New Constructor's Network Co., Ltd.

Business Details

Provides the SE Construction Method (a wooden seismic-resistant construction system based on allowable stress calculation) through a network of registered construction partners (637 companies as of the end of March 2026). Comprises the Housing sector, Large-Scale Wooden Construction (Non-Residential) sector, Environmental Design sector, and DX sector. Offers a one-stop service spanning issuance of structural calculation documents, sale of structural processed products (laminated timber, SE hardware, etc.), energy-saving calculation services, and BIM solutions. In the current consolidated fiscal year, sales to specific customers fell below 10% of consolidated net sales, and disclosure of information by major customer has therefore been omitted.

Recent Overview

Net sales increased, but profit declined by double digits mainly due to a sharp decrease in equity-method investment profit; a substantial profit increase is forecast for the next fiscal year

In FY2026 (ending March 2026), net sales reached ¥8,414 million (up 3.6% year on year), securing an increase in revenue, but operating profit fell to ¥152 million (down 14.6% year on year) and ordinary profit fell to ¥187 million (down 36.0% year on year), a substantial deterioration in profitability. The decline in ordinary profit was primarily due to a sharp drop in equity-method investment profit, which fell to ¥7 million from ¥94 million in the prior fiscal year. In the Housing sector, SE Construction Method shipment volume declined due to prolonged building confirmation application review periods, while net sales rose slightly on higher unit prices. The Environmental Design sector achieved high growth, with net sales up 39.0%, driven by the mandatory compliance with energy-saving standards. For FY2027 (ending March 2027), the company forecasts net sales of ¥9,310 million (up 10.6% year on year) and operating profit of ¥308 million (up 102.5% year on year), a substantial profit increase, based primarily on the consumption of order backlog stemming from the tightening of structural review standards for wooden detached houses effective April 2026 and the effects of the legal amendments.

Key Products

Growth Drivers

• Enhanced structural competitive advantage of the SE Construction Method due to the tightening of structural review standards for wooden detached houses (strengthened wall quantity calculation standards) effective April 2026, and an increase in next-fiscal-year shipments through consumption of order backlog (SE Construction Method shipments planned at 1,041 units, up 22.8% year on year)
• Continued expansion of demand for structural calculation and energy-saving calculation services due to the April 2025 revision of the Building Standards Act (mandatory compliance with energy-saving standards and revision of the No. 4 special exemption)
• Expanding demand for non-residential wooden construction driven by decarbonization policy (non-residential structural calculation shipments of 261 units, up 9.2% year on year)
• Continued high growth in the Environmental Design sector through expansion of the scope of the energy-saving calculation service (renovation, multi-unit residential, and non-residential properties), with next-fiscal-year net sales planned at ¥485 million (up 20.4% year on year)
• Favorable order trends for KINO BIM's MAKE ViZ (net sales up 13.0% year on year) and enhanced deployment of the MAKE DoC BIM-based building confirmation application support service
• Expanded design freedom advantage over conventional construction methods and acquisition of new construction partners through SE Construction Method Ver.3 (launched in June 2025)

Risks

• Continued decline in housing starts due to prolonged building confirmation application review periods (owner-occupied housing starts in fiscal 2025 totaled 195,111 units, down 12.6% year on year), exerting downward pressure on SE Construction Method shipment volume
• Risk of fluctuation in affiliate company earnings, as seen in the substantial decrease in equity-method investment profit (from ¥94 million in the prior fiscal year to ¥7 million in the current fiscal year)
• Risk of a pullback in large-scale projects (such as the Expo) at the consolidated subsidiary Suiho, and resulting volatility in net sales
• Pressure on profit margins from increased selling, general and administrative expenses (from ¥1,985 million to ¥2,127 million, up 7.2% year on year)
• Delays in construction starts due to crude oil and naphtha shortages, rising construction material prices, and material shortages stemming from escalating tensions in the Middle East (not factored into the earnings forecast)
• Risk of declining customer acquisition and shipment volumes among registered construction partners due to worsening economic sentiment amid inflation and rising interest rates
• Impact of fluctuations in lumber market prices on the average sales unit price of structural processed products