Daiichi Kensetsu Kogyo
Basic Information
- Stock Code
- 1799
- Industry
- Construction Industry
- Category Detail
- Construction & Civil Engineering
- Prefecture
- Niigata Prefecture
- Establishment Year
- September 1942
- Listing Year
- August 1994
- Official Website
- https://www.daiichi-kensetsu.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
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Overview
Daiichi Kensetsu Kogyo was founded in 1942, is based in Niigata Prefecture, specializes in railway-related construction as its main business, and as a regional general contractor, has a solid foundation in the Shinetsu and Tohoku regions.
Current Situation
Daiichi Kensetsu Kogyo recorded net sales of approximately 47.4 billion yen and net profit of approximately 3.7 billion yen for the fiscal year ended March 2023, maintaining solid performance. It has strengths in railway facility construction and leverages long-term relationships with JR East to secure a stable order base for steady business operations. The company engages in a wide range of businesses, from civil engineering and construction contracting to design, supervision, and material sales. Through its main subsidiaries, it also handles real estate leasing and consulting. It owns numerous large vehicles for railway maintenance and contributes to railway infrastructure maintenance nationwide. In recent years, it has focused on productivity improvements through new department establishments and drone utilization, while working on sustainable social capital development. With approximately 1,000 employees, it emphasizes contributions to local communities and environmental activities. Going forward, it aims to enhance its expertise in railway facility construction and expand orders in the Shinetsu and Tohoku areas.
Trivia
Interesting Facts
- Representative regional general contractor strong in railway construction.
- Has long-term transaction relationship with JR East, earning high trust.
- Headquartered in Niigata City, Niigata Prefecture, with area-focused management.
- Owns diverse large maintenance vehicles and holds proprietary maintenance technologies.
- Historical background starting from Railway Ministry-related operations in 1942.
- Boasts stable profit margins as a regional general contractor.
- For FYE March 2023, net profit of approximately 3.7 billion yen, strong performance.
- Established new department in 2022 to address increasing railway renovations.
- Progress in efficient disaster surveys through drone technology introduction.
- Some shareholders include major railway companies such as East Japan Railway.
Hidden Connections
- East Japan Railway holds 18.54% stake, exerting influence on management.
- Specialized position in Shinetsu-Tohoku region among JR-affiliated regional general contractors.
- Also engages in real estate leasing business through main subsidiaries.
- Drone technology introduction aligns with JR East's disaster response policies.
- Actively promoting ICT to prepare for competition with peers.
- Many owned large railway maintenance vehicles manufactured by Niigata Tekko or Niigata Transys.
- Pillar of regional infrastructure, receiving many public works orders in Tohoku and Shinetsu.
- Industry network with JR-affiliated general contractors such as Meiko Kensetsu and Daitekkogyo.
Future Outlook
Growth Drivers
- Expectations for long-term expansion in railway infrastructure investment
- Increasing demand for public facility renewals
- Productivity improvements through ICT and drone technology introduction
- Stable entry base for regional public infrastructure development
- Expanding market needs for environmentally responsive construction technologies
Strategic Goals
- Expand domestic market share in railway construction
- 30% improvement in construction efficiency through ICT utilization
- Active rollout of environmentally responsive products and technologies
- Revenue diversification through strengthened regionally focused real estate business
- Expanded social contributions through advanced disaster response technologies
Business Segments
Railway Infrastructure Construction
- Overview
- Business segment providing civil engineering and architectural construction related to railways as well as related materials.
- Competitiveness
- Strong transaction record and specialized technology with JR East
- Customers
-
- JR East
- Local governments
- Railway operators
- Infrastructure management companies
- Products
-
- Civil engineering contracting
- Track maintenance
- Structure design and construction
- Large maintenance vehicle leasing
Public Civil Engineering and Architectural Works
- Overview
- Business division contracting public civil engineering and architectural works in the Shinetsu and Tohoku areas.
- Competitiveness
- Local focus and diverse project track record
- Customers
-
- Local governments
- Ministry of Land, Infrastructure, Transport and Tourism
- Public facility managers
- Construction consultants
- Products
-
- Road and bridge works
- Urban infrastructure development
- Public facility architecture
- Survey and design consulting
Materials Manufacturing and Sales
- Overview
- Division supporting construction through manufacturing and supply of civil engineering construction materials.
- Competitiveness
- Quality control and established shipping systems
- Customers
-
- Construction companies
- Public works contractors
- Railway operators
- Products
-
- Concrete products
- Steel materials
- Track materials
Real Estate Business
- Overview
- Provides leasing of company-owned properties and real estate management services.
- Competitiveness
- Prompt responsiveness rooted in the local market
- Customers
-
- Office leasing users
- Residential tenants
- Tenant businesses
- Products
-
- Office building leasing
- Residential leasing management
- Brokerage services
Competitive Advantage
Strengths
- High expertise from long years of railway construction experience
- Strong collaboration with JR East
- Locally rooted sales base
- Technical capabilities to handle diverse projects
- Abundant ownership of large maintenance vehicles
Competitive Advantages
- Differentiation from competitors through specialization in railway-related construction
- Stable position in Shinetsu and Tohoku regions
- Broad order-taking system for civil engineering and architectural works
- Total service from design to construction
- Flexible responsiveness as a regional general contractor
Threats
- Intense bidding competition with major general contractors
- Risks from public works budget cuts or policy changes
- Challenges in securing workforce due to labor shortages
- Rising construction material prices and procurement risks
- Potential construction delays due to natural disasters
Innovations
2023: Introduction of drone-based disaster assessment system
- Overview
- Utilizes drone technology for rapid situation assessment during disasters.
- Impact
- Significant reduction in on-site survey time and improved safety
2022: Establishment of new department in Civil Engineering Division to address increasing railway renovations
- Overview
- Established new department to strengthen organization in response to growing railway construction.
- Impact
- Faster and more efficient response to construction orders
2021: Update and additional introduction of large maintenance vehicles
- Overview
- Introduced latest models with improved performance for railway infrastructure maintenance.
- Impact
- Enhanced safety and efficiency in maintenance operations
2020: Promotion of ICT integration in maintenance and inspection processes
- Overview
- Utilizes ICT systems in inspection and supervision operations for efficiency.
- Impact
- Improved business quality and cost reductions
2024: Development and verification of environmentally friendly concrete materials
- Overview
- Trial introduction of low-environmental-impact concrete as sustainable construction materials.
- Impact
- CO2 emissions reduction and strengthened environmental regulation compliance
Sustainability
- Participation in environmental conservation activities centered on Niigata Prefecture
- Promotion of measures to reduce environmental impact in railway construction
- Efficient resource use through ICT and drone applications
- Strict adherence to labor safety and health standards and workplace improvements
- Sustainable infrastructure development through collaboration with local communities