Heiwa

Basic Information

Stock Code
6412
Industry
Machinery
Category Detail
Commercial & Industrial Machinery
Prefecture
Tokyo
Establishment Year
September 1960
Listing Year
August 1988
Official Website
https://www.heiwanet.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Takizawa Ham, Enya Fields Holdings, Furyu, Fujishoji, SANKYO, Mars Group Holdings, Universal Entertainment, Oizumi, Daikoku Denki

Overview

Heiwa is an industry-leading company founded in 1960 and headquartered in Taito-ku, Tokyo, engaged in the development, manufacturing, and sales of pachinko and pachislot machines as well as related equipment.

Current Situation

In the fiscal year ended March 2022, Heiwa recorded consolidated revenue of approximately ¥121.5 billion and net assets of approximately ¥217.2 billion, maintaining a solid business foundation. In addition to its core pachinko and pachislot machine business, it offers a diverse product lineup through related subsidiaries Amtex and Olympia. The company is highly regarded in the industry for its technological development capabilities, having introduced pioneering features such as LCD displays and 3D CG effects. Since 2011, it has diversified into the golf-related business by making PGM Holdings a wholly-owned subsidiary and is advancing plans to acquire Accordia Golf in 2025. To drive further growth, it is focusing on developing smart pachinko machines (Smapachi) and machines with playtime features. In a fiercely competitive market, strengthening tie-up models using popular IPs and acquiring new customers are key strategic challenges. The company is also committed to sustainability and social contributions, aiming to coexist with local communities while enhancing long-term corporate value.

Trivia

Interesting Facts

  • One of the first manufacturers in the pachinko industry to introduce LCD displays.
  • Known as a pioneer in battle specs and 3DCG effects.
  • Unique amusement machine maker advancing diversification centered on golf course operations.
  • Founder Kenkichi Nakajima rebuilt the company after acquiring Japanese citizenship post-war.
  • Utilizes Virtual YouTubers as in-house characters.
  • Amtex is a group affiliate strong in rights acquisition and feather machines.
  • Plays a key role in one of Japan's largest golf course operators.
  • Deploys tie-up machines with numerous popular anime and games.
  • Quickly adapts to latest gaming regulations like playtime.
  • Advancing Accordia Golf acquisition plan in 2025.
  • Numerous technological innovations including industry-first skip function and V-ST type.
  • Major shareholder is Ishihara Holdings.
  • Multiple group companies focus on pachislot businesses.
  • Strengthens market penetration using diverse sales channels.
  • Long history as an established manufacturer since the origins of pachinko.

Hidden Connections

  • Capital alliance with Olympia has effectively become a management integration, strengthening the group structure.
  • Acquisition of PGM Holdings expands influence in the golf-related industry.
  • Founder Kenkichi Nakajima established the Heiwa Nakajima Foundation, donating part of his assets for social contributions.
  • Industry characteristic where major clients and affiliates overlap with competitors.
  • Implements multifaceted branding strategies as a TV program sponsor.
  • Holds multiple patents in amusement machine LCD performance technology, maintaining technical superiority.
  • Amtex products hold high share in feather machine market through specialized subsidiary technology provision.
  • Smapachi introduction is an industry-first operational example, leading to new user acquisition.

Future Outlook

Growth Drivers

  • New demand from market expansion of smapachi and playtime-equipped machines.
  • Differentiation through tie-up machines using popular IPs.
  • Stabilization of revenue sources via golf course operation integration and expansion.
  • Advancement of amusement machines through continuous digital technology introduction.
  • Multifaceted business expansion in domestic and international amusement markets.
  • Brand strengthening via new media like Virtual YouTubers.
  • Sustainability efforts and corporate value enhancement activities.
  • Accurate compliance with amusement machine regulations.
  • Development of products and services adapted to aging society.
  • Overall strength enhancement through collaboration with related subsidiaries.
  • Pioneering online and digital fields as new markets.
  • Success in diversifying marketing and sales channels.

Strategic Goals

  • Maintain and expand technological leadership in the amusement industry.
  • Establish position as Japan's largest golf course operator.
  • Gain social trust through sustainable business operations.
  • Achieve over 50% penetration rate for smart gaming machines.
  • Increase related business revenue share to over 30% of total.
  • Enrich lineup of self-developed IPs and tie-up machines.
  • Strategic global market entry and sales reinforcement.
  • Further strengthen coexistence with local communities and expand social contributions.
  • Create innovative technologies through sustained R&D investments.
  • Establish employee diversity promotion and work-style reforms.

Business Segments

Amusement Machine Manufacturing and Sales

Overview
Designs, manufactures, and sells amusement machines, providing products tailored to parlor needs.
Competitiveness
New model development capabilities backed by years of technology accumulation and popular IP utilization
Customers
  • Pachinko parlors
  • Amusement machine sales agents
  • Amusement machine parts suppliers
  • Overseas amusement machine sellers
Products
  • Pachinko machine bodies
  • Pachislot machine bodies
  • Amusement machine parts
  • LCD/control boards

Golf Course Operation Business

Overview
Responds to a wide range of customer needs as Japan's leading golf course operator.
Competitiveness
Industry-largest network and comprehensive operation system
Customers
  • Golf course users
  • Golf-related event organizers
  • Sports-related businesses
Products
  • Golf course operation services
  • Customer event planning
  • Facility maintenance
  • Membership rights management

Amusement Machine Parts Manufacturing

Overview
Specializes in high-precision mechanical parts manufacturing and provides foundational technology.
Competitiveness
Quality control and R&D by specialized engineers
Customers
  • Amusement machine manufacturers
  • Parts wholesalers
Products
  • Feather machine parts
  • Rights acquisition parts
  • Digital control systems

Planning and Marketing Support

Overview
Provides services to support amusement machine sales promotion activities.
Competitiveness
Abundant IP assets and media collaborations
Customers
  • Pachinko parlors
  • Sales agents
Products
  • Image character utilization
  • Promotion planning
  • Market analysis
  • Advertising production

Online and Consumer Business

Overview
Contributes to brand image enhancement through Virtual YouTuber activities.
Competitiveness
Industry-first use of pachinko influencers
Customers
  • Game users
  • Virtual YouTuber viewers
Products
  • Virtual YouTuber planning
  • Brand awareness initiatives
  • Promotion events

Competitive Advantage

Strengths

  • Industry-top-class tie-up IP holdings
  • High technological development capabilities and diverse product lineup
  • Stable capital base and financial position
  • Long market experience and brand recognition
  • Business diversification through multiple subsidiaries
  • Synergies with golf course operations
  • LCD and 3D effect technology in amusement machines
  • Pioneering introduction of playtime-equipped machines
  • Promotion using Virtual YouTubers
  • Japan's largest golf course network
  • Collaborations with related companies possessing superior manufacturing technology
  • Continuous launch of diverse amusement machine types
  • Comprehensive sales channel network
  • Multifaceted marketing capabilities
  • In-house technology research and development system

Competitive Advantages

  • Customer acquisition power through unique IP tie-ups
  • Latest machine compatibility with smapachi and playtime features
  • Revenue stability through diversified operations
  • Product and technology diversity via group subsidiaries
  • Inter-industry synergies from Japan's largest golf course operations
  • Machine differentiation via advanced LCD control technology
  • Strategic promotions and Virtual YouTuber utilization
  • Market access through abundant sales channels
  • High-quality manufacturing system by skilled engineers
  • Flexibility in product development aligned with market trends
  • Aggressive investments enabled by robust financial base
  • Innovation promotion through strengthened ties with related tech firms
  • Customer trust and brand loyalty built over years
  • Expansion into new business areas and growth strategies
  • Market insights from extensive data analysis

Threats

  • Stricter regulations and legal amendments in the amusement machine market
  • Shrinking pachinko and pachislot market
  • Intensified competition from competitors' technological innovations
  • Risk of demand decline due to changing consumer preferences
  • Delays in responding to rapid spread of new technologies
  • Uncertainty and investment recovery risks in new market development
  • Deterioration of amusement industry image due to social trends
  • Risks and constraints in overseas market expansion
  • Price fluctuation risks in raw materials and parts supply
  • Business impacts from natural disasters or pandemics
  • Security risks from increasing technology dependency
  • Competition and environmental regulations in golf course operations

Innovations

2023: Launch of smart pachinko machine (e Lupin III THE FIRST)

Overview
Introduced HEIWA's first smapachi model, achieving a new dimension in gaming experience.
Impact
Contributes to creating new markets and receives acclaim.

2022: Expansion of playtime-equipped models

Overview
Equipped multiple models with playtime function to enhance customer satisfaction.
Impact
Contributes to maintaining and expanding market share.

2021: Amtex brand reinforcement

Overview
Developed new function-equipped machines in feather and rights acquisition fields.
Impact
Enhances competitiveness in specific niche markets.

2024: Advancing large-scale acquisition in golf-related business

Overview
Progressing with share acquisition procedures for Accordia Golf.
Impact
Expected to grow into Japan's largest golf course operator.

2020: Launch of mobile-linked service 'Uchi-WIN'

Overview
Aims to acquire new customers with service linking gaming machines and mobile sites.
Impact
Successfully improves customer loyalty and convenience.

2023: Development of next-generation performance technology

Overview
Refreshed and released 3DCG and diverse performance technologies.
Impact
Contributes to enhancing players' visual satisfaction.

2021: Start of Virtual YouTuber utilization

Overview
Appeals to younger demographic through activities of Kirishima Haru and Kirishima Luna.
Impact
Develops new customer segments and boosts brand recognition.

2022: Introduction of new cabinet BRAST frame

Overview
Enhanced performance and performance quality with latest cabinet structure.
Impact
Achieves significant improvement in product competitiveness.

Sustainability

  • Promotion of energy-saving amusement machines
  • Active use of recycled materials
  • Programs to promote coexistence with local communities
  • Provision of safe and healthy gaming environments
  • Promotion of employee diversity and work-style reforms
  • Business operations aligned with SDGs indicators
  • Introduction of environmental management systems
  • Active participation in regional contribution activities
  • Strengthened environmental considerations in supply chains
  • Compliance with laws and high-transparency corporate governance