ENVALITH
日比谷総合設備株式会社 logo

Hibiya Engineering, Ltd.

1982・Prime Market・Construction

Official website
日比谷総合設備株式会社 logo
Hibiya Engineering, Ltd.1982

Business

Hibiya Engineering is a comprehensive facilities engineering company established in 1966, handling planning, design, supervision, and construction of air conditioning, sanitary, and electrical equipment on an integrated basis. Its consolidated subsidiary Hibiya Tsusho Co., Ltd. handles sales and maintenance of facility equipment, while Nikkei Co., Ltd. handles manufacturing and sales of facility equipment, forming a vertically integrated group structure spanning construction through equipment supply. Its main customers are major general contractors such as Takenaka Corporation, Taisei Corporation, and Shimizu Corporation, and it operates nationwide, centered on large-scale projects such as data centers, semiconductor-related facilities, urban redevelopment, and medical facilities. Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

Adopts a construction contracting model in which there is a time lag between order receipt and revenue recognition depending on the construction period. Against orders received of ¥103,906 million (equipment installation business) in the current period, the company has secured a backlog carried forward to the next period of ¥102,840 million, providing high visibility for revenue in the following period and beyond. Profit margins are managed through construction efficiency improvements leveraging BIM utilization, front-loading, and off-site construction, while group synergies are created through collaboration with equipment sales and manufacturing businesses within the group.

Company Strengths

As of the end of FY2026 (ending March 2026), the order backlog carried into the next fiscal year reached ¥102,840 million (Air Conditioning ¥50,233 million, Sanitary ¥33,066 million, Electrical ¥19,540 million), covering the majority of the projected next-period sales of ¥105,000 million. The structural time lag between order receipt and revenue recognition creates inherent sales stability, serving as a competitive advantage that enhances the reliability of earnings forecasts.

The company's ability to independently provide integrated services across the three work categories of air conditioning, sanitary, and electrical equipment aligns with the needs of main contractors and general contractors seeking a single point of contact for large-scale complex projects. In the current period's major projects (tentatively named Sapporo Kita 1 Nishi 5 Project, tentatively named Shibakoen 2-chome Project, etc.), simultaneous construction across the three work categories was also carried out, giving the company a construction operations foundation that is difficult for competitors to replicate in a short period.

The company continues to promote efficiency in design, construction, and maintenance based on BIM, along with front-loading and off-site construction. It invested ¥146 million in R&D expenses to verify liquid cooling technology, IoT, and energy management for data centers. These initiatives contributed to achieving an 11.7% operating margin in the equipment construction business for FY2026 (ending March 2026), an improvement of approximately 3 percentage points from the previous period.

ENVALITH's Perspective

Operating profit was ¥10,670 million (13.5% above the forecast of ¥9,400 million), and profit attributable to owners of parent was ¥8,681 million (18.9% above the forecast of ¥7,300 million), exceeding the company forecast across all profit line items. The operating margin improved by 3.0 points, from 8.3% to 11.3%, marking the highest level in the past five fiscal periods. Regarding the market environment, resilient demand related to data centers, semiconductor-related projects, and urban redevelopment served as a tailwind, but the main driver of margin improvement was the company's own strengthened profitability management and improved construction efficiency, which can be assessed as a structural improvement in earning power.

Under the 9th Medium-Term Management Plan (FY2027 (ending March 2027) to FY2029 (ending March 2029)), the financial targets for the final year (FY2029 (ending March 2029)) are net sales of ¥113,000 million, operating profit of ¥12,500 million, and ROE in the 12% range. Given the FY2026 (ending March 2026) results (operating profit of ¥10,670 million, ROE of 11.6%), the required incremental growth is limited, and given the ample order backlog of ¥111,583 million in orders received, the probability of achievement is high. On the other hand, the FY2027 (ending March 2027) operating profit forecast of ¥11,000 million (up 3.1% year on year) suggests a slowdown in growth, and attention is needed to whether the effects of profitability improvement have run their course.

Net sales in the equipment sales business were ¥5,281 million (down 25.4% year on year), and operating profit was ¥415 million (down 32.4% year on year), a significant decline, with fluctuations in intra-group transfer demand affecting performance. In addition, industry-wide issues such as elevated materials and equipment prices, delivery delays, rising labor costs, and difficulty securing personnel continue, and the risk that these external factors will pressure construction profitability has not been dispelled. The degree of sales dependence on the NTT Group also remains a company-specific risk that warrants continued monitoring.

Growth Strategy

Centered on data centers, renewal business, and regional strategy, the company aims for net sales of ¥113.0 billion under the 9th Medium-Term Management Plan

Capturing growth in the data center market, the company is expanding order volume in its facility construction business. Orders received in the facility construction business for FY2026 (ending March 2026) rose sharply to ¥103,906 million (up 23.6% year on year). Under the 9th Medium-Term Management Plan, the company aims to expand its business through the creation of new businesses.

The company is developing a carbon-neutral business through renewal ZEB conversion and energy-saving renovation of existing buildings. Positioned as a basic strategy of the 9th Medium-Term Management Plan under a regional strategy centered on the building stock, this initiative aims to diversify its stable order base.

The company continues to promote construction efficiency measures such as BIM utilization, front-loading, and off-site construction. This has contributed to an improvement in the operating margin to 11.3% in FY2026 (ending March 2026), up from 8.3% in the previous fiscal year, directly supporting competitiveness amid a labor shortage environment.

The company is promoting operational efficiency and company-wide DX through the utilization of generative AI, while also working to enhance the value of its human capital through strengthened recruitment activities, improved employee engagement, and promotion of women's advancement. This is positioned as a pillar of the management foundation strategy under the 9th Medium-Term Management Plan.

The annual dividend for FY2026 (ending March 2026) was substantially increased to ¥150 (from ¥94 in the previous fiscal year), with a dividend payout ratio of 37.4%. A 2-for-1 stock split was implemented in April 2026 to improve liquidity. In May 2026, the company resolved to acquire treasury shares of up to 2,100,000 shares for a total of ¥8,400 million. The 9th Medium-Term Management Plan sets a target ROE in the 12% range.

Last updated: July 19, 2026