DAISAN CO.,LTD.

Business Details

Provides scaffolding construction services and parts rental using wedge-type scaffolding such as "Bike-Ashiba®". Main customers are major housing manufacturers, covering detached houses, multi-family housing, and condominiums, as well as large-scale buildings such as public facilities, logistics warehouses, and lodging facilities. Full-year net sales for FY2026 (ending March 2026) were ¥7,669 million, accounting for approximately 68.8% of consolidated net sales, making it the core business. The strategic pillars are expanding the construction workforce through active utilization of specified skilled foreign workers and improving profitability through promotion of orders at appropriate prices.

Recent Overview

Sales increased 6.0% year on year, but gross profit declined slightly due to upfront personnel cost investment.

In the full year of FY2026 (ending March 2026), amid continued declines in housing starts, orders from major housing manufacturer clients overall remained roughly in line with the same period of the previous year. Through expanding share with existing customers and promoting orders at appropriate prices, net sales reached ¥7,669 million (up 6.0% year on year). On the other hand, personnel cost increases associated with strengthening construction capacity in anticipation of future order growth occurred ahead of the benefit, resulting in a slight decline in gross profit to ¥2,118 million (down 0.7% year on year). New housing starts declined significantly overall, with owner-occupied housing down 12.6%, rental housing down 13.5%, and condominiums for sale down 12.6%.

Key Products

Growth Drivers

• Expanding share with existing major housing manufacturer customers and improving profitability by promoting orders at appropriate prices
• Expanding the construction workforce by developing specified skilled foreign workers into chiefs (foremen) and enabling early effective contribution of overseas personnel
• Responding to expansion of the order base through active recruitment of construction personnel
• Expanding orders by improving the quality of the scaffolding parts rental service
• Diversifying the order base by acquiring new customers
• Opportunity for the company to concentrate share as consolidation progresses in the scaffolding construction industry

Risks

• Continued decline in new housing starts (FY2026: owner-occupied housing down 12.6%, rental housing down 13.5%, condominiums for sale down 12.6%)
• Risk that increased personnel costs associated with strengthening construction capacity will squeeze profit ahead of benefit
• Sluggish demand across the housing industry overall due to persistently high construction material prices and labor shortages
• Structural long-term decline in demand for detached housing construction (declining birthrate, aging population, population decline)
• Risk of profitability deterioration due to continued rise in labor and personnel-related costs
• Constraints on construction capacity and difficulty in recruitment due to retirement of skilled workers