ENVALITH
株式会社淺沼組 logo

ASANUMA CORPORATION

1852Prime MarketConstruction

株式会社淺沼組 logo
ASANUMA CORPORATION1852

Business

Asanuma Corporation is a general contractor founded in 1892, listed on the Prime Market of the Tokyo Stock Exchange. Its core business is the construction of buildings and civil engineering structures, complemented by peripheral businesses such as maintenance, real estate, and PFI (Private Finance Initiative). Domestically, the company operates under a dual head-office structure in Osaka and Tokyo, with a nationwide branch network, serving both public-sector and private clients. Overseas, it holds a group of subsidiaries centered in Singapore and Thailand that handle building painting, repair, maintenance, and civil engineering works across Southeast Asia. Consolidated net sales for FY2026 (ending March 2026) were ¥175,294 million, with building construction accounting for approximately 81% of the total.

Business Model

The core construction business operates on a build-to-order contracting model, securing projects through a combination of negotiated contracts (64.4% for building construction) and competitive bidding. The "selective order-taking" strategy secures profit margins at the time of order acceptance, balancing construction quality with profitability. In addition, the PFI business (long-term operation and management of crematoriums, school lunch centers, etc.) and the maintenance business (building repair and deterioration diagnosis in Japan and overseas) form stable revenue sources, complementing the cyclical risk inherent in the core construction business.

Company Strengths

As of the end of FY2026 (ending March 2026), the backlog of construction to be carried forward reached a total of ¥240,600 million (up 26.3% year on year), comprising ¥195,828 million in the Building Construction segment and ¥44,772 million in the Civil Engineering segment, substantially exceeding the fiscal year's net sales of ¥175,294 million. This backlog includes large-scale, long-term projects such as the civil engineering work for the Naniwasuji Line's Nishihonmachi Station area (scheduled for completion in March 2028), securing high visibility of revenue over multiple years.

In addition to obtaining patents for the "Kando Block" and "three-dimensional wood lath earthen wall," the company holds multiple proprietary construction technologies, including the "lateral buckling stiffening method," the "Simple Dia method," and the "CCB method." The ratio of sole-source (non-competitive) orders in the Building Construction segment rose from 50.0% in the previous fiscal year to 64.4%, and the expansion of orders won by avoiding competition on the back of technological strength is contributing to improved profit margins (Building Construction segment profit margin of 10.9%).

Against the medium-term three-year plan's KPI of "renewal business operating profit accounting for 40% or more of consolidated operating profit," the actual result for FY2025 reached 49.2%. The segment profit margin of the "Other" segment stood at 21.5%, substantially exceeding that of the core construction business, with renewal-related businesses—including PFI, maintenance, and overseas subsidiaries—functioning as a highly profitable, stable revenue source.

ENVALITH's Perspective

Operating cash flow for FY2026 (ending March 2026) increased significantly to ¥18,414 million from ¥5,184 million in the prior period, but this was largely driven by working capital changes, namely a decrease in trade receivables (¥5,294 million) and an increase in advances received on uncompleted construction contracts (¥1,811 million). The increase in income before income taxes (from ¥6,442 million to ¥7,112 million) suggests structural improvement, but the acceleration in trade receivable collections may reflect a temporary factor. Whether the CF level converges to around ¥7,000–8,000 million or maintains this elevated level in subsequent periods will be a key point for evaluation.

Selling, general and administrative expenses for FY2026 (ending March 2026) rose to ¥12,380 million (up 11.3% YoY from ¥11,124 million in the prior period), increasing at a pace far exceeding the sales growth rate (5.0%). On a non-consolidated basis, employee salaries and allowances surged to ¥4,988 million (up 17.8% YoY from ¥4,233 million), directly reflecting stepped-up hiring efforts (85 hires, up 30 from the prior period) and treatment improvement initiatives. Amid a continuing worsening shortage of skilled construction workers in the external environment, upward pressure on labor costs is structural, and whether improvement in gross profit margin can absorb the rise in SG&A expenses will be key to sustained margin improvement.

The consolidated earnings forecast for FY2027 (ending March 2027) projects net sales of ¥175,500 million (up 0.1% YoY), operating profit of ¥7,780 million (up 7.9% YoY), and net income of ¥5,180 million (down 0.0% YoY), with net sales expected to be effectively flat. As the final year of the medium-term three-year plan (FY2024–FY2026), achievement of each KPI is being scrutinized, while risks remain in the external environment such as elevated material prices, supply chain disruptions, and capital expenditure restraint. On the other hand, the substantial buildup in the order backlog carried forward to the next period (¥240,600 million) should support sales. Progress on non-financial KPIs, such as obtaining SBT certification (November 2025), may also affect medium- to long-term corporate value assessment.

Growth Strategy

In the final year of the medium-term three-year plan, achieving KPIs across all six themes and monetizing the carried-forward construction backlog are the top priorities.

Further strengthening selective order-taking by combining order-time profit margin assurance, four-week eight-day-off scheduling, and construction workforce securing. Results are reflected in the FY2026 (ending March 2026) figures, with the Architecture segment margin at 10.9% and Civil Engineering at 10.4%. The conversion of the next fiscal year's carried-forward construction backlog of ¥240,600 million (up 26.3% year on year) into high-profitability projects is key to next-period profits.

Leveraging patented proprietary technologies such as "Kando Block" (return-soil block) and "Rittai Kizuri Tsuchikabe" (three-dimensional lath earthen wall), the company is expanding value-added renewal construction work addressing decarbonization and SDGs. Aiming to increase sole-source (design-build integrated) orders by capitalizing on rising market demand for environmentally conscious buildings.

In FY2026 (ending March 2026), the company hired 85 employees (new graduates and mid-career combined), up 30 from the previous fiscal year. Promoting human capital strengthening measures including improved compensation, expanded new employee training, and DX/compliance training. In a construction industry facing a persistent structural labor shortage, improving recruiting capability and retention rate is a source of competitive advantage.

In November 2025, the company obtained certification from the Science Based Targets initiative (SBTi) confirming that its GHG emissions reduction targets are scientifically grounded. In connection with this, the non-financial KPI for total CO₂ emissions reduction rate has been updated to a more stringent target. The company aims to accelerate efforts toward realizing a decarbonized society and enhance its evaluation among ESG investors.

One fatal accident occurred at a worksite in FY2026 (ending March 2026). Corrective measures have already been implemented, including cause investigation, submission of a recurrence prevention report to the supervising authority, sharing of the incident across all worksites, and strengthening of the management system. Continued implementation of effective recurrence prevention measures, including enhanced safety education, remains a challenge.

Last updated: July 19, 2026