Kodensha

Basic Information

Stock Code
1948
Industry
Construction
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
June 1917
Listing Year
July 1962
Official Website
http://www.kk-kodensha.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Kodensha is an electrical equipment construction company in the Mitsubishi Electric Group, established in 1917 with its head office in Tokyo, and is a mid-sized company with solid technical capabilities in the domestic construction industry.

Current Situation

Kodensha recorded consolidated sales of approximately 37.3 billion yen and net assets of approximately 14 billion yen in the fiscal year ending March 2017. It mainly handles indoor electrical wiring for buildings and elevator installations, maintaining a strong business relationship as an agent for Mitsubishi Electric. It is exploring regional and overseas expansion through the transfer of operations in Hokkaido and the establishment of a related company in Beijing, China. In recent years, it has formed a stable revenue base centered on electrical equipment works and sales of heavy electrical and electronic equipment. It focuses on sustainable construction environment development and advanced construction technology improvement, advancing sustainability and safety standard enhancements. Entering the 2020s, it pursues construction quality and efficiency through the introduction of digital technologies. While conducting competitive analysis with various construction-related stocks, it actively adapts to advanced technologies. It also emphasizes responses to changing market environments and new regulations, deploying management strategies aimed at medium- to long-term business growth.

Trivia

Interesting Facts

  • Veteran electrical equipment construction company founded in 1917 in the Tokyo Kyobashi area.
  • Mitsubishi Electric has invested capital, positioning it as an important partner in the group.
  • Actively expanding overseas with multiple related companies established in Beijing, China.
  • Maintains stable management with a unique focus on electrical equipment works and elevator installations.
  • Construction techniques honed over many years in the construction industry are highly regarded.
  • Has historical ties with Hokkodensha.
  • Possesses a strong network with a wide range of Mitsubishi Electric Group-related companies.
  • Incorporating IT solutions into business areas to modernize.
  • Continues steady growth by fusing traditional methods with the latest technology.
  • Occupies a mid-tier position in the domestic electrical equipment contracting industry.
  • Expanding business in the Chinese market through multiple related companies.
  • Executing sustained investments backed by a stable financial base.
  • Personnel change news regularly reported within the industry.
  • Emphasizing safety management, promoting zero work-related accidents.
  • Strong in large facilities in urban areas.

Hidden Connections

  • Closely collaborates with multiple Mitsubishi Electric-related subsidiaries to deploy integrated construction and electrical works.
  • Serves as a technical pipeline for the local construction industry through related companies in Beijing, China.
  • As a veteran in the construction industry, makes significant contributions to regional infrastructure development.
  • Composite company engaged not only in equipment works but also widely in parts sales and maintenance services.
  • Builds technology and materials procurement network with related companies and Mitsubishi Electric group firms to strengthen competitiveness.
  • Tokyo Ginza head office serves as a strategic base in the center of regional commercial infrastructure.
  • Established a dedicated disaster prevention equipment works department, contributing to disaster risk reduction.
  • Advanced company realizing safe and efficient construction management by fusing construction and IT technology.

Future Outlook

Growth Drivers

  • Increasing demand for renovations of domestic buildings and public facilities
  • Strengthened legal regulations promoting energy-saving equipment introduction
  • Expanded utilization of construction ICT and IoT technologies
  • Expansion of electrical equipment demand in overseas markets such as China
  • Increasing demand for safety and disaster prevention equipment
  • Spread of efficiency technologies to compensate for labor shortages
  • Increasing demand for environmentally considerate construction materials
  • Government urban infrastructure redevelopment policies
  • Strengthening synergies with related companies
  • Enhanced facility maintenance corresponding to aging society
  • Business process improvements through industrial DX promotion
  • Increasing investments emphasizing sustainability

Strategic Goals

  • Expand consolidated sales to over 40 billion yen
  • Improve energy-saving works ratio to over 50% domestically and internationally
  • Achieve 20% improvement in construction efficiency through IT technology introduction
  • Increase overseas business sales ratio to over 15%
  • Full implementation of sustainability management
  • Continuous achievement of zero safety accidents
  • 100% implementation of engineer training programs
  • Achieve top domestic share in disaster prevention equipment works
  • Organizational strengthening through diverse talent recruitment and utilization
  • Maintain customer satisfaction over 90%

Business Segments

Electrical Equipment Works

Overview
Widely undertakes electrical equipment works for buildings and public facilities, providing construction with superior safety and reliability.
Competitiveness
Technical support from the Mitsubishi Electric Group and high-quality construction technology
Customers
  • Commercial building management companies
  • Real estate developers
  • Public facility managers
  • Manufacturing companies
  • Architectural design offices
  • Condominium management associations
  • Local governments
  • Large commercial facility owners
  • Hospitals and medical institutions
  • Financial institutions
Products
  • Building indoor wiring works
  • Elevator installation construction
  • Power transmission equipment construction
  • Disaster prevention equipment installation
  • Energy-saving equipment works
  • Solar power generation equipment
  • Power supply equipment
  • Elevator maintenance
  • Equipment maintenance
  • Safety audits

Heavy Electrical and Electronic Equipment Sales

Overview
Sells high-quality heavy electrical equipment and electronic products for industry, and also deploys installation and maintenance support.
Competitiveness
Reliable product lineup backed by the Mitsubishi Electric brand
Customers
  • Factory equipment managers
  • Manufacturers
  • Energy operators
  • Facility operating companies
  • Construction companies
  • Information and communications companies
  • Government offices
  • Industrial park managers
  • Electrical equipment sales agents
  • Office management companies
Products
  • Industrial electrical equipment
  • Electronic control devices
  • Industrial motors
  • High-voltage equipment
  • Control panels
  • Distribution boards
  • Power converters
  • Sensors
  • Electric wires and cables
  • Testing equipment

Construction Materials Sales

Overview
Stably supplies electrical and equipment materials for construction sites and maintenance, supporting the regional construction industry.
Competitiveness
Quality-controlled materials and prompt supply system
Customers
  • Construction companies
  • Electrical contractors
  • Equipment design offices
  • Renovation contractors
  • Condominium management associations
  • Carpentry shops
  • Equipment maintenance contractors
  • Real estate management companies
  • Local governments
  • Facility management companies
Products
  • Wiring materials
  • Electric cables
  • Lighting fixtures
  • Elevator parts
  • Disaster prevention equipment
  • Control systems
  • Air conditioning equipment
  • Piping materials
  • Communications equipment
  • Power equipment

Equipment Design and Consulting

Overview
Provides electrical equipment design and technical consulting, supporting customers in building comfortable and safe environments.
Competitiveness
High-precision design by specialized engineers and practical problem-solving capabilities
Customers
  • Construction design offices
  • Building management companies
  • Real estate companies
  • Public project entities
  • Local governments
  • Manufacturing factories
  • Commercial facility operators
  • Medical institutions
  • School corporations
  • Hotel chains
Products
  • Electrical equipment design
  • Energy efficiency consulting
  • Safety diagnostic services
  • Energy-saving proposals
  • Construction supervision support
  • Equipment renewal plans
  • Environmentally compatible equipment
  • Risk assessment
  • Equipment operation analysis
  • Quality management guidance

Equipment Maintenance Services

Overview
Specializes in maintenance and inspections of electrical and elevator equipment for buildings and facilities, maintaining safe operations.
Competitiveness
Rapid response capability and robust engineer retention system
Customers
  • Commercial facility owners
  • Building management companies
  • Condominium management associations
  • Public facility managers
  • Manufacturing factories
  • Hospitals and medical facilities
  • Public transportation
  • Hotels and inns
  • School corporations
  • Logistics facilities
Products
  • Regular maintenance contracts
  • Emergency repair response
  • Equipment inspection diagnostics
  • Elevator inspections
  • Electrical equipment maintenance
  • Energy management
  • Safety audits
  • Remote monitoring services
  • Equipment renewal proposals
  • Troubleshooting response

Overseas Business

Overview
Centered on the Beijing base, expands electrical equipment works and related technical support in China, promoting international business.
Competitiveness
Local expansion leveraging Mitsubishi Electric's global network
Customers
  • Chinese local companies
  • Japanese company China branches
  • International building managers
  • Construction operators
  • Equipment contractors
  • Technical consultants
  • Local government agencies
  • Real estate development companies
  • Manufacturing local subsidiaries
  • Foreign companies
Products
  • Electrical equipment works
  • Technical consulting
  • Equipment maintenance
  • Project management
  • Safety standards guidance
  • Construction supervision
  • Materials procurement support
  • Local training
  • Equipment design
  • Construction contracts

Energy-Saving and Environmental Equipment

Overview
Proposes and constructs energy-saving measures for buildings and environmentally considerate equipment introductions.
Competitiveness
Efficient energy reduction services utilizing the latest technology
Customers
  • Building management companies
  • Public facilities
  • Major companies
  • Energy-saving promotion groups
  • Environmental consultants
  • Energy operators
  • Manufacturing factories
  • School corporations
  • Hospitals
  • Commercial facilities
Products
  • LED lighting introduction
  • Energy management systems
  • Energy-saving equipment design
  • Environmentally compatible works
  • Power storage equipment
  • Solar power generation systems
  • Air conditioning optimization
  • Power monitoring devices
  • CO2 reduction plans
  • Renewable energy equipment

Design and Construction Supervision

Overview
Ensures project quality and efficiency through electrical equipment-related design and construction supervision services.
Competitiveness
Accurate construction management by staff with extensive site experience
Customers
  • Construction companies
  • Developers
  • Local governments
  • Building owners
  • Design offices
  • Commercial facility operations
  • Public facility management
  • Real estate management companies
  • Medical corporations
  • Educational institutions
Products
  • Construction drawings
  • Design review
  • Construction supervision
  • Quality management
  • Safety management
  • Construction schedule adjustment
  • Technical guidance
  • Standards compliance check
  • Inspection support
  • Problem-solving support

Communications Equipment Works

Overview
Specializes in providing electrical telecommunications equipment works services such as communication line construction and LAN building.
Competitiveness
Total solutions linked with electrical equipment works technology
Customers
  • Telecom carriers
  • Major company IT departments
  • Government offices
  • Data center operators
  • Schools and universities
  • Hospitals
  • Commercial facilities
  • Office buildings
  • Event organizers
  • Local governments
Products
  • Network wiring works
  • LAN installation
  • CATV works
  • Fiber optic equipment
  • Communications equipment installation
  • Data communication line works
  • Wireless equipment construction
  • Maintenance
  • Security equipment
  • System integration

Air Conditioning and Water Supply/Drainage Equipment Works

Overview
Mainly handles installation works for air conditioning, water supply/drainage, and gas equipment to build comfortable environments.
Competitiveness
Technical capabilities for multi-field equipment design and construction
Customers
  • Architectural design offices
  • Construction companies
  • Commercial facility managers
  • Condominium management associations
  • Public facilities
  • Factories
  • Clinics
  • Restaurants
  • Government offices
  • School corporations
Products
  • Air conditioning equipment construction
  • Water supply/drainage equipment installation
  • Gas equipment installation
  • Ventilation systems
  • Water treatment equipment
  • Heating equipment
  • Piping works
  • Maintenance
  • Energy-saving equipment introduction
  • Safety management

Competitive Advantage

Strengths

  • Strong backing from the Mitsubishi Electric Group
  • Reliability of electrical equipment construction due to high technical capabilities
  • Stable customer base from region-focused sales
  • Diversification handling multiple equipment work fields
  • Stable corporate structure based on long history
  • Growth potential from overseas expansion in Beijing, China
  • One-stop service for equipment design and construction
  • Pioneer in energy-saving and environmental technologies
  • Comprehensive equipment maintenance system
  • Responsive to a wide range of customer segments
  • Engineer training and securing of highly skilled personnel
  • Focus on information and communications works
  • Expertise in disaster prevention and safety equipment works
  • Solid financial base
  • Strong network with regional construction industry

Competitive Advantages

  • Order-taking power backed by high credibility of the Mitsubishi Electric brand
  • Risk diversification through diverse business segments
  • Stable revenue base from long-term contracts
  • Strong business relationships with major domestic companies and public institutions
  • Early entry into the Chinese market in overseas business
  • Active deployment of energy-saving solutions
  • Consistent service provision from construction to design and maintenance
  • High-quality construction based on abundant experience and track record
  • Improved construction efficiency and safety through IT technology introduction
  • Continuous technological innovation and engineer training system
  • High adaptability to regional laws, regulations, and safety standards
  • Comprehensive environmental and safety management system
  • Flexible response to comprehensive customer needs
  • Speed and technical prowess in emergency repairs
  • Business expansion utilizing extensive sales and distribution channels

Threats

  • Worsening labor shortage in the construction industry
  • Cost increase risks from rising material prices
  • Increased initial investment burden accompanying new technology introduction
  • Stagnant domestic market demand due to population decline
  • Construction delays and disaster risks from climate change
  • Obligations to comply with stricter environmental and safety regulations
  • Intensified price competition with competitors
  • Uncertainty in overseas business market and political environments
  • Risk of declining construction quality due to engineer shortages
  • Increasing risks of IT attacks and information leaks
  • Increased equipment damage and restoration costs from natural disasters
  • Increased business response costs due to escalating customer demands

Innovations

2024: Introduction of Remote Monitoring System for Construction Sites

Overview
Developed and introduced remote monitoring technology for electrical equipment using IoT devices.
Impact
Improved equipment failure prediction and maintenance efficiency, achieving cost reductions.

2023: Standardization of Energy-Saving LED Lighting Systems

Overview
Adopted highly energy-efficient LED lighting equipment as standard for construction equipment.
Impact
Contributed to customers' energy consumption reductions and lowered environmental impact.

2022: Promotion of Digitalization of Construction Processes

Overview
Introduced cloud-based systems for construction drawing management and process supervision to improve efficiency.
Impact
Promoted construction quality improvement and shortened construction periods.

2021: Development of AI-Utilizing Safety Monitoring System

Overview
Developed safety management system for construction sites using AI cameras.
Impact
Contributed to reduction in workplace accident cases.

2020: Expansion of Environmentally Considerate Materials Adoption

Overview
Began actively using recycled materials and low-environmental-impact products in construction materials.
Impact
Contributed to environmental standards compliance and CSR improvement.

Sustainability

  • Promotion of energy-saving responses in electrical equipment works
  • Waste reduction and recycling reinforcement at construction sites
  • Establishment of material procurement standards for reducing environmental impact
  • Recruitment and training of female engineers and diversity promotion
  • Thorough reinforcement of safety and health management system
  • Environmental conservation activities in collaboration with local communities
  • Cooperation in obtaining green building certifications
  • Setting and achievement of CO2 emission reduction targets
  • Promotion of energy-saving equipment proposals and introductions
  • Internal audit reinforcement for sustainable business operations
  • Construction efficiency improvements using digital technology
  • Continuous improvement of safety education programs