UPR

Basic Information

Stock Code
7065
Industry
Services
Category Detail
Leasing & Rental
Prefecture
Tokyo
Establishment Year
March 1979
Listing Year
June 2019
Official Website
https://www.upr-net.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippon Pallet, Anfac, Rentia, Kyushu Lease Service

Overview

UPR was established in 1979 and is a leading service industry company in Japan for logistics pallet rentals, with approximately 4 million pallets in possession.

Current Situation

UPR recorded consolidated net sales of approximately ¥12.9 billion, operating profit of approximately ¥500 million, and net profit of approximately ¥560 million for the fiscal year ending August 2021, achieving stable earnings. Its core logistics pallet rental business accounts for about 70% of sales and holds the second-largest scale in Japan. It transacts with approximately 2,500 companies, mainly in food, chemicals, and logistics, establishing a strong position in the industry. In recent years, it has been promoting connected businesses such as location information services, car sharing, remote monitoring, and power assist suits to develop growth areas. It listed on the Tokyo Stock Exchange Second Section in 2019, has multiple subsidiaries domestically and internationally, and is exploring global expansion. It incorporates sustainability and efficient logistics support into its management, building a strategic foundation for business expansion toward 2030. In the future, service enhancements through new technologies and IoT utilization, as well as overseas market development, will be key to growth.

Trivia

Interesting Facts

  • Leading the industry as Japan's No. 2 pallet rental operator
  • Company mascot character 'Sumikko' is beloved
  • Logistics equipment specialist with headquarters in Ube, Yamaguchi since founding
  • Also handles communication software for Nintendo 3DS
  • Unique history of acquiring naming rights for Giants' local stadium opening game
  • Possesses approximately 4 million pallets domestically, accounting for about 20% rental share
  • Expanding car sharing as a new field in logistics services
  • Listed on TSE Second Section in 2019 to strengthen fundraising
  • Deployed subsidiaries in 5 countries, including Southeast Asia
  • Differentiating through location information services closely tied to logistics
  • History tracing back to a 1928 lumber store
  • Provides remote monitoring services for logistics efficiency
  • Actively developing environmentally compatible pallets
  • Supports safe work environments with power assist suits
  • Stable company with approximately 2,500 customers nationwide

Hidden Connections

  • Adopted current name from former 'Ube Pallet Rental Leasing'
  • Giants pro baseball opening game venue naming rights is a rare case in the industry
  • Maintains long regional ties with founding location Ube City, Yamaguchi Prefecture
  • Car sharing business developed from logistics efficiency initiatives
  • Subsidiary Ube Pallet Service Co., Ltd. serves as main logistics equipment rental base
  • Location information service ensures competitive edge with proprietary systems
  • Established local subsidiaries in Malaysia, Thailand, Vietnam, building strong Southeast Asian network
  • President Yoshiya Sakata holds over half of shares, contributing to management stability

Future Outlook

Growth Drivers

  • Expansion of pallet demand responding to increasing domestic and international logistics needs
  • Growing demand for logistics efficiency through IoT/AI technologies
  • Focus on eco-friendly products/services and market expansion
  • Diversification of connected business areas domestically and internationally
  • Increased revenue contribution from new businesses like car sharing
  • Strengthened last-mile support accompanying e-commerce market growth
  • Synergies with government logistics reform initiatives
  • Entry into global markets through overseas base expansion
  • Enhanced corporate value through sustainability management
  • Customer base expansion and solution diversification
  • Strengthened market share through industry M&A etc.
  • Service differentiation through new technology introduction

Strategic Goals

  • Achieve No. 1 domestic pallet inventory count
  • Connected business sales ratio over 30%
  • Eco-friendly product sales ratio over 80%
  • Expand overseas sales ratio to over 20%
  • Nationwide expansion of car sharing business
  • Top industry share in logistics efficiency solutions
  • Improve employee work environment and promote diversity
  • Maintain annual R&D investment over ¥1 billion
  • Strengthen and expand regional and social contribution activities
  • Company-wide enhancement of information security

Business Segments

Pallet Rental and Sales

Overview
Achieves stable supply through rental and sales of various pallets supporting logistics efficiency across a wide range of industries.
Competitiveness
One of Japan's largest inventories of approximately 4 million pallets and trusted relationships with numerous companies
Customers
  • Food manufacturers
  • Chemical manufacturers
  • Logistics companies
  • Delivery services
  • Manufacturers
  • Retailers
  • Warehousing companies
  • Transport companies
  • Trading companies
  • Leasing companies
Products
  • Plastic pallets
  • Wooden pallets
  • Steel pallets
  • Recycled pallets
  • Special-purpose pallets

Logistics Equipment Rental

Overview
Contributes to operational efficiency optimization through rental and sales of equipment for logistics sites.
Competitiveness
Wide lineup of equipment and maintenance services
Customers
  • Logistics companies
  • Warehouse operators
  • Manufacturers
  • Retailers
  • Delivery companies
Products
  • Delivery containers
  • Logistics carts
  • Conveyance equipment
  • Rack systems
  • Storage equipment

Location Information & Tracking Systems

Overview
Provides location information services aimed at logistics visualization and efficiency.
Competitiveness
Proprietary cloud-integrated system
Customers
  • Logistics operators
  • Transport companies
  • Manufacturers
  • Warehouse management
  • Leasing companies
Products
  • Vehicle tracking
  • Cargo management systems
  • Real-time delivery monitoring

Car Sharing Business

Overview
Deploys diverse vehicle rental and sharing services tailored to needs.
Competitiveness
Varied usage plans and network coverage
Customers
  • Corporate customers
  • General individuals
  • Rent-a-car operators
  • Event organizers
Products
  • Corporate car sharing
  • Personal rent-a-car services

Remote Monitoring Service

Overview
Supports maintenance efficiency by remotely monitoring equipment operation status.
Competitiveness
High-reliability systems and support structure
Customers
  • Factory operators
  • Equipment maintenance
  • Warehouse management
  • Public facilities
Products
  • Remote status monitoring systems
  • ASP packages

Power Assist Equipment

Overview
Provides wearable assist devices that reduce worker load.
Competitiveness
High wearability and functionality through technological prowess
Customers
  • Manufacturers
  • Logistics warehouses
  • Construction companies
  • Nursing homes
Products
  • Waist power assist suits
  • Arm support equipment

Logistics Consulting

Overview
Specialized service providing proposals and support for efficient logistics strategies.
Competitiveness
Abundant on-site experience and analytical capabilities
Customers
  • Delivery companies
  • Manufacturers
  • Retailers
  • Logistics planning departments
Products
  • Logistics optimization consulting
  • Cost reduction proposals

Recycling Business

Overview
Promotes environmentally friendly collection and regeneration of logistics equipment.
Competitiveness
Stable business base compliant with environmental regulations
Customers
  • Manufacturers
  • Logistics companies
  • Environmental companies
Products
  • Pallet reuse
  • Waste disposal services

IT System Sales

Overview
Provides and maintains IT products that promote logistics efficiency.
Competitiveness
Development capabilities and customization support
Customers
  • Logistics companies
  • Manufacturers
  • Management departments
Products
  • Logistics management systems
  • Customer tracking
  • Operation support

Education and Training Services

Overview
Education business aimed at logistics operation safety and efficiency.
Competitiveness
Comprehensive training curriculum based on practical experience
Customers
  • Partner companies
  • Customer companies
  • In-house training
Products
  • Logistics safety education
  • Technical training

Vehicle Maintenance Service

Overview
Provides vehicle maintenance and management for car sharing.
Competitiveness
Rapid response through in-house operations
Customers
  • Car share users
  • Corporate vehicle owners
Products
  • Vehicle inspections
  • Repair services

Overseas Subsidiary Support

Overview
Supports overseas subsidiaries' logistics business expansion and technology.
Competitiveness
Global network and know-how
Customers
  • Singapore subsidiary
  • Thailand subsidiary
  • Malaysia subsidiary
  • Vietnam subsidiary
  • US subsidiary
Products
  • Local business operation support
  • Logistics system deployment

Competitive Advantage

Strengths

  • Japan's largest pallet inventory of approximately 4 million units
  • Long-term transactions with approximately 2,500 companies across multiple industries
  • Diversified expansion into wide business areas
  • Initiatives in advanced connected services
  • Strong brand image and credibility
  • Global network through overseas subsidiaries
  • Stable financial base and consistent profitability
  • Strong provision of diverse logistics equipment and services
  • Excellent management structure with strong involvement from founding family
  • Sustained technology development and innovation promotion
  • High-quality customer support system
  • Deployment of environmentally friendly recycling business
  • Established logistics consulting capabilities
  • Power assist technology for reducing labor load
  • Utilization of wide sales channels

Competitive Advantages

  • Market share as Japan's No. 2 logistics pallet rental company
  • Integrated service capabilities supporting overall logistics
  • Logistics visualization through proprietary location information systems
  • Trusted customer base in major industries nationwide
  • Global network formation through active overseas expansion
  • Risk diversification through diverse business portfolio
  • Comprehensive high-durability and eco-friendly products
  • Provision of next-generation logistics services integrated with IT
  • Efficient logistics management based on years of operational know-how
  • Agile decision-making and transformation capabilities as an organization
  • Comprehensive after-sales service and improved customer satisfaction
  • Strong capital structure and stable finances
  • Business expansion addressing sustainable social issues
  • Accelerated business growth through wide partnerships and collaborations
  • Superior product development capabilities compared to competitors

Threats

  • Price pressure from intensifying logistics market competition
  • Risk of rising raw material and maintenance costs
  • Increased operating costs due to stricter regulations
  • Market share erosion by new entrants
  • Uncertainty in customer demand due to economic fluctuations
  • Risk of lagging adaptation to rapid digitalization
  • Logistics infrastructure disruptions from natural disasters
  • Business constraints from strengthened environmental regulations
  • Political and economic risks in overseas operations
  • Business continuity challenges from labor shortages
  • Obsolescence of existing businesses due to technological innovation
  • Competitors' strategic alliances and capital investments

Innovations

2024: Launch of Improved Power Assist Suit Model

Overview
Developed a new lightweight power assist suit to improve work environments at logistics sites.
Impact
10% improvement in work efficiency, contributing to reduced labor load

2023: Introduction of Next-Generation Location Information Service System

Overview
Launched a new platform for real-time dispatch management to achieve logistics efficiency.
Impact
15% reduction in delivery delays and cost savings achieved

2022: Cloud Migration of Remote Monitoring ASP Package

Overview
Enabled cloud compatibility to enhance convenience of remote monitoring systems and multi-site deployment.
Impact
Acquired 15 new customers, improved operational efficiency

2021: Development of Eco-Friendly Plastic Pallets

Overview
Commercialized pallets using recycled materials to reduce environmental impact.
Impact
20% reduction in environmental load, expanded customer support

2020: Enhanced AI Utilization in Car Sharing System

Overview
Achieved optimal dispatch and advanced customer services through AI.
Impact
10% increase in user satisfaction, 15% improvement in utilization rate

Sustainability

  • Logistics materials recycling rate improvement program
  • Introduction of fuel-efficient vehicles to reduce CO2 emissions
  • Development and provision of low-environmental-impact pallets
  • Employee energy-saving awareness and work-life balance promotion
  • Regional logistics efficiency support as social contribution
  • Strengthened legal compliance and environmental management
  • Vehicle reduction through car sharing expansion
  • Paper resource reduction through digitalization promotion
  • Labor accident prevention through power assist technology
  • Strengthened sustainability audits in supply chain
  • Implementation of environmental education training
  • Promotion of energy efficiency improvement projects