ENVALITH
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HASEKO Corporation

1808・Prime Market・Construction

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株式会社長谷工コーポレーション logo
HASEKO Corporation1808

Business

Haseko Corporation was founded in 1937 and is listed on the Tokyo Stock Exchange Prime Market as a comprehensive housing company. Comprising 101 subsidiaries and 20 affiliated companies, it operates in four segments: (1) the construction-related business, handling planning, design, and construction of condominiums and other properties; (2) the real estate-related business, handling condominium development for sale, sale of income-producing real estate, and brokerage; (3) the management and operation business, handling condominium management, rental property management, and senior services; and (4) the overseas business, based in Hawaii. Its main customers are business owners such as major developers and real estate companies, and its primary market is the large-scale condominium-for-sale market in the Greater Tokyo, Kinki, and Tokai regions. Consolidated net sales for FY2026 (ending March 2026) reached ¥1,273,136 million, reflecting a business structure that covers the entire housing value chain from construction to management and operation.

Business Model

In the core construction-related business, the company receives orders for condominium and rental apartment construction from major developers, adopting a contracting model in which sales are recognized as completed construction revenue. In the real estate-related business, it generates high-margin revenue through the handover of self-developed condominiums for sale and the sale of income-generating real estate. In the management and operation business, based on a large-scale management portfolio of 448,076 units of condominium management and 196,878 units of rental management, the company accumulates stock-type revenue from management fees, repair works, senior services, and other sources. The combination of these three businesses allows the company to achieve both stability and growth of earnings against economic fluctuations.

Company Strengths

In individual orders for FY2026 (ending March 2026), the negotiated (non-competitive) order ratio reached 91.7% (a significant increase from 73.8% in the previous fiscal year), demonstrating a high level of trust from business owners. The company secured 64 orders, including 36 large-scale properties of 200 units or more in the Greater Tokyo, Kinki, and Tokai regions, and the order backlog carried into the next fiscal year stood at ¥940,018 million (up 19.2% year on year), showing a notable accumulation of future sales. The company's land information gathering capability, product planning capability, and adherence to construction schedules are highly regarded.

The company holds 448,076 units (5,682 buildings) under condominium management and 196,878 units under rental apartment and other management, establishing a stock-type business that continuously accumulates management fee, repair work, and senior services revenue every fiscal period. Sales in the management operations segment reached ¥158,525 million (up 9.1% year on year), and operating profit grew by 26.6% year on year, with growth accelerating. This functions as a stable revenue source that offsets the cyclicality of the construction business.

The company has a vertically integrated model that completes condominium planning, design, and construction (construction-related), sales and disposal of income-producing real estate (real estate-related), and management, repair, and senior services (management operations) all within a single group. In FY2026 (ending March 2026), the company achieved consolidated net sales of ¥1,273,136 million and operating profit of ¥98,743 million. Each segment shares customer and property information with the others, forming a business foundation that is difficult for competitors to replicate in a short period.

ENVALITH's Perspective

Consolidated results for FY2026 (ending March 2026) showed net sales of ¥1,273,136 million (up 8.1% year on year), operating income of ¥98,743 million (up 16.6%), and net income attributable to owners of the parent of ¥54,839 million (up 59.2%), with improvement across all indicators. The sharp recovery in net income was driven mainly by a significant reduction in extraordinary losses recorded in the prior period—impairment losses of ¥16,861 million and provision for loss on litigation of ¥3,006 million—with impairment losses shrinking to ¥4,079 million in the current period. The operating margin improved to 7.8% (from 7.2% in the prior period), and ROE recovered to 10.0% (from 6.6% in the prior period).

The operating loss in the overseas business (Oahu, Hawaii) widened to ¥6,081 million (from ¥5,663 million in the prior period), and segment assets have swelled to ¥158,480 million. Loss on equity-method investments also worsened to ¥2,073 million (from ¥779 million in the prior period). Under the medium-term management plan, an investment framework of ¥400 million in total over six years has been set for overseas real estate with the aim of achieving profitability, but the segment currently remains loss-making, and the outlook for investment recovery remains unclear.

Consolidated results forecast for FY2027 (ending March 2027) calls for net sales of ¥1,380,000 million (up 8.4% year on year), operating income of ¥110,000 million (up 11.4%), and ordinary income of ¥105,000 million (up 11.6%), projecting continued growth in both revenue and profit. The accumulation of unrecognized order backlog (non-consolidated) of ¥940,018 million to be carried forward is enhancing the visibility of future sales. On the other hand, downside risks include the shift toward rising floating-rate mortgage interest rates, heightened economic uncertainty stemming from U.S. trade policy, and elevated materials and labor costs that remain persistently high. Close attention is also warranted given the declining trend in the first-month sales rate in the greater Tokyo metropolitan area, which fell to 62.9% (down 3.9 percentage points year on year).

Growth Strategy

Under the HASEKO Evolution Plan, the company aims to achieve consolidated ordinary income of ¥130.0 billion and ROE of 13% in FY2031 (ending March 2031).

Strengthened profitability management at order intake led to a rise in gross profit margin on completed construction contracts in FY2026 (ending March 2026), with construction-related business operating income up 21.6% year on year to ¥68,536 million. Non-consolidated backlog reached ¥940,018 million (up 19.2% year on year), providing high visibility into future revenue. Expansion of repair and maintenance construction business is also underway.

In July 2025, the company made Wood Friends Co., Ltd. a wholly owned subsidiary (acquisition cost of ¥2,508 million), bringing an integrated wood resource cascade business—spanning forestry through construction and sales—into the group. This will accelerate the realization of wood-framed condominium common areas and hybrid wood-framed housing, aiming to achieve both decarbonization and improved living environments.

Driven by increases in new deliveries of condominiums for sale, sales of income-producing real estate, and the number of real estate brokerage transactions, real estate-related business revenue in FY2026 (ending March 2026) reached ¥290,209 million (up 16.0% year on year), with operating income of ¥35,579 million (up 9.2% year on year). The medium-term plan calls for a total of ¥1,200 million in investment in domestic real estate over six years.

In addition to continued expansion of condominium management (448,076 units) and rental property management (196,878 units), the company is promoting business reform through DX and expanding senior services (2,786 units in operation). Operating income in the property management business grew strongly, up 26.6% year on year to ¥8,214 million, reinforcing the recurring-revenue business foundation.

The company operates commercial facility management and detached housing sales businesses on the island of Oahu, Hawaii. In FY2026 (ending March 2026), operating losses continued at ¥6,081 million, and investment in equity-method affiliates expanded to ¥58,984 million. The medium-term plan sets an investment framework of ¥400 million in total over six years for overseas real estate, aiming to develop it into a core profit pillar.

The medium-term management plan sets a policy of a total payout ratio of approximately 50% over the six-year period and the implementation of progressive dividends. The annual dividend for FY2026 (ending March 2026) was increased to ¥95 per share (from ¥85 in the previous fiscal year), with a payout ratio of 46.4%. Share buybacks of ¥20,055 million (8,314 thousand shares) were also carried out. An annual dividend of ¥100 is planned for FY2027 (ending March 2027).

Last updated: July 19, 2026