KITAC CORPORATION
4707・Standard Market・Services
Business
Kitac Corporation was founded in 1973 and is a comprehensive construction consulting group based primarily in Niigata Prefecture. Together with its consolidated subsidiary Hirokawa Survey Co., Ltd., the company operates the Construction Consulting Business (approximately 89% of net sales), centered on geological survey, civil engineering design, and surveying services. Its main customers are government agencies, led by Niigata Prefecture (26.7% of net sales) and the Ministry of Land, Infrastructure, Transport and Tourism (26.0%), for which it undertakes work related to disaster prevention and mitigation measures and countermeasures against aging social infrastructure. In addition, the company operates the Web Solutions Business (approximately 5%), covering printed materials production and web advertising, and the Real Estate Leasing and Related Business (approximately 5%), which operates office buildings for lease and rental housing within Niigata Prefecture, resulting in a three-segment structure. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The Construction Consulting Business, accounting for approximately 89% of net sales, is an order-based model that receives outsourced work from national and local governments, providing geological surveys, civil engineering design, and surveying in an integrated manner. Gross profit margin stands at 31.0%. The Real Estate Leasing and Related Business (net sales of ¥186 million) generates stable cash flow from rental income on owned properties. The Web Solutions Business (net sales of ¥181 million) is growing through contracted printing and Web advertising work. The order backlog stood at ¥1,545 million (up 102.9% year on year), providing a structure that supports revenue in subsequent fiscal periods.
Company Strengths
Since its founding in 1973, the company has conducted geological surveys and civil engineering design in Niigata Prefecture for over 50 years, establishing its position as a leading company in the regional industry. Its two largest clients, Niigata Prefecture and the Ministry of Land, Infrastructure, Transport and Tourism, alone account for 52.7% of net sales, reflecting deep business relationships with government agencies.
The company holds registrations in both geological survey and construction consulting businesses, covering multiple fields including soil and foundation, geology, roads, rivers and erosion control, sewerage, and construction environment. Having obtained ISO9001 certification company-wide in 1998, it possesses comprehensive integrated capabilities from survey to design, along with extensive operational experience including in the environmental field.
In addition to independently developing a "disaster prevention simulation system utilizing numerical analysis technology," the company is promoting the development of an AI image analysis system through a business alliance with an IT venture company, as well as joint research with universities and other institutions. During the fiscal year under review, research and development expenses totaled ¥39 million, as the company continues to pursue technological differentiation.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years has expanded, from ¥2,545 million (FY2021) to ¥3,468 million (FY2025). Operating profit fell sharply from ¥725 million in FY2021 to ¥77 million in FY2022, and has since fluctuated significantly: ¥124 million (FY2023) → ¥363 million (FY2024) → ¥146 million (FY2025). In the interim period of FY2026 (ending October 2026) [interim period ended April 2026], revenue was ¥1,778 million (+1.1% year on year) and operating profit was ¥232 million (+19.7% year on year), indicating a recovery in core business earning power. This was supported by an improvement in the cost of sales ratio (from 65.0% to 63.6%) and reductions in selling, general and administrative expenses. The full-year forecast calls for revenue of ¥3,587 million (+3.1% year on year) and operating profit of ¥254 million (+61.9% year on year), representing a substantial increase in operating profit. As an external factor, the resilient trend in public works budgets is providing a tailwind.
Growth Strategy
Capturing demand from national resilience and disaster prevention initiatives while strengthening the asset base through subsidy utilization
Against the backdrop of the First Mid-Term Implementation Plan for National Resilience (a business scale of approximately \u00a520 trillion or more over the five years from FY Reiwa 8), the company is focusing on securing orders for disaster prevention/mitigation measures and social infrastructure aging countermeasure operations. It aims to maintain competitiveness by leveraging its integrated capabilities spanning survey through design and its extensive operational experience, including in the environmental field.
Utilizing a subsidy (approved amount of \u00a5213 million) from the Ministry of Economy, Trade and Industry's "Housing and Building Demand-Integrated Energy Conservation Investment Promotion Project," the company is carrying out large-scale renovations aimed at addressing the aging of its owned buildings and enhancing asset value. \u00a522 million was recorded as extraordinary income in the current interim period, with the remaining amount scheduled to be recorded in the fiscal year ending October 2027 (Reiwa 9).
Against the backdrop of expanding demand for web advertising, the company aims to expand orders for its comprehensive advertising and sales promotion support services that combine printed materials production with web advertising. Completed work revenue for the interim period of the fiscal year ending October 2026 (Reiwa 8) was \u00a5111 million (up 23.0% year on year), continuing its high growth trajectory, and the company aims to increase this business's share of total company-wide net sales.
Last updated: July 17, 2026