Kandenko

Basic Information

Stock Code
1942
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
September 1944
Listing Year
October 1961
Official Website
https://www.kandenko.co.jp
TSE Information
TSE Information
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Overview

Kandenko is a major Tokyo Stock Exchange Prime Market-listed electrical construction company founded in 1944, providing comprehensive equipment services primarily centered in the Kanto region.

Current Situation

Kandenko recorded consolidated net sales of approximately 616.1 billion yen and operating profit of approximately 34.7 billion yen for the fiscal year ended March 2020, maintaining a sound financial position. Centered on electrical works, it diversifies into air conditioning and water supply/drainage equipment works, telecommunications works, and more, supported by a solid foundation from the Tokyo Electric Power Group. It operates multiple branches and subsidiaries nationwide, expanding from power transmission and distribution facilities to building maintenance and real estate management. In recent years, it has entered the renewable energy sector with wind and solar power generation projects, strengthening environmental initiatives. Its strengths include extensive construction track record, advanced technological capabilities, and a stable customer base. It emphasizes human resource development with a comprehensive training center, earning high industry acclaim. Moving forward, it will promote smart infrastructure and energy-saving technologies, aiming for sustainable and safe social infrastructure by 2030. Through management changes and organizational restructuring, it is accelerating operational efficiency and growth strategies.

Trivia

Interesting Facts

  • The company name Kandenko originally derives from the abbreviation of 'Kanto Electrical Works.'
  • The company's work vehicles feature a distinctive corporate color scheme of white base with blue and orange diagonal stripes.
  • Often confused with peer company 'Kinden,' but is a separate organization from the Kansai Electric Power affiliate.
  • Kandenko listed on the Tokyo Stock Exchange Second Section in 1961 and was later promoted to First Section.
  • Maintains deep historical ties and cooperative relationship with Tokyo Electric Power Group.
  • Deploys numerous branches and subsidiaries nationwide centered on Kanto, forming a wide-area business network.
  • Early entry into renewable energy business including solar and wind power generation.
  • Emphasizes engineer training, conducting enriched programs at the human resource development center.
  • Pursues diversified business including security services and real estate management.
  • Pursues group synergies through numerous affiliated subsidiaries and partnerships.

Hidden Connections

  • Tokyo Electric Power Grid holds approximately 46% as the largest shareholder, with strong capital ties.
  • Subsidiary Hanshindenko was formerly part of Hankyu Electric Railway Group, with strong Kansai regional ties.
  • Regional Kei Techno companies specialize in electrical works by prefecture, enabling regionally rooted business deployment.
  • Transmission/distribution works subsidiary Sato Kensetsu Kogyo plays a key role in power infrastructure development.
  • Related company Net Save provides technical support for CATV maintenance and communication monitoring.
  • Kandenko's renewable energy business advances collaboration models with local governments and investment funds.
  • Tokyo Koji Keibi handles construction site security, playing a vital role in safety management.
  • Design/estimation company Bay Techno provides design services for group internal and external construction projects.

Future Outlook

Growth Drivers

  • Increased equipment demand from smart power infrastructure promotion
  • Renewable energy business expansion and technological innovation
  • Equipment renewal demand accompanying energy-saving and environmental regulation strengthening
  • Competitiveness enhancement through human resource development and latest technology introduction
  • Increased infrastructure reconstruction and disaster prevention equipment investments domestically and internationally
  • Construction efficiency and service improvement through ICT technology utilization
  • Steady trend in public and private construction investments
  • Business diversification progress leveraging group synergies
  • Strengthening of regionally rooted subsidiary network
  • New service deployment responding to heightened environmental and safety awareness

Strategic Goals

  • Aim to expand market share in electrical equipment works
  • Achieve 30% reduction in group-wide CO2 emissions
  • Double revenue from renewable energy business
  • Establish and grow smart infrastructure-related business
  • Create fulfilling workplace through diverse talent utilization
  • Achieve industry top-class status in building maintenance business
  • Promote contributions to and collaboration with local communities
  • Improve operational efficiency and quality through DX promotion
  • Thorough compliance with global standards in safety and environment
  • Sustainable growth based on stable financial foundation

Business Segments

Electrical Works and Transmission/Distribution Equipment Business

Overview
Comprehensive electrical works for power infrastructure construction including power plants and transmission/distribution lines.
Competitiveness
Strong trusted relationship and technological capabilities with Tokyo Electric Power Group
Customers
  • Electric power companies
  • Government agencies
  • Construction companies
  • Plant operating companies
  • Factories
Products
  • High-voltage receiving and distribution equipment construction
  • Transmission line construction and maintenance
  • Distribution line renovation
  • Nuclear-related facility works
  • Power infrastructure development

Air Conditioning and Water Supply/Drainage Equipment Works

Overview
Provides air conditioning and piping equipment works to enhance comfort in buildings and facilities.
Competitiveness
Construction technology adaptable to diverse facilities and high-quality maintenance system
Customers
  • Office building owners
  • Commercial facility operators
  • Factory managers
  • Schools and public facilities
  • Hospitals
Products
  • Air conditioning equipment design and construction
  • Water supply/drainage piping works
  • Sanitation equipment construction
  • Energy-saving air conditioning systems
  • Building equipment maintenance management

Communications Equipment Works

Overview
Extensively deploys communications works essential for high-speed communication infrastructure.
Competitiveness
Extensive network construction track record and engineer training system
Customers
  • Telecommunications carriers
  • IT companies
  • Local governments
  • CATV operators
  • General corporations
Products
  • Fiber optic cable laying
  • LAN construction
  • Communication network equipment
  • CATV installation
  • Network monitoring services

Building Maintenance and Security

Overview
Implements comprehensive maintenance to maintain building safety and comfort.
Competitiveness
Integrated service system capable of handling diverse equipment
Customers
  • Commercial building owners
  • Office building management companies
  • Factories
  • Public facilities
  • Hospitals
Products
  • Equipment maintenance inspections
  • Security services
  • Cleaning services
  • Energy-saving proposals
  • Safety management

Real Estate Management and Asset Management

Overview
Supports maximization of asset value through real estate leasing and leasing services.
Competitiveness
Stable operations through business synergies with Kandenko Group
Customers
  • Corporate owners
  • Individual investors
  • Real estate funds
  • Commercial facility operators
  • Corporate clients
Products
  • Real estate rental management
  • Property leasing
  • Asset management consulting
  • Real estate development
  • Comprehensive leasing services

Education Training and Design/Estimation Services

Overview
Deploys services specialized in technology improvement and construction design, promoting human resource development.
Competitiveness
High-specialty training programs leveraging years of accumulated expertise
Customers
  • Within Kandenko Group
  • Construction companies
  • Development operators
  • Engineer dispatch companies
  • Local governments
Products
  • Engineer training
  • Design services
  • Estimation services
  • Technical consulting
  • Engineer dispatch

Renewable Energy Development

Overview
Advances environmentally considerate energy business, contributing to sustainable society.
Competitiveness
Region-rooted development capabilities and operational management know-how
Customers
  • Local governments
  • Electric power companies
  • Corporate clients
  • Investment funds
  • Local communities
Products
  • Solar power equipment construction
  • Wind power plant development
  • Equipment maintenance management
  • Energy business consulting
  • Power plant operation

Competitive Advantage

Strengths

  • Strong collaboration with Tokyo Electric Power Group
  • Abundant electrical works technology and extensive construction track record
  • Comprehensive service capabilities across diverse business areas
  • Nationwide branch and subsidiary network
  • Advanced human resource development and technical training system
  • Active expansion into renewable energy field
  • Robust financial base and stable earnings structure
  • Long-term transaction relationships with broad customer base
  • Advanced design/estimation technology and consulting capabilities
  • Provision of comprehensive building maintenance services

Competitive Advantages

  • Stable order base from close transactions with power companies
  • Advanced specialized technology across wide equipment works fields
  • Industry-leading track record in engineer training
  • Pioneering initiatives in renewable energy business
  • Rapid service provision enabled by regional subsidiary network
  • One-stop provision realized through comprehensive equipment services
  • Trust gained from numerous customers through high-quality construction
  • Problem-solving capabilities based on rich past business experience
  • Strengthened efforts toward sustainable social infrastructure development
  • Investment strength from group-wide financial stability

Threats

  • Labor shortage in construction industry and rising labor costs
  • Cost increase risks due to fluctuations in construction material prices
  • Impact on orders from public works budget fluctuations
  • Decline in competitiveness from delays in new technologies and labor-saving
  • Increased compliance costs from strengthened environmental regulations
  • Business suspension risks from earthquakes and other natural disasters
  • Intensifying order competition with rival companies
  • Industry structure changes from power deregulation
  • Construction delays and demand reduction from COVID-19 impact
  • Equipment investment restraint due to uncertain economic conditions

Innovations

2021: Euroyen Convertible Bonds with Stock Acquisition Rights Issuance

Overview
Issued large-scale corporate bonds to strengthen financial base and fund growth investments.
Impact
Contributes to improved fundraising capabilities and medium- to long-term management stability.

2023: Renewable Energy Business Expansion

Overview
Acquired numerous solar and wind power development projects, expanding business.
Impact
Successfully strengthened environmental response and created new revenue sources.

2022: Promotion of Labor-Saving in Equipment Works Using New Technologies

Overview
Introduced construction management system utilizing AI and IoT technologies.
Impact
Achieved improved construction efficiency and quality.

2024: Initiation of Smart Infrastructure Development

Overview
Began development of smart grid technology for distribution networks using IoT.
Impact
Advanced initiatives toward next-generation infrastructure construction.

2020: Enhancement of Human Resource Development Center Functions

Overview
Expanded and implemented training programs for acquiring latest technologies.
Impact
Contributes to engineer skill improvement and reduced turnover.

Sustainability

  • Reduces environmental impact through introduction and construction of energy-saving equipment
  • Active promotion of renewable energy power generation business
  • Establishment of thorough labor safety and health management system
  • Deployment of CSR activities aiming for coexistence with local communities
  • Building of business system for waste reduction and recycling promotion
  • Promotion of female engineers and diverse talent utilization, improving work environment
  • Strengthening environmental and social considerations in supply chain
  • Achieves sustainable management through acquisition of green management certifications, etc.