- (E04152) Stock Price

Yokohama High-Speed Railway is a third-sector company operating railway services centered in Yokohama, Kanagawa Prefecture. The company's core business is operating the "Minato Mirai 21 Line," which connects Yokohama Station to the Minato Mirai and Chinatown areas. Since opening in 2004, the line has functioned as a critical transportation infrastructure for central Yokohama. The 4.2-kilometer line, built at a total construction cost of 256.3 billion yen, is positioned as an urban railway directly connecting Yokohama's tourism and business hubs.

The company's primary customers are commuters to the Minato Mirai district and tourists. Through direct service connections with the Tokyu Toyoko Line, the company attracts users from a wider region. Revenue is primarily generated from railway operations and fares. However, the massive capital investment during construction has created long-term repayment obligations, requiring continued financial support from Yokohama City and other local governments in the form of equity investment and interest-free loans. The capital structure reflects a public-private partnership, with local governments and private companies each holding 50% ownership.

The company's business consists of three pillars. First is the Minato Mirai 21 Line railway operations. Second is the facility ownership business of the "Children's Country Line," which connects Nagatsuta to Children's Country, with Tokyu Electric Railway handling operations. Third is the station improvement business, which involved renovation work at Keikyu Yokohama Station; the completed facilities are leased to Keikyu Electric Railway. Through these operations, the company plays an important role in developing the railway network in the Yokohama region.

Yokohama High-Speed Railway has formulated a new medium-term management plan for fiscal years 2025 through 2028, aiming to establish a sustainable operational foundation. While working to stabilize operations that were impacted by COVID-19, the company is pursuing a strategy that balances "operational soundness" with "customer-focused service delivery." For the operator of the Minatomirai Line, with limited prospects for significant growth in regular commuters due to the normalization of remote work, acquiring more tourists and general passengers has become a critical priority.

In priority investment areas, the company is focusing on the planned renewal of aging railway infrastructure that has deteriorated over more than 20 years since opening. The company is steadily advancing necessary capital investments, including vehicle depot improvements and systematic facility upgrades, with safety and operational stability as the top priority. From an operational efficiency perspective, the company is also reviewing and restructuring outsourced operations and other business activities to improve profitability through appropriate cost management and efficient resource allocation. Additionally, the company is conducting research and studies on fare level optimization to strengthen its revenue base.

In new service initiatives, the company prioritizes responding to diverse customer needs and is conducting pilot programs for credit card and QR code-based ticketing systems. The company is adopting a strategy that simultaneously improves convenience and customer satisfaction through flexible development of new special fare tickets. The company is also expanding revenue sources beyond railway operations by optimizing the use of owned assets, such as renovating station retail spaces. The company is pursuing a community-focused growth strategy that deepens partnerships with local businesses, regional stakeholders, interconnecting railway operators, and government agencies to increase ridership through overall regional revitalization.