MITANI SANGYO Co., Ltd.

Business Details

The segment's main businesses are the design and construction of HVAC equipment, water supply and sanitary equipment, clean rooms, and fire-fighting equipment, as well as the design and construction of electrical and interior construction work, for new-build and renovation properties. Its primary areas are the Hokuriku region (Ishikawa and Toyama) and the Tokyo metropolitan area, serving customers such as office buildings, condominiums, hotels, factories, hospitals, and elderly care facilities. The Vietnam subsidiary Aureole Construction Software Development Inc. handles BIM-related operations, supporting design and quantity surveying with a technical staff of over 700 engineers.

Recent Overview

Orders received, net sales, and operating profit all reached record highs for the second consecutive year

In FY2026 (ending March 2026), large-scale new construction projects in the Tokyo metropolitan area progressed smoothly, with net sales increasing 4.9% year on year to ¥20,680 million and operating profit increasing 3.3% year on year to ¥2,320 million, both marking record highs for the second consecutive year. Orders received increased 31.1% year on year to ¥24,713 million, marking a record high for the second consecutive year, driven by the largest-ever new construction orders for research facilities and hospital facilities in both the Tokyo metropolitan area and the Hokuriku region. The order backlog also grew to ¥22,070 million (up 22.4% year on year), and net sales for the next fiscal year are forecast to increase 3.6% year on year to ¥21,432 million.

Key Products

Growth Drivers

• Robust orders for large-scale new construction projects for research facilities and hospital facilities in the Tokyo metropolitan area and the Hokuriku region (orders received of ¥24,713 million, up 31.1% year on year, a record high for the second consecutive year)
• Improvement in the leading indicator for next fiscal year's net sales due to the accumulation of an order backlog of ¥22,070 million (up 22.4% year on year)
• Enhanced competitive advantage through high-value-added projects such as proposals for ZEB-compliant, high-efficiency HVAC equipment utilizing ICT/IoT
• Expansion of orders for modeling operations for redevelopment, logistics facilities, and data centers by the Vietnam subsidiary's BIM Engineering Center (over 250 BIM engineers)
• Rationalization and efficiency through ICT utilization driven by DX promotion, and accumulation of on-site operational know-how and data
• Securing stable orders through years of accumulated construction equipment know-how in the Hokuriku region and expanded maintenance services

Risks

• Next fiscal year's (FY2027, ending March 2027) earnings forecast anticipates a slight decrease in operating profit to ¥2,300 million (down 0.9% year on year), with temporary disruptions in material procurement due to supply chain disruptions stemming from Middle East tensions and short-term delays in some projects
• Chronic labor shortages against a backdrop of an aging workforce and a lack of new young entrants in the construction industry, as well as constraints on construction capacity due to overtime work regulations
• Risk of increased construction costs due to rising raw material prices, energy costs, and logistics costs
• Increased costs for responding to environmentally friendly buildings against a backdrop of energy conservation and decarbonization trends
• Indirect impact of US tariff policy trends and geopolitical risks on trends in the construction-related industry