[October 30] Newly purchased Nippon Kokudo Kaihatsu. Focusing on infrastructure demand

On October 30, I purchased 100 shares of Nippon Kokudo Kaihatsu (1887).

The purchase price was 534 yen.

A solid company in the infrastructure sector

Nippon Kokudo Kaihatsu is a general construction company with a track record in both civil engineering and architecture.

They are involved in public infrastructure development, urban redevelopment, disaster prevention, and renewable energy projects.

With a business foundation that is resistant to economic fluctuations, it is a company that can expect stable growth over the medium to long term.

Background of the purchase

While the construction sector as a whole is performing steadily, the stock price has remained in the low 500 yen range, and I purchased it because I was attracted to its "high dividend yield and solid downside support."

As a high-dividend stock supported by solid performance, I intend to hold it for the long term.

Latest financial results (Q1 of the fiscal year ending May 2026)

In the first quarter financial results announced on October 15, 2025,

net sales grew steadily by 10.2% year-on-year to 345.1 billion yen.

On the other hand, operating profit was 1.9 billion yen (down 15% year-on-year), ordinary profit was 1.9 billion yen (down 11% year-on-year), and quarterly net profit was 1.3 billion yen (down 25% year-on-year), resulting in a slight decrease in profit.

However, the construction business performed well, with sales up 36% and profit approximately 2.7 times higher due to the progress of large-scale projects.

In the real estate business, a temporary decline in sales had an impact, but overall, the trend of increasing revenue is being maintained.

The equity ratio is at a healthy level of 45.8%.

Dividends and Future Outlook

The annual dividend is planned to be 22 yen (10 yen interim, 12 yen year-end), the same as the previous fiscal year.

Even at this level, the dividend yield is high at approximately 4% (based on the purchase price of 534 yen), and

income gains from long-term holding can be expected.

For the full year, the company expects net sales of 131 billion yen and net profit of 2 billion yen, maintaining its forecast for increased revenue and profit.

In addition to solid performance, the expansion of orders in renewable energy and civil engineering fields is likely to be a growth driver in the future.

Investment Summary

・Securing stable earnings through the dual pillars of construction and energy

・Maintaining a trend of revenue growth despite a temporary decline in profits

・A high-dividend stock with a dividend yield of approximately 4%

・Expectations for stable growth in the medium to long term

Japan Land Development is attractive for its solid management foundation and stable dividends.

I plan to consider the timing for additional purchases while monitoring future market conditions and order trends.