ODAWARA AUTO-MACHINE MFG.CO.,LTD.【JP:7314】Stock Price

Odawara Machinery operates two main business segments: fare collection equipment and system development. In the fare collection equipment business, the company develops, manufactures, and sells fare boxes for route buses, contactless IC card-compatible card readers, cashless payment devices, and related maintenance services.

Core products in the fare collection equipment business include automatic counting fare boxes, general-purpose fare boxes, safes for fare boxes, and fare box software. The automatic counting fare boxes calculate and process fares automatically based on ticket and card information, with cashless payment capability. These products streamline fare collection operations.

The system development business is led by subsidiaries Sota System Corporation and Azuma Corporation, which develop transportation infrastructure-related systems including ETC systems and road traffic information communication systems. The company also develops embedded devices related to IoT and M2M applications, such as vehicle location information systems and visual inspection systems.

To meet cashless payment demand, Odawara Machinery offers the multi-payment terminal "BOSS" and the cashless fare collection tablet terminal "SELF." The "BOSS" integrates with vehicle-mounted equipment to save space and improve usability, while "SELF" can be deployed independently with high expandability.

Other equipment includes ticket dispensers, LCD fare displays, and voice synthesis devices. These are also used as display and information systems for buses, railways, and airports. The company also develops software to manage overall fare collection systems through settlement devices and data management servers.

Odawara Machinery provides after-sales services including product repairs, specification modifications, and maintenance parts sales. Services include repairs and overhauls both within and outside warranty periods, as well as scheduled maintenance visits under maintenance contracts, tailored to customer needs.

Odawara Machinery has formulated a medium-term management plan with 2025 as the final fiscal year, aiming for revenue stabilization and sustainable growth. The plan emphasizes two key initiatives: "creation of growth businesses" and "execution of continuous growth investments."

In creating growth businesses, the New Business Promotion Division is deploying solutions that contribute to regional community revitalization. Specifically, the company has launched operations of a regional point application for Odawara City, establishing a pathway for new businesses that address local needs.

Additionally, in response to challenges such as declining birth rates, aging populations, and driver shortages, the company provides data service solutions that support bus operators in improving operational efficiency. Through these solutions, the company aims to forecast transportation demand and optimize operational planning, thereby maintaining public transportation services.

In executing continuous growth investments, the company has increased research and development spending and independently developed a banknote validator for fare boxes compatible with new currency denominations. This has achieved shorter delivery times and improved gross profit margins. The company is also focusing on developing next-generation fare collection equipment and cashless payment terminals.

Against the backdrop of improved gross profit margins, the company is advancing IT infrastructure investments to enhance manufacturing process efficiency. Specifically, the company is transitioning from serial number-based production methods to MRP systems and standardizing specifications to reduce cost of sales ratios. These efforts strengthen the foundation for sustainable growth.