and "Landscape" (greening of public spaces such as commercial facilities, public facilities, and hotels). Key revenue sources include high-value-added projects through collaboration with major homebuilders and large-scale private-sector projects in the Chubu and Kanto regions. The company also handles green space maintenance after construction and designated park management. A high proportion of revenue is derived from Sekisui House Group, giving rise to key-customer dependency risk.

Recent Overview

Both H1 revenue and operating profit rose substantially year on year; full-year forecast revised upward

In H1 of FY2026 (ending September 2026) (October 2025 to March 2026), completion of landscaping and greening construction work for a large commercial facility in the Chubu region and a luxury resort hotel in the Kanto region drove results, with revenue of ¥3,385 million (up 11.9% year on year) and operating profit of ¥484 million (up 49.1% year on year), progressing at a pace exceeding plan. Selling, general and administrative expenses were also contained at ¥558 million (year on year), contributing to improved margins. Operating cash flow improved substantially to an inflow of ¥268 million (versus an outflow of ¥63 million in the same period of the prior year). The full-year forecast was revised upward to revenue of ¥6,500 million, operating profit of ¥690 million, ordinary profit of ¥700 million, and net income of ¥469 million. The interim dividend was increased to ¥20.00 per share (versus ¥18.00 in the same period of the prior year).

Key Products

Growth Drivers

• Expansion of high-value-added Garden Exterior projects through deepened collaboration with major homebuilders (Sekisui House Group, Daiwa House)
• Increased orders for large-scale private-sector Landscape projects such as high-end commercial facilities and resort hotels in the Chubu and Kanto regions
• Stable progress in public landscaping investment driven by national resilience and infrastructure aging countermeasures
• Business expansion in the Kanto area (strengthening the Tokyo branch, business alliance with Saitama Botanical Garden, etc.)
• Strengthened training of young and mid-career personnel through the "Gifu Zoen Academy" and expansion of construction capacity
• Growing demand for greening of offices and commercial facilities amid rising demand for carbon neutrality and green investment

Risks

• Revenue dependency on the Sekisui House Group (FY2025 (ending September 2025): Sekisui House 16.7% + Sekisui House Construction Chubu 11.8%, totaling approximately 28.5%)
• Risk of cost ratio deterioration due to sustained high construction material prices and rising labor costs
• Constraints on construction capacity and schedule management risk due to labor shortages and an aging workforce of craftsmen (responding to the "2024 problem in the construction industry" is an industry-wide challenge)
• Risk of fluctuations in energy and resource prices due to geopolitical risk and exchange rate volatility
• Quality control risk during rapid business expansion, as landscaping techniques require high specialization and securing personnel and passing on skills takes time