KANAME KOGYO CO.,LTD. (6566) Stock Price

Market cap
¥22.4B
P/E ratio
14.5x
Provides waste collection, transportation and recycling services across Tokyo's 23 wards for businesses and government contracts using 475 vehicles.

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Business Overview

Yōkōgyō is a waste management company operating primarily in Tokyo's 23 wards, providing collection, transportation, and disposal services for industrial and general waste, as well as recycling operations. The company handles various waste streams including bottles, cans, plastic bottles, bulky waste, and combustible general waste. Yōkōgyō is committed to environmental conservation and the realization of a circular economy, delivering high-quality services.

Yōkōgyō's business is divided into three segments: collection and transportation services, recycling operations, and government contract services. In its collection and transportation division, the company collects waste generated from businesses throughout Tokyo's 23 wards and processes it at its own recycling centers or municipal waste treatment facilities. A fleet of 475 vehicles and approximately 420 drivers efficiently transport waste.

In its recycling operations, the company sorts, crushes, compresses, and packages waste at its recycling centers for resource recovery. The company sells recovered materials such as waste paper, bottles, cans, and plastic bottles to buyers, promoting resource reuse. Yōkōgyō maintains strong pricing negotiation power with its buyers through stable supply of recovered materials.

In its government contract services, Yōkōgyō processes non-combustible waste and packaging waste collected by Tokyo's 23 wards at its recycling centers for resource recovery. The company also transports general waste from households to municipal treatment facilities. Building on its track record with government contracts, Yōkōgyō anticipates expanding operations to other municipalities.

Management Policy

Yōkōgyō is committed to environmental conservation and the realization of a circular society as its core business philosophy, aiming for sustainable growth. Through proper waste management and resource recycling, the company promotes both the comfort of urban living and resource circulation. This approach builds customer trust while fostering coexistence with government and local communities.

Yōkōgyō's growth strategy is built on three pillars: collection and transportation services, recycling operations, and government-contracted services. In collection and transportation, the company prioritizes strict regulatory compliance and aims to increase its customer base. It is particularly focused on expanding operations in Tokyo's 23 wards, with plans to enter neighboring regions.

In recycling operations, the company seeks to improve its recycling rate through expansion of recycling centers and stricter waste separation. It is also developing new resource recovery channels to advance material recycling. For government-contracted services, the company has established dedicated sales personnel to increase new contracts and drive growth.

Yōkōgyō prioritizes revenue growth and uses metrics such as operating profit margin and labor cost ratio to pursue balanced expansion of corporate value. Through capital investment and information technology initiatives, the company aims to improve operational efficiency and strengthen competitiveness. In doing so, it continues to contribute to the formation of a circular society.

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