ENVALITH
太平電業株式会社 logo

TAIHEI DENGYO KAISHA,LTD.

1968・Prime Market・Construction

Official website
太平電業株式会社 logo
TAIHEI DENGYO KAISHA,LTD.1968

Business

Taihei Dengyo Kaisha, Ltd. is a specialized construction contractor listed on the Prime Market of the Tokyo Stock Exchange, founded in 1947. Its core business consists of two segments: large-scale plant construction work for thermal power, nuclear power, and environmental protection facilities (Construction Works segment), and periodic inspection, maintenance, and repair of various plant equipment (Repair Works segment). Its principal customers are heavy electrical and heavy industrial manufacturers—led by Mitsubishi Heavy Industries—and electric power companies; sales to Mitsubishi Heavy Industries amounted to ¥27,194 million (19.2%) of total net sales of ¥141,657 million. The company comprises 9 consolidated subsidiaries and 1 affiliate, and has also expanded overseas into the Philippines and Indonesia. In recent years, it has broadened its business domain by undertaking self-operation of biomass power plants and developing decommissioning technologies.

Business Model

The repair construction segment has a high negotiated-order ratio of 86.1%, securing stable orders based on long-term, continuous customer relationships with power companies, steelmakers, and others. The construction segment is mainly driven by competitive bidding, but by winning large-scale projects such as nuclear power and LNG thermal power plants, it builds up its order backlog and enhances the visibility of future sales. The combined order backlog of both segments reached ¥181,113 million (as of the end of March 2026), equivalent to approximately 1.3 years of sales.

Company Strengths

The repair construction division maintains an extremely high tokumei (sole-source/negotiated) order ratio of 86.1% (FY2026, ending March 2026), supported by stable, long-term ongoing relationships with electric power companies, steel manufacturers, and other clients. In FY2026 (ending March 2026), the repair construction division recorded net sales of ¥97,125 million and segment profit of ¥16,113 million (profit margin of 16.6%), maintaining high profitability.

Consolidated order backlog at the end of FY2026 (ending March 2026) stood at ¥181,113 million (up 43.9% year on year). Both divisions contributed to the increase, with the construction division at ¥111,081 million (up 69.0% year on year) and the repair construction division at ¥70,032 million (up 16.7% year on year). The order backlog includes large-scale projects scheduled for completion from 2030 onward, providing high visibility into medium-term sales.

The company has a long track record of construction, repair, and safety-related work at nuclear power plants, and has secured large-scale projects such as the construction of specified serious accident response facilities for Tokyo Electric Power Company Holdings (TEPCO HD) (scheduled for completion in December 2030). In the decommissioning field, the company has continued joint research with Fukui University of Technology since fiscal 2017 on gel-blast decontamination methods through industry-academia collaboration, aiming to establish technological superiority.

ENVALITH's Perspective

FY2026 (ending March 2026) revenue of ¥141,657 million, operating profit of ¥14,839 million, and net income of ¥11,902 million all represent the highest levels of the past five fiscal years. Revenue rose 12.7% year on year, operating profit rose 13.8%, and net income rose 22.0%, with growth in both revenue and profit accelerating. As an external tailwind, expanding demand for nuclear power plant restarts and new LNG thermal power construction, driven by the concretization of the 7th Strategic Energy Plan and the GX2040 Vision, has provided support. The sharp increase in the order backlog is drawing attention as a leading indicator suggesting further business expansion ahead.

Cash flow from operating activities in FY2026 (ending March 2026) was an outflow of ¥5,817 million (versus an outflow of ¥2,525 million in the prior period), marking the second consecutive year of negative operating cash flow. The main cause was a ¥20,170 million increase in trade receivables, contract assets, and contract liabilities, reflecting the expansion of working capital accompanying the rapid growth in orders and sales. The balance of cash and cash equivalents at period-end stood at ¥35,169 million (down ¥6,935 million from ¥42,104 million at the end of the prior period). The financial position remains sound with an equity ratio of 72.1%, but continued attention is warranted regarding funding needs as the order backlog continues to build up.

The consolidated earnings forecast for FY2027 (ending March 2027) calls for revenue of ¥160,000 million (up 12.9% year on year) and operating profit of ¥17,400 million (up 17.3%), indicating continued high growth. Achieving the new medium-term management plan's (FY2026–FY2028) target of revenue exceeding ¥180.0 billion in FY2028 would require approximately an additional 12.5% growth beyond the FY2027 (ending March 2027) forecast. While business expansion through M&A (such as making Toei Giko a subsidiary) and the establishment of new subsidiaries will be key to achieving the plan, securing and developing construction personnel remains the biggest bottleneck risk.

Growth Strategy

Aiming for consolidated net sales of ¥180.0 billion or more in FY2028 (ending March 2029) through four growth pillars: nuclear power restart, LNG thermal power, M&A, and overseas business

Orders and sales for nuclear power generation facility construction increased in both the construction and repair segments. Orders in the construction segment surged to ¥89,865 million (up 65.7% year on year) due to an increase in nuclear power and environmental protection equipment construction. The 7th Strategic Energy Plan's policy of maximizing nuclear power utilization supports medium- to long-term demand.

Increased orders for commercial thermal power generation facility construction contributed to the expansion of orders in the repair construction segment (¥107,127 million, up 7.6% year on year). The company plans to capture new demand such as construction work related to hydrogen and ammonia co-firing for decarbonization.

The company made Toei Giko Co., Ltd. a wholly owned subsidiary effective April 17, 2026 (acquisition cost of ¥1,250 million), acquiring specialized personnel and technology in the welding repair and maintenance field. Through the establishment of Rokkasho Plant Engineering Co., Ltd. (planned for July 2026, with an 80% equity stake), the company is also expanding into the nuclear backend field. Under the new medium-term plan, the company intends to continue active business investment including M&A.

Overseas construction sales in FY2026 (ending March 2026) expanded to ¥6,925 million (up 15.9% year on year), continuing the growth trend. The new medium-term management plan also positions overseas business expansion as one of the growth pillars, aiming to apply technology and track record cultivated domestically to overseas plant markets.

Against the backdrop of progress in DX and GX, the company is promoting entry into new fields such as electrical, instrumentation, insulation, and painting construction for data centers and semiconductor-related facilities. The new medium-term management plan explicitly states the expansion of business areas including nuclear power, decarbonization, semiconductors, and data centers.

Last updated: July 19, 2026