ENVALITH
大末建設株式会社 logo

DAISUE CONSTRUCTION CO.,LTD.

1814・Prime Market・Construction

Official website
大末建設株式会社 logo
DAISUE CONSTRUCTION CO.,LTD.1814

Business

Daimatsu Construction Co., Ltd. is a general construction company founded in 1937 and headquartered in Chuo-ku, Osaka. It operates a single construction segment, focused primarily on general building construction (condominiums, logistics warehouses, factories, super-high-rise buildings, etc.). Its consolidated subsidiaries include Daimatsu Techno Service Co., Ltd. (insurance agency, worker dispatching, security services), Kamishima-gumi Co., Ltd. (construction), and Yasuragi Co., Ltd. (home-visit nursing care), among others. Over 99% of completed construction work is for private-sector clients, with major customers being real estate developers and business corporations. The company is listed on the Prime Market of the Tokyo Stock Exchange. Through a capital and business alliance with Misawa Homes, it is also advancing knowledge sharing in the housing sector.

Business Model

A build-to-order model in which revenue is recognized upon completion and handover of contracted construction projects. Of the ¥152,882 million in non-consolidated orders received in FY2026 (ending March 2025), the ratio of negotiated (tokumei) orders was high at 85.0% (up from 75.4% in the prior period), reflecting a structural strength in securing project profitability while avoiding price competition. The order backlog serves as a leading indicator of future revenue, and stood at ¥179,939 million as of the end of FY2026 (ending March 2025), providing high visibility into revenue and profit for subsequent periods.

Company Strengths

Sole-source order ratio for standalone construction orders in FY2026 (ending March 2026) was 85.0% (up 9.6 percentage points year on year). By primarily relying on negotiated contracts based on trust relationships with clients rather than competitive bidding, the company has achieved stable construction profitability. Gross profit on completed construction contracts reached ¥11,742 million, up 44.9% year on year, providing numerical support for the improvement in profitability.

Backlog of construction work (contracts in hand) at the end of FY2026 (ending March 2026) stood at ¥179,939 million (up 38.1% year on year). This is equivalent to approximately 1.7 times the same period's net sales of ¥105,554 million, functioning as a leading indicator that enhances visibility into sales and profits for subsequent periods. A substantial increase in orders received of ¥154,357 million (up 34.5% year on year) supported this accumulation.

In addition to proprietary technologies such as the Hanasaki PCa method, Full PCa method, and ECS-TP method, the company continues to promote DX and ICT initiatives including an iPad-based rebar inspection system, an autonomous snake-like robot for underground pit inspection, and BIM utilization. In FY2025, iPads were distributed to all on-site staff to accelerate digitalization at construction sites. The company also expanded its technology portfolio by obtaining an A-rank certification for CFT construction technology.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales reached ¥105,554 million (up 18.6% year on year), operating profit reached ¥6,579 million (up 78.0% year on year), and profit attributable to owners of parent reached ¥3,800 million (up 84.4% year on year), all at high levels. The company itself has stated that it "achieved ahead of schedule in FY2025 the key management indicators originally targeted for FY2030," and has implemented an upward revision of its medium- to long-term plan. While continued firmness in private-sector capital investment has served as an external tailwind, the expansion in order intake and backlog of construction work can be attributed to the company's own strengthened sales capabilities.

The consolidated earnings forecast for FY2027 (ending March 2027) calls for net sales of ¥98,400 million (down 6.8% year on year), operating profit of ¥5,750 million (down 12.6% year on year), and profit attributable to owners of parent of ¥3,860 million (up 1.6% year on year). While sales and operating profit are forecast to decline, this can also be read as a conservative plan given the backlog of construction work standing at ¥179,939 million. Meanwhile, risks from external factors such as elevated material prices and rising labor costs continue to pressure construction profitability, and the skill of profitability management will continue to be a key factor determining profit levels.

Impairment losses related to consolidated subsidiary Kojimagumi were recorded again in the current period at ¥1,412 million (technology-related assets of ¥1,196 million and machinery and equipment of ¥215 million), following ¥1,464 million (goodwill of ¥1,119 million and technology-related assets of ¥345 million) in the previous period. The balance of technology-related assets has fallen to zero, but Kojimagumi's failure to meet its business plan has now been confirmed for two consecutive periods, making improvement of post-merger integration management capability a challenge for the execution of future M&A strategy. This is the main reason non-consolidated net profit fell sharply to ¥1,916 million (from ¥3,596 million in the previous period), and investors should take note of it as a factor behind the divergence from consolidated net profit.

Growth Strategy

Revising "Road to 100th anniversary" upward, the company moves to its next growth stage with new targets for FY2030 (ending March 2030)

The company continues to expand orders and enhance construction profitability management, leveraging its strength in private-sector construction. In FY2026 (ending March 2026), non-consolidated orders received of ¥152,882 million and backlog of ¥179,579 million both renewed record highs, establishing a solid revenue base for subsequent periods.

Through the integration of Kashimagumi, the company has accumulated M&A execution experience. Impairment losses recorded for two consecutive periods have highlighted challenges in post-merger integration management, indicating a need for improved integration processes in future M&A deals. M&A remains positioned as a key growth pillar in the revised medium- to long-term plan.

The company is promoting construction efficiency and productivity improvements through the use of ICT and proprietary construction methods. R&D expenses increased to ¥190 million (from ¥136 million in the previous period), reflecting continued investment in technology. The importance of DX utilization is growing as a response to the industry-wide issue of chronic shortages of skilled labor.

Employee salaries and allowances increased to ¥1,645 million (from ¥1,223 million in the previous period), reflecting expanded investment in human capital. The company has introduced a stock-based compensation system utilizing a Board Incentive Plan (BIP) trust for executive compensation and an Employee Stock Ownership Plan (ESOP) trust, strengthening incentive design for officers and employees.

The annual dividend for FY2026 (ending March 2026) was ¥183 (up from ¥99 in the previous period), achieving a payout ratio of 50.1%. The forecast dividend for FY2027 (ending March 2027) is ¥186 (interim ¥93, year-end ¥93), with the company planning to maintain a total payout ratio of 50% or more. Having achieved its FY2030 targets ahead of schedule, the company has clarified its shareholder return policy.

Last updated: July 19, 2026