MIKIKOGYO CO.,LTD.
1718・Standard Market・Construction
Business
Miki Kogyo Co., Ltd. was founded in 1952 and is headquartered in Himeji City, Hyogo Prefecture, operating as a comprehensive construction group. The company is built on two core pillars: the construction business (building construction, civil engineering, facility installation, gas pipeline laying works, etc.) and the housing business (unit housing construction, sales, and renovation conducted by Sekisui Heim Sanyo Co., Ltd.). The group consists of 4 consolidated subsidiaries, 1 non-consolidated subsidiary, and 1 equity-method affiliate. Its main customers span a wide range including government agencies, private companies, and individual homebuyers, with the business grounded in long-term trading relationships such as gas pipeline construction work for Osaka Gas Network Co., Ltd. (a long-term contract dating back to 1956) and a unit housing sales agency agreement with Sekisui Chemical Co., Ltd. (in effect since 1972). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the construction business, the company receives orders for building, civil engineering, facility, and gas construction work from public agencies and private clients, recognizing revenue as completed construction. In the housing business, Sekisui Heim Sanyo Co., Ltd. combines new home sales utilizing its own developed lots with renovation work to secure stable profits. While expanding construction capacity through M&A subsidiaries (such as Hyo Koumuten Co., Ltd.), the company is also contributing to improved earnings through expanded margins from additional construction work orders.
Company Strengths
Since 1956, the company has continuously received orders for gas pipeline laying work as a designated construction company of Osaka Gas (now Osaka Gas Network Co., Ltd.). In FY64, the proportion of completed construction revenue attributable to this client reached 18.7% (¥3,214,952 thousand), forming a stable order base. The contract is a long-term agreement with an automatic renewal clause.
Consolidated operating profit for FY2025 (64th term) reached ¥2,583 million, up 127.7% year on year. The ordinary profit margin on sales improved substantially from 4.2% in the previous period to 7.1%, exceeding the group's target of 5.0%. This was driven by progress on large-scale projects, expanded profitability from additional contracted construction work, and the full-year contribution of Hyo Koumuten Co., Ltd.
The company has actively pursued M&A in recent years, acquiring S.D. Design Room Co., Ltd. and Life Design Institute Co., Ltd. in January 2024, and Hyo Koumuten Co., Ltd. in August of the same year. Hyo Koumuten contributed for a full year in FY64, boosting sales in the construction business. The company aims to strengthen competitiveness through the integration of design and construction.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal periods declined temporarily in FY2024 before recovering sharply to ¥36,152 million in FY2025 (up 32.5% year on year), and growth continued to accelerate in Q1 FY2026 (fiscal year ending December 2026) at ¥12,639 million (up 43.4% year on year). On the profit side, however, following a sharp expansion of operating profit to ¥2,583 million in FY2025 (up 127.7% year on year), operating profit in Q1 FY2026 (ending December 2026) turned to a decline, falling to ¥833 million (down 4.8% year on year). Cost pressures—including rising construction costs, higher personnel expenses (due to revisions to the personnel system), and surging material prices—have squeezed margins, with gross profit margin falling from 24.6% in the same period a year earlier to 17.4%. As an external factor, there are concerns over rising construction costs stemming from higher crude oil prices and prolonged logistics disruptions. The full-year forecast remains unchanged at revenue of ¥40,000 million and operating profit of ¥1,800 million.
Growth Strategy
Pursuing sustainable growth through four pillars: improving profitability, securing human resources, utilizing M&A, and strengthening the financial structure
By steadily progressing on construction projects carried over from the end of the previous consolidated fiscal year, construction business net sales for the current quarter reached ¥8,995 million, up 77.8% year on year. Backed by solid trends in public and private capital investment, the company aims to maintain a favorable order environment and achieve full-year net sales of ¥40,000 million.
In the first quarter of FY2026 (ending December 2026), personnel expenses increased due to a revision of the personnel system. Amid chronic labor shortages that pose an industry-wide challenge, this initiative aims to secure and retain human resources through improved treatment, thereby maintaining and expanding construction capacity. It is a factor squeezing profit in the short term.
The company continues to expand its construction execution capacity through M&A, including the consolidated contribution of Hyo Koumuten Co., Ltd. This strengthens the group's overall order-handling capacity, reinforces its ability to handle large-scale projects, and promotes diversification of business scope.
The company continues its strategy of agilely monetizing its held real estate assets, including through the sale of rental real estate (gain on sale of fixed assets of ¥113 million in the first quarter of FY2026, ending December 2026) and the sale of a whole apartment building. This has offset the decline in operating profit and contributed to a year-on-year increase in net profit (+8.5%).
Last updated: July 17, 2026