ENVALITH
株式会社四電工 logo

YONDENKO CORPORATION

1939・Prime Market・Construction

Official website
株式会社四電工 logo
YONDENKO CORPORATION1939

Business

Shideniko Co., Ltd. is a comprehensive facility construction company based in Shikoku (listed on the Prime Market of the Tokyo Stock Exchange). The company handles distribution, transmission, electrical, instrumentation, air conditioning, piping, and information/communications construction works. It maintains a stable earnings base through distribution construction work for Shikoku Electric Power Transmission & Distribution Co., Inc. (42.2% of net sales), while also actively expanding into building facility construction in the greater Tokyo and Kansai areas. With 26 consolidated subsidiaries and 8 affiliated companies, the group operates a diversified business centered on facility construction, alongside leasing, solar power generation, and PFI (Private Finance Initiative) businesses. For FY2026 (ending March 2026), consolidated net sales are projected at ¥99,448 million, with operating profit of ¥8,822 million. Major customers include the Shikoku Electric Power Group, major general contractors, government agencies, and a wide range of private-sector companies.

Business Model

The construction and engineering business, which accounts for approximately 94% of sales, is composed of two pillars: stable orders derived from the electrical distribution work contract with Shikoku Electric Power Transmission & Distribution Co., Inc. (approximately 95% of orders come from contract-based work), and building equipment construction work obtained through competitive bidding and negotiated contracts. Revenue is recognized on a completed-contract basis, and the backlog of work carried forward (¥56,992 million as of the end of March 2026) serves as a leading indicator for the following period's sales. The solar power generation business (profit margin of 41.5%) and the leasing business provide complementary stable earnings, enhancing the overall earnings stability of the group.

Company Strengths

Sales to Shikoku Electric Power Transmission & Distribution Co., Inc. reached ¥42,013 million (42.2% of consolidated net sales), with 94.7% of electrical distribution construction orders derived from contracts with this company. Renewal work for aging facilities is expected to increase over the medium to long term, functioning as a stable order base. Non-consolidated order intake is on an expanding trend, reaching ¥44,017 million (+6.1% year on year).

Non-consolidated backlog of construction orders carried forward to the next period stood at ¥56,992 million as of the end of March 2026 (+19.5% versus the previous fiscal year-end). Electrical/instrumentation construction rose to ¥33,497 million (+22.4%) and HVAC/piping construction rose to ¥10,304 million (+23.8%), with accumulation in these major work categories underpinning the consolidated net sales forecast of ¥108,000 million (+8.6% year on year) for FY2027 (ending March 2027).

The equity ratio as of the end of March 2026 was 68.4% (improved from 65.1% at the previous fiscal year-end), with total net assets of ¥71,199 million. Fund procurement, aside from bank borrowings and corporate bonds at consolidated subsidiaries, is covered by internal funds, and cash and cash equivalents stood at ¥17,575 million. Financial stability is high, forming the foundation for the plan to generate ¥55.0 billion in cash over five years as set forth in the Medium-Term Management Policy 2030.

ENVALITH's Perspective

In FY2026 (ending March 2026), despite a revenue decline, operating profit and ordinary profit both increased, and with the recognition of ¥1,084 million in gains on sale of investment securities, profit attributable to owners of parent surged to ¥7,500 million (+45.0% year on year). On the other hand, the net profit forecast for FY2027 (ending March 2027) is ¥6,600 million (▲12.0% year on year), a decline, mainly due to the disappearance of extraordinary gains. On an operating profit basis, continued growth is expected at ¥9,400 million (+6.5%), making the assessment of recurring earnings power important.

The 'Mid-Term Management Guidelines 2030' set targets of ¥120,000 million in revenue, ¥11,000 million in operating profit, and ROE of 10.0% for FY2030. Given the significant gap from FY2026 (ending March 2026) results (revenue of ¥99,448 million, operating profit of ¥8,822 million, ROE of 11.0%), the effectiveness of expanding construction capacity in the Greater Tokyo and Kansai areas and human capital investment (¥20,000 million over five years) is called into question. Attention should also be paid to external environment risks such as soaring prices of materials and equipment and labor shortages, which increase the difficulty of cost management.

Under the 'Mid-Term Management Guidelines 2030,' the shareholder return policy has been raised from a consolidated dividend payout ratio of 40% or more to approximately 60%, with a DOE of approximately 5.0%. The annual dividend forecast for FY2027 (ending March 2027) is ¥84 per share (an increase of ¥7 year on year), with a payout ratio of 60.2%. The financial base remains solid, with an equity ratio of 68.4% and cash and cash equivalents of ¥17,575 million, but the ability to maintain dividends in the event of fluctuations in net profit is called into question. The market-value-based equity ratio has risen to 84.1% (from 61.0% in the previous period), so attention should also be paid to fluctuations in share price levels.

Growth Strategy

Under the Medium-Term Management Guidelines 2030, the company aims for net sales of ¥120,000 million and ROE of 10% in FY2030 (ending March 2031).

To capture robust construction demand in the Greater Tokyo and Kansai areas, the company is strengthening the construction capabilities of consolidated subsidiaries (Ai Denki Tsushin, Hiei Setsubi Kogyo, Yokoyama Kogyo, etc.). The carried-over order backlog for electrical and instrumentation work reached ¥33,497 million (up 22.4% from the previous fiscal year-end), and that for air conditioning and piping work reached ¥10,304 million (up 23.8%), forming the foundation for revenue growth in the next fiscal year.

Orders received for distribution work for the Shikoku Electric Power group increased to ¥37,519 million (up 6.5% year on year). Renewal work for aging facilities is expected to increase over the medium to long term, making it essential to secure an appropriately balanced construction workforce and improve profitability. The carried-over order backlog for the Shikoku Electric Power group reached ¥10,213 million (up 13.9% from the previous fiscal year-end).

Under the cash allocation policy of the Medium-Term Management Guidelines 2030, the company plans to invest ¥20,000 million in human capital over five years. Amid an industry-wide shortage of workers and engineers, the company continues to invest in education and training expenses (¥538 million on a non-consolidated basis). Productivity improvement through DX and AI utilization is also positioned as a key theme.

The company has raised its shareholder return policy from a consolidated payout ratio of 40% or more under the Medium-Term Management Guidelines 2025 to a consolidated payout ratio of approximately 60% and DOE of approximately 5.0% under the Medium-Term Management Guidelines 2030. The annual dividend is being raised in stages, from ¥77 (payout ratio 48.6%) in FY2026 (ending March 2027) to a forecast of ¥84 (payout ratio 60.2%) in FY2027 (ending March 2028). Total shareholder returns over the five-year period are planned at ¥20,000 million.

The numerical targets set under the Medium-Term Management Guidelines 2025 — net sales of ¥100,000 million, operating profit of ¥6,000 million, and ROE of 8.0% — were achieved one year ahead of schedule in FY2024 (ending March 2025). Even in FY2025 (ending March 2026), the final year of the plan, despite a decline in revenue, the company secured operating profit of ¥8,822 million and ROE of 11.0%, completing the plan with results exceeding the guidelines.

Last updated: July 19, 2026