Kyoei Security Service Co., Ltd. (7058) Stock Price

Market cap
¥4.6B
P/E ratio
6.1x
Kyoei Security Service provides comprehensive security solutions including facility protection, traffic control, and event management for businesses and construction sites across Japan.

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Business Overview

Kyoei Security Service is a company primarily engaged in the security services business. The company's main operations include facility security and traffic control security services, and it provides a diverse range of security services together with affiliated companies.

In facility security, the company stations security personnel at client facilities to manage access, conduct patrols, and monitor fire alarm systems, working to prevent fires and theft. Additionally, through its reception and concierge services, it provides front desk operations at office buildings and commercial facilities.

In traffic control security, the company provides traffic guidance services for road construction and building sites, directing vehicles and pedestrians. Furthermore, in event security, it handles crowd management and gate inspections at sporting events, concerts, and other events.

As additional services, Kyoei Security Service also offers bodyguard services, parking lot operations management, condominium management services, and building and facility management. Through these offerings, the company has established a framework to meet a wide range of client needs.

Management Policy

Kyoei Security Service is pursuing a growth strategy while adapting to changes in the security industry. The company is focusing on human services and promoting business expansion through M&A. This approach aims to strengthen negotiating power and secure adequate personnel.

Aggressive M&A is at the core of the company's growth strategy. The security industry faces severe labor shortages and intensifying competition. Against this backdrop, Kyoei Security Service intends to continue M&A activities among security companies and related sectors to build a nationwide platform.

Accelerating group management is also a key strategy. The company is strengthening the role of affiliated companies, which account for approximately 34% of total group sales, and advancing regional restructuring. This aims to establish an efficient management structure and enhance corporate value.

Improving security quality is another priority area. The company seeks to continue providing high-quality services through security operations at critical facilities and data centers. By defining group-wide quality strategies and promoting credential acquisition, the company is increasing service value-added.

Kyoei Security Service monitors growth by setting KPIs including sales revenue, number of security personnel, and operating profit. Through this approach, the company aims to achieve business expansion and profit growth while delivering returns to stakeholders.

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