ENVALITH
明豊ファシリティワークス株式会社 logo

Meiho Facility Works Ltd.

1717・Standard Market・Services

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明豊ファシリティワークス株式会社 logo
Meiho Facility Works Ltd.1717

Business

Business overview is being prepared.

Business Model

The company enters into a CM service agreement with the customer (the ordering party) and receives a fixed fee calculated on a man-hour basis (working hours × hourly rate) as its management fee. Since the customer directly concludes the construction contract with the construction company, the Company does not bear construction cost risk. A bonus clause can also be set when results exceed targets. For FY2026 (ending March 2026), the gross profit margin remains at a high level of approximately 54%, and the operating profit margin at approximately 20.8%.

Company Strengths

The company has been selected for 12 consecutive years through public tenders for the Ministry of Land, Infrastructure, Transport and Tourism's project owner support services. In FY2026 (ending March 2026), it secured 40 CM (construction management) assignments from local governments through public tenders, resulting in a dramatic expansion of the public sector business. Its track record across diverse public facilities—including new government office buildings, public school renovations, and long-life renovation planning—forms a barrier to entry.

Since 2003, the company has continuously evolved its in-house developed MeihoAMS (activity management) and MPS (multi-site project management) systems using an agile development approach, leveraging them to support clients' simultaneous ordering across multi-site facilities and DX of maintenance operations. It obtained

At the "CM Award 2026" (CM選奨2026), the company received a Special Award for the "Minowa Sustainable Energy PG Project" and CM Awards for the "Osaka University Comprehensive Infectious Disease Education and Research Center Development Project" and the "Takeda Pharmaceutical Aseptic Filling Line Implementation Project." The accumulation of achievements from long-term, large-scale projects—such as the grand opening of a major complex facility for Japan's largest railway company, which the firm supported over eight years—contributes to its brand strength and new customer acquisition.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales reached ¥6,114 million (up 7.0% year on year), operating profit reached ¥1,269 million (up 3.5%), and net income attributable to owners of parent reached ¥937 million (up 3.0%), setting new record highs across all profit metrics. However, the net sales growth rate declined from 8.6% in the previous period to 7.0%, and the operating margin fell from 21.5% to 20.8%, with the pace of increase in SG&A expenses (¥2,039 million, up 8.1% year on year) outpacing sales growth, which warrants continued attention. The forecast for FY2027 (ending March 2026) also points to a continued slowdown in growth, with net sales expected to rise 5.0% and operating profit 2.2%.

In FY2026 (ending March 2026), net sales in the CM (Construction Management) business were ¥3,077 million (down 5.3% year on year), the only segment to see a decline in sales. This reflected a temporary increase in caution among private-sector companies regarding investment decisions amid rising construction costs and reduced supply capacity, which was offset by dramatic expansion in the public sector (40 projects awarded). As an external factor, the timing of a recovery in private-sector construction investment represents both an upside and downside risk to performance. Meanwhile, the Office business (up 37.7%), CREM business (up 10.6%), and DX Support business (up 11.3%) remained solid, demonstrating the effectiveness of portfolio diversification.

Net cash provided by operating activities for FY2026 (ending March 2026) was ¥1,457 million, a significant improvement from ¥(213) million in the previous period. The main driver was a decrease in trade receivables and contract assets (+¥338 million), whereas in the prior period a sharp increase in contract assets had led to a cash outflow. The company maintained its shareholder return policy, with dividends paid of ¥515 million and a payout ratio of 55.1%, and plans to maintain a dividend of ¥44.00 per share (with a projected payout ratio of 55.4%) for FY2027 (ending March 2026) as well. That said, the contract asset balance (¥2,758 million) remains at an elevated level, and the risk of increased working capital amid an expanding order backlog warrants continued monitoring.

Growth Strategy

Pursuing sustainable growth through a three-pronged approach combining enhanced value of CM services, response to DX and decarbonization, and human capital management

While continuing to be selected through public tenders by the Ministry of Land, Infrastructure, Transport and Tourism for the 12th consecutive year, the company actively won contracts for rebuilding, extending the service life of, and upgrading equipment in facilities operated by local governments, public schools, and public facilities. In FY2026 (ending March 2026), contracts awarded reached 40, a dramatic increase that helped offset the slowdown in private-sector demand.

The company continues to enhance the functionality of its proprietary MPS from a customer-centric perspective, addressing the need to streamline maintenance processes for owned facilities. Revenue from the DX support business grew to ¥452 million in FY2026 (ending March 2026), up 11.3% year on year, continuing its growth trend. The company also completed the renewal of its DX-certified business operator status granted by the Ministry of Economy, Trade and Industry in April 2026.

Backed by record-high gross profit on orders received and gross profit on sales, the company improved employee compensation to strengthen the recruitment and retention of talented personnel. As part of its efforts to promote women's advancement, it obtained the Ministry of Health, Labour and Welfare's 'Eruboshi (3rd level)' certification in August 2025. The company continues to invest in enhancing its professional development system.

In response to rising prices, labor shortages among clients, and sustainability requirements, the company is promoting new business initiatives covering support across the entire facility lifecycle from new construction to maintenance, decarbonization support, and office construction support integrated with DX. The CREM business grew 10.6%, serving as a key growth driver.

Last updated: July 19, 2026