Tokyu Construction

Basic Information

Stock Code
1720
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
April 2003
Listing Year
October 2003
Official Website
https://www.tokyu-cnst.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Hazama Ando, Taisei, Obayashi, Shimizu, Haseko, Matsui Construction, Kajima, Tekken, Nishimatsu Construction, Okumura, Asunuma-Gumi, Toda, Kumagai Gumi, Toa Corporation, Toyo Construction, Century Tokyu Kogyo, Infroneer Holdings

Overview

Tokyu Construction is a quasi-major general contractor affiliated with the Tokyu Group, established in 2003. It leverages unique technologies primarily in urban development and railway-related construction, demonstrating strengths in regional redevelopment.

Current Situation

Tokyu Construction posted consolidated sales of approximately ¥331.4 billion and net assets of approximately ¥93 billion for the fiscal year ended March 2019, maintaining a stable business foundation. In addition to its core building operations, it excels in civil engineering, urban development, and railway-related works, actively securing large-scale redevelopment projects such as those in Shibuya. As part of the Tokyu Electric Railway Group, it benefits from a stable order pipeline and ensures competitiveness in railway construction through proprietary technologies. The company is advancing sustainability initiatives and social contribution activities, including the development of environmentally friendly construction methods. To diversify, it is focusing on renovations, housing, and mid-sized wooden structures. In the medium to long term, it positions urban redevelopment expansion and technological innovation as key growth drivers. Recently, it has strengthened its organization through personnel reassignments, aiming to enhance management efficiency and competitiveness. It is also expanding overseas construction activities to pursue global growth opportunities. Looking ahead, it plans to bolster digital technology adoption and decarbonization efforts in building projects, contributing to sustainable urban development by 2030.

Trivia

Interesting Facts

  • Established as the Tokyu Electric Railway Group's construction specialist
  • Involved in numerous major Shibuya redevelopment projects
  • Possesses proprietary technology in railway-related works
  • Handles wide range of construction sectors as a quasi-major general contractor
  • Newly established in 2003 after spin-off and reorganization from former Tokyu Construction
  • Differentiates from competitors with strengths in railway track works technology
  • Serves as core construction entity in holding company structure
  • Strategically focuses on environmentally considerate architecture
  • Collaborates with Tokyu Group's urban development and transportation businesses
  • Characterized by solid local foundation centered on Shibuya
  • Recently emphasizing DX to improve operational efficiency
  • Diversified expansion through multiple subsidiaries
  • Steady market growth in renovation business
  • Numerous track records in university and public facility construction
  • Proven expertise in railway facility maintenance

Hidden Connections

  • Primarily handles Tokyu Electric Railway's railway works, maintaining close technical ties.
  • Indispensable construction partner for Tokyu Group redevelopment projects like Shibuya Scramble Square.
  • Supports brand architectural quality through involvement in many Tokyu Group commercial facilities.
  • Promotes residential land development through collaboration with Tokyu Livable and Tokyu Fudosan.
  • Enables stable business in road-related works through partnership with Century Tokyu Kogyo.
  • Expands into Asian construction markets via domestic and international subsidiaries.
  • Environmentally considerate architecture technologies aligned with Tokyu Group's environmental strategy.
  • Deep ties with distribution group like Tokyu Department Store and Tokyu Hands in urban facility construction.

Future Outlook

Growth Drivers

  • Ongoing increase in urban redevelopment demand
  • Strong collaboration framework with Tokyu Group
  • Growing demand for railway facility maintenance
  • Market expansion for environmentally considerate architecture technologies
  • Operational efficiency gains from digitalization and DX
  • Diversification of mid-sized housing and renovation demand
  • Stable public infrastructure orders
  • Advancement of regionally focused services
  • Tailwinds from green building policies
  • Expansion potential in overseas business
  • Evolution of safety and quality management technologies
  • Strengthened participation in redevelopment projects

Strategic Goals

  • Achieve carbon neutrality through minimized environmental impact
  • Strengthen leadership in redevelopment projects
  • Reach over 90% DX adoption rate in construction
  • Complete seismic upgrading and safety enhancement of railway infrastructure
  • Sustainable management centered on coexistence with communities
  • Double sales in renovation and remodeling business
  • Achieve 20% overseas construction business ratio
  • Establish talent development and technology succession system
  • Nationwide rollout of regionally rooted services
  • Maximize competitiveness as a general contractor

Business Segments

Urban Redevelopment Business

Overview
Provides comprehensive support for public-private partnership urban redevelopment projects.
Competitiveness
Stable order base through collaboration with Tokyu Group
Customers
  • Local Governments
  • Urban Development Companies
  • Developers
  • Commercial Facility Operators
Products
  • Design and Construction of Large Complex Facilities
  • Commercial Facility Development
  • Residential Land Development
  • Infrastructure Maintenance

Railway-Related Works

Overview
Specializes in construction and maintenance of railway facilities.
Competitiveness
Proprietary track laying technology and collaboration with Tokyu Electric Railway
Customers
  • Railway Companies
  • Public Infrastructure Managers
  • Government Agencies
Products
  • Track Laying
  • Railway Facility Maintenance
  • Station Building Construction
  • Track Works

Housing Construction and Renovation

Overview
Offers high-quality housing construction and environmentally considerate renovations.
Competitiveness
Custom designs aligned with customer needs
Customers
  • General Customers
  • Real Estate Companies
  • Regional Development Firms
Products
  • Custom Home Construction
  • Wooden Housing Renovation
  • Energy-Saving and Seismic Retrofits

Civil Engineering Works

Overview
Undertakes and executes high public-value infrastructure development.
Competitiveness
Reliable site management and safety-first construction system
Customers
  • National and Local Governments
  • Road Administrators
  • Public Project Clients
Products
  • Dam Construction
  • Road and Bridge Construction
  • Infrastructure Maintenance

Design Consulting

Overview
Provides design support in architecture and urban planning.
Competitiveness
Practical design leveraging years of construction know-how
Customers
  • Construction Companies
  • Real Estate Developers
  • Public Institutions
Products
  • Architectural Design
  • Urban Planning Consulting
  • Environmental Impact Assessment

Environmental Management Business

Overview
Proper processing of construction waste and environmental solutions.
Competitiveness
Environmental technologies supporting circular economy
Customers
  • Construction Operators
  • Government Agencies
  • Corporations
Products
  • Waste Recycling
  • Environmental Conservation Planning
  • Energy-Saving Construction

Mid-Sized Commercial Facility Construction

Overview
Facility development contributing to local commercial revitalization.
Competitiveness
Technical capabilities for diverse commercial facilities
Customers
  • Commercial Facility Operators
  • Local Chambers of Commerce
  • Real Estate Management Companies
Products
  • Commercial Facility Design and Construction
  • Renovation
  • Store Remodeling

Building Renovation

Overview
Focuses on creating comfortable and safe living environments.
Competitiveness
Customer satisfaction-focused after-service
Customers
  • Homeowners
  • Corporate Clients
  • Real Estate Management Companies
Products
  • Housing Seismic Reinforcement
  • Eco Retrofit Works
  • Interior Renovation

Urban Infrastructure Development

Overview
Construction business supporting strengthening of community foundations.
Competitiveness
Rapid response and technical prowess rooted in local communities
Customers
  • Local Governments
  • Public Facility Managers
  • Road Management Organizations
Products
  • Bridge Construction
  • Transportation Facility Construction
  • Public Space Development

Construction Management Support

Overview
Management ensuring safety and quality at construction sites.
Competitiveness
Meticulous management system based on extensive construction experience
Customers
  • Construction Companies
  • Real Estate Development
  • Design Offices
Products
  • Site Safety Management
  • Quality Assurance Services
  • Schedule Management

Residential Land Development

Overview
Comprehensive residential land development and foundation preparation.
Competitiveness
Land utilization technology considering regional characteristics
Customers
  • Real Estate Developers
  • Development Companies
  • Housing Manufacturers
Products
  • Land Development
  • Infrastructure Development
  • Site Preparation Design

Safety and Environmental Solutions

Overview
Support for safe and environmentally considerate construction site operations.
Competitiveness
Total support leveraging Tokyu Group know-how
Customers
  • Construction Sites
  • Project Owners
  • Local Governments
Products
  • Safety Training
  • Environmental Impact Assessment
  • Waste Management

Competitive Advantage

Strengths

  • Strong business foundation of the Tokyu Group
  • Proprietary technologies in railway-related works
  • Strength in Shibuya area urban development
  • Extensive track record across diverse building fields
  • Stable sales and solid financial position
  • Regionally focused service deployment
  • High design and construction management capabilities
  • Advancement of environmentally considerate technologies
  • Powerful group synergies
  • Securing of excellent engineers and managers
  • Risk diversification through diversified business
  • Maintaining competitiveness in bidding
  • Strong relationships with local governments
  • Long-term participation in urban redevelopment
  • Thorough construction safety management

Competitive Advantages

  • Stable order source from Tokyu Electric Railway Group
  • Specialized technology in railway facility construction
  • Superior position in Shibuya area redevelopment
  • Solid financial base and high creditworthiness
  • Advanced initiatives in environmentally considerate architecture
  • Market adaptability from diverse business portfolio
  • Customer trust gained through regionally rooted operations
  • Differentiation via proprietary renovation business
  • Broad order experience in both public and private markets
  • Added value through specialized design consulting
  • Reduced labor accidents via thorough safety and health management
  • Improved construction efficiency through DX utilization
  • Strong public-private collaboration framework
  • Advancing regional development leveraging brand power
  • Technology succession through robust talent development

Threats

  • Risk of rising construction material prices
  • Constraints on construction capacity due to labor shortages
  • Competition for large projects from rivals
  • Increased construction costs from stricter environmental regulations
  • Potential order reduction from economic fluctuations
  • Need for rapid response to technological innovations
  • Business continuity risks from natural disasters
  • Pressure from public project budget cuts
  • Risks of delays or changes in urban development plans
  • Decline in competitiveness from delayed digitalization
  • Changes in global construction market dynamics
  • Accident risks from inadequate safety management

Innovations

2024: Introduction of Next-Generation Railway Track Construction Technology

Overview
Developed proprietary methods for railway track laying to improve construction efficiency.
Impact
Achieved shorter construction periods and cost reductions

2023: Expansion of Smart House Deployment for Environmentally Considerate Housing

Overview
Developed and marketed wooden housing series with superior energy-saving performance.
Impact
Improved customer satisfaction and reduced environmental impact

2022: Introduction of Digital Management System for Construction Sites

Overview
Developed and implemented real-time construction progress management system.
Impact
Enhanced work efficiency and safety management

2021: Development of Seismic Technology for Railway Structures

Overview
Practicalized structural design technology resilient to earthquakes.
Impact
Contributed to improved safety

2020: Advanced Recycling Technology for Construction Waste

Overview
Developed technology to increase reuse rate of construction waste.
Impact
Reduced environmental impact and costs

Sustainability

  • Improved construction waste recycling rate and waste reduction
  • Promotion of energy-saving building technologies
  • Active advancement of environmentally considerate urban development
  • CO2 emissions reduction program at construction sites
  • Ongoing collaboration with local communities