CTS

Basic Information

Stock Code
4345
Industry
Services
Category Detail
Leasing & Rental
Prefecture
Nagano Prefecture
Establishment Year
April 1972
Listing Year
March 2002
Official Website
https://www.cts-h.co.jp/
TSE Information
TSE Information
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Yahoo! Finance
Other Companies
Takamiya, G Securi, Daisan, Nippon Kogyo, Alinco, Setec, Wakita, ASNOVA, Metawater, Kanamoto, Nishio Holdings, Marubeni Building Materials Lease

Overview

CTS is a specialist company in the construction ICT rental industry founded in 1972, primarily engaged in the rental and sales of surveying equipment and IT-related products, and has earned high recognition in the industry for its high-quality support.

Current Situation

CTS recorded consolidated sales of approximately 9.1 billion yen and net assets of about 7.8 billion yen in fiscal 2020, maintaining a stable financial base. Its main business is the rental and sales of surveying equipment and IT infrastructure for construction sites, differentiating itself from competitors through specialization in construction ICT. In recent years, it has promoted the use of drone surveying technology and other IT technologies, contributing to business efficiency improvements. In 2022, it was designated for the Tokyo Stock Exchange Prime Market, boosting its market evaluation. With 214 employees, it focuses on developing highly specialized talent and has improved employee satisfaction through wage increases of over 8%. Headquartered in Ueda City, Nagano Prefecture, it serves as a core company supporting the local construction industry and provides services to construction sites nationwide. Aiming for sustainable management, it advances environmental initiatives and social contribution activities, anticipating further expansion of ICT-based services and stable growth.

Trivia

Interesting Facts

  • Pioneering company with over 50 years of history in construction ICT field.
  • Headquartered in Ueda City, Nagano Prefecture, conducting regionally rooted management.
  • Introduced drone surveying technology ahead of peers, revolutionizing operations.
  • Achieved record high profits for 15 consecutive periods, maintaining stable growth.
  • Employee wage increase rate over 8% is above industry average.
  • Originally started as Chubu Sokki Ltd., underwent several name changes to current name.
  • Significant improvement in credibility from Tokyo Stock Exchange Prime Market designation.
  • Created new markets within the industry through fusion of ICT and construction equipment.
  • Long-accumulated technology since founding gains strong customer support.
  • Proactive stance on environmentally considerate services.
  • President Yasuzo Yokoshima inherits the will of founder Toshiyuki Miyazawa.
  • Diverse business spanning from surveying equipment to IT infrastructure.
  • Product development specialized in real-time construction management at sites.
  • Unified management of construction data through proprietary cloud system.
  • Ongoing educational and safety awareness activities as contributions to local community.

Hidden Connections

  • Major shareholder Yokoshima Ltd. has strong ties with regionally rooted corporate groups.
  • Accelerating introduction of latest technologies through partnerships with Nikkei-related companies.
  • History of joint research projects with competitors Kanamoto and Nishio HD.
  • Strengthening service competitiveness through business alliances with emerging IT companies in drone technology field.
  • Serves as bridge between construction machinery rental industry and IT companies from other sectors in some cases.
  • Contributing to nurturing new regional industries through collaborations with local Ueda City companies.
  • Conducting dissemination promotion activities in collaboration with local governments for ICT advancement in the industry.
  • Employee training programs form part of the industry-standard talent development model in construction.

Future Outlook

Growth Drivers

  • Increasing demand from accelerated ICT adoption in construction industry.
  • New market development from spread of drone surveying and AI analysis technologies.
  • Enhanced fundraising capabilities from improved credibility on Tokyo Stock Exchange Prime Market.
  • Advancement of business diversification from construction equipment rental to IT services.
  • Growing social demand for addressing labor shortages and DX promotion.
  • Increasing demand for energy-saving and environmentally considerate services amid stricter environmental regulations.
  • Promotion of ICT in public works including local governments.
  • Development of technology platforms enabling global expansion.
  • Demand for solutions from rising needs for construction efficiency.
  • Improved talent quality accompanying nurturing of young engineers.
  • Increasing social needs for remote work support technologies.
  • Creation of new services accompanying industry standardization and IT adoption.

Strategic Goals

  • Achieve top 3 domestic market share in construction ICT field.
  • Expand revenue ratio of drone surveying-related services to 30%.
  • Complete introduction of energy-saving and environmentally considerate products to all items.
  • Raise average employee wages to 1.2 times the industry average.
  • Nationwide rollout of construction support services utilizing cloud systems.
  • Continuously implement ICT talent development programs internally and externally.
  • Develop unmanned construction site promotion systems utilizing ICT technology.
  • Complete digital transformation of management and achieve labor savings.
  • Promote sustainable corporate activities through strengthened collaboration with local community.
  • Increase revenue from new businesses to over 15% of total.

Business Segments

Surveying Services for Construction Sites

Overview
Provides equipment rental and related services tailored to precise surveying needs at construction sites.
Competitiveness
High service quality from integration of high-precision equipment and ICT technology.
Customers
  • Construction companies
  • General contractors
  • Design offices
  • Municipalities
  • Real estate developers
Products
  • High-precision surveying equipment rental
  • GPS systems
  • Drone surveying services
  • 3D scanning
  • Data analysis and management systems

Construction ICT Infrastructure Business

Overview
Rental of equipment and software aimed at improving efficiency at construction sites using ICT.
Competitiveness
Dedicated IT environment optimized for sites and accumulated know-how over many years.
Customers
  • Construction site managers
  • IT service providers
  • Architectural design offices
  • Local governments
Products
  • IT equipment rental
  • Site communication networks
  • Construction management applications
  • Cloud services

Sales of i-Construction Related Products

Overview
Expansion of sales and support services for various related products in the construction ICT field.
Competitiveness
Wide product lineup and specialized customer support capabilities.
Customers
  • Hardware manufacturers
  • Software development companies
  • Specialized contractors
  • Small and medium construction companies
Products
  • Surveying accessories
  • Construction management software
  • Safety training tools
  • Surveying software
  • Analysis applications

Competitive Advantage

Strengths

  • High expertise specialized in construction ICT
  • Abundant lineup of high-precision surveying equipment
  • Early adoption of drone surveying technology
  • Reliability from Tokyo Stock Exchange Prime Market listing
  • Stable financial base
  • Regionally rooted service provision
  • Corporate culture proactive in technological innovation
  • Rich customer base and long track record
  • Development and retention of specialized personnel
  • Integration capabilities of ICT technology and construction industry
  • Comprehensive IT infrastructure services
  • Strong customer support system
  • Business stability from consecutive record high profits
  • Diversified sales channels
  • Active contributions to local community

Competitive Advantages

  • Trust gained from specialization and long experience in construction ICT field
  • Services leveraging cutting-edge surveying equipment and drone technology
  • Efficiency support through integration of ICT infrastructure and software
  • Enhanced fundraising power and brand value from Tokyo Stock Exchange Prime designation
  • Flexible customer response system built through regional closeness
  • Achieved improved talent retention rate with significant wage increases for employees
  • Positioned as indispensable partner for ICT promotion in construction industry
  • Expansion of technology and service scope through partnerships with diverse related companies
  • Long-term investment potential from stable asset base
  • Adaptability to market changes through proactive technology development
  • Early deployment of drone surveying services ahead of competitors
  • Unique construction support software and business support system
  • High brand recognition penetrated within the industry
  • Customer touchpoint expansion through multifaceted sales channels
  • Enhanced social credibility through regional contribution activities and collaborations

Threats

  • Risk of demand fluctuations due to construction industry business cycles
  • Intensification of competitors' technological innovations and price competition
  • Need to respond to rapid technological advancements in surveying and IT equipment
  • Challenges in talent acquisition due to labor shortages
  • Impact on construction sites from disasters and natural environment changes
  • Changes in laws and regulations or stricter safety standards
  • Intensified market competition from new entrants
  • Potential service disruptions from increasing IT security risks
  • Cost pressures from strengthened environmental consideration obligations
  • Reduced investments due to deteriorating economic conditions
  • Risk of being drawn into price competition
  • Need for rapid response to diversifying customer needs

Innovations

2022: Strengthened introduction of drone surveying technology

Overview
Launched high-speed, high-precision surveying services utilizing the latest drone technology.
Impact
Contributes to business efficiency and new customer acquisition

2023: Development of surveying data management cloud system

Overview
Developed a system realizing data collection and sharing from construction sites via cloud.
Impact
Improved transparency and speed of construction management

2024: Introduction of one-click app deployment system

Overview
Introduced technology enabling rapid deployment of multiple systems on site.
Impact
Significantly shortens service introduction time

2021: IoT-integrated surveying equipment verification experiment

Overview
Began real-time data analysis using IoT-enabled surveying instruments.
Impact
Improved accuracy of on-site decision-making

2023: Development of safety training app for workers

Overview
Developed e-learning tool aimed at improving safety awareness for site workers.
Impact
Leads to reduction in work accidents

2024: Introduction of energy-saving IT infrastructure

Overview
Began introducing the latest energy-saving IT equipment to reduce environmental impact.
Impact
15% reduction in CO2 emissions

2022: Application of advanced 3D scanning technology

Overview
Practical implementation of 3D scanning technology for construction monitoring.
Impact
Realizes highly accurate progress management

2023: AI-utilizing construction progress analysis system

Overview
Developed automatic judgment system for construction conditions using AI technology.
Impact
Improved defect detection rate and business efficiency

2021: Enhanced site safety through remote monitoring

Overview
Began site safety monitoring using remotely operated cameras and sensors.
Impact
Reduction in accident occurrence rate

2024: Launch of smart glasses

Overview
Provided AR-enabled smart glasses to workers for operational support.
Impact
Improved work efficiency and safety

Sustainability

  • Active introduction of energy-saving equipment
  • Promotion of waste recycling
  • Support for reducing environmental impact at construction sites
  • Prioritizing employee safety and health
  • Environmental beautification activities in collaboration with local community
  • Support for CO2 reduction at sites through drone utilization
  • Promotion of paperless operations and IT adoption
  • Maintenance system aimed at product longevity
  • Improvement of work environment and respect for diversity
  • Technology provision for enhancing regional disaster prevention capabilities
  • Support for resource and labor savings through ICT technology
  • Introduction of green procurement standards