JDC CORPORATION
1887・Prime Market・Construction
Business
Nippon Kokudo Kaihatsu Co., Ltd. is a general contractor established in 1951. It is composed of three segments: civil engineering (infrastructure development including dams, bridges, tunnels, and roads), construction (public facilities, logistics facilities, condominiums, high-rise buildings, etc.), and related businesses (real estate development, sales and leasing, renewable energy centered on solar power generation, and cemetery operations). The company operates domestically and overseas (Taiwan and Southeast Asia), with consolidated net sales of ¥123,349 million for FY2025 (ended May 2025). It is listed on the Prime Market of the Tokyo Stock Exchange. The group comprises 18 subsidiaries and 2 affiliated companies.
Business Model
The core civil engineering and construction business generates revenue from completed construction contracts ordered by public and private clients. In the related business segment, flow income from the development and sale of real estate for sale is combined with long-term stable stock income from FIT-based solar power generation (cumulative capacity exceeding 127MW). In FY2025 (ended May 2025), the related business segment achieved a high profit margin of 46.2%, forming a structure that complements fluctuations in construction business earnings.
Company Strengths
The non-consolidated backlog at the end of FY2025 (ended May 2025) stood at ¥189,854 million (up 25.5% year on year). Of this, the construction business accounted for ¥115,290 million (up 35.9% year on year) and the civil engineering business for ¥74,523 million (up 12.2% year on year), maintaining a high level. Orders received in the construction business increased significantly to ¥95,043 million (up 51.0% year on year), providing strong visibility into future revenue.
In FY2025 (ended May 2025), the affiliated businesses segment recorded segment revenue of ¥12,772 million and segment profit of ¥5,905 million (up 187.2% year on year). The solar power generation business holds a cumulative FIT-based generation capacity of over 127MW, generating stable long-term earnings. Asset accumulation is also progressing, with power generation equipment held for sale at ¥14,989 million and real estate held for sale at ¥6,436 million.
The company possesses proprietary technologies such as the Twister Method, dynamic compaction method, and functional adsorbent materials, and is promoting ICT-based earthwork, UAV surveying, and AI-driven construction management in line with i-Construction. In May 2024, it obtained "DX Certified Business Operator" certification from the Ministry of Economy, Trade and Industry. R&D expenses totaled ¥624 million (¥526 million for civil engineering and ¥98 million for construction), continuing the development of automation and labor-saving technologies.
ENVALITH's Perspective
Performance Trend
Net sales rose to ¥135,207 million (up 9.6% year on year), marking the first increase in two periods. Operating profit surged to ¥7,150 million (up 208.4% year on year), and profit attributable to owners of parent jumped to ¥5,450 million (up 308.9% year on year), representing a substantial improvement. The construction business drove profit growth on progress in high-margin large-scale projects (segment profit of ¥6,987 million, up 170.5% year on year), while the civil engineering business turned profitable (segment profit of ¥318 million) following the completion of a shift away from unprofitable projects. On the external environment front, resilient public investment and a recovery in private-sector capital expenditure provided tailwinds, while elevated prices for construction materials and energy, along with tight labor supply-demand conditions, remain ongoing cost concerns. Operating profit over the past five periods has moved 7,957 → 4,487 → -9,404 → 2,318 → 7,150 (¥ million), showing a sharp recovery from the large loss recorded in FY2024 (ended May 2024) and regaining profitability approaching the level seen in FY2022 (ended May 2022). For FY2027 (ending May 2027), the company forecasts net sales of ¥137,000 million (up 1.3% year on year) and operating profit of ¥6,300 million (down 11.9% year on year), anticipating a decline as a reaction to the high-margin projects recorded in the prior period.
Growth Strategy
Under the Medium-Term Management Plan 2027, the company is pursuing improvement of its construction business structure alongside growth investments in real estate and energy in parallel, aiming for operating profit of ¥9.0 billion in FY2028 (ending May 2028).
The company continues to secure orders with an emphasis on profitability, focusing on large-scale projects such as logistics facilities, condominiums, and public facilities. Through achieving the forecast orders of ¥99,500 million for FY2027 (ending May 2027) (up 17.5% year on year), it aims to increase the order backlog and secure the earnings base for FY2028 (ending May 2028). It aims to maintain and improve profit margins through thorough quality control and construction management.
The completion of the replacement of unprofitable projects led to a return to profitability in FY2026 (ending May 2026). Orders for FY2027 (ending May 2027) are forecast to significantly recover to ¥40,000 million (up 119.9% year on year). The company will continue to strengthen its construction management system and pursue order-taking activities that secure appropriate profits, aiming to establish a sustainable and stable earnings base.
The company promotes the acquisition of high-quality income-generating real estate, diversification of asset types, and land readjustment projects, aiming to expand profits through both rental income (stock) and sales of development properties (flow). The balance of real estate for sale at the end of FY2026 (ending May 2026) was ¥19,293 million, an increase of ¥3,327 million year on year, and gains on sales are expected to be recognized in subsequent periods.
In addition to promoting in-house developed solar power generation projects, the company is newly acquiring secondary projects to strengthen a long-term, stable earnings base. JDC Energy LLC was newly incorporated as a consolidated subsidiary, and the business promotion structure has been established. The balance of power generation facilities for sale at the end of FY2026 (ending May 2026) was ¥16,411 million.
The company is promoting business development centered on the infrastructure renewal field utilizing functional adsorbents, aiming to nurture a future earnings base by resolving regional and environmental issues. At present, this is classified under the "Other" segment, which recorded a segment loss of ¥174 million and remains in the upfront investment stage.
The financial targets for FY2028 (ending May 2028) are operating profit of ¥9.0 billion, ROE of 8.0%, and DOE of 3.0-3.5%. In FY2026 (ending May 2026), the company achieved operating profit of ¥7,150 million and ROE of 7.9%, results close to the target level from the first year. FY2027 (ending May 2027) is forecast to see a decline in profit (operating profit of ¥6,300 million), making re-acceleration toward the final year a key challenge.
Last updated: July 17, 2026