Asia Air Survey Co., Ltd.

Business Details

The company mainly serves central government agencies, local governments, and public utilities such as electric power companies, and develops its business through two pillars: the Social Infrastructure Management Business (roads, railways, energy, administrative support, etc.) and the National Land Conservation Consulting Business (rivers, erosion control, forests, environmental conservation, etc.). Based on spatial information technologies such as aerial surveying, laser measurement, GIS, and BIM/CIM, the company provides value through the advancement of infrastructure maintenance and management via DX and AI utilization, and the resolution of social issues. The Group is a single-segment company composed of the company, its subsidiaries, and affiliated companies.

Recent Overview

Interim period saw lower sales and profit due to public budget delays and rising labor costs; full-year forecast unchanged

In the interim period of FY2026 (ending March 2026) (October 2025 to March 2026), orders received declined to ¥16,289 million (down 12.2% year on year) and net sales fell to ¥23,627 million (down 3.9% year on year) due to delays in the enactment of annual public works budgets and sluggish growth in renewable energy-related investment. Due to rising prices across various costs and increased personnel expenses, operating profit fell to ¥3,447 million (down 10.2% year on year), and interim net income attributable to owners of parent declined to ¥2,081 million (down 14.4% year on year), with profit declining at every stage. On the other hand, following the newly consolidated Airport Service Co., Ltd. in October 2025, short-term borrowings increased by ¥11,620 million (total assets expanded to ¥53,049 million). The full-year earnings forecast (net sales of ¥45,000 million, operating profit of ¥3,000 million) remains unrevised. The Social Infrastructure Management Business remained solid, with sales of ¥14,540 million (up 1.0% year on year).

Key Products

Growth Drivers

• Steady public investment against a backdrop of demand for disaster prevention, national resilience, and infrastructure renewal (including formulation of the "First Mid-Term Implementation Plan for National Resilience")
• Increase in DX-related projects such as 3D city models, GIS, and digitization of road and sewerage ledgers, driven by digitalization and smart city promotion by local governments
• Promotion of implementation of digital twin and smart city-related services through a strategic partnership with Adsol Nissin Corporation
• Expansion of business areas through M&A (making F Water Management Co., Ltd. and Airport Service Co., Ltd. subsidiaries)
• Diversification of the business portfolio through expansion into new business areas such as Water PPP and sensing robots
• Growing demand for geospatial information technology driven by continued public investment in security enhancement, national resilience, aging infrastructure response, and labor shortage countermeasures

Risks

• Ongoing industry-wide labor shortages and rising material and labor costs, posing a risk of pressure on profitability
• Seasonal fluctuation risk, whereby sales are concentrated in the second quarter due to the special nature of public sector demand (the first, third, and fourth quarters are relatively low)
• Continued equity-method investment losses (¥171 million in the interim period of FY2026, ending March 2026), pressuring ordinary profit
• Risk that delays in the enactment of annual budgets related to public works affect the timing of order intake and sales recognition (the main cause of the 12.2% decline in interim orders received)
• Risk of rising financial leverage and a declining equity ratio (from 55.4% to 44.3%) due to a substantial increase in short-term borrowings (up ¥11,620 million from the end of the previous period to ¥15,120 million)
• Risk of impact on public investment budgets due to macroeconomic uncertainty, including the effects of U.S. trade policy and fluctuations in financial and capital markets
• Full-year operating profit forecast of ¥3,000 million falls short of the targets in the Medium-Term Management Plan 2026 (net sales of ¥45.0 billion or more, operating profit of ¥3.0 billion or more)