Kyushu Lease Service

Basic Information

Stock Code
8596
Industry
Other Financial Services
Category Detail
Leasing & Rental
Prefecture
Fukuoka Prefecture
Establishment Year
November 1974
Listing Year
November 1988
Official Website
https://www.k-lease.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kanematsu Engine, U.P.R., Kondo, Marubeni Lease

Overview

Kyushu Lease Service is the largest leasing company in the Kyushu region, founded in 1974, and operates as a comprehensive financial services company centered on leasing, also engaging in lending, real estate, and fee-based businesses.

Current Situation

Kyushu Lease Service recorded consolidated sales of approximately ¥25.2 billion and net assets of approximately ¥29.7 billion for the fiscal year ended March 2020, maintaining a solid financial foundation. Centered in the Kyushu region, it conducts leasing and installment sales, building strong ties with local businesses. It is expanding its lending and real estate-related services, promoting diversification. It has incorporated life insurance and non-life insurance solicitation operations to broaden its service scope. With multiple subsidiaries, it operates with both reliability and agility. In recent years, it has established a new company in the renewable energy sector, focusing on contributions to a sustainable society. Fukuoka Jisho holds the largest stake as the principal shareholder, ensuring stable capital relationships. Moving forward, it aims for medium- to long-term growth by expanding regionally rooted, multifaceted financial services.

Trivia

Interesting Facts

  • Established through joint investment by Fukuoka Mutual Bank and Japan Lease.
  • One of the oldest local leasing companies in the Kyushu region.
  • Deploys diversified management utilizing multiple subsidiaries.
  • Stable support from Fukuoka Jisho as principal shareholder.
  • New entrant into the renewable energy sector.
  • Also handles solicitation for life and non-life insurance.
  • Listed on the Tokyo Stock Exchange First Section (now Standard).
  • Branches in Kitakyushu, Kurume, Kumamoto, Oita, and Nagasaki.
  • Recognized in the industry for prudent management.
  • Effective sales deployment by Group Strategy Dept. and Relationship Sales Dept.

Hidden Connections

  • Fukuoka Mutual Bank (now Nishinippon City Bank) was significantly involved at founding.
  • Fukuoka Jisho exerts strong influence on management as principal shareholder.
  • Provides multifaceted real estate services through subsidiaries.
  • Leasing credit guarantee business linked to support for local SMEs.
  • Renewable energy business expansion also supports local governments.
  • Coca-Cola Bottlers Japan exists as one of the major shareholders.
  • Achieved market reclassification from Tokyo Stock Exchange Second to First Section.
  • Strengthening ties with the financial industry through life and non-life insurance solicitation.

Future Outlook

Growth Drivers

  • Industrial restructuring and increased equipment investments in Kyushu.
  • Growth in renewable energy market and focused efforts.
  • Cross-selling opportunities from expanded insurance solicitation.
  • Operational efficiency and service improvements through IT advancement.
  • Strengthened customer base through deep engagement with regional SME needs.
  • Diversification of real estate business and stable revenue securing.
  • Demand recovery following economic activity resumption post-COVID.
  • Enhanced credit guarantee business and integrated financial services.
  • Environmental initiatives toward realizing a sustainable society.
  • Synergy creation through strengthened partnerships with local major corporations.

Strategic Goals

  • Establish position as Kyushu's top comprehensive leasing company.
  • Achieve over ¥5 billion in renewable energy business sales.
  • Improve profit margins and expand diversified financial services.
  • Consider nationwide rollout of regional SME support services.
  • Continuously strengthen environmental impact reduction and CSR activities.

Business Segments

Industrial Machinery Leasing Business

Overview
Deploys industrial machinery leasing and rental services centered in the Kyushu region.
Competitiveness
Regionally rooted quick response capabilities
Customers
  • Manufacturers
  • Construction companies
  • Companies considering equipment investments
  • Local governments
Products
  • Machine tool leasing
  • Construction machinery leasing
  • Industrial machinery rental

Real Estate Related Services

Overview
Provides multifaceted services centered on real estate rental and management.
Competitiveness
Integrated services through multiple subsidiaries
Customers
  • Commercial facility operators
  • Corporate customers
  • Rental housing owners
Products
  • Office rental management
  • Residential leasing
  • Real estate management services

Insurance Solicitation Business

Overview
Deploys regionally rooted support through insurance agency operations.
Competitiveness
Strong trust relationships with regional customers
Customers
  • Individual customers
  • Corporate customers
Products
  • Life insurance
  • Non-life insurance

Credit Guarantee Services

Overview
Utilizes subsidiaries to handle guarantee operations related to leasing contracts.
Competitiveness
Value-added services linked with leasing operations
Customers
  • Small and medium enterprises
  • New businesses
Products
  • Credit guarantees
  • Financial consulting

Competitive Advantage

Strengths

  • High brand recognition in the Kyushu region
  • Diversified financial business portfolio
  • Strong relationships with local businesses
  • Stable financial foundation
  • Operational efficiency through subsidiaries
  • Expansion into life and non-life insurance solicitation
  • New entry into renewable energy
  • Flexible response capabilities rooted in the region
  • Effective utilization of credit guarantee services
  • Listed on the Tokyo Stock Exchange Standard Market

Competitive Advantages

  • Reliability as Kyushu's largest local leasing company
  • Integrated services in leasing, lending, real estate, and fee business
  • Strategies closely tied to regional economic growth
  • Support from major corporations like Fukuoka Jisho as principal shareholder
  • Multifaceted brand deployment via subsidiaries
  • Proactive stance in renewable energy business
  • Solid financial model and stable profitability
  • Rapid service delivery specialized for the region
  • Customer needs addressed through life and non-life insurance solicitation
  • Accumulated industry experience and track record over many years

Threats

  • Intensifying competition in the regional financial market
  • Decrease in leasing demand due to economic fluctuations
  • Risk of business restrictions from strengthened regulations
  • Impact of interest rate fluctuations on lending profits
  • Market share competition from rivals
  • Decline in asset values due to deteriorating real estate market
  • Potential delays in revenue realization from new businesses
  • Economic uncertainty from external factors like COVID-19
  • Lag in business model transformation due to technological innovation
  • Increased risk of customer payment delays

Innovations

2022: Establishment of New Renewable Energy Company

Overview
Established a new subsidiary specialized in renewable energy to promote business diversification.
Impact
Aims to diversify revenue through new field development.

2021: Strengthening Credit Guarantee Business

Overview
Expanded credit guarantee services by establishing subsidiary KLS Credit Guarantee.
Impact
Contributes to improved leasing contract reliability and customer base expansion.

2023: Promotion of Digitalization

Overview
Advancing digitalization of leasing contract management systems to improve operational efficiency.
Impact
Achieves administrative cost reductions and faster customer response.

2024: Expansion of Environmentally Friendly Machinery Leasing

Overview
Strengthening leasing of environmentally considerate industrial machinery to meet societal needs.
Impact
Successfully acquires customer segments with high environmental awareness.

2020: Advanced Real Estate Business through Subsidiary Collaboration

Overview
Deepened collaboration with related subsidiaries to diversify and sophisticate real estate management services.
Impact
Realizes stable growth in real estate-related revenues.

Sustainability

  • Active investment in renewable energy business
  • Promotion of machinery leasing aimed at reducing environmental impact
  • CSR activities emphasizing coexistence with local communities
  • Promotion of energy-saving equipment adoption
  • Implementation of sustainable real estate operations
  • Workstyle reforms and diversity initiatives for employees
  • Regional revitalization activities centered on local industry support
  • Strategy for environmentally considerate renewal of leased assets
  • Enhanced compliance for improved social trust
  • Advanced information security measures