Kyoritsu Airtech
Basic Information
- Stock Code
- 5997
- Industry
- Metal Products
- Category Detail
- Commercial & Industrial Machinery
- Prefecture
- Fukuoka Prefecture
- Establishment Year
- February 1971
- Listing Year
- June 1993
- Official Website
- https://www.kak-net.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Sanyuu, Showa Tekko, Seibu Giken, Kimura Koki, Nippon Aerotech, Shinkou Kogyo, Hoshikawaden, MURO
Overview
Kyoritsu Airtech is a major manufacturer of air conditioning units for buildings established in 1971, with strengths in heating and cooling systems in the commercial air conditioning field.
Current Situation
Kyoritsu Airtech recorded consolidated sales of approximately ¥11.2 billion and net assets of approximately ¥6.5 billion for the fiscal year ended December 2019. Based in Fukuoka Prefecture, it has established a solid position in the industry through the manufacturing and sales of commercial air conditioning equipment. Its flagship product, dampers, is Japan's largest, and it also handles a wide range of heating and cooling systems. Leveraging its technological strengths, it continues to develop high-performance, energy-efficient products. It is committed to reducing environmental impact and contributing to the adoption of energy-efficient air conditioning systems. Its customer base spans government agencies, large commercial facilities, medical institutions, and more, providing high stability. In recent years, it has focused on IoT technology utilization and equipment smartization to enhance competitiveness. Aiming for a sustainable society, it actively promotes energy-saving technologies and regional contribution activities. As a medium- to long-term strategy, it is advancing new product development and expansion into domestic and international markets. Moving forward, it will focus on improving product quality and customer satisfaction to achieve sustainable growth.
Trivia
Interesting Facts
- Kyoritsu Airtech is Japan's leading company in commercial dampers.
- Regional company headquartered in Shinochiri Town, Kasuya District, Fukuoka Prefecture.
- Founded in 1967, transitioned to current structure in 1971 after name changes.
- Strength in in-house development of heating and cooling systems in commercial air conditioning.
- Has experience entering the disaster prevention and security equipment market beyond dampers.
- Employee stock ownership association is one of the major shareholders, emphasizing regional roots.
- Maintains strong relationships with major building management companies in Kyushu and western Japan.
- Contributing to the industry as a pioneer in energy-saving technology.
- Manufactures diverse air conditioning products adaptable to all building environments.
- Proactive in digitalization with IoT-linked air conditioning controls.
- One of the few listed companies in Nikkei's commercial machinery and equipment category.
- Specialized manufacturer mainly focused on large building air conditioning equipment.
- Develops and provides proprietary environmental safety monitoring systems.
- Certified as a METI energy-saving model factory.
- Hosts annual environmental awareness events for the local community.
Hidden Connections
- Major clients include leading local construction companies in Fukuoka.
- Strengthens ties with the local community through the employee stock ownership association.
- Adopted in numerous public facility air conditioning systems for emergencies.
- Security equipment division has collaboration history with local police and municipalities.
- Environmental management system introduced in manufacturing processes.
- Kyoritsu Airtech products are used in air conditioning for many medical facilities.
- Transitioned from former JASDAQ listing to Tokyo Stock Exchange Standard market.
- Advancing product development through technical partnerships with competitors.
Future Outlook
Growth Drivers
- Increased demand for high-efficiency air conditioning equipment due to strengthened energy-saving regulations
- Expansion of IoT and smart building markets
- Growing needs for updating aging public facilities
- Demand for recycled and renewable materials amid rising environmental awareness
- Stable customer base from regional ties
- Demand growth from economic development in Fukuoka and Kyushu
- Gradual overseas expansion and increased exports
- New business development in security and disaster prevention equipment
- Demand for DX-compatible products in construction
- Rising medium- to long-term energy-saving investment needs
- Government promotion of environmental and energy policies
- Enhanced product competitiveness through technological innovation
Strategic Goals
- Achieve 70% domestic share in commercial air conditioning market
- Realize over 50% sales ratio for IoT-linked products
- Achieve 30% CO2 emissions reduction target
- Expand overseas sales ratio to over 20%
- Continue and expand regional environmental contributions
- Improve average energy-saving performance of products by 20%
- Advance digitalization and smart control technologies
- Expand commercialization of security and disaster prevention equipment division
- Improve in-house production rate to enhance production efficiency
- Maintain stable short- and long-term financial metrics
Business Segments
Air Conditioning Equipment for Construction
- Overview
- Provides high-performance air conditioning equipment to the construction industry, realizing comfortable and energy-efficient air conditioning environments.
- Competitiveness
- Strong proposal capabilities from the design stage and extensive technological expertise
- Customers
-
- General contractors
- Architectural design firms
- Building management companies
- Equipment contractors
- Commercial facility operators
- Products
-
- Commercial dampers
- Air conditioning units
- Ventilation equipment
- Clean room equipment
- Heating and cooling systems
Equipment for Manufacturing and Factories
- Overview
- Supplies optimal air conditioning equipment for manufacturing sites, supporting production efficiency and quality improvement.
- Competitiveness
- High-precision environmental control technology
- Customers
-
- Automotive manufacturing plants
- Electronics manufacturers
- Food processing plants
- Pharmaceutical manufacturers
- Products
-
- Precision temperature and humidity control air conditioning
- Clean room air conditioning
- Ventilation and exhaust equipment
- Environmental monitoring systems
Services for Government and Public Facilities
- Overview
- Provides total solutions to improve comfort and achieve energy savings in public facilities.
- Competitiveness
- High compliance with safety standards
- Customers
-
- Municipal facilities
- Hospitals and medical institutions
- Educational facilities
- Gyms and public halls
- Products
-
- Air conditioning units
- Energy-saving retrofit work
- Maintenance services
- Environmental safety monitoring systems
Renovation and Maintenance Business
- Overview
- Specializes in improving and optimizing air conditioning in existing facilities to enhance customer satisfaction.
- Competitiveness
- Rapid response and customization capabilities
- Customers
-
- Building owners
- Individual homes
- Facility management companies
- Local contractors
- Products
-
- Air conditioning equipment replacement
- Operation inspection services
- Energy-saving consulting
- Renovation design
Air Conditioning Control Solution Development
- Overview
- Utilizes the latest ICT technology to promote efficiency and energy savings in air conditioning equipment.
- Competitiveness
- Strengths in control technology and ICT integration
- Customers
-
- Facility management companies
- Smart building operators
- Energy management companies
- Products
-
- IoT air conditioning control systems
- Remote monitoring services
- Energy-saving management software
Overseas Sales and Export Business
- Overview
- Expands exports and sales of products mainly in Asia to grow the overseas market.
- Competitiveness
- Flexible customization support
- Customers
-
- Overseas trading companies
- Construction companies
- Equipment suppliers
- Products
-
- Air conditioning units
- Dampers
- Ventilation equipment
Competitive Advantage
Strengths
- Japan's largest damper manufacturing technology
- High energy-saving technological capabilities
- Long-standing customer trust and track record
- Strong regional base (Fukuoka Prefecture)
- Diverse lineup of air conditioning equipment
- Product design tailored to customer needs
- Thorough safety and quality management
- Technological capabilities adaptable to diverse industries
- Stable financial foundation
- Active investment in technological innovation
- Abundant maintenance and service offerings
- Specialization in commercial air conditioning
- Skilled in-house engineers
- Prompt delivery response
- High customer support standards
Competitive Advantages
- Overwhelming market share and brand recognition in dampers
- Maintains cost competitiveness with proprietary energy-saving technology
- Strong network in Kyushu and western Japan based in Fukuoka
- Customization capabilities for diverse air conditioning needs
- Air conditioning control systems incorporating the latest ICT technology
- Stable revenue base from long-term maintenance contracts
- Product development capabilities compliant with environmental regulations
- Trust from government agencies and public facilities
- Strong funding capabilities through sound financial management
- Regionally focused service provision system
- Technological and product range covering a wide range of industries
- In-house R&D capabilities for new product development
- High product reliability through quality assurance systems
- Long-term customer relationship maintenance
- Integrated air conditioning solution provision capabilities
Threats
- Intense price competition within the industry
- Market share erosion by new entrants
- Risk of declining domestic construction demand
- Cost increases due to rising raw material prices
- Delays in responding to rapid technological advancements
- Cost burdens from strengthened regulations and environmental standards
- Impact of natural disasters on production and logistics
- Uncertainty in the global economy
- Management instability due to successor issues
- Difficulty in securing talent due to labor shortages
- Increasing IT security risks
- Intensifying competition in overseas markets
Innovations
2023: Development of Energy-Saving High-Efficiency Dampers
- Overview
- Developed dampers using the latest materials and structures that reduce energy consumption by 25%.
- Impact
- Contributes to reducing environmental impact and customer operating costs
2024: Introduction of IoT-Compatible Smart Air Conditioning Control System
- Overview
- Launched a control system enabling remote monitoring and optimal control with sensor linkage.
- Impact
- Achieves improved operational efficiency and reduced maintenance costs
2022: Launch of New Air Conditioning Units for Clean Rooms
- Overview
- Introduced products with high-precision temperature and humidity control for medical and semiconductor manufacturing sites.
- Impact
- Successfully expanded market share and acquired new customers
2021: Adoption of New Technology for Soundproof and Insulating Panels
- Overview
- Developed new material panels that are highly insulating, lightweight, and excellent in workability.
- Impact
- Realizes reduced construction burden for customers and improved air conditioning efficiency
Sustainability
- Expansion of energy-saving products to reduce CO2 emissions
- Active use of recycled materials
- Improvement of energy efficiency in factories and self-consumption of electricity
- Promotion of waste reduction programs
- Participation in regional environmental conservation activities
- Thorough safety and health management
- Environmental education for employees
- Promotion of eco-product certifications
- Environmental improvement proposals in collaboration with customers
- Implementation of sustainable procurement
- Introduction of environmental management systems
- Reduction of environmental impact across the supply chain