Chudenko

Basic Information

Stock Code
1941
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Hiroshima Prefecture
Establishment Year
September 1944
Listing Year
June 1949
Official Website
https://www.chudenko.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
West Holdings, Yourtec, Nippon LeTec, Shidenko, Kandenko, Kinden, Toenec, Sumitomo Densetsu, Nihon Densetsu Kogyo, Kyudenko

Overview

Chudenko is a Chugoku Electric Power Group equipment contractor founded in 1944, serving as a leading company with solid management focused on electrical works and related equipment construction primarily in the Chugoku region.

Current Situation

For the fiscal year ended March 2020, it recorded consolidated sales of approximately 168.9 billion yen and operating profit of 8.3 billion yen, maintaining a stable financial base. Electrical equipment works account for about 50% of revenue, with operations from 151 business locations nationwide centered in the Chugoku region. Starting from the Technology and Sales Headquarters, it provides services to diverse customers ranging from power and telecommunications to air conditioning, water supply/drainage, and environmental equipment works. In recent years, it has positioned image sensing business (CaaS) using AI and IP cameras as a new business area and is focusing on digital technology solutions. It is strengthening its nationwide network and technician training to achieve sustainable growth. Its track and field club is active, and it actively contributes to local society. Chudenko balances stable management with new technology adoption to enhance long-term competitiveness.

Trivia

Interesting Facts

  • Established in 1944 through the merger of 12 electrical works companies.
  • Corporate creed 'True Heart' established in 1980.
  • Operates a network of 151 business locations nationwide.
  • Continuously participates in New Year Ekiden relay since 1995.
  • Head office located in the Electric Building on Hiroshima's Peace Boulevard.
  • Deploys image sensing business using IP cameras and AI.
  • Has a subsidiary operating farms, expanding into agriculture.
  • Listed on Hiroshima Stock Exchange in 1949.
  • Operates a technical junior college focused on talent development.
  • Renovated employee cafeteria into an observation restaurant open to citizens.

Hidden Connections

  • Closely collaborates as the main equipment works provider for Chugoku Electric Power Group.
  • Expanding internationally into Malaysia through subsidiaries.
  • Holds strong influence in the Chugoku region within the electrical works industry.
  • Focuses on regional contributions and brand enhancement through sports club activities.
  • Achieved business diversification through collaboration with affiliate companies.
  • Has extensive track record in electrical wiring and equipment works for public facilities.
  • Cultural support activities such as donating an outdoor clock tower to Hiroshima Citizens Stadium.
  • Shifting from traditional works business through recent digital technology adoption.

Future Outlook

Growth Drivers

  • Growth in image sensing business leveraging DX and AI
  • Stable orders based on Chugoku Electric Power Group demand
  • Increased works demand from advanced power and communications equipment
  • Expansion of demand for environmentally considerate equipment
  • Competitiveness enhancement through nationwide network and technician training
  • Advancement of new technology development and smart society対応
  • Support gains through regional revitalization and community-focused management
  • Investments in labor productivity improvements
  • Stabilization of revenue base through diversification
  • Benefits from government infrastructure redevelopment policies

Strategic Goals

  • Achieve 10 billion yen in sales from CaaS business
  • Over 30% sales ratio from environmental equipment works
  • Maintain and improve technical standards through technician training enhancement
  • Complete digitalization of all domestic branches
  • Obtain international certifications for safety and quality management
  • Enhance brand value through community contribution activities
  • Maximize synergies with affiliate group companies
  • Revenue diversification through new market development
  • Build sustainable management structure
  • Workplace reforms to improve employee satisfaction

Business Segments

Electrical Equipment Works Segment

Overview
Main business area handling design, construction, and maintenance of large-scale electrical equipment.
Competitiveness
Strong customer base and track record in the Chugoku region.
Customers
  • Electric Power Companies
  • Factories and Manufacturers
  • Government Agencies
  • Commercial Facility Operators
  • Infrastructure-Related Companies
Products
  • Transmission Tower Works
  • Substation Equipment Works
  • Distribution Board Installation
  • Maintenance Services

Communications Equipment Works Segment

Overview
Specializes in construction and maintenance management of communication infrastructure.
Competitiveness
High-quality construction leveraging technical expertise.
Customers
  • Telecommunications Carriers
  • Municipalities
  • Major Information and Communications Companies
Products
  • Fiber Optic Cable Wiring Works
  • LAN Construction
  • CATV Equipment Installation

Air Conditioning and Water Supply/Drainage Equipment Segment

Overview
Focuses on equipment works to create comfortable environments.
Competitiveness
Introduction of environmentally compatible technologies and diverse track record.
Customers
  • Office Buildings
  • Commercial Facilities
  • Hospitals and Welfare Facilities
  • Educational Institutions
Products
  • Air Conditioning Equipment Installation
  • Water Supply/Drainage Pipe Works
  • Sanitation Equipment Construction

Image Sensing Business (CaaS)

Overview
New business providing image surveillance solutions using AI and cloud technology.
Competitiveness
Fusion of communications works technology and AI capabilities.
Customers
  • Factories
  • Construction Sites
  • Logistics Centers
  • Municipalities
Products
  • IP Camera Installation
  • AI Image Analysis Services
  • Cloud Monitoring Systems

Competitive Advantage

Strengths

  • Strong regional base centered in the Chugoku region
  • Stable support from Chugoku Electric Power Group
  • Ownership of broad equipment works technologies
  • Network of 151 business locations nationwide
  • Proactive stance on new technology introduction
  • Stable financial position
  • Ability to serve diverse customer segments
  • High construction quality management system
  • Abundant track record and experience
  • Comprehensive technician training and development programs

Competitive Advantages

  • Stable revenue structure based on strong transaction relationships with local power companies
  • One-stop service for diverse equipment works from electrical to air conditioning and water supply/drainage
  • Market expansion through new businesses like AI-based image sensing
  • High market share in niche markets via region-focused sales strategy
  • Continuous assurance of construction quality and technological innovation via Technology Headquarters
  • Rapid on-site response through extensive business location network
  • High capability to secure repeat orders through long-term trust building
  • Stable technician development via training centers and technical junior college
  • Enhanced overall strength through collaboration with group affiliates
  • Investment capacity and management stability from sound financial base

Threats

  • Labor shortages and aging workforce in construction and equipment works industry
  • Profit pressure from recent rising construction costs
  • Intensifying price competition from rivals
  • Risks from fluctuations in public works dependency
  • Decline in market competitiveness from delays in new technology adoption
  • Risks of construction delays due to natural disasters
  • Risks of order reductions from economic fluctuations
  • Demand fluctuations from structural changes in power industry
  • Cost increases from strengthened regulations
  • Increased burden from advanced environmental compliance requirements

Innovations

2023: CaaS Solution Business Trademark Registration and Launch

Overview
Incorporated image sensing business using IP cameras, AI, and cloud into a corporate entity to build a new revenue pillar.
Impact
Successfully acquired new customers and diversified services

2022: Development of AI-Based Maintenance Efficiency System

Overview
Introduced AI technology for deterioration diagnosis of electrical equipment, achieving efficiency and accuracy improvements in inspection work.
Impact
Reduced maintenance costs and improved customer satisfaction

2021: Expansion of Orders for Environmentally Considerate Building Equipment

Overview
Strengthened design and construction of building equipment promoting energy-saving and renewable energy adoption.
Impact
Increased capture of environmentally considerate demand

2020: Integration and Reorganization of Technical Junior College and Training Center

Overview
Reorganized technician training bases to improve training efficiency and secure talent.
Impact
Strengthened stable technician supply base

Sustainability

  • Promotion of pollution prevention device installation
  • Active implementation of energy-saving works
  • Regional revitalization through local hiring
  • Community contributions via CSR activities
  • Thorough safety and health management
  • Support for renewable energy equipment introduction
  • Implementation of environmental education programs
  • Promotion of waste reduction
  • Advancement of green procurement
  • Improvement of workplace environment for better work-life balance