PS Construction

Basic Information

Stock Code
1871
Industry
Construction Industry
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
March 1952
Listing Year
June 1962
Official Website
https://www.psc.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Ando-Hazama, Nakabo Tech, Taisei Corporation, Obayashi, Shimizu, Haseko Corporation, Kajima, Nishimatsu Construction, Toda Construction, Kumagai Gumi, Nichi Ri-Tech, Infronea Holdings

Overview

PS Construction is a mid-tier general contractor in the construction industry founded in 1952, specializing in prestressed concrete works and operating steadily as a member of the Taisei Corporation Group.

Current Situation

PS Construction recorded consolidated sales of approximately 109.3 billion yen and operating profit of approximately 5.7 billion yen for the fiscal year ended March 2023, maintaining a solid business foundation. It has strengths primarily in public works such as bridges and airport facilities centered on prestressed concrete. Through the merger with Mitsubishi Construction in 2002, it strengthened its comprehensive construction capabilities and expanded orders for various buildings. Taisei Corporation holds a majority stake, deepening ties with the group and enhancing bidding competitiveness backed by a stable financial base and technological strength. It continuously strengthens advanced PC construction technology and quality control, ensuring reliability in infrastructure development. It also focuses on sustainability, implementing environmental load reduction and community contributions. Moving forward, it aims to expand business leveraging group synergies and strengthen competitiveness through the introduction of new technologies. In the near term, it will focus on stable orders from domestic public works while promoting new technology development and collaborations with other companies to diversify its growth foundation. While maintaining financial soundness, it plans to improve profitability in the medium term through the expanded adoption of digitalization and energy-saving construction technologies.

Trivia

Interesting Facts

  • Opened Japan's first prestressed concrete factory in 1952
  • PS Construction is the merged entity of P.S. and Mitsubishi Construction, the only general contractor in the Mitsubishi Group
  • Top-class domestic technology specialized in PC works
  • Continues stable management as a subsidiary of Taisei Corporation
  • Head office located in Tokyo Shiodome Building in Minato-ku, Tokyo
  • Specializes in bridge and public infrastructure construction since its founding
  • Rich track record in constructing diverse public facilities over many years
  • Relocated head office from Chuo-ku to Higashi-Shinbashi, Minato-ku in 2023
  • Subsidiaries include PSK, Newtech Kowa, and others
  • Constituent of JPX-Nikkei Mid and Small Cap Index
  • Originally named P.S. Concrete Co., Ltd. at establishment
  • Possesses a network collaborating with various Mitsubishi Group companies
  • Deep transactions with construction-related firms such as Ando-Hazama and Nichi Ri-Tech
  • Utilizes advanced precast concrete technology
  • Top-class construction track record with high reliability in public works

Hidden Connections

  • Taisei Corporation is the major shareholder, with strong project orders through group collaboration
  • Originally established prestressed concrete factory utilizing Mitsubishi Heavy Industries shipyard facilities
  • Capital ties with UBE Mitsubishi Cement, strength in cement procurement
  • Historically deep ties with Pacific Cement, but currently mainly UBE Mitsubishi Cement as related shareholder
  • During PS Mitsubishi era, absorbed and merged Mitsubishi Construction to strengthen position as comprehensive general contractor
  • Built integrated system for prestressed concrete product manufacturing through group of subsidiaries
  • Competes with other general contractors like Infronea Holdings while exploring collaboration possibilities
  • Expanded collaboration with major Tokyo firms through head office relocation to Minato-ku, Tokyo

Future Outlook

Growth Drivers

  • Increasing demand for renewal due to aging domestic infrastructure
  • Stable expansion of demand for prestressed concrete technology
  • Enhanced synergy effects from Taisei Corporation Group
  • Efficiency improvements through DX at construction sites
  • Increasing demand for energy-saving buildings amid strengthened environmental regulations
  • Expanding demand for seismic retrofitting of social infrastructure
  • Public works investments related to regional regeneration and smart cities
  • Securing new large-scale private projects leveraging technological strengths
  • Maintaining and improving construction quality through talent development and retention
  • Potential for mid-tier domestic players to expand market share
  • Opportunities to participate in large-scale public-private partnership projects
  • Improved social evaluation for environmentally considerate works

Strategic Goals

  • Revenue expansion through strengthened role within the group
  • Increase domestic market share in PC construction technology
  • Full introduction of energy-saving environmental technologies
  • Achieve 50% DX level at construction sites
  • Enhance brand value through strengthened regional community ties
  • Increase new large-scale private orders
  • Optimize safety and health management
  • Achieve 80% environmentally considerate material procurement rate
  • Strengthen promotion and retention of diverse talent
  • Significantly improve construction quality and customer satisfaction

Business Segments

Public Civil Engineering Works

Overview
Undertakes social infrastructure construction and maintenance management for the national government and local governments.
Competitiveness
Particularly excels in PC construction technology.
Customers
  • Ministry of Land, Infrastructure, Transport and Tourism
  • Local Governments
  • Public Organizations
  • Construction Companies
Products
  • Bridge Works
  • Road Works
  • Airport Facility Construction
  • Water and Sewerage Facilities

Private Building Works

Overview
Handles industrial buildings and housing to meet diverse customer needs.
Competitiveness
Leverages collaboration with the Mitsubishi Group.
Customers
  • Real Estate Developers
  • Hospital Operators
  • Factory Owners
  • Condominium Developers
Products
  • Medical Facility Construction
  • Factory and Warehouse Construction
  • Apartment Building Construction
  • Office Building Design and Construction

Prestressed Concrete Product Manufacturing

Overview
Specializes in manufacturing and sales of PC products with strengths in quality control.
Competitiveness
Experience operating Japan's first PC factory.
Customers
  • Construction Companies
  • Civil Engineering Companies
  • Sales Agents
  • Design Offices
Products
  • PC Members
  • PC Precast Members
  • PC Beams
  • PC Plates

Foundation Works

Overview
Specializes in building foundation works with high technological capabilities.
Competitiveness
Trust built on years of construction track record.
Customers
  • Architectural Design Offices
  • General Contractors
  • Local Construction Companies
Products
  • Pile Driving Works
  • Foundation Reinforcement Works
  • Ground Improvement Works

Steel Structure Design and Construction

Overview
Provides one-stop service from design to construction of steel frames and bridges.
Competitiveness
Holds specialized technology in bridge field.
Customers
  • Infrastructure Managers
  • General Contractors
  • Private Facility Managers
Products
  • Bridge Steel Structures
  • Steel Frames
  • Steel Tower Construction

Competitive Advantage

Strengths

  • Advanced prestressed concrete technology
  • Stable funding from Taisei Corporation Group
  • Specialized expertise in bridge works cultivated over many years
  • Diverse experience in building and civil engineering works
  • Advanced quality management system
  • Stable order base for public works
  • Skilled engineers and construction managers
  • Balanced construction sites in local and urban areas
  • Strong subsidiary network
  • Workplace environment improvements for better work-life balance

Competitive Advantages

  • Comprehensive strength through collaboration with Mitsubishi Group's construction resources
  • Specialized technology and know-how in PC works
  • Stable track record of public and private orders
  • Strong sales network centered in the Tokyo metropolitan area
  • Capability to handle diverse building fields
  • Proactive stance on adopting the latest technologies
  • High creditworthiness due to financial soundness
  • Customer trust from high construction quality
  • Accumulated technology for long-term infrastructure operations
  • Promotion of environmentally considerate works

Threats

  • Trend of shrinking domestic public works budgets
  • Risk of declining profit margins due to intensifying competition
  • Price fluctuations in construction materials
  • Decrease in skilled workers and labor shortages
  • Construction delays due to disaster risks
  • Cost increases from strengthened environmental regulations
  • Increasing entry of global construction firms
  • Decline in competitiveness from delayed adoption of new technologies
  • Cost fluctuations in imported materials due to exchange rate changes
  • Impacts from regional economic fluctuations

Innovations

2023: Material Improvements for High-Durability PC Materials

Overview
Adopted degradation-resistant new materials to extend service life.
Impact
Reduces maintenance costs through infrastructure longevity

2023: Introduction of Digital Construction Management System

Overview
Developed and introduced construction progress management system integrated with CAD.
Impact
Improved construction accuracy and efficiency, leading to cost reductions

2024: Development of Environmentally Considerate Civil Engineering Methods

Overview
Demonstrated and applied CO2-reducing concrete technology.
Impact
Contributes to reduced environmental impact and secures public subsidies

2022: Introduction of IoT-Based Remote Monitoring

Overview
Enhanced safety monitoring and quality control at construction sites.
Impact
Improved safety and successfully reduced accidents

2024: Temporary Member Manufacturing Using 3D Printers

Overview
Achieved shorter construction periods through rapid temporary member production.
Impact
Enhanced on-site responsiveness and cost reductions

2021: Expansion of Factory-Produced PC Member Lineup

Overview
Increased product variations to accommodate diverse bridge applications.
Impact
Expanded orders and improved customer satisfaction

2022: Introduction of Energy Efficiency-Improving Architectural Design Technology

Overview
Adapted to environmental regulations with energy-saving building plans.
Impact
Increased orders for environmentally certified projects

2023: Advanced Implementation of Seismic Retrofit Technology

Overview
Renewed seismic retrofit methods for large buildings.
Impact
Achieved improved safety and differentiation

Sustainability

  • Promotion of green buildings to reduce CO2 emissions
  • Efforts to improve construction waste recycling rates
  • Participation in environmental conservation activities with local communities
  • Introduction of energy-saving construction technologies and equipment
  • Strengthening of safety and health management
  • Programs to promote active roles for female engineers
  • Regional collaboration projects supporting local communities
  • Active adoption of low-environmental-impact materials
  • Promotion of efficiency through DX at construction sites
  • Implementation of employee environmental awareness training
  • Promotion of sustainable material procurement
  • Strengthening environmental considerations across the supply chain