Nankai Tatsumura Construction

Basic Information

Stock Code: 1850
Industry: Construction
Category Detail: Construction & Civil Engineering
Prefecture: Osaka Prefecture
Establishment Year: June 1944
Listing Year: May 1963
Official Website: https://www.nantatsu.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Ando Hazama, Soneck, Taisei Kensetsu, Obayashi Gumi, Shimizu Kensetsu, Haseko Corporation, Matsui Ken, Kajima, Nishimatsu Kensetsu, Morigumi, Toda Kensetsu, Kumagai Gumi, Infroneer Holdings

Overview

Nankai Tatsumura Construction is a mid-sized general contractor based in Osaka Prefecture, founded in 1944. It engages in comprehensive construction and possesses proprietary technologies backed by the strong Nankai Group.

Current Situation

In fiscal 2023, Nankai Tatsumura Construction recorded consolidated sales of approximately ¥43.6 billion and net profit of approximately ¥1.2 billion, maintaining solid management. Its mainstay building works account for about 70% of sales, with strengths in construction utilizing proprietary technologies such as base isolation methods and external insulation techniques. As a construction company of the Nankai Group with Nankai Electric Railway as its parent, it maintains a stable order base centered in the Kansai region and operates widely from Hokkaido to Kyushu. In recent years, it has pursued capital efficiency improvements and sales office reorganizations to enhance financial soundness. It is addressing the past Otsu condominium litigation by strengthening quality management and customer relations. The company focuses on developing new construction methods through joint ventures with technical partners and introducing eco-friendly technologies to realize sustainable construction operations. For mid- to long-term growth, it balances public and private sector projects while concentrating capital and sales resources in key areas like the Tokyo metropolitan region. From 2025 onward, it plans to explore new business opportunities for revenue growth and strengthen regional collaborations.

Trivia

Interesting Facts

Founded in 1944 in Kishiwada City, Osaka Prefecture.
Once participated in the 'Onion JV' named after onions from the Izumi region.
Operates with close ties to the local community as part of the Nankai Group.
Strong in high-rise buildings with its proprietary base isolation method.
2009 completed condominium defects led to a social issue lawsuit.
Famous story of employees discovering the Colonel Sanders statue in Dotonbori.
Parent company Nankai Electric Railway holds over 57% stake.
Bases in Tokyo, Osaka, Wakayama, and Yokohama.
Developed TN80 method jointly with Takada Kiko in 2006.
Merged with Tatsumura Gumi in 1995 and adopted current name.
As of 2023, paid-in capital of ¥2 billion maintains solid financial base.
Diversifies into electrical and telecommunications works.
Owns Japan Kemo Works as a consolidated subsidiary.
Holds various construction licenses and permits for broad construction capabilities.
Sponsors local events and sports teams.

Hidden Connections

Nankai Tatsumura Construction and Nankai Electric Railway share close management ties within the Nankai Group.
Has capital and competitive relationships with major general contractors like Obayashi Gumi.
TN80 method born from technology partnership with Takada Kiko.
Serves as priority contractor for construction works within the Nankai Group.
Actively strengthening construction quality management following past scandals.
Collaborates with Nankai Real Estate in real estate business but operates as separate entity.
Participates in works for Nankai Group companies handling Kansai transportation infrastructure.
Tokyo branch in Ginza to bolster competitiveness in the capital region.

Future Outlook

Growth Drivers

Increase in high-rise building works due to urban redevelopment demand
Expanding needs for advanced seismic and base isolation technologies
Growing societal demand for environmentally considerate construction technologies
Stable order base from Nankai Group network
Further expansion into Tokyo metropolitan market
Introduction of construction efficiency technologies using ICT and AI
Government strengthening of public infrastructure development measures
Development of cost-saving technologies to counter rising material prices
Flexible response capabilities to diversifying customer needs
Enhanced skilled worker training to address labor shortages

Strategic Goals

Achieve sales over ¥50 billion for scale expansion
Full site implementation of low-environmental-impact technologies
Regional close-knit growth by strengthening both Tokyo metropolitan and Kansai axes
100% ICT utilization in construction for efficiency gains
Maximize group synergies for comprehensive strength
Promote sustainable construction projects
Diversify revenue sources through new business creation
Further sophistication of quality management system
Improve ratios of engineers and female employees
Enhance brand through strengthened collaboration with local communities

Business Segments

Construction Contracting

Overview

Provides high-quality construction services as a prime contractor across a wide range of construction fields.

Competitiveness

Builds a stable order system based on the Nankai Group's network and proprietary technologies.

Customers

Local governments
Commercial facility operators
Residential developers
Transportation infrastructure managers
Real estate developers
Public project procurers
Design firms
Nankai Group companies

Products

Building Lump-sum Works
Civil Engineering Lump-sum Works
Electrical and Telecommunications Works
Base Isolation Method Construction
External Insulation Method Construction
Public Infrastructure Development Works
Design Supervision Services
Quality Management Systems

Design and Consulting

Overview

Provides total solutions from design to construction supervision.

Competitiveness

Experienced engineers can incorporate proprietary methods from the design stage.

Customers

Architectural design firms
Public entities
Real estate developers
Construction supervision agencies
Environmental assessment agencies

Products

Architectural Design
Seismic Design
Energy-efficient Design
Construction Supervision
Environmental Assessment

Real Estate Management and Operations

Overview

Implements efficient management and operations of company and group-owned real estate.

Competitiveness

Able to respond quickly to real estate management needs within the Nankai Group.

Customers

Asset management companies
Tenant companies
Nankai Group companies

Products

Building Management
Rental Brokerage
Asset Management Support

Competitive Advantage

Strengths

Stable foundation with Nankai Electric Railway as parent company
Proprietary base isolation and external insulation methods
Concentration of capital in Tokyo metropolitan and Kansai areas
Comprehensive strength across diverse construction fields
Customer trust built through long-term regional engagement
Balanced orders from public and private sectors
Business expansion through group synergies
Abundant skilled engineers and design supervision capabilities
High-quality management system
Stable financial base

Competitive Advantages

Order superiority through strong ties with Nankai Group
Differentiation via proprietary base isolation for high-rise buildings
Promotion of energy-efficient buildings with external insulation method
Extensive track record in regional infrastructure construction
Advanced construction expertise and safety management
Integrated system from design to construction
Wide-area coverage from rural to urban regions
Comprehensive construction strength through collaboration with subsidiaries
Active deployment of environmentally considerate construction technologies
Flexible sales organization responsive to customer needs

Threats

Declining orders due to intensifying competition in construction industry
Worsening market environment from reduction in public works
Risk of rising construction material prices
Challenges in securing personnel amid engineer shortages
Impact of climate change on construction planning
Reputational risk from building quality issues
Changes in construction standards due to legal amendments
Stagnation of private investment during economic downturns
Risk of construction delays
Lagging behind competitors' technological innovations

Innovations

2024: Additional Technology Development for TN80 Method

Overview: Developed new efficiency-enhancing technologies for the TN80 method for rapid interchange construction.
Impact: Achieves shorter construction periods and improved safety.

2023: Energy Efficiency Improvements to External Insulation Method

Overview: Improved external insulation method by introducing new high-performance materials.
Impact: Improves building energy efficiency by 20%.

2022: Seismic Performance Enhancement of Base Isolation Technology

Overview: Developed a new system by improving proprietary base isolation technology to strengthen seismic performance.
Impact: Improves seismic safety by 30%.

2021: Advanced Construction Management Using ICT

Overview: Introduced ICT technologies to enhance efficiency and accuracy in construction management.
Impact: Reduces construction management time by 15%.

2020: Adoption of Environmentally Friendly Construction Materials

Overview: Expanded use of recycled materials to reduce environmental impact.
Impact: Contributes to reduction of construction waste.

Sustainability

Promotion of energy-efficient buildings through external insulation methods
Active adoption of low-environmental-impact construction materials
Environmental conservation activities in harmony with local communities
Reduction of waste during construction and promotion of recycling
Improved labor environment through strengthened safety and health management
Diversity promotion via engineer training and women's empowerment
Active participation in regional disaster support activities
Method improvements to suppress CO2 emissions
Setting and management of environmental standards in supply chain
Dissemination and awareness activities for sustainable construction practices