Nakano Corporation

Basic Information

Stock Code: 1827
Industry: Construction
Category Detail: Construction & Civil Engineering
Prefecture: Tokyo
Establishment Year: December 1942
Listing Year: September 1962
Official Website: https://www.wave-nakano.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Hazama Ando Corporation, Taisei Corporation, Obayashi Corporation, Shimizu Corporation, Haseko Corporation, Kajima, Nishimatsu Construction, Toda Corporation, Kumagai Gumi, Infroneer Holdings, Kyowa Corporation, Confindera, Kuribayashi Shipping

Overview

Nakano Corporation is a mid-sized general contractor established in 1942 and headquartered in Chiyoda-ku, Tokyo. It primarily focuses on private construction and conducts overseas operations including in Southeast Asia.

Current Situation

Nakano Corporation recorded consolidated net sales of approximately 107.4 billion yen and operating profit of approximately 3.1 billion yen for the fiscal year ended March 2024, maintaining a stable business foundation. Its core construction business centers on domestic private construction, establishing its position as a mid-tier general contractor through high-quality workmanship. It has entered the Southeast Asian market to expand overseas operations. In recent years, it has pursued synergies with real estate operations, successfully diversifying revenue sources. Technologically, it has strengthened its capabilities as a general contractor, focusing on construction management techniques and safety measures. It is also working on introducing construction methods that consider the environment and sustainability. In the medium to long term, it positions the utilization of new technologies tailored to market needs and expansion into overseas markets as key strategies. This aims to achieve sustainable growth and improved profitability. Recently, it has focused on promoting DX and human resource development initiatives to build a foundation for strengthening future business capabilities.

Trivia

Interesting Facts

Founded in February 1933 as the Oshima Office.
Has construction track record on historic buildings such as the National Diet Building and Asakusa Temple Treasure House Gate.
Demonstrates presence through unique overseas expansion despite being a mid-tier general contractor.
Headquartered in Chiyoda-ku, Tokyo, engaging in locally rooted sales activities.
Has undergone multiple name changes; current name used since 2004.
Approximately 1,361 consolidated employees and 721 standalone.
Oshima Ikuei-kai Public Interest Foundation is one of the major shareholders.
Active in introducing environmentally considerate technologies in the construction industry.
Records annual consolidated sales of approximately 107.4 billion yen.
Many construction examples include public facilities and large buildings.
Has track record in overseas projects centered on Southeast Asia.
Business centered on private construction among general contractors.
Medium-sized company aiming for synergies between construction and real estate businesses.
Actively utilizes DX to promote on-site efficiency improvements.
Evaluated for prudent management and stable growth within the industry.

Hidden Connections

Supports tourism and culture through construction of Asakusa Temple Treasure House Gate.
Contributes to local talent development through public interest foundation.
Maintains unique characteristics while sharing market share with major competitors.
Earlier entry into Southeast Asian markets compared to other mid-tier general contractors.
Introduction of environmentally considerate concrete is gaining attention in the industry.
Strength in constructing both traditional and modern facilities.
Strengthening collaboration with local architects' associations and design offices.
Involved in public projects in Chiyoda-ku over many years.

Future Outlook

Growth Drivers

Expansion of overseas markets centered on Southeast Asia
Increasing demand for sustainable architecture
Differentiation through introduction of environmentally considerate technologies
Increasing demand for redevelopment and renovation in private construction
Efficiency improvements through digitalization and DX promotion at construction sites
Growing demand for long-life architecture
Demand for advanced construction technologies amid strengthened safety regulations
Strengthening of region-specific services
Introduction and sales of high-performance materials
Maintaining technological capabilities through human resource development and securing
Expansion of synergies with real estate business
Strengthening collaboration with local communities

Strategic Goals

Achieve net sales of 120 billion yen
Expand overseas sales ratio to over 20%
Standardize ZEB and other environmentally considerate architecture
Shorten processes and reduce costs through DX promotion
Further strengthen employee technological capabilities and safety awareness
Reduce construction waste by over 30%
Enhance brand value through community contribution activities
Diversify real estate operations and service businesses
High value-added architectural design services
Challenge new business areas and diversification

Business Segments

Construction Works Contracting

Overview

Provides advanced technology-based construction works to a wide range of customers, emphasizing quality and safety.

Competitiveness

Strong in private construction with superior region-specific customer response capabilities.

Customers

Private companies
Commercial facility owners
Real estate developers
Public organizations
School corporations
Medical institutions
Hotel operators
Industrial park managers
Logistics facility operators
Architectural design offices

Products

Housing construction
Commercial facility construction
Office building construction
Public facility construction
Renovation works
Seismic retrofit works
Eco construction works
Repair and maintenance
Environmentally friendly methods
Construction consulting

Real Estate Leasing and Management

Overview

Deploys stable leasing and management business centered on company-owned properties.

Competitiveness

Secures stable revenue through integrated services from construction to management.

Customers

Corporate tenants
Individual lessees
Small and medium enterprises
Investors
Real estate management companies

Products

Office building leasing
Residential leasing
Property management services
Leasing brokerage services
Real estate asset management support

Construction Materials Procurement and Sales

Overview

Contributes to improving on-site construction quality by providing high-quality construction materials in a timely manner.

Competitiveness

Possesses an excellent procurement network for stable supply and environmentally friendly materials.

Customers

Construction companies
Builders
Design offices
Public works related parties

Products

Insulation materials
Concrete products
Environmentally considerate materials
Building secondary materials
Safety materials

Architectural Design and Consulting

Overview

Supports architecture from planning to design and construction assistance in a one-stop manner.

Competitiveness

Strength in practical design proposals leveraging years of construction experience.

Customers

Construction clients
Developers
Local governments
Design offices

Products

Planning and design
Structural design
Environmentally considerate design
Seismic design
Construction support services

Renovation and Repairs

Overview

Implements refurbishment works aimed at improving functionality and extending lifespan of existing buildings.

Competitiveness

Possesses a reliable quality management system based on construction track record.

Customers

Home owners
Real estate management companies
Commercial facility operators
Public organizations

Products

Home reforms
Office renovations
Equipment upgrade works
Seismic retrofitting
Building maintenance

Overseas Business

Overview

Deploys overseas projects mainly in Southeast Asia, providing services tailored to local needs.

Competitiveness

Flexible response to regional characteristics and trusted relationships with local partners.

Customers

Southeast Asian real estate developers
Overseas general contractor partners
Commercial facility operators
Housing developers

Products

Overseas construction contracting
Project management
Technical consulting
Material procurement support

Competitive Advantage

Strengths

Stable technological capabilities as a mid-tier general contractor
Customer base specialized in private construction
Overseas expansion in Southeast Asia
Abundant construction track record and diverse business development
High quality management and safety measures
Integration with real estate business
Promotion of environmentally considerate construction
Flexible response to customer needs
Team of experienced engineers
Solid financial foundation
Region-specific sales capabilities
Advanced construction management technology
Building long-term transaction relationships
Efficiency improvements through DX promotion
Reliable materials procurement network

Competitive Advantages

Expertise and track record centered on private construction
Focus on growing Southeast Asian markets
High customer evaluations for quality construction
Integrated system from construction to real estate
Advanced stance on introducing environmentally considerate technologies
Customer fan base formation through region-specific sales
Technical response capabilities for small to large-scale architecture
Customer trust in safety management system
Strength in flexible proposals and prompt responses
Ongoing technology development and training system
Stable funding and financial operations
Strengthened collaboration with overseas partners
Customization capabilities reflecting customer requests
Brand image of construction quality assurance
Productivity improvements through digital technology utilization

Threats

Price competition with major competitor general contractors
Risk of fluctuations in construction material prices
Declining trend in domestic construction demand
Political and economic risks in overseas markets
Burden of responding to stricter environmental regulations
Difficulty in securing engineers due to labor shortages
Impact of natural disasters on construction
Risk of delays in adopting new technologies
Uncertain factors such as pandemic outbreaks
Cost increases due to exchange rate fluctuations
Fluctuations in dependency on public works
Strengthened legal regulations in the construction industry

Innovations

2024: Expanded Introduction of Zero Energy Building (ZEB) Technology

Overview: Standard adoption of high energy-saving performance ZEB design and construction technology.
Impact: Achieves reduction in environmental impact and improved customer satisfaction.

2023: Promotion of Digitalization at Construction Sites

Overview: Promotes efficiency in construction management using IoT sensors and drones.
Impact: Achieved 20% improvement in work efficiency and 15% improvement in safety.

2022: Development of Environmentally Considerate Concrete

Overview: Developed and introduced new blended concrete that suppresses CO2 emissions.
Impact: Received high evaluations from customers, contributing to increased orders.

2021: Advanced Seismic Retrofit Technology

Overview: Practicalized reinforcement methods using new materials and structures to enhance safety.
Impact: Expanded adoption in public facility repair projects.

2020: Improvement of Construction Processes for Southeast Asia

Overview: Established construction techniques suited to local climate and culture.
Impact: Improved customer evaluations in overseas projects.

Sustainability

Promotion of Zero Energy Buildings (ZEB)
Construction site waste reduction activities
Active adoption of environmentally considerate materials
Greening promotion through collaboration with local communities
Implementation of employee environmental education programs
Ongoing development of energy-saving construction technologies
Strengthening of safety and hygiene standards
Setting of annual CO2 emission reduction targets
Promotion of construction waste recycling
Local community environmental awareness activities
Expansion of clean energy utilization
Supply chain environmental impact management