ENVALITH
株式会社マサル logo

MASARU CORPORATION

1795・Standard Market・Construction

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株式会社マサル logo
MASARU CORPORATION1795

Business

Masaru Corporation is a specialized construction contractor founded in 1957, comprising two segments: the construction works business (approximately 86% of net sales), whose core operations are waterproofing work for new buildings, renovation work, and directly contracted work, and the equipment works business, which handles air conditioning and water supply/drainage equipment installation as well as the assembly and maintenance of industrial machinery. The company has three subsidiaries: Innovate Inc. (established January 2024), Masaru Facilities Co., Ltd., and Kuki Setsubi Kogyo Co., Ltd. Its major customers are leading general contractors, led by Kajima Corporation (17.6% of net sales) and Taisei Corporation (10.2%), with its primary market being large-scale redevelopment and office renovation projects in the five central wards of Tokyo. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The company's revenue structure centers on subcontracted orders from the top 10 major general contractors, including Kajima Corporation and Taisei Corporation, comprising three work types: new-building waterproofing, renovation, and direct orders. Of the FY2025 (ending September 2025) consolidated net sales of ¥10,648 million, the construction work business accounted for ¥9,165 million. The equipment installation business holds an order backlog of ¥3,602 million from large-scale projects, with revenue recognition proceeding under the percentage-of-completion method. The company aims to improve the proportion of highly profitable projects by developing the direct-order market, while also seeking to expand orders across the group as a whole through bundled orders based on one-stop proposals combining construction and equipment installation.

Company Strengths

In FY2025 (ended September 2025), sales to Kajima Corporation reached ¥1,879 million (17.6% of composition), and sales to Taisei Corporation reached ¥1,086 million (10.2%), with the top two clients alone accounting for 27.8% of total sales. The company has continuously received orders for large-scale redevelopment projects such as Azabudai Hills, Shibuya Sakura Stage, and Mita Garden Hills, and its deep business relationships with major general contractors form a stable order-taking base.

In 1968, the company performed sealing and waterproofing work on Japan's first skyscraper, the Mitsui Kasumigaseki Building, acquiring know-how ahead of other companies. Since then, it has continued research and development specialized in waterproofing and sealing work for over 60 years, with R&D expenses of ¥32,971 thousand in FY2025 (ended September 2025). The company is advancing research on 35 themes, including durability research for new sealing materials, new urethane coating construction methods, and development of exterior wall inspection and diagnostic techniques.

In FY2025 (ended September 2025), orders received in the equipment installation business expanded sharply, up 522.9% year-on-year to ¥4,449 million, with the order backlog reaching ¥3,602 million (up 442.9% year-on-year). The equipment installation business accounted for 41.5% of the consolidated total order backlog of ¥8,680 million, functioning as a highly certain construction backlog expected to be recognized as sales from the next fiscal period onward.

ENVALITH's Perspective

In the interim period of FY2026 (ending September 2026), while net sales declined 10.0% year-on-year, profit increased at every level, resulting in a qualitatively strong set of results. However, order intake fell sharply to ¥4,659 million (down 41.6% year-on-year), and in particular, orders in the facility construction business dropped to ¥355 million (down 89.7% year-on-year). Although this reflects a rebound from a large public works project in the prior period, it heightens uncertainty about the accumulation of sales from the second half onward. Achieving the full-year earnings forecast (net sales of ¥10,700 million) will require a recovery in the second half.

Against the full-year earnings forecast (net sales of ¥10,700 million, operating profit of ¥450 million, ordinary profit of ¥480 million, and net income of ¥280 million), progress at the interim stage stood at 48.1% for net sales, 98.6% for operating profit, 94.3% for ordinary profit, and 104.3% for net income. On the profit side, the interim period alone has nearly achieved the full-year forecast, leaving room for the full-year forecast to be revised upward depending on the level of profit in the second half. The company has stated there is no change from the earnings forecast announced on November 14, 2025, maintaining a conservative outlook.

As an external factor, the office market environment in Tokyo's business districts—characterized by a low average vacancy rate of 2.22% and a rising average rent of ¥22,302 per tsubo—continues to support renovation demand, and the order environment for the construction business remains favorable. On the other hand, the company itself has cited rising labor costs and persistently high raw material prices as ongoing risks, and profitability continues to depend on how skillfully cost management is handled. The annual dividend forecast is ¥110 (a reduction from ¥160 in the previous period), and it should be noted that this represents a step back from the previous period in terms of shareholder returns.

Growth Strategy

Toward FY2030 (ending September 2030), the company is pursuing three themes: achieving the No.1 share position among the top 10 general contractors, an ROE of 15%, and the development of growth areas.

The company aims to achieve the No.1 share position across the top 10 general contractors overall, centered on deepening relationships with major general contractors such as Kajima Corporation and Taisei Corporation. Orders received in the construction work business for the first half of FY2026 (ending September 2026) were ¥4,304 million (down 5.0% year on year), a modest decline, and relationships with key clients have been maintained.

The company aims to improve profitability by moving away from dependence on subcontracting through general contractors and increasing the proportion of orders received directly from end users. This is positioned as a growth area with continued investment. Expansion of order-taking areas is also being promoted through collaboration with Innovate Inc.

Leveraging the consolidation of Kuki Setsubi Kogyo Co., Ltd. as a subsidiary (April 2024), the company is promoting set orders through one-stop proposals combining the construction work business and the equipment installation business. Segment profit for the equipment installation business in the first half of FY2026 (ending September 2026) reached ¥52 million (up 87.0% year on year), a substantial increase, indicating that the revenue contribution is becoming apparent.

The company has set an ROE of 15% as a financial target under its long-term plan. As of the first half of FY2026 (ending September 2026), the equity ratio stood at 62.9% and net assets at ¥5,481 million, indicating a sound financial base. Retained earnings continue to accumulate (¥3,261 million), and improving capital efficiency remains a future challenge.

Last updated: July 17, 2026