[Company analysis] Haseko Corporation (長谷工コーポレーション)

「Haseko Corporation (長谷工コーポレーション)」is a major general construction company headquartered in Tokyo. It is a construction company that focuses on condominium development in the Kanto area, and is the industry leader in apartment construction and development. They are the first company who standardized apartment in Japan and has spread this "apartment" type or residence which has the advantages of high quality and low price, to Japan.  In the housing indurstry for individuals,「Daiwa House Industry Co., Ltd. (大和ハウス工業)」,「Sekisui House, Ltd. (積水ハウス)」 are their competitors. The number of consolidated employees is about 5,379.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Haseko Corporation
Company name (Japanese)	長谷工コーポレーション
Date of establishment	Thursday, August 22, 1946
Headquarters location	〒105-8507 東京都港区芝二丁目32番1号
Capital	57,500
Consolidated sales	890,981
Consolidated operating profit	98,430
Consolidated total assets	773,219
Consolidated capital	368,051
Capital adequacy ratio	47.6%
Consolidated number of employees	5,379

 

 

 

2. Summary and Features

 
As of 2019, 「Haseko Corporation」has constructed 632,647 apartments. This is equivalent to about 10% of all apartments built in Japan. During the period of rapid growth after World War II, they focused on the concept of an "mansion apartment", which can supply a large number of houses. Since then, Haseko have been working on the spread and standardization of apartments in Japan.

The feature of Haseko in the mansion apartment industry is a special marketing strategy which is so called "特命受注(special orders)". This is a business model unique to Haseko, which proposes and sells information on land purchased by themself for the business concerned. A typical order-based method is one in which a construction company bids and contracts based on a business plan set up by the original developer.

However this "特命受注(special orders)"  is a method in which Haseko himself creates a plan based on information on the land purchased by Haseko himself, and conversely, provides the plan to the developer side. So this is a similar concept with Proposal sales. This proposal, which is based on Haseko's own land information , is both profitable and profitable.

In other words, in the mansion apartment business, 「Haseko Corporation」are not limited to the passive form of “general construction industry” that takes construction projects, but also have a face as a “developer” who participates in urban planning from the development stage. In addition, this company is said to have the business model of providing integrated services such as sales management, repair and renovation of apartments after completion of construction.

 

 

 

3. Major Business

 

■ Construction related business
Haseko's main business is directly related to construction, such as engineering and construction. In addition, they have adopted a “special order” business model, which secures land first, then proposes it to developers.

■ Service related business
「Haseko Corporation」provide almost all services related to construction and building. This company provide comprehensive services ranging from sales of new apartments, marketing research, real estate sales to management, consulting, renovation, asset management, and support for obtaining construction permits.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		772,328	813,276	890,981
Consolidated operating profit		89,032	100,805	98,430
Consolidated total assets		630,937	688,308	773,219
Consolidated net assets		238,467	296,835	368,051
Breakdown of sales	Construction related	551,903	589,776	665,019
	Service related	204,830	210,895	222,022
	Oversea related	15,596	12,605	3,940