Higashi Holdings

Basic Information

Stock Code: 9029
Industry: Land Transportation
Category Detail: Land Transportation
Prefecture: Osaka Prefecture
Establishment Year: December 1944
Listing Year: March 2005
Official Website: https://www.e-higashi.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Systems Research, Sugai Chemical Industry, Human Technologies, Intrast, Hiraga, Zero, Nanto Transport, Hamakyo Rex, Enshu Truck, Kanda Holdings, Maruzen Showa Transport, Senko Group Holdings, Tonami Holdings, Nikkon Holdings, Fukuyama Transport, Keihin, Chuo Warehouse, Kyuso Circulation Systems, Asahi Information Service

Overview

Higashi Holdings is a holding company in the land transportation industry based in Osaka, founded in 1944, and a leading company in the sector, primarily offering comprehensive logistics services and BPO solutions.

Current Situation

Higashi Holdings recorded consolidated sales of approximately 27.9 billion yen and operating profit of approximately 1.475 billion yen for the fiscal year ended March 2022, continuing stable growth. Its main business centers on transportation, with expansion into welfare equipment rental and sales, as well as IT-related services. The company is advancing into the Tokyo metropolitan area to expand its business scale. It has diversified its group's logistics and human resource services through subsidiary acquisitions and business alliances. It is planning to transition to a holding company structure to improve organizational efficiency. It also considers sustainability, working on logistics innovations to reduce environmental impact. Going forward, it will focus on strengthening competitiveness in 3PL and BPO fields and improving business efficiency through digital technology utilization. It aims for sustainable growth by flexibly responding to economic and pandemic fluctuations.

Trivia

Interesting Facts

Originally formed by the merger of 13 transportation companies in Higashi-ku, Osaka City
Stable management foundation from early capital participation by Nippon Life Insurance
Holds historical significance as the first company licensed by the Land Transport Office
Expanding into BPO and IT-related businesses to advance as a composite logistics company
Focus on office relocation services and welfare equipment rentals
Strategically expanded into Tokyo metropolitan area through comprehensive business alliance in 2015
Major shareholders include major companies like Kansai Electric Power and Nippon Life
Consolidated employee count of approximately 1,000, mid-sized group scale
Active in public relations via official YouTube and Facebook channels
Characterized by business integrations and subsidiary acquisitions from Showa to Reiwa eras
Group strengthening advanced through continuous full subsidiarization since 2016
Promoting digital transformation in the logistics industry
Broad business portfolio addressing diverse industry clients
Employee stock ownership association plays a role in management participation
Based in Osaka, with sales focused on Kansai and Tokyo metropolitan areas

Hidden Connections

Capital ties with Kansai Electric Power enable stable power supply and logistics service collaboration
Business alliance with Eastern Network serves as key foundation for Tokyo metropolitan expansion
Capital participation by Nippon Life Insurance forms the basis of long-term financial stability
Built unique service system combining welfare equipment field with logistics
Transformation into a logistics company strong in digital domains through expansion of IT subsidiaries
Plans to realize swift group decision-making through transition to holding company structure
Inherits industry history and tradition as the first licensed transportation company in Osaka
Shareholder ties with media like Mainichi Shimbun aid public relations strategies

Future Outlook

Growth Drivers

Expansion of logistics demand in Tokyo metropolitan and Kansai areas
Increasing growth needs in BPO and IT-related service fields
Expansion of welfare equipment rental market amid aging society
Advancement of digital transformation
Strengthening strategic collaboration among group subsidiaries
Introduction and dissemination of environment and ecology対応 technologies
Industry-wide scale expansion and rising demand for integrated services
Efforts to improve work environment addressing labor shortages
Efficiency gains from optimization of inter-regional logistics networks
Agilization of group management through transition to holding company structure
Increasing demand in nationwide medical and welfare markets
Rising corporate demand for office relocations and moving services

Strategic Goals

Strengthening group integration through stable holding company operations
Achieve 30% sales ratio for BPO and IT services
Promote green logistics aimed at reducing environmental impact
Expand market share in welfare equipment rental and sales
Improve logistics efficiency by 30% using digital technology
Aim for 40% sales increase through Tokyo metropolitan business expansion
Improve retention rates through diversity and work-life balance initiatives
Expand CSR activities strengthened by community collaborations
Innovate service quality to enhance customer satisfaction
Maintain medium- to long-term financial soundness and secure growth funds

Business Segments

Comprehensive Logistics Services

Overview

Provides optimized logistics and transportation integrated for various industries, realizing efficient supply chains.

Competitiveness

Flexible responsiveness through integration of wide-area networks and multifaceted logistics functions

Customers

Manufacturing
Wholesale
Retail
Electronic parts manufacturers
Medical equipment manufacturers
Food processing companies
Construction materials suppliers
E-commerce operators
Trading companies
Local governments

Products

Truck transportation
Warehouse management
Inventory management
Cargo delivery
3PL services
Logistics planning proposals
Delivery network construction
Packing and handling
Logistics consulting
IT logistics support

Human Resources Services

Overview

Offers staffing and training services tailored to human resource needs in various industries, supporting stable labor supply.

Competitiveness

Abundant human resources and expertise specialized in the logistics industry

Customers

Logistics companies
Manufacturing
Service industry
IT companies
Medical institutions
Welfare facilities
Office management companies
Retail
Educational institutions
Local governments

Products

Staff dispatching
Outsourcing
Recruitment agency
Training programs
Labor management support
IT engineer dispatching
Caregiving staff support
Worker dispatch management
Workplace environment improvement services
Attendance management systems

BPO Solutions

Overview

Provides a wide range of back-office outsourcing to improve business efficiency.

Competitiveness

Integrated service provision through collaboration with logistics operations

Customers

Large manufacturers
Distribution companies
Service industry
IT industry
Financial institutions
Medical corporations
Government offices
Educational institutions
Logistics operators
Public organizations

Products

Back-office outsourcing
Logistics management outsourcing
IT support services
Clerical processing services
Customer service operations
Data entry
Document management
Sales support
Invoicing processing
Phone response

Office Relocation Services

Overview

Provides total support for corporate office relocations, ensuring smooth business continuity.

Competitiveness

Extensive industry experience and rapid response capabilities

Customers

Small and medium enterprises
Large corporations
Government agencies
IT companies
Educational institutions
Medical institutions
Manufacturing
Service industry
Financial institutions
Logistics companies

Products

Office relocation planning
Furniture installation
IT equipment setup
Relocation coordination
Moving operations
On-site surveys
Transportation arrangements
Cargo management
Design support
Cleaning management

Welfare Equipment Rental and Sales

Overview

Supports improved quality of life for the elderly and caregiving sites through welfare equipment sales and rentals.

Competitiveness

Rapid delivery system through integration with logistics functions

Customers

Elderly care facilities
Nursing homes
Hospitals
Home caregivers
Community comprehensive support centers
Government agencies
Welfare service providers
Medical institutions
Disability support facilities
Care supplies stores

Products

Wheelchairs
Walkers
Care beds
Bathing aids
Mobility aids
Care supplies sales
Safety equipment
Care lifts
Welfare equipment maintenance
Rental contract support

Competitive Advantage

Strengths

Strong foothold in the Kansai region with extensive logistics network
Integrated expertise in diverse logistics services and BPO fields
Stable management foundation through comprehensive group operations
Business diversification via strategic subsidiary acquisitions and alliances
Abundant human resources specialized in the logistics industry
Deployment of advanced IT-related services
Broad customer base through regional closeness and Tokyo metropolitan expansion
Swift decision-making enabled by holding company structure
Proactive investment stance in the 2020s
Proven track record and credibility from long industry experience

Competitive Advantages

Trusted nationwide logistics network centered in Kansai
Broad service offerings addressing logistics needs across multiple industries
Differentiation through added value from BPO and IT services
High cost efficiency from synergy creation via subsidiary collaboration
Expansion of customer base in Tokyo metropolitan area through long-term alliances
Strong partnerships with regional companies
Regional expansion and logistics strengthening in welfare equipment rental
Efficiency promotion through latest IT tools and process improvements
Long-term planning capabilities supported by stable financial base
Management policy emphasizing labor management and human resource development

Threats

Risk of profit pressure from rising logistics costs
Intensifying industry competition and price wars
Business impacts from environmental changes like pandemics
Labor shortages and difficulties in talent acquisition
Increasing service demands from IT and digitalization
Growing burden of sustainability compliance
Risk of logistics network disruptions from natural disasters
Demand fluctuations from customer industry economic changes
Cost increases from stricter regulations
Market share pressure from new entrants

Innovations

2024: Making Neo Competence Co., Ltd. a wholly-owned subsidiary

Overview: Fully subsidiary-ized Neo Competence, specializing in IT and logistics, to strengthen human resources business.
Impact: Expected synergy improvement and revenue growth in human resources services

2022: Making Tabito Co., Ltd. a wholly-owned subsidiary

Overview: Subsidiary-ized Tabito to expand IT services and staffing fields.
Impact: Contributes to strengthening IT-related services and expanding customer base

2020: Making World Corporation Co., Ltd. a wholly-owned subsidiary

Overview: Advancing expansion of moving and office relocation services business.
Impact: Expands service areas and improves corporate customer satisfaction

2023: Introduction of Digital Logistics Management System

Overview: Launched in-house developed digital management system for vehicle dispatch and delivery efficiency.
Impact: Achieved operational cost reductions and decreased delivery delays

2021: Introduction of Low-Environmental-Impact Trucks

Overview: Began introducing fuel-efficient hybrid trucks to strengthen environmental considerations.
Impact: Successfully reduced CO2 emissions and fuel costs

Sustainability

Promoting energy efficiency at logistics bases
Reducing environmental impact through eco-driving training
Promoting utilization of renewable energy
Waste recycling rate improvement programs
Enhancing employee health management and safety hygiene
Environmental considerations across the supply chain
Environmental conservation activities in collaboration with local communities
Digitalization to reduce paper resources
Acquisition and maintenance of environmental ISO certification
Sustainable human resource development and diversity promotion