ASAHI KOGYOSHA CO., LTD.
1975・Prime Market・Construction
Business
Asahi Industries Co., Ltd. is a specialized engineering company founded in 1925, focused on air conditioning and sanitary equipment installation work. In its facility construction business, the company primarily handles the design, supervision, and construction of air conditioning, water supply and drainage/sanitary systems, and clean rooms, working on a wide range of projects from government agencies to large-scale private redevelopment projects via major general contractors. In its equipment manufacturing and sales business, the company manufactures and sells precision environmental control equipment for semiconductor and FPD manufacturing equipment, applying the air, water, and heat technologies developed through its facility construction work to cutting-edge industrial fields. In addition to multiple domestic branches and subsidiaries, the company has overseas local subsidiaries in Taiwan and Malaysia, and is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The equipment installation business is an order-based model in which contracts are secured through negotiated and competitive bidding, with revenue recognized upon completion of construction. The order backlog serves as a leading indicator of future sales, and the consolidated order backlog stood at ¥101,114 million as of the end of FY2026 (ending March 2026). The equipment manufacturing and sales business is a manufacturing model in which precision environmental control equipment is produced at the company's own factories and sold to semiconductor and FPD equipment manufacturers. Together, the two businesses recorded net sales of ¥104,823 million and operating profit of ¥11,682 million.
Company Strengths
Since its founding in 1925, the company has engaged in air conditioning and sanitary equipment installation work for 101 years, maintaining ongoing business relationships with major general contractors such as Obayashi Corporation, Shimizu Corporation, Kajima Corporation, and Takenaka Corporation. Orders received in FY2026 (ending March 2026) reached ¥116,496 million (up 25.1% year on year), and the negotiated (non-competitive bid) order ratio of 62.6% reflects the deep trust placed in the company by its clients.
The operating margin of the equipment installation business improved substantially, from approximately 5.0% in FY2024 (ended March 2024) to 11.9% in FY2026 (ending March 2026). This improvement reflects the success of construction rationalization and enhanced project profitability management, with consolidated operating profit expanding roughly 5.1-fold over four years, from ¥2,287 million in FY2022 (ended March 2022) to ¥11,682 million in FY2026 (ending March 2026).
As of the end of FY2026 (ending March 2026), the consolidated order backlog reached ¥101,114 million (up 13.1% year on year), of which the equipment installation business accounted for ¥94,259 million. The carried-over projects include several large-scale redevelopment projects scheduled for completion between 2027 and 2029, ensuring high visibility of revenue over the medium term.
ENVALITH's Perspective
Performance Trend
Revenue increased from ¥68,820 million in FY2022 (ended March 2022) to ¥104,823 million in FY2026 (ending March 2026), up +52.3% over five fiscal years. Operating profit expanded approximately 5.1-fold over the same period, from ¥2,287 million to ¥11,682 million. In FY2026 (ending March 2026), revenue rose +14.0%, operating profit +61.2%, and net income attributable to owners of parent +48.3%, with all metrics significantly exceeding initial forecasts. External factors such as steady growth in construction investment and continued private-sector capital expenditure provided a tailwind, but the primary driver of the sharp profit expansion was improved construction project profitability (gross profit margin on completed construction contracts rose from 14.9% to 20.9%). Operating cash flow improved substantially to ¥12,732 million from ¥1,276 million in the prior period, and the cash and cash equivalents balance also built up to ¥26,266 million.
Growth Strategy
Under the 19th Medium-Term Plan (2026-2029), the company will advance "Three Actions and Eight Initiatives" to build a foundation for future growth.
Through advanced construction profitability management and productivity improvement measures, the company achieved an operating profit margin of 11.1% and ROE of 19.9% in FY2026 (ended March 2026). Under the 19th Medium-Term Plan, the company targets net sales of ¥112,500 million and operating profit of ¥12,200 million for FY2027 (ending March 2027), aiming to maintain a high level of profitability.
The company continued investing in personnel expenses and R&D while utilizing wage increase promotion tax incentives and tax benefits related to the construction of its research institute. In FY2026 (ended March 2026), selling, general and administrative expenses increased from ¥8,108 million to ¥9,763 million, but this was absorbed by the expansion of gross profit.
Orders for products for FPD manufacturing equipment recovered, driven by increased demand from Chinese panel makers. The company is also focusing on expanding technology applications into adjacent fields, such as equipment for manufacturing high-functionality films utilizing drying technology. The operating loss in the equipment manufacturing and sales business narrowed from ¥(358) million to ¥(101) million.
To mark the company's 100th anniversary in April 2025, it formulated a new corporate philosophy, "ASAHI-PHILOSOPHY," and a long-term vision, "ASAHI-VISION 2050." The 19th Medium-Term Plan (April 2026 to March 2029) is based on "Three Actions" and "Eight Initiatives" as its basic policy, with a target order intake of ¥115,000 million for the next fiscal year.
Last updated: July 19, 2026