ENVALITH
株式会社ダイサン logo

DAISAN CO.,LTD.

4750Standard MarketServices

株式会社ダイサン logo
DAISAN CO.,LTD.4750

Business

Daisan Co., Ltd. was founded in 1975 and developed the wedge-type low-rise temporary scaffolding system "Bike-Ashiba®" in 1980, establishing itself as a specialized manufacturer and construction company for temporary scaffolding. Domestically, the company operates a Construction Service Business (net sales of ¥7,669 million) with major home builders as key customers, and a Manufactured Goods Sales Business (net sales of ¥1,009 million) handling construction hardware and temporary equipment. It also conducts Overseas Business (net sales of ¥2,399 million) through its Singapore subsidiary Mirador Building Contractor Pte. Ltd. Consolidated net sales for FY2026 (ending April 2026) totaled ¥11,139 million. The company has a vertically integrated business structure covering everything from product planning, development, and production to construction and rental.

Business Model

The company combines a "Construction Service" that manufactures its proprietary Bike-Ashiba® parts and provides them, together with installation, to major housing manufacturers, with a "Manufactured Goods Sales" business that sells and rents parts to external scaffolding contractors. In the Construction Service Business, personnel (installation staff) are the key asset, and securing orders at appropriate prices and expanding installation capacity are the keys to earnings. Demand for the rental service continues against a backdrop of persistently high material prices, and it also functions to maintain and expand customer touchpoints. Overseas, the company secures a high gross margin (31.5%) in scaffolding and ancillary work for plants in Singapore.

Company Strengths

Bike-Ashiba®, developed in-house in 1980, is a product certified by the Temporary Structures Association, and the company has built a vertically integrated model that completes everything from product planning, design, and manufacturing to construction and rental in-house. Construction capacity has expanded to 1,306 thousand square meters (109.0% year-on-year), giving the company an advantage in both parts supply capability and construction systems that competitors cannot easily replicate in the short term.

The main customers of the Construction Service Business are major housing manufacturers, and even amid an environment where housing starts overall have declined significantly, order volume was maintained at roughly the same level as the same period of the previous year. Through expanding share among existing customers and promoting orders at appropriate prices, Construction Service revenue for FY2026 (ending March 2026) [translator note: source states 2026年4月期, rendered per source] reached ¥7,669 million, up 6.0% year-on-year.

As a result of actively promoting the recruitment and training of Japanese and Specified Skilled Worker foreign construction staff, the number of staff on the roster at the end of FY2026 (ending April 2026) reached the highest level in the past 10 years. The company has established a unique program to train Specified Skilled Worker foreign staff to become chiefs (site foremen), simultaneously achieving both an expanded construction workforce and early development of capable personnel.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company secured revenue growth to ¥11,139 million (up 2.8% year on year), but operating income fell sharply to ¥268 million (down 27.5% year on year). While gross profit remained nearly flat at ¥3,204 million, selling, general and administrative expenses expanded to ¥2,935 million (up 3.4% year on year), which was the main cause. In particular, salaries and allowances increased to ¥1,407 million (up 4.4% year on year), reflecting front-loaded personnel cost increases associated with strengthening construction capacity in anticipation of future order growth. The FY2027 (ending March 2027) forecast for operating income of ¥280 million (up 4.1% year on year) anticipates a recovery, but its achievability warrants close monitoring given the ongoing cost increase trend.

In FY2026 (ending March 2026), new housing starts declined sharply overall, with owner-occupied housing down 12.6%, rental housing down 13.5%, and condominiums for sale down 12.6%. External factors compounding this included persistently high construction material prices, labor shortages, and the impact of the April 2025 revision to the Building Standards Act. Against this headwind in the market environment, it is commendable that the Construction Service Business achieved revenue growth of 6.0% year on year, while the Manufactured Goods Sales Business was directly affected by market conditions, declining 14.5% year on year. Achieving the FY2027 (ending March 2027) revenue forecast of ¥12,000 million (up 7.7% year on year) will require either a recovery in housing starts or further market share expansion, and downside risk remains depending on the external environment.

As a subsequent event, on April 21, 2026, the company acquired all shares of Penguin Engineering & Construction Pte. Ltd. for ¥249 million. By bringing in this company, which engages in engineering business such as piping installation for major petrochemical plants, the company expects to expand the scale of its Overseas Business and increase combined material-and-labor orders in the engineering field. On the other hand, the amount and amortization method of goodwill have not yet been finalized, and integration costs and advisory fees (estimated at ¥13 million) will also be incurred. The FY2027 (ending March 2027) forecast for ordinary income of ¥220 million (down 24.4% year on year) anticipates a substantial decline in profit, suggesting that the impact of acquisition-related costs may be factored into the earnings forecast.

Growth Strategy

The Fourth Medium-Term Management Plan 'Reborn' advances three pillars simultaneously: deepening the core business, overseas M&A, and human resource development

The company continues to negotiate orders at appropriate prices with major home builders to improve profitability, while expanding its order base through greater share of existing customers and acquisition of new customers. In FY2026 (ending March 2026), Construction Service Business sales reached ¥7,669 million (up 6.0% year on year), achieving sales growth even amid a decline in housing starts.

The company is developing specified skilled worker foreign nationals into foreman-level personnel to accelerate the readiness of overseas talent, building a construction framework capable of responding to order growth. It is also pursuing human resource development through Japanese-style driving instruction, Japanese language education, and safety education at YUZURU DRIVING SCHOOL, established by the Indonesian joint venture PT DAISAN MINORI INDONESIA.

On April 21, 2026, the company acquired all shares of Penguin Engineering & Construction Pte. Ltd. for ¥249 million. By incorporating an engineering business (piping, welding, mechanical work, etc.) for major petrochemical plants, the company aims to drive expansion of combined materials-and-labor orders through synergies with existing subsidiaries Mirador Building Contractor and Golden Light House Engineering.

The company aims to increase scaffolding parts sales volume by capturing new customers amid rising rental demand due to persistently high material prices, while proposing that continuing rental customers switch to purchasing parts. It is also promoting active sales expansion of ancillary products and services in parallel. In FY2026 (ending March 2026), the business struggled, with sales of ¥1,009 million (down 14.5% year on year) due to market conditions.

The company is working to improve the efficiency of administrative operations, primarily in the Overseas Business, through the use of digital technology, aiming to control fixed costs and secure profitability. It is also promoting expansion of SES and contracted development in its digital business in Indonesia, aiming to contribute to an industry facing worsening labor shortages while achieving sustainable growth for the group.

Last updated: July 19, 2026