ENVALITH
株式会社 環境管理センター logo

ENVIRONMENTAL CONTROL CENTER CO.,LTD.

4657Standard MarketServices

株式会社 環境管理センター logo
ENVIRONMENTAL CONTROL CENTER CO.,LTD.4657

Business

Environmental Control Center Co., Ltd. is a corporate group (3 consolidated subsidiaries and 1 affiliate) founded in 1971, with the Environmental Measurement Certification Business at its core. The company provides comprehensive environmental services spanning 13 fields, ranging from measurement and analysis across all environmental media—air, water quality, soil, noise, vibration, and odor—to Environmental Assessment, soil contamination remediation Construction, asbestos removal Construction, Policy Consulting, Agriculture-Related Testing, and energy-saving support. Its main customers are government agencies and private companies, and in the 56th fiscal period (FY2025, ended June 2025), the proportion of sales to private-sector customers reached 80.1%, reflecting continued expansion of its private-sector customer base. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

A revenue model built on the Environmental Measurement Certification Business under the Measurement Act, expanding from measurement and analysis data into peripheral areas such as environmental assessment, soil contamination remediation construction, asbestos removal construction, policy consulting, and agricultural testing. Of the ¥6,099 million in net sales for the 56th fiscal period, the Construction segment grew to ¥1,860 million (up 109% year on year), becoming the largest segment. The company is reducing its dependence on government clients while increasing the proportion of private-sector customers, aiming to diversify its revenue base.

Company Strengths

Since its founding in 1971, the company has operated an environmental measurement certification business covering all environmental media including air, water quality, soil, noise, vibration, and odor. It obtained ISO9001 (1997), ISO14001 (1998), and ISO/IEC17025 (2001) certifications, and has a track record of continuously expanding its technical scope, from ultra-trace chemical substance analysis to radioactive tritium analysis (2021).

In FY56, sales in the Construction field reached ¥1,860 million (up ¥969 million year on year), the largest among all 13 fields, accounting for 30.5% of total sales. The company handles soil contamination remediation construction, asbestos removal construction, and water supply/drainage and air conditioning equipment construction, and has built up a track record of large-scale projects, including recording sales of ¥1,200 million (19.7% of the total) to Kumagai Gumi Co., Ltd.

At the end of FY56, the order backlog in the Assessment field stood at ¥1,056 million (up ¥147 million from the previous fiscal year-end), the largest among all fields. Centered on environmental impact assessments and natural environment surveys, the company has captured demand from private-sector development projects, with orders received of ¥981 million (up ¥248 million year on year), maintaining an expansionary trend. This has formed a stable order base expected to be recognized as sales in subsequent periods.

ENVALITH's Perspective

Cumulative Q3 revenue of ¥4,319 million represents only 86.5% progress against full-year guidance of ¥6,200 million, requiring ¥1,881 million in revenue recognition in the remaining quarter. Given the seasonal characteristic of roughly one-third of annual revenue concentrating in March, achieving the full-year target remains structurally feasible; however, since large-scale Construction projects are scheduled for recognition from next fiscal year onward, the focus falls on the Q4 revenue build-up capacity. Against full-year operating profit guidance of ¥340 million, cumulative Q3 operating profit already reached ¥341 million, and this profit-side achievement, already exceeding full-year guidance, warrants positive recognition.

By breakdown, the order backlog shows Construction accounting for ¥2,599 million (59.9% of the total), indicating a high degree of concentration in a single segment. While Construction projects tend to be large in scale, they carry risks of construction delays, cost overruns, and provisions for losses on contracts. External factors such as persistently elevated construction material prices and labor shortages could push up construction costs, warranting careful assessment of whether the quantitative expansion of the order backlog will translate directly into profit.

Cumulative Q3 interest expense was ¥22 million (versus ¥14 million in the same period of the prior year), and commission fees paid were ¥26 million (versus ¥1 million), pushing total non-operating expenses to ¥49 million (versus ¥23 million), roughly doubling. Short-term borrowings expanded to ¥1,530 million (versus ¥880 million at the prior fiscal year-end) and long-term borrowings to ¥575 million (versus ¥187 million), while the equity ratio declined to 38.3% (versus 42.7% at the prior fiscal year-end). Although liquidity is secured through utilization of the ¥2,000 million commitment line, in a rising interest rate environment there is a risk that further increases in financial costs could pressure ordinary profit.

Growth Strategy

Under the second medium-term management plan (FY2025–FY2027, ending June), the company is pursuing concentrated investment in growth areas, DX, and enhancement of human capital.

Cumulative orders received for the first nine months reached ¥2,704 million (up 407.1% year on year), with an order backlog of ¥2,599 million. Large-scale projects ordered in the current fiscal year are scheduled to be recognized as revenue from next fiscal year onward, which is expected to directly contribute to revenue expansion in FY2027 (ending June 2027).

Cumulative nine-month sales in the Soil & Groundwater Survey segment reached ¥850 million (up 37.2% year on year), with orders received of ¥931 million (up 44.9%), reflecting strong growth. The company is capturing demand from private companies for the sale and purchase of former factory sites, and the Assessment & Policy Consulting order backlog also remained at a high level of ¥943 million.

Under the second medium-term management plan, the company has set human capital value enhancement, new business promotion, and DX strategy as key priority measures. Selling, general and administrative expenses increased to ¥940 million (up 1.9% year on year), reflecting continued investment in human resources and systems.

In March 2026, the company renewed a commitment line agreement totaling ¥2,000 million with five partner banks. This arrangement addresses seasonal working capital needs (funding requirements in April–May prior to the collection of accounts receivable) and establishes a framework to maintain stable financial liquidity.

Last updated: July 17, 2026