SHINNIHON CORPORATION
1879・Prime Market・Construction
Construction Business
Core segment centered on building construction and civil engineering works contracting, accounting for approximately 60% of Group sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (External Customers) | ¥83,620 million | ¥73,266 million | ↑ |
| Segment Profit (Operating Income Basis) | ¥7,901 million | ¥5,105 million | ↑ |
| Segment Assets | ¥27,014 million | ¥32,727 million | ↓ |
| Consolidated Orders Received (Construction Business) | ¥104,179 million | ― | ↑ |
| Non-Consolidated Orders Received (Construction Business Total) | ¥93,262 million | ¥81,558 million | ↑ |
| Gross Profit Margin on Completed Construction Contracts (Consolidated) | 11.8% | 9.4% | ↑ |
| Depreciation and Amortization | ¥261 million | ¥191 million | ↑ |
Business Details
A business covering construction work in general, including building construction and civil engineering works. The segment targets private-sector capital expenditure projects as its main customers and handles orders for both residential and non-residential properties. The Company promotes planning-and-development-driven sales activities and is strengthening its engagement with non-residential projects such as factories, warehouses, commercial facilities, and lodging facilities. It is also focusing on securing new subcontractors and technical personnel and on improving productivity.
Recent Overview
Completed construction contracts revenue up 14.1% year on year; segment profit up 54.8% year on year, a substantial improvement
In the Construction Business for FY2026 (ending March 2026), completed construction contracts revenue reached ¥83,620 million (prior period: ¥73,266 million) and segment profit reached ¥7,901 million (prior period: ¥5,105 million), achieving a significant increase in both revenue and profit. Non-consolidated orders received performed well, with residential orders of ¥64,181 million (up 12.0% year on year) and non-residential orders of ¥29,081 million (up 19.8% year on year), for a combined total of ¥93,262 million (up 14.4% year on year). Consolidated orders received (Construction Business) reached ¥104,179 million, building up a backlog of orders that underpins sales in the next fiscal period.
Key Products
Growth Drivers
- Expansion of orders received through strengthened order intake for non-residential projects (factories, warehouses, commercial facilities, lodging facilities, etc.) (up 19.8% year on year)
- Maintenance and expansion of exclusively negotiated orders through planning-and-development-driven sales (proposal-based sales built on enhancing the added value of buildings)
- Stable accumulation of sales for the next period through a high level of consolidated orders received of ¥104,179 million
- Maintenance and improvement of a stable construction system through securing new subcontractors and technical personnel
- Cost reduction and shortened construction periods through productivity improvement initiatives
Risks
- Deterioration of the earnings environment due to continuing chronic labor shortages and persistently high material prices
- Risk of further surges in building material prices or procurement difficulties due to crude oil market trends
- Risk of decreased capital expenditure demand from exporting companies caused by US tariff policy
- Instability in quarterly results due to seasonal fluctuations, with construction completion and handover concentrated in specific periods
- Credit risk and cost-increase risk arising from construction defects or on-site accidents
Last updated: June 25, 2026