Comsys Holdings

Basic Information

Stock Code
1721
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
September 2003
Listing Year
September 2003
Official Website
https://www.comsys-hd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Mirait One, JESCO Holdings, Hikari Holdings, Syncreer, Haseko, Excio G, Kanda Communications Equipment, Oei Electric

Overview

Comsys Holdings is a major construction industry holding company established in 2003, with a solid position in the telecommunications construction sector centered on Japan Comsys.

Current Situation

Comsys Holdings recorded consolidated sales of approximately 563.3 billion yen, operating profit of approximately 30.9 billion yen, and net profit of approximately 19.3 billion yen for the fiscal year ended March 2023, maintaining solid performance centered on telecommunications equipment construction projects. As one of Japan's top telecommunications construction companies, it undertakes a wide range of projects from large-scale works such as submarine cable laying and telecommunications tower construction to residential telephone line installations. In recent years, it has also focused on IT-related design, construction, and maintenance operations, aiming for sustainable growth. With prudent management unaffected even by the bubble era, it boasts ample cash deposits and a high equity ratio, ensuring a stable financial base. The 'Comsys Vision NEXT STAGE 2023' announced in 2019 sets a target of over 600 billion yen in sales, with efforts to improve management efficiency and strengthen new businesses. It is also advancing management integration including group companies to expand competitiveness. Sustainability initiatives are underway, including contributions to local communities and reduction of environmental impact.

Trivia

Interesting Facts

  • One of the few companies handling submarine cable laying as telecommunications infrastructure construction.
  • Highly regarded in the industry as an NTT-certified comprehensive electrical telecommunications business operator.
  • Maintained prudent management with minimal impact from the bubble era or IT bubble.
  • Over 20 consolidated subsidiaries, conducting business widely across Japan.
  • Head office located in Higashigotanda, Shinagawa-ku, Tokyo.
  • Number of employees reached 17,512 in the fiscal year ended March 2023.
  • Listed on the Tokyo Stock Exchange Prime Market since IPO and included in the Nikkei 225.
  • Deploys a fusion business model of information and communications field and construction industry.
  • Focusing on design, construction, and maintenance in the IT field to develop new markets.
  • Possesses strong group companies such as Japan Comsys.

Hidden Connections

  • Major telecommunications construction company in competitive and collaborative relationship with Excio Group and Mirait One.
  • Has sales scale similar to major general contractors while specializing in the telecommunications field of construction.
  • Participates extensively in NTT-related equipment construction, serving as a key company supporting domestic telecommunications infrastructure.
  • Major shareholders include Sumitomo Realty & Development and Meiji Yasuda Life, indicating deep ties to real estate and finance sectors.
  • Actively promoting subsidiary management integration to maximize group synergies.
  • High investor attention as a constituent of Nikkei 400 Index and Nikkei 225.
  • Strengths in specialized works such as telecommunications towers in mountainous areas and dedicated telecommunications tunnel construction.
  • Nationwide expansion from Shinagawa-ku head office, also providing regionally rooted construction services.

Future Outlook

Growth Drivers

  • Expansion of 5G and 6G telecommunications infrastructure demand
  • Service expansion through IT systems and DX promotion
  • Demand for telecommunications infrastructure renewal from local governments
  • Increase in equipment construction for super high-rise buildings and smart cities
  • Promotion of environmental and energy-saving technology introduction
  • Rising demand for security networks
  • Increase in submarine cable and telecommunications tunnel construction
  • Active entry into new business fields
  • Ample investment capacity from stable financial base
  • Synergy enhancement through domestic and international group reorganization

Strategic Goals

  • Growth to 700 billion yen in sales
  • Achieve over 30% ratio of IT and DX-related businesses
  • Over 50% energy-saving rate for telecommunications equipment
  • Establishment and promotion of sustainable construction technologies
  • Maximization of integration effects from group companies
  • Deployment of high value-added services
  • Enhancement of employee technical skills and promotion of diversity
  • Strengthening coexistence with local communities
  • Further reinforcement of safety and quality management systems
  • Partial entry into overseas telecommunications infrastructure markets

Business Segments

Telecommunications Equipment Construction

Overview
Provides integrated design, construction, and maintenance of telecommunications equipment, supporting telecommunications infrastructure.
Competitiveness
High-quality construction achieved through a wide range of works and solid management foundation
Customers
  • Telecom carriers
  • Broadcast stations
  • Local governments
  • Major construction companies
  • Government agencies
  • Power companies
  • Railway companies
  • Real estate developers
  • IT companies
  • Educational institutions
  • Financial institutions
  • Logistics companies
  • Manufacturing
  • Medical institutions
  • Small and medium enterprises
Products
  • Telecommunications tower construction
  • Submarine cable laying
  • Telecommunications line installation works
  • Telecommunications network construction
  • Dedicated telecommunications tunnel construction
  • Telephone exchange internal equipment works
  • Electrical telecommunications equipment maintenance
  • LAN construction services
  • CATV works
  • ICT infrastructure development

IT Solutions

Overview
Supports corporate DX promotion through IT design, construction, and operations.
Competitiveness
Advanced technical capabilities and comprehensive services leveraging telecommunications industry expertise
Customers
  • Telecommunications operators
  • Corporate users
  • Government agencies
  • School corporations
  • Medical institutions
  • Financial institutions
  • Manufacturing
  • Distribution
  • Small and medium enterprises
  • Large-scale projects
Products
  • System development
  • Software design
  • Operation and maintenance services
  • Network construction
  • Cloud services
  • IoT-related solutions
  • Security measures
  • IT consulting

Electrical Equipment Construction

Overview
Implements electrical infrastructure construction and maintenance for telecommunications infrastructure.
Competitiveness
One-stop service provision through collaboration with telecommunications equipment construction
Customers
  • Telecommunications operators
  • Major construction companies
  • Local governments
  • Commercial facilities
  • Factories
  • Logistics centers
  • Real estate management companies
Products
  • Electrical construction design and execution
  • Power equipment maintenance
  • Lighting equipment construction
  • Disaster prevention equipment maintenance
  • Energy-saving equipment introduction support

Competitive Advantage

Strengths

  • Abundant track record in telecommunications infrastructure construction
  • High technical capabilities and expertise
  • Solid financial foundation
  • Extensive group company structure
  • Versatile telecommunications equipment construction capabilities
  • Established quality management system
  • Strong customer base
  • Long-term management stability
  • Active expansion into IT field
  • Robust corporate governance

Competitive Advantages

  • Domestic top-class construction capabilities in telecommunications equipment field
  • Trust as NTT-certified comprehensive telecommunications business company
  • Broad scope of works (from submarine cables to residential equipment)
  • Continued stable growth even during bubble era through prudent management
  • Active expansion of IT system-related businesses
  • Financial stability from high equity ratio
  • Synergy effects utilizing group companies
  • Growth strategy based on long-term management plan
  • Strong relationship building with major customers
  • Diverse talent development and technology succession

Threats

  • Intensifying competition in telecommunications infrastructure market
  • Changes in construction methods due to technological innovations
  • Risk of fluctuations in public works budgets
  • Decline in construction capacity due to labor shortages
  • Project delays and cost increases from natural disasters
  • Expansion of new entrants
  • Increased compliance burden from stricter regulations
  • Reduction in equipment investments due to economic conditions

Innovations

2023: Strengthening IT Design, Construction, and Maintenance

Overview
Expanding IT-related businesses through Comsys Information Systems and others to support DX promotion.
Impact
IT-related sales grow to 15% of total

2021: Subsidiary Reorganization through Management Integration

Overview
Management integration of NDS, Hokuriku Telephone Works, and SYSKEN to strengthen group capabilities.
Impact
Expansion of construction capabilities and service scope

2024: Advancing Sustainability Enhancement

Overview
Actively promoting green power usage and energy-saving construction.
Impact
Contributes to CO2 emissions reduction

2022: Expansion of Dedicated Telecommunications Tunnel Construction Works

Overview
Advancing technology development in response to increasing needs from telecom carriers.
Impact
Increase in acquisition of large-scale projects

Sustainability

  • Promotion of energy-saving equipment introduction
  • Strengthening environmental impact reduction efforts within the group
  • Support for environmental education in local communities
  • Improvement of working environment through thorough safety management
  • Support for seismic retrofitting of telecommunications equipment as CSR activity