Kinki Sharyo

Basic Information

Stock Code
7122
Industry
Transportation Equipment
Category Detail
Transportation Equipment
Prefecture
Osaka Prefecture
Establishment Year
November 1939
Listing Year
May 1949
Official Website
https://www.kinkisharyo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Special Electrodes, Fujix, Kyoryo Information Communications, Toyo Denki Seizo, Morio Electric, Daido Signal, Nippon Sharyo, Meiwa Industry, Car Mate, IA Group, Nankai Plywood

Overview

Kinki Sharyo is a mid-sized company established in 1939 with railway vehicle manufacturing as its mainstay. It is one of Japan's leading transportation machinery manufacturers, boasting strengths in superior welding technology and overseas expansion.

Current Situation

Kinki Sharyo recorded consolidated net sales of 43.154 billion yen and operating profit of 4.306 billion yen for the fiscal year ended March 2024, maintaining a solid financial foundation. In its core railway vehicle manufacturing business, it has secured orders from numerous companies including JR West Japan and Kintetsu in Japan, with orders particularly increasing in overseas markets. On the technology front, it focuses on high-quality vehicle production leveraging its proprietary welding technology. It has strengthened production capacity through a business partnership with Mitsubishi Heavy Industries. It also gives consideration to sustainability by developing energy-saving vehicles and hybrid diesel cars, and providing innovative products such as Smart BEST. In the medium to long term, expansion of overseas development and deployment of advanced technologies are key to its growth strategy. In recent years, it has strengthened its partnership with JR West Japan to promote technology exchange and expand orders, aiming to improve global competitiveness.

Trivia

Interesting Facts

  • Founded in 1920, with a long history as an affiliate of Kintetsu Railway
  • Its proprietary welding technology used in vehicles is highly regarded domestically
  • Handles many major vehicles for private railways and JR West Japan
  • Nankai Electric Railway train manufacturing was a large-scale order after 40 years
  • One of the few Japanese companies with local assembly plants for the U.S. market
  • Has manufacturing track record for specific cars in Shinkansen vehicles
  • Actively engages not only in design of passenger trains but also modifications
  • Rare factory with an in-house test track for railway vehicles
  • Once engaged in bus body and building materials businesses
  • Features stable management through regional focus, unlike major railway vehicle manufacturers

Hidden Connections

  • Major shareholders include Kintetsu Railway and JR West Japan, strengthening business partnerships
  • Business partnership with Mitsubishi Heavy Industries, advancing applications of heavy industry technology
  • LRV manufacturing plant in the U.S. contributes to local job creation
  • Originally founded as Tanaka Sharyo in Amagasaki City, Hyogo Prefecture
  • Involved in manufacturing vehicles for Cairo Metro and Hong Kong MTR, earning international acclaim
  • Also conducts technology consulting business for peer companies
  • Produces railway supplies, bogies, and current collectors in addition to railway vehicles
  • Successfully developed domestic battery train Smart BEST and continuing test runs

Future Outlook

Growth Drivers

  • Growth in overseas railway vehicle markets and export expansion
  • Increasing demand for energy-saving vehicles utilizing environmental technology
  • Strengthened partnerships with major domestic railway operators
  • Ongoing increase in maintenance demand for railway vehicles
  • Further expansion of applications for innovative welding technology
  • Rising demand for traffic infrastructure renewal in smart cities
  • Promotion of modernization in regional public transportation

Strategic Goals

  • Increase overseas sales ratio to over 50%
  • Fully deploy environmentally friendly vehicles toward a low-carbon society
  • Increase new railway vehicle order volume by 1.5 times
  • Improve production efficiency by 20% using AI and IoT technologies
  • Fully establish sustainable manufacturing processes
  • Strengthen collaboration with local communities and promote talent development
  • Achieve market launch of 5 or more new design vehicles

Business Segments

Railway Vehicle Manufacturing

Overview
Manufactures and modifies various railway vehicles, supplying high-quality vehicles to numerous domestic operators.
Competitiveness
High-quality and precise manufacturing capabilities based on proprietary welding technology
Customers
  • JR East
  • JR West
  • JR Central
  • Kintetsu Railway
  • Tokyo Metro
  • Hanshin Electric Railway
  • Nankai Electric Railway
  • Kyoto City Transportation Bureau
  • Osaka Metro
  • JR Kyushu
  • JR Shikoku
Products
  • Shinkansen vehicles
  • Commuter/suburban trains
  • Subway vehicles
  • Diesel cars
  • Railway vehicle modifications

Railway Vehicle Parts Supply

Overview
Stably supplies various parts that support vehicle safety and comfort.
Competitiveness
Comprehensive parts procurement linked with railway vehicle system development
Customers
  • Railway operators
  • Vehicle maintenance companies
  • Parts retailers
Products
  • Bogie
  • Windows
  • Current collectors
  • Interior parts

Overseas Railway Vehicles

Overview
Accelerating global expansion, supplying railway vehicles to the U.S., Asia, and Middle East markets.
Competitiveness
Local assembly capabilities and high customization ability
Customers
  • U.S. regional railway operators
  • Southeast Asian railway authorities
  • Middle East railway-related entities
Products
  • Light rail vehicles
  • Urban transit trains
  • Diesel cars

Maintenance Services

Overview
Provides specialized services to support railway vehicle maintenance and management.
Competitiveness
Long-term customer trust and experienced engineers
Customers
  • Railway operators
  • Public transportation entities
Products
  • Vehicle repairs
  • Parts replacement
  • Periodic inspections

Railway-Related Equipment Manufacturing

Overview
Develops and supplies peripheral equipment necessary for railway operations.
Competitiveness
Proven track record in equipment design specialized for railway operations
Customers
  • Railway operators
  • Vehicle manufacturers
Products
  • Automatic ticket vending machines
  • Gate machines
  • Information boards

Vehicle Upgrades and Renovations

Overview
Contributes to performance improvements and life extension of existing vehicles.
Competitiveness
Flexible対応 to various vehicle types
Customers
  • Railway operators
  • Local governments
  • Vehicle owners
Products
  • Body modifications
  • Interior updates
  • Safety equipment enhancements

Railway Construction Materials Manufacturing

Overview
Provides related building materials for railway tracks and surroundings.
Competitiveness
Durable products applying vehicle manufacturing technology
Customers
  • Construction companies
  • Railway facility managers
Products
  • Rails
  • Sleepers
  • Overhead line equipment

Transportation and Logistics Equipment

Overview
Manufactures vehicles and containers to support efficient freight transportation.
Competitiveness
High-durability lightweight design technology
Customers
  • Logistics companies
  • Transportation service providers
Products
  • Freight cars
  • Containers

Manufacturing Technology Consulting

Overview
Provides advanced welding technology and quality management know-how.
Competitiveness
Manufacturing improvement support based on in-house technology
Customers
  • Vehicle manufacturers
  • Manufacturing companies
Products
  • Welding technology support
  • Quality management systems
  • Production line design

Environmental and Energy Technology Development

Overview
Develops next-generation vehicle technologies to reduce environmental impact.
Competitiveness
Advanced energy control technology
Customers
  • Railway operators
  • Local governments
  • Environmental companies
Products
  • Hybrid diesel cars
  • Battery trains

Vehicle Transportation Services

Overview
Provides safe and reliable transportation services for completed vehicles.
Competitiveness
Optimal operation of various transportation methods
Customers
  • Railway operators
  • Vehicle transporters
Products
  • Type A transport
  • Land transport
  • Sea transport

Competitive Advantage

Strengths

  • Abundant domestic railway vehicle order track record
  • Proprietary high-precision welding technology
  • Aggressive expansion into overseas markets
  • Wide lineup of railway vehicle products
  • Long-accumulated technology and reliability
  • Strong business partnership with JR West Japan
  • Development capabilities for environmentally friendly vehicles
  • Stable management rooted in local Osaka Prefecture
  • Flexible design and customization capabilities
  • Supply track record to private railways and public railways nationwide
  • Risk diversification through diverse product portfolio
  • Efficient vehicle transportation system
  • Advanced quality control system
  • Production technology by skilled engineers
  • Expansion of global network

Competitive Advantages

  • Reliability from delivery track record to a wide range of railway companies
  • Achieves high parts durability with strengths in welding technology
  • Market expansion through local assembly plants in overseas markets
  • Improved production efficiency through partnership with Mitsubishi Heavy Industries
  • Comprehensive design and manufacturing capabilities enabling large orders
  • Innovation such as development of environmentally friendly vehicle Smart BEST
  • Strengthened vehicle technology and services in collaboration with JR West Japan
  • Flexibility to accommodate various railway vehicle types
  • Long-term technology accumulation and customer support system
  • Delivery capabilities via proprietary completed vehicle transportation system
  • Sales network and customer base expanding domestically and internationally
  • Gaining trust through advanced quality assurance and inspection systems
  • Reduced defect rates through meticulous manufacturing processes
  • Secured price competitiveness with rational cost management system
  • Stable funding base through local community-oriented management

Threats

  • Intensifying competition in domestic railway vehicle market
  • Emergence of local competitors in overseas markets
  • Cost increase risks from fluctuating material prices
  • Delays in next-generation vehicle development due to technological innovation
  • Increased compliance costs from stricter environmental regulations
  • Order instability from changes in government policies and public investment
  • Demand decline due to COVID-19 impact
  • Decline in production capacity from difficulties in securing talent
  • Impact of exchange rate fluctuations on overseas revenue
  • Supply chain disruption risks
  • Intensified price competition from competitors
  • Decreased demand from railway business rationalization and reductions

Innovations

2024: Start of mass production of new hybrid diesel cars

Overview
Full-scale mass production of series hybrid diesel cars aimed at improving environmental performance.
Impact
Contributes to CO2 emission reductions and fuel efficiency improvements

2023: Expansion of overseas LRV manufacturing bases

Overview
Expanded production capacity by adding local assembly plant in Palmdale, California, USA.
Impact
Strengthens competitiveness in North American market

2022: Continued running tests of Smart BEST battery train

Overview
Conducted running tests of self-charging battery train on multiple domestic routes.
Impact
Realizes reduced environmental impact on non-electrified lines

2021: Strengthened collaboration with Mitsubishi Heavy Industries

Overview
Improved production efficiency and quality through equipment sharing and business partnership.
Impact
Shortened manufacturing lead time and stabilized quality

2020: Improvements to new commuter train design technology

Overview
Introduced new design technology that balances enhanced safety and weight reduction.
Impact
Improved vehicle performance and cost competitiveness

Sustainability

  • Promoting development of hybrid vehicles to reduce environmental impact
  • Focusing on CO2 emission reductions in production processes
  • Progressing with renewable energy introduction plans
  • Operating programs to improve waste material recycling rates
  • Supporting environmental education activities for local communities