KYOKUTO KAIHATSU KOGYO CO.,LTD. (7226) Stock Price

Market cap
¥115.9B
P/E ratio
41.9x
Kyokuto Development Industries manufactures specialized trucks and waste recycling equipment, operates parking systems, and serves municipalities and businesses across Japan.

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Business Overview

Kyokuto Development Industries operates three main business segments: specialized vehicles, environmental solutions, and parking services. In the specialized vehicles segment, the company manufactures and sells specialized trucks including dump trucks, tail gate lifters, tank lorries, garbage collection vehicles, trailers, vans, and wing body trucks. Subsidiaries such as Japan Trex Co., Ltd. and Hokuriku Heavy Machinery Industries Co., Ltd. operate in this segment.

The environmental solutions segment manufactures and sells recycling facilities. Specifically, the company constructs bulk waste processing facilities, recycling centers, waste-to-fuel facilities, and biogas plants. Additionally, it manufactures and sells recycling equipment including crushers, glass bottle color sorting machines, and push-type molding machines.

The parking services segment manufactures, installs, and sells automated parking systems, operates coin-operated parking lots, and leases real estate. Kyokuto Development Parking Co., Ltd. manages this segment, providing maintenance services for apartment building parking systems and operating coin-operated parking facilities. The company also operates mega solar power generation plants.

Management Policy

Kyokuto Kaihatsu Industrial Co., Ltd. has established a long-term management vision called "Kyokuto Kaihatsu 2030" with a view toward 2030, aiming to become a global comprehensive infrastructure manufacturer that contributes to the realization of a sustainable society. To achieve this vision, the company has formulated a medium-term management plan titled "Creating The Future As One (II)" with five basic policies to enhance corporate value.

This medium-term management plan places particular emphasis on solving social issues and creating value through high-value-added products and services. The basic policies include improving productivity and strengthening profit structure, accelerating growth in overseas operations, promoting sustainability management, and advancing capital strategy. Through these initiatives, Kyokuto Kaihatsu Industrial aims to establish a solid corporate foundation.

Financially, the company plans to invest 30 billion yen in growth investments and 10 billion yen in new M&A over three years. Additionally, the company plans to return a total of 150 billion yen or more to shareholders, aiming for stable profit distribution. This approach is designed to further enhance corporate value.

For fiscal year 2027, the company has set performance targets of 190 billion yen in revenue, an 8% operating profit margin, and 8% ROE. These targets are stepping stones toward the long-term management goals of 200 billion yen in revenue, a 10% operating profit margin, and 10% ROE.

Sustainability targets include reducing CO2 emissions, improving waste recycling rates, and increasing the ratio of female managers. Through these efforts, the company is strengthening its commitment to realizing a sustainable society.

Kyokuto Kaihatsu Industrial operates three business segments: specialty vehicles, environmental services, and parking. The specialty vehicle business manufactures and sells dump trucks and trailers, holding the top domestic market share. The environmental services business designs and constructs recycling facilities and provides operational management services, maintaining a top-tier market position. The parking business manufactures and sells multi-story parking systems and operates coin parking facilities, with a focus on profitability-driven operations.

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