Hazama Ando Corporation: history, ownership, mission, how it works & makes money

A Brief History of Hazama Ando Corporation

Founded in 1887, Hazama Ando Corporation, originally known as Hazama & Co., has evolved from a traditional construction firm into a significant player in the global engineering and construction sector. The company was established by Jiro Hazama in Tokyo, Japan. Its initial focus was on civil engineering projects, leading to a rapid expansion in its expertise.

In the early 20th century, Hazama Ando began to diversify its project portfolio, taking on larger infrastructure projects. By 1920, the company had established a reputation for quality and reliability, particularly in bridge construction and urban development. The post-World War II era marked a turning point as Japan underwent rapid economic growth, which provided Hazama Ando with numerous opportunities to participate in rebuilding efforts.

In 1954, Hazama & Co. was listed on the Tokyo Stock Exchange, marking its transition into a publicly traded company. This move fueled further expansion and development, allowing the firm to finance ambitious projects including dams, tunnels, and transportation systems. The company was also involved in several international projects during the 1970s, establishing a global footprint.

The late 1990s saw Hazama Ando merge with another construction company, Ando Corporation, resulting in the current name. This merger enhanced its capabilities and resources, positioning it as one of the top engineering and construction firms in Japan.

As of the fiscal year ending March 2022, the company reported consolidated revenues of approximately JPY 658 billion (around USD 5.9 billion), reflecting an increase from the previous year. The net income for 2022 was JPY 18.7 billion (USD 168 million), showing a recovery from pandemic-related impacts.

In terms of international projects, Hazama Ando Corporation has engaged in notable ventures across Southeast Asia, the Middle East, and North America. The company has leveraged its expertise in sustainable construction and green technologies to meet global demands for environmentally friendly infrastructure.

As of October 2023, Hazama Ando Corporation has continued to report positive growth trends. For the first half of the fiscal year, the company recorded revenues of JPY 400 billion with a net income of JPY 12.1 billion. The ongoing recovery from the COVID-19 pandemic and increased public infrastructure spending have fueled this growth.

The company maintains a robust order backlog, with total outstanding orders amounting to approximately JPY 1.2 trillion as of March 2023. This backlog reflects a diverse range of upcoming projects across various sectors, including transportation, urban development, and environmental engineering.

A Who Owns Hazama Ando Corporation

As of the latest financial reports, Hazama Ando Corporation, listed on the Tokyo Stock Exchange under the ticker symbol 1719, has a diverse ownership structure, which includes both institutional and individual shareholders.

According to the most recent shareholder breakdown, approximately 45.3% of the company's shares are held by institutional investors, signifying a strong confidence from large financial entities in the company’s performance.

The largest institutional investors include major asset management firms, which play a significant role in determining the direction of company policies. Recent filings indicate that firms such as BlackRock and Nomura Asset Management have notable stakes, contributing to the overall governance and strategy of the corporation.

Individual shareholders represent a substantial segment of ownership, reflecting public interest and investment in Hazama Ando Corporation. The strong participation rate of retail investors indicates a favorable outlook on the company's future growth potential.

Foreign investors hold about 10.5% of the company's stock, showcasing a broad international appeal. This highlights Hazama Ando’s capacity for global business ventures and partnerships that can enhance shareholder value.

Company executives and board members also maintain a significant stake—around 10.0%. This alignment of interests between management and shareholders suggests a commitment to enhancing shareholder value and driving company performance.

As of the latest quarterly earnings, Hazama Ando Corporation reported revenues of approximately ¥150 billion for the fiscal year 2023, marking a year-over-year increase of 8.2%. This growth trajectory indicates strong operational performance, which is likely to influence ownership dynamics as shareholders evaluate the company’s financial health.

The strategic focus of Hazama Ando on infrastructure development and construction projects, particularly in Asia, plays a crucial role in attracting investments, thereby shaping its ownership landscape. With ongoing projects worth several billion yen, the ownership structure is likely to evolve in response to the company’s future financial performance and market conditions.

Hazama Ando Corporation Mission Statement

Hazama Ando Corporation, a prominent player in the construction and engineering sector, emphasizes its commitment to creating a sustainable and prosperous society through innovative solutions. Their mission reflects a dedication to quality, safety, and environmental stewardship.

The mission statement articulates their goal to provide comprehensive services in infrastructure and urban development while aiming for customer satisfaction and community enhancement. The company operates with the guiding principle of "Building a Better Future," which showcases their forward-thinking approach.

Financially, Hazama Ando Corporation reported total revenue of ¥1.044 trillion (approximately $9.5 billion) for the fiscal year ending March 2023. The net income for the same period was ¥36.2 billion ($329 million), marking a 3.5% increase from the previous year.

As of 2023, the company has a market capitalization of about ¥208 billion ($1.89 billion). The revenue breakdown highlights their diversified portfolio, with the following segments contributing to their total earnings:

The construction industry in Japan is projected to grow at a CAGR of 2.5% from 2023 to 2027, driven by infrastructure investments and urban redevelopment projects. Hazama Ando Corporation is well-positioned to benefit from this growth, given their strategic partnerships and expertise in large-scale projects.

Furthermore, the company invests significantly in research and development, allocating approximately ¥15 billion ($136 million) in R&D annually. This investment ensures that they remain at the forefront of sustainable engineering practices, incorporating cutting-edge technologies into their projects. In 2023, they successfully completed over 50 major infrastructure projects, including highways, bridges, and residential complexes.

Their commitment to sustainability is evident in their long-term goals, aiming for a 30% reduction in CO2 emissions by 2030 and achieving zero waste in their operations by 2025. This is part of their corporate social responsibility initiatives that resonate with their mission to enhance the quality of life for future generations.

In summary, Hazama Ando Corporation’s mission statement reflects their unwavering focus on excellence and sustainability in construction and engineering, alongside solid financial performance, strategic growth, and commitment to social responsibility.

How Hazama Ando Corporation Works

Hazama Ando Corporation is a leading construction firm based in Japan, specializing in civil engineering, building construction, and infrastructure projects. In fiscal year 2022, the company reported revenues of approximately ¥900 billion (around $8.2 billion), showcasing a steady growth trend in the construction sector.

The company operates under several segments, including:

• Civil Engineering
• Building Construction
• International Operations

In 2022, the breakdown of revenue by segment was as follows:

The company's strategic focus includes investments in technology and sustainability. In 2022, Hazama Ando invested approximately ¥10 billion in research and development, particularly in innovative construction methods and materials. This investment aligns with their commitment to reducing carbon emissions by 30% by 2030.

In terms of financial health, Hazama Ando reported a net profit of ¥30 billion for the fiscal year 2022, resulting in a net profit margin of 3.3%. The company maintained a robust balance sheet, with total assets amounting to ¥1.2 trillion and a debt-to-equity ratio of 0.6, highlighting a stable capital structure.

Hazama Ando’s workforce consists of over 7,000 employees, with ongoing training programs to enhance skills in advanced construction technologies and project management. This human capital investment is critical to maintaining competitive advantages in the market.

The company has also been actively pursuing international projects, with contracts in Southeast Asia, where it has secured projects worth approximately ¥100 billion over the last three years. These projects include infrastructure development and urban construction, emphasizing the company's global reach and expertise.

Additionally, Hazama Ando's stock is publicly traded under the ticker symbol 1719.T on the Tokyo Stock Exchange. As of October 2023, the company’s market capitalization stood at approximately ¥450 billion (around $4 billion), reflecting investor confidence in its sustainable growth strategy.

The firm’s commitment to quality and safety is evidenced by its consistent ratings in independent evaluations. In 2022, Hazama Ando achieved a 4.5 out of 5 rating in construction quality from the Japan Construction Industry Quality Assessment Association, a testament to its project execution and reliability.

How Hazama Ando Corporation Makes Money

Hazama Ando Corporation operates as a leading construction and engineering firm, primarily in Japan. The company generates revenue through various segments, with significant contributions from civil engineering, building construction, and international projects.

In the fiscal year 2022, Hazama Ando Corporation reported consolidated revenues of approximately ¥554.6 billion (around $5.1 billion USD). This marked a 7.5% increase from the previous year. The construction orders received in the same year amounted to ¥642.1 billion, indicating a robust backlog of projects.

The company’s revenue sources can be categorized as follows:

• Civil Engineering Projects
• Building Construction
• International Operations
• Real Estate Development

The breakdown of revenue by segment for FY 2022 is illustrated in the table below:

The company's civil engineering projects encompass various infrastructure developments, such as roads, bridges, and waterworks, which contribute significantly to public works in Japan. These projects are primarily funded by government contracts, reflecting a stable source of revenue.

Building construction, another crucial segment, includes residential and commercial developments. This segment has shown resilience, with revenue reflecting continued investment in urbanization and housing, driven by both private and public sector developments.

Hazama Ando’s international operations have expanded significantly, aiming for approximately ¥32.1 billion in revenue for 2022, bolstered by various infrastructure projects in Southeast Asia. This segment illustrates the company’s strategic intent to diversify its revenue streams and leverage growth in overseas markets.

Real estate development activities, while a smaller segment at ¥28.0 billion, contribute to the company’s profitability through strategic land acquisitions and property management, thus enhancing earnings from asset appreciation.

In 2022, the company reported a net income of ¥18.2 billion, translating to a net profit margin of 3.3%. This reflects effective management of costs and operational efficiency.

As Hazama Ando Corporation continues to focus on sustainable development and innovation, its profitability is expected to benefit from ongoing urbanization trends and infrastructure demands both domestically and internationally.

The company maintains a healthy balance sheet, with total assets reported at ¥959.5 billion and a debt-to-equity ratio of 0.76, indicating prudent financial management.