1972.T

• Company Overview and Core Business Identity

  • Sanko Metal Industry is a leading one-stop metal roofing/exterior wall company founded in 1949, with 8 branches, 4 production facilities across Japan, approximately 500 employees, and is listed on the Tokyo Stock Exchange Standard Market. It operates with three core business identities: metal roofing product manufacturer, specialized roofing construction company, and total roofing/exterior wall consultant.
  • The company has delivered roofing and exterior solutions for a wide range of landmark projects including Edion Peace Wing Hiroshima, the National Stadium of Japan, Nano Terasu next-generation synchrotron radiation facility, Tokyo International Airport International Air Cargo Terminal, and Kyushu National Museum.

• Manufacturing and Product Development Capabilities

  • The company manufactures original metal roofing, exterior products, and dedicated components across 4 production facilities, with a nationwide distribution network to deliver products quickly to customers.
  • Sanko operates an in-house technical development center that conducts rigorous testing including wind pressure resistance, watertightness, heat transmittance, material strength, fire resistance, natural environment endurance, and on-site solar power system testing to verify product performance.
  • Current product development focuses on themes including labor saving, high functionality, solar energy compatibility, and environmental solutions, building on the company's legacy of developing industry-standard metal roofing methods like Hazeseppen and Kawarabou.

• Construction Capabilities

  • Sanko is the largest roofing construction company in Japan, completing approximately 3 million square meters of roofing and exterior construction annually, supported by a nationwide network of over 500 partner construction companies (Sanyukai) that enables end-to-end responsible construction from manufacturing to installation.
  • In 2024, the company opened the Sanko Craft Academy in Fukaya, Saitama to train new young workers for Sanyukai partners, support skills transfer, and improve overall construction quality and safety standards.

• Consulting and Engineering Capabilities

  • Sanko provides total end-to-end solutions from design through construction, including technical consulting for performance requirements (durability, wind resistance, insulation, etc.), CAD/BIM data provision, and construction planning.
  • For complex curved or irregular roof shapes, the company uses 3D CAD/BIM simulation and algorithmic design to test multiple layout patterns quickly, and produces full-scale mockups at its technical development center to verify constructability and safety before construction.
  • Demand for total turnkey solutions for reroofing projects (including upgrades to aesthetics, insulation, and adding solar panels without halting facility operation) has grown in recent years.

• Full-year 2026 March fiscal year guidance is unchanged from the April 2025 announcement, forecasting revenue of 46 billion yen (a 1.4% increase year-over-year), ordinary profit of 3.8 billion yen (an 8.2% decrease year-over-year), and net income of 2.6 billion yen, representing a top-line increase with lower bottom-line profit.
• Management expects to maintain an return on sales of 8% or higher for the full year, extending the company's streak of consecutive revenue growth to 5 years after 4 straight years of growth to date.
• Dividend guidance is also unchanged from the April 2025 announcement: based on the company's updated 50% payout ratio policy, the full-year dividend is forecast at 345 yen per share on a pre-stock split basis.

For the 2nd quarter of the 2026 March fiscal year, total revenue was 22.3 billion yen, a 6.9% increase year-over-year. The company has two core revenue segments: 1) Completed construction revenue: 19 billion yen, a 6.2% increase year-over-year, accounting for 85.2% of total revenue; 2) Product sales revenue: 3.2 billion yen, an 11.5% increase year-over-year, accounting for 14.8% of total revenue. Total orders received were 23.1 billion yen, a 3.2% decrease year-over-year due to delayed order finalization for some construction projects. Unfilled orders reached 36.4 billion yen, a 1% increase year-over-year, hitting an all-time high driven by growing product sales backlog.

• Construction industry headwinds include declining new construction demand, labor shortages causing upstream project delays, and sustained high construction costs that have led to project cancellations and delays.
• Building material, labor, and transportation costs are all rising, putting pressure on profit margins.
• Management is monitoring potential impacts of U.S. tariff measures on domestic Japanese construction investment.

No question and answer section is included in the provided transcript.