FUKUI RAILWAY CO.,LTD. (E04127) Stock Price

Fukui Railway is a community-focused transportation company operating primarily in Fukui Prefecture. The company's core business is operating railways, buses, and taxis—public transportation services that support the daily mobility needs of local residents. The company has also diversified into petroleum product sales and real estate rental operations.

The company's primary customers are residents of Fukui Prefecture, serving their commuting, school travel, and daily transportation needs. The revenue structure is centered on transportation operations, with fares from railway and bus routes as the main revenue source. Additionally, stable income from petroleum product sales and real estate rentals through group companies supports overall revenues.

The company operates across three main business segments: transportation, distribution, and real estate. In transportation, the company operates railways while three subsidiaries handle bus and taxi operations. In distribution, the company sells petroleum, gas, and general merchandise. In real estate, the company leases owned land and buildings. The company also operates travel agencies and advertising businesses to further diversify its operations.

Fukui Railway operates under the principle of "public transportation cherished and developed together with the community." The company is implementing a regional public transportation plan with a five-year planning period through the end of fiscal year 2027. It has set a target of 2.22 million annual passengers and is simultaneously pursuing ridership growth initiatives and cost reduction measures to improve financial performance. The plan prioritizes creating a comfortable regional public transportation network and strengthening partnerships with regional tourism to support broader tourism and business demand.

The company's competitive strategy centers on providing safe, reliable, and attractive services through community-focused operations. It leverages support from national and prefectural governments for safety equipment upgrades and maintenance funding from municipalities along its routes to continuously invest in updating aging infrastructure and improving safety. The company aims to build public transportation that reduces car dependency and contributes to creating livable communities by deepening partnerships with municipalities, support organizations, and local residents.

The company's most critical challenge is severe employee shortages, particularly a shortage of bus drivers. Regulatory changes to bus driver working hours effective April 2024 have intensified this situation, resulting in lost charter bus and taxi business opportunities, reduced operating hours, and revised schedules. The company is implementing comprehensive measures including wage increases, fare hikes, revised work arrangements and operational structures, and expanded support programs to address this challenge.

To secure personnel, the company is actively holding recruitment briefings and strengthening recruitment activities through mass media advertising and social media. It is improving employee compensation with support from government and related organizations while continuing discussions with municipalities on service adjustments and route reorganization. Through these initiatives, the company aims to minimize inconvenience to customers while securing employees and ensuring business continuity, fulfilling its role as essential transportation for the region.