Shin Nippon Air Technologies Co., Ltd.
1952・Prime Market・Construction
Business
Shin Nippon Air Technologies Co., Ltd. traces its origins to its founding in 1930 (introducing technology from the US company Carrier Corporation), and is a facilities engineering-focused group handling design, supervision, and construction contracting for air conditioning, heating/cooling, ventilation, water supply/drainage, sanitary, and electrical equipment systems. In addition to domestic consolidated subsidiaries (Shin-Ku Service and Nippo Kogyo), the group has 10 overseas subsidiaries in China, Hong Kong, Singapore, Sri Lanka, Vietnam, and other locations, providing building facilities construction services across a wide range of fields including data centers, semiconductor plants, large-scale redevelopment projects, nuclear facilities, and pharmaceutical plants. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The basic model is a construction contracting business from order receipt through construction and completed delivery, with recognition of completed construction revenue as the main timing of revenue recognition. By combining negotiated orders (53.5% of the ratio in the current period) with competitive bidding orders, and through profitability screening at the order stage and enhanced project management, the gross profit margin on completed construction improved (from 15.98% in the previous period to 17.55% in the current period). The year-end backlog of construction orders carried forward of ¥148,747 million (consolidated) enhances visibility of future sales and forms a stable revenue base.
Company Strengths
Consolidated backlog of construction contracts at the end of FY2026 (ending March 2026) reached ¥148,747 million (up 18.2% year on year), while the non-consolidated figure also stood at a solid ¥125,834 million. Large-scale projects such as the Yaesu 1-chome North District Redevelopment (scheduled for completion in July 2029) and the new main building of the World Trade Center Building (scheduled for completion in February 2027) are accumulating in the order backlog, providing high visibility into medium-term revenue.
Gross profit margin on completed construction contracts improved from 15.98% in the previous fiscal year to 17.55% in the current fiscal year, and operating profit increased 33.3% year on year to ¥15,128 million. Enhanced management of materials and equipment and greater efficiency in the construction system, leveraging the proprietary logistics and processing network "SNK-SOLNet®" and the logistics management tool "ConstraX," have been recorded as achievements underpinning the improvement in profit margin.
Orders for nuclear facility construction work surged 80.0% year on year to ¥11,851 million. The company holds a track record of construction work for data centers (LINE Yahoo Shirakawa DC, Sonezaki DC, etc.) and semiconductor plants (Kioxia Iwate, Toshiba Device Himeji, etc.), and possesses the technical capabilities and construction systems to steadily capture robust capital expenditure demand.
ENVALITH's Perspective
Performance Trend
Revenue expanded consistently from FY2022 through FY2026, reaching ¥154,884 million in FY2026 (ending March 2026) (up 12.5% year on year). Operating profit grew from ¥6,881 million (FY2022) to ¥7,124 million, ¥9,235 million, ¥11,346 million, and ¥15,128 million, expanding 2.2x over five periods, while net income also grew from ¥5,403 million to ¥12,154 million. As an external factor, tailwinds from the market environment—including data center and factory investment as well as demand related to large-scale redevelopment and nuclear power—boosted performance. On the company's own side, more sophisticated profitability management at the order stage and the advancement of price pass-through drove margin improvement, with the operating profit margin rising from 8.2% in the prior period to 9.8% in the current period. For FY2027 (ending March 2027), the company forecasts revenue of ¥160,000 million and operating profit of ¥16,000 million, expecting the trend of higher revenue and higher profit to continue.
Growth Strategy
Under SNK Vision 2030 Phase III, the company is simultaneously advancing its existing businesses and building the foundation for its next growth phase, driven by the twin pillars of digital transformation and green initiatives.
Positioned as the culmination of the 10-year vision "SNK Vision 2030" and a bridge to the next long-term vision, the plan promotes initiatives centered on five materialities: "Value creation through digital technology," "Decarbonization and enhanced resilience," "Evolution of human capital and organizational foundations," "Establishment of a sustainable value chain," and "Creation of future growth areas."
The company continues to improve its gross profit margin on completed construction contracts through more rigorous profitability review at the order stage and enhanced project management. It achieved a gross profit margin on completed construction contracts of 17.55% in FY2026 (ending March 2026) (up from 15.98% in the prior fiscal year), with price pass-through amid rising material and labor costs strengthening the profit base.
Orders received for nuclear facility equipment construction expanded sharply to ¥11,851 million, up 80.0% year on year, with the order backlog also building up to ¥13,498 million (up 41.1% year on year). Amid an expanding market for nuclear-related demand driven by shifts in energy policy, the company's construction track record and technical capabilities in this field support mid- to long-term revenue contribution.
The company is accelerating digitalization accompanying the spread of AI, IoT, and BIM, promoting the establishment of work styles that enable focus on high-value-added tasks, visualization of business through common indicators and improved decision-making precision, and the accumulation and reuse of knowledge. The DX infrastructure built during Phase II will transition to an implementation and utilization phase under Phase III.
Under a minimum DOE of 5% and a progressive dividend policy through FY2030 (ending March 2030), the company continues to increase dividends, with an annual dividend of ¥110 (DOE 8.0%) in FY2026 (ending March 2026) and a projected ¥120 in FY2027 (ending March 2027). A stable financial base, with an equity ratio of 61.0% and cash and cash equivalents of ¥26,869 million, supports stable shareholder returns.
Last updated: July 19, 2026