KYB

Basic Information

Stock Code
7242
Industry
Transportation Equipment
Category Detail
Industrial Equipment & Heavy Electrical Apparatus
Prefecture
Tokyo
Establishment Year
November 1919
Listing Year
October 1959
Official Website
https://www.kyb.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nihon Hume, Kurosaki Harima, Convum, Nabtesco, SMC, Anest Iwata, Kaji Tech, Yuken Kogyo, CKD, Tirado

Overview

KYB is a transportation equipment manufacturer founded in 1919, holding the largest domestic share in the hydraulic equipment and shock absorber sectors, and is a leading company that also handles products for construction machinery and special-purpose vehicles.

Current Situation

In the fiscal year ended March 2022, KYB recorded consolidated net sales of approximately ¥388.3 billion and operating profit of approximately ¥30 billion, maintaining a stable financial base. Its mainstay shock absorbers hold over 65% share in the domestic market, and hydraulic equipment for construction machinery also boasts a high market share. Along with the expansion of overseas bases, it is pursuing multifaceted global development, with a focus on environment, disaster prevention, and welfare-related products. In 2018, an inspection data falsification issue regarding base isolation devices came to light, but the company has since worked to strengthen risk management. It withdrew from the aircraft parts business in 2022 to concentrate management resources on core operations. In the medium to long term, it aims for sustainable growth by promoting technological innovations in response to construction machinery demand both domestically and internationally, as well as in the automotive parts market, in conjunction with sustainability initiatives. Moving forward, it will focus on DX measures and new material development, planning to strengthen its business foundation toward 2030.

Trivia

Interesting Facts

  • One of the world's largest production volumes for shock absorbers.
  • Holds approximately 80% of the domestic market for concrete mixer truck bodywork.
  • Has a history of producing landing gear for Zero fighters during the Pacific War.
  • Withdrawal from aviation business marks a turning point in selective concentration of management resources.
  • Base isolation device inspection data falsification incident caused significant social repercussions.
  • The 'KYB' brand is affectionately known as 'cat's paws' among car enthusiasts.
  • Possesses many manufacturing bases domestically and internationally, accelerating global expansion.
  • Base isolation and vibration control technology is applied not only to buildings but also to stage equipment.
  • 'Kayaba Rocket' is a representative brand for construction machinery.
  • Even after aviation withdrawal, some wheel and brake products are still offered.

Hidden Connections

  • Toyota Motor is a major shareholder, with strong ties to the automotive industry.
  • As a member of the Fuyo Group, has deep connections with finance and construction industries.
  • Collaborative systems established with related companies such as Mitsubishi Kakoki and Kurosaki Harima.
  • Major Japanese government facilities included among deliveries of base isolation and vibration control devices.
  • KYB hydraulic equipment widely adopted in buildings nationwide.
  • Utilizes global production network to accommodate many locally customized products.
  • Automotive technology expanded to construction machinery and environmental equipment.
  • One of the hydraulic technology companies that supported Japan's postwar industrial revival.

Future Outlook

Growth Drivers

  • Ongoing increase in infrastructure development demand in construction machinery sector
  • Development of new materials and EV-compatible technologies in automotive industry
  • Growing earthquake disaster prevention awareness domestically and internationally, boosting base isolation device demand
  • Market expansion for environmentally compatible hydraulic products
  • Efficiency improvement and expansion of global production and sales network
  • Sophistication of product development and quality control through digital technology
  • Expansion of construction and automotive demand in emerging markets
  • Brand value enhancement through sustainability efforts
  • Strengthening product diversification and service deployment
  • Expansion of energy-saving and eco-products
  • Business efficiency improvement through DX promotion
  • New business creation through collaboration with partner companies

Strategic Goals

  • Maintain over 70% domestic shock absorber share
  • Achieve over 40% overseas sales ratio
  • Improve energy efficiency of hydraulic equipment by 30%
  • Enhance quality and safety of base isolation and vibration control devices
  • Promote development of next-generation products using digital technology
  • Achieve environmental load reduction and carbon neutrality
  • Secure over ¥50 billion in sales from new growth areas
  • Optimize and strengthen global production bases
  • Build sustainable supply chain
  • Global standardization of safety and health management

Business Segments

Hydraulic Systems for Construction Machinery

Overview
Provides highly reliable hydraulic equipment and systems for construction machinery.
Competitiveness
World-leading comprehensive production capacity and technological prowess
Customers
  • Construction machinery manufacturers
  • Construction companies
  • Heavy equipment leasing companies
  • Construction contractors
  • Overseas construction firms
Products
  • Hydraulic cylinders
  • Hydraulic pumps
  • Hydraulic motors
  • Hydraulic control systems

Automotive Suspension Parts

Overview
Supplies a wide range of suspension parts for vehicles domestically and internationally.
Competitiveness
65% domestic market share and No. 2 position globally
Customers
  • Automobile manufacturers
  • Motorcycle manufacturers
  • Automotive parts trading companies
  • Aftermarket
Products
  • Shock absorbers
  • Suspension systems

Base Isolation and Vibration Control Devices

Overview
Provides base isolation and vibration control devices for buildings aimed at reducing earthquake damage.
Competitiveness
Largest-class vibration control technology for architecture in Japan
Customers
  • Construction companies
  • Design offices
  • Government agencies
  • Real estate developers
Products
  • Oil dampers
  • Base isolation devices
  • Vibration control devices

Railway-Related Equipment

Overview
Supplies hydraulic shock absorbers and safety equipment for railway vehicles and facilities.
Competitiveness
Stable supply system for railway vehicle stop dampers
Customers
  • Railway companies
  • Vehicle manufacturers
Products
  • Vehicle stop dampers
  • Hydraulic shock absorbers

Industrial and Environmental Machinery

Overview
Designs, manufactures, and sells industrial and environmental-related machinery.
Competitiveness
Development capabilities for high-function excavators
Customers
  • Industrial machinery manufacturers
  • Environmental equipment companies
  • Waste management companies
Products
  • Variable cross-section excavators
  • Shaft excavators
  • Waste charging inspection machines

Architectural Equipment (Stage and Base Isolation)

Overview
Provides stage equipment and earthquake countermeasures for large-scale buildings.
Competitiveness
Application and development of multi-purpose vibration control technology
Customers
  • Theater and hall operators
  • Architectural design offices
Products
  • Stage vibration control devices
  • Architectural base isolation systems

Aircraft-Related Equipment

Overview
Has been developing aircraft parts business continuously but withdrew in 2022.
Competitiveness
Accumulated high-level technology and manufacturing experience from the past
Customers
  • Aircraft manufacturers
  • Aircraft parts suppliers
Products
  • Wheel and brakes
  • Actuators

Self-Developed Parts Sales

Overview
Offers dedicated suspension products for motorcycles.
Competitiveness
High share in domestic motorcycle suspension
Customers
  • Automotive parts retailers
  • Motorcycle sales channels
Products
  • Motorcycle suspension
  • Shock absorbers for two-wheelers

Competitive Advantage

Strengths

  • Overwhelming share in the domestic shock absorber market
  • Wide range of hydraulic products for construction machinery
  • Global production and sales network
  • Technological applicability across diverse industries
  • Long years of technology accumulation and quality control system
  • Market superiority in domestic base isolation devices
  • Strong base of major customers
  • Abundant international patents and development capabilities
  • Risk diversification through production bases in multiple regions
  • Expansion into environmental and disaster prevention products
  • Long-term transaction relationships with automakers
  • Diverse product portfolio
  • Advanced hydraulic control technology
  • Solid financial position
  • Extensive overseas sales network

Competitive Advantages

  • Monopolizes approximately 65% share in domestic shock absorbers
  • World-leading production capacity for construction machinery hydraulic equipment
  • Approximately 80% domestic share in concrete mixer truck bodywork
  • Responds to diverse customer needs through multifaceted product deployment
  • Strong technological development capabilities and enriched R&D bases
  • Covers international markets with global manufacturing and sales network
  • Thick trust from customers due to high-quality products
  • Active investment in environment and welfare-related products
  • Long-term contracts with stable major customers
  • Increasing revenue in overseas markets
  • Numerous adoption records of base isolation and vibration control devices in buildings
  • Experience expanding from automotive to aircraft industries
  • Strong brand power 'KYB'
  • New business development capabilities based on broad industry knowledge
  • Continuous quality improvement and technological innovation

Threats

  • Brand risk from base isolation device data falsification issue
  • Global supply uncertainty for semiconductors and other parts
  • Changes in parts configuration due to EV shift in automotive market
  • Instability in overseas political and economic conditions
  • Price competition due to intensifying international competition
  • Risk of fluctuations in raw material prices
  • Rising manufacturing costs due to stricter environmental regulations
  • Manufacturing and distribution risks from natural disasters
  • Decline in competitiveness due to delays in technological innovation
  • Revenue decline from withdrawal of aircraft parts business
  • Revenue fluctuations due to exchange rate changes
  • Risk of supply chain disruptions

Innovations

2023: Business Expansion Through Acquisition of Chita Steel Industry

Overview
Acquired Chita Steel Industry for approximately ¥17 billion, strengthening construction machinery-related business.
Impact
Expansion of product lineup and customer base

2022: Decision to Withdraw from Aviation Equipment Business

Overview
Withdrew from aviation equipment business to concentrate management resources on core businesses.
Impact
Improved operational efficiency and stabilized revenue base

2021: Development of Hydraulic Equipment with Enhanced Environmental Performance

Overview
Launched next-generation hydraulic equipment achieving low energy consumption and high efficiency.
Impact
Contributes to environmental regulation compliance and new market development

2020: Advanced Vibration Reduction and Base Isolation Technology

Overview
Improved performance of base isolation and vibration control devices using new materials and control technology.
Impact
Contributes to improved safety of buildings

Sustainability

  • Enhanced safety and quality control for base isolation and vibration control devices
  • Development and promotion of environmentally friendly hydraulic oils
  • Waste reduction and recycling promotion
  • Establishment of global environmental regulation compliance system
  • Environmental conservation activities in collaboration with local communities
  • Strengthened sustainability audits of supply chains
  • Promotion of energy-saving production technologies
  • Setting of CO2 emission reduction targets
  • Enhancement of safety and health management system
  • Employee environmental awareness education