Shimizu Kensetsu KK

1803

Equity

ISIN JP3358800005 / Valor 763268

Tokyo Stock Exchange (2024-12-25)

JPY 1,233.00-0.36%

Shimizu Kensetsu KK
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About company

Shimizu Kensetsu KK, commonly known as Shimizu Corporation, is a prominent Japanese construction and civil engineering firm with a diverse portfolio. The company's core operations encompass building construction, civil engineering, and international construction projects. Beyond its primary construction activities, Shimizu is involved in real estate development, engineering services, Life Cycle Valuation (LCV), and frontier businesses, which include innovative and emerging sectors. This diversification allows Shimizu to leverage its expertise across various domains, maintaining a robust presence in both domestic and global markets.

Summarized from source with an LLMView SourceSector: Industrials

Net Sales Increase

In the fiscal year 2023, Shimizu Kensetsu KK reported a 3.7% increase in net sales, reaching 2,005.5 billion yen. This growth was attributed to an increase in completed construction contracts and development business sales, despite the challenging economic environment marked by high construction material and energy prices, as well as rising labor costs.

Operating and Ordinary Income Losses

Shimizu Kensetsu KK experienced a significant downturn in profitability for fiscal year 2023, with an operating income loss of 24.6 billion yen and an ordinary income loss of 19.8 billion yen. This was primarily due to a decrease in gross profit on completed construction contracts, impacted by the provision for loss on construction contracts and deteriorating profitability of several large-scale projects both domestically and internationally.

Net Income Decline

The net income attributable to shareholders of Shimizu Kensetsu KK decreased by 65.0% in fiscal year 2023, amounting to 17.1 billion yen. This decline was despite recording extraordinary gains, including profits from the sale of fixed assets and stock holdings, which were not enough to offset the losses from core operations.

Revised Forecast for FY2024

For fiscal year 2024, Shimizu Kensetsu KK has revised its forecast, projecting net sales of 1,860.0 billion yen, an increase of 60.0 billion yen from the previous forecast. The company anticipates improved profitability in ongoing construction projects, leading to an estimated operating income of 56.0 billion yen and ordinary income of 54.0 billion yen. The net income forecast has been adjusted to 60.0 billion yen, reflecting expected gains from more aggressive sales of investment securities.

Interest-bearing Debt

As of fiscal year 2023, Shimizu Kensetsu KK's consolidated interest-bearing debt stood at 603.1 billion yen, with a forecasted increase to 660.0 billion yen for fiscal year 2024. This rise in debt levels is indicative of the company's ongoing financial strategies and capital requirements amidst the challenging market conditions.

Summarized from source with an LLMView Source

Key figures

34.6%1Y

72.0%3Y

9.99%5Y

Performance

42.8%1Y

31.3%3Y

30.8%5Y

Volatility