Odawara Kiki

Basic Information

Stock Code
7314
Industry
Transportation Equipment
Category Detail
Information & Communication Equipment
Prefecture
Kanagawa Prefecture
Establishment Year
October 1979
Listing Year
March 2009
Official Website
https://www.odawarakiki.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yamada Saiken, Iwabuchi, Nippon Signal, Kyosan Seisakusho, Daidou Signal, Reship Holdings, Sakae Denshi, Tomita

Overview

Odawara Kiki was founded in 1950 and is a leading manufacturer in the transportation equipment industry, with bus fare boxes and change machines as its main products.

Current Situation

Odawara Kiki holds a high market share in the manufacture of fare boxes and change machines, recording consolidated sales of approximately 3.3 billion yen in 2018. Although performance is challenging with a net loss for the period, it differentiates itself from competitors with strengths in fare collection equipment for route buses. The company is proactive in technology development, having developed IC card-compatible fare boxes and the cashless payment tablet terminal 'SELF,' which have been adopted by bus operators nationwide. In 2020, it integrated systems subsidiary Azuma into the group to expand its information equipment systems business. It also focuses on reducing environmental impact and supporting efficient regional transportation. In the medium to long term, it views the progress of cashless payments and the digital transformation (DX) of transportation systems as growth opportunities, with product diversification and new technology introduction as key strategies. Aiming to strengthen competitiveness toward the late 2020s through further technological innovation and sales enhancement.

Trivia

Interesting Facts

  • Holds approximately 65% share in Japan's bus fare box market.
  • Has history of being established as a Fuji Film-related company in 1950.
  • Developed the world's first cashless fare collection terminal 'SELF'.
  • Pioneer that launched Japan's first circulating fare box in 1972.
  • Numerous delivery records for railway fare equipment in addition to buses.
  • Developed products with industry-leading fare processing speed of 0.7 seconds.
  • Expanding information systems business through subsidiary Azuma.
  • Contributing to regional economic revitalization in local Odawara City.
  • Acquired information equipment business from Yuzuki Denski in 2017.
  • Possesses technology differentiated from competitors' fare box products.
  • Grew alongside the spread of one-man bus operation on route buses.
  • Maintains sound corporate governance as a company with board of auditors.
  • Early adoption of diverse cashless payments.
  • Major shareholders include founding family and employee stock ownership association.
  • Competing with numerous signal equipment manufacturers for transportation.

Hidden Connections

  • Historical ties to manufacturing originating from a Fuji Film affiliate.
  • Expanded network through business alliance with Saxa Holdings.
  • Deep involvement in information systems industry through subsidiary Azuma.
  • Incorporated LCD fare display manufacturing through acquisition of former Yuzuki Denski business.
  • Revealed industry competition trends through Nishitetsu Bus fare equipment switch case.
  • Participating in transportation efficiency projects in collaboration with local governments.
  • Jointly developed cashless payment terminals with Visa and Sumitomo Mitsui Card.
  • Strong market position occupying about 65% of domestic bus fare box market.

Future Outlook

Growth Drivers

  • Progress in cashless conversion of bus fare collection equipment.
  • Increasing demand for public transportation efficiency.
  • Transportation system innovation through IoT and digital technology.
  • Demand for safety and convenience improvements in route buses due to aging population.
  • Local government policies promoting transportation DX.
  • Potential for global expansion of new products and services.
  • Demand for energy-saving products due to strengthened environmental regulations.
  • Expansion of alliances with diverse payment services.
  • Digital transformation in the transportation industry.
  • Promotion of integrated transportation infrastructure systems.
  • Strengthening customization capabilities to meet customer needs.
  • New business creation utilizing subsidiary's system development capabilities.

Strategic Goals

  • Achieve 70% market share in cashless payment compatible equipment.
  • Expand product lineup aiming for minimal environmental impact.
  • Double current sales in information systems business.
  • Develop fare collection solutions utilizing AI and IoT technology.
  • Expand implementation record and strengthen trust among major transportation operators nationwide.
  • Achieve both strengthened governance and sustainable growth.
  • Deepen collaboration with local communities to create social value.
  • Product deployment with overseas market entry in view.
  • Realize enhancement of employee expertise and diversity promotion.
  • Promote sustainable product development and resource-recycling management.

Business Segments

Fare Collection Equipment for Transportation Facilities

Overview
Provides comprehensive fare collection equipment for public transportation.
Competitiveness
Established reliability through high technological capabilities and extensive implementation track record.
Customers
  • Route bus operators
  • Railway operators
  • Highway bus operators
  • Local government transportation departments
  • Transportation system integrators
  • Transportation consultants
Products
  • Fare boxes
  • Change machines
  • Fare displays
  • Numbered ticket issuers
  • Cashless payment tablet terminals

Information System Development and Maintenance

Overview
Provides development and maintenance services for bus fare-related systems.
Competitiveness
Flexible response possible through system development linked with equipment.
Customers
  • Transportation operators
  • System development companies
  • Public transportation administrators
Products
  • Bus fare collection systems
  • Operation support software
  • Cashless payment systems

Industrial Equipment Sales

Overview
Sells equipment for specific sectors as an industrial equipment business.
Competitiveness
High-quality products leveraging parent company's manufacturing technology.
Customers
  • Manufacturing industry
  • Trading companies
  • Construction industry
Products
  • Assembly equipment
  • Manufacturing support equipment

Competitive Advantage

Strengths

  • High technological capability in fare collection equipment
  • 65% share in bus fare equipment market
  • Compatibility with diverse cashless payments
  • Long industry track record and trust
  • Strengthened integration with information systems
  • Product diversity and implementation record
  • Strong customer base and relationship building
  • Business expansion utilizing subsidiaries
  • Flexible product customization capabilities
  • Consistent quality control system
  • Deep expertise in transportation infrastructure
  • Product ease of use and reliability
  • Regionally focused service provision
  • Trust in Tokyo Stock Exchange Standard market
  • Stable financial foundation

Competitive Advantages

  • Market superiority from long-accumulated high share in fare boxes
  • Established advanced technology with IC card compatibility and cashless terminals
  • Wide lineup of products for route buses
  • Diversification of technology and services through multiple subsidiaries
  • Advanced integration capabilities with transportation systems
  • Flexible product development system responsive to customer needs
  • Extensive sales network for transportation operators nationwide
  • Product design excelling in safety and reliability
  • Enhanced competitiveness through acquisition of information equipment business
  • Retention of specialized knowledge focused on transportation industry
  • Leading company in promoting cashless transportation
  • Strengthened governance through board of auditors
  • Technological strength in high-precision automatic change machines and fare displays
  • Excellent brand recognition in specific markets
  • Long-term partnerships with transportation operators

Threats

  • Pressure for technological innovation accompanying industry digitalization
  • Intensifying price competition from competitors
  • Risk of increasing new market entrants
  • Market contraction due to decline in public transportation
  • Response burden from diversification of cashless payments
  • Decrease in capital investment due to economic fluctuations
  • Risk of loss of trust from product failures
  • Impact from changes in laws, regulations, or transportation policies
  • Impact of foreign exchange fluctuations (parts procurement costs)
  • Impact of natural disasters on production and logistics
  • Decline in users directly linked to population decline from aging and low birthrate
  • Risk of resource shortage for responding to new technologies

Innovations

2020: Development of Cashless Fare Collection System 'SELF'

Overview
Development and introduction of bus tablet terminal compatible with Visa and other diverse payments.
Impact
Promotes cashless route buses, contributing to new customer acquisition.

2020: Absorption of Azuma Business and Strengthening of Information Systems

Overview
Acquired information equipment systems business from Yuzuki Denski Seisakusho to strengthen business foundation.
Impact
Contributes to product/service diversification and revenue improvement.

2021: Technological Improvement of IC Card-Compatible High-Speed Processing Fare Box

Overview
Improved fare processing speed to enhance user convenience.
Impact
Led to adoption by many operators, successfully maintaining and strengthening share.

2022: Support for Introduction of Remote Fare Monitoring and Management System

Overview
Realized remote management of fare collection equipment using IoT technology.
Impact
Achieved reduction in operational costs and rapid fault response.

2023: Development of New High-Function Change Machine Model

Overview
Launched space-saving design and high-precision processing change machine.
Impact
Contributes to labor-saving in transportation facilities and improved user satisfaction.

Sustainability

  • Promoting development of low-power consumption equipment to reduce environmental impact
  • Product design considering waste reduction
  • Participation in regional revitalization activities in local Odawara City
  • Formulation of sustainable material procurement policy
  • Support for CO2 emission reduction through transportation efficiency
  • Promotion of energy saving and waste recycling within the company
  • Reduction in cash handling volume through diverse payment compatibility
  • Enhancing sustainability awareness through customer education
  • Continuous development of safe and environmentally friendly products
  • Nature conservation activities through collaboration with local communities