Meiho Holdings,Inc.

Business Details

Provides construction consultant services such as compensation consulting, client (owner) support (construction management, supervision, cost estimation, and inspection for public works), traffic volume surveys, surveying, and design, mainly to national and local governments. The company has expanded its service area from its core of Gifu and Aichi prefectures to Shiga, Fukui, Saga, Hokkaido, and Hiroshima prefectures. The segment is composed of multiple group companies centered on Meiho Engineering Co., Ltd., and has a stable market base with government entities accounting for approximately 80% of clients. In October 2025, Mirai Seisaku Kenkyusho Co., Ltd. joined the group, strengthening the regional revitalization think tank function.

Recent Overview

Increased revenue and profit driven by new subsidiary effect and conversion of beginning-of-year order backlog into sales; margin improved to 18.8%

In the cumulative nine months of FY2026 (ending March 2026) (July 2025 to March 2026), the segment achieved increased revenue and profit, with net sales of ¥3,358 million (up 0.9% year-on-year) and segment profit of ¥633 million (up 8.6% year-on-year). Contributing factors included the sales boost from the entry of Mirai Seisaku Kenkyusho Co., Ltd., which joined the group in October 2025, as well as the steady conversion of the beginning-of-year order backlog into sales. Orders received also grew to ¥2,326 million (up 5.0% year-on-year) and the order backlog expanded to ¥1,408 million (up 8.5% year-on-year), indicating that the foundation for securing future sales is steadily being put in place. In addition, in connection with the acquisition of shares in Mirai Seisaku Kenkyusho Co., Ltd., the company recorded a gain on bargain purchase of ¥37 million as extraordinary income (not included in segment profit).

Key Products

Growth Drivers

• Steady public investment trends supported by the government's promotion of disaster prevention/mitigation and national resilience (FY2025 general account budget for public works-related expenses: ¥6,085.8 billion)
• Stable securement of sales through steady conversion of the beginning-of-year order backlog into sales (order backlog up 8.5% year-on-year)
• Expansion of business foundation and think tank functions through roll-up strategy, including Mirai Seisaku Kenkyusho Co., Ltd. (joined the group in October 2025)
• Geographic expansion of service area (from the core of Gifu and Aichi to Hokkaido, Hiroshima, Saga, etc.)
• Accumulation of future sales through continued growth in orders received (up 5.0% year-on-year)

Risks

• Risk of fluctuations in sales and profit due to delays in order timing in certain regions
• Timing mismatches in profit recognition due to the existence of operations applying the cost-recovery method
• Risk of reduced public works budgets or policy changes (government entities account for approximately 80% of clients)
• Need to monitor profitability improvement status in certain businesses, with a possibility of impairment loss recognition depending on future business performance
• Risk of increased costs due to goodwill amortization burden and post-merger integration (PMI) of newly consolidated subsidiaries