Hiroshima Gas

Basic Information

Stock Code
9535
Industry
Electric Power and Gas
Category Detail
Electric Power & Gas
Prefecture
Hiroshima Prefecture
Establishment Year
October 1909
Listing Year
March 2000
Official Website
https://www.hiroshima-gas.co.jp/
TSE Information
TSE Information
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Other Companies
TOKAI Holdings, Nippon Gas, Tokyo Gas, Osaka Gas, Toho Gas, Hokkaido Gas, Saibu Gas HD, Hokuriku Gas, Keiyo Gas, Shizuoka Gas

Overview

Hiroshima Gas is a mid-sized gas company founded in 1909, specializing in urban gas supply as its core business, with approximately 410,000 supply accounts centered in Hiroshima City and along the Hiroshima Prefecture coastline, operating as a regionally integrated enterprise.

Current Situation

Hiroshima Gas recorded consolidated sales of approximately 90.7 billion yen and net assets of about 70.5 billion yen for the fiscal year ending March 2024, maintaining solid management in the regional urban gas industry. Its primary supply areas are around Hiroshima City as well as the former Kure Gas and Onomichi Gas regions, holding a firm regional market share in Hiroshima Prefecture. In addition to urban gas, it engages in technology development such as cogeneration systems and has collaboration achievements with Mazda. From the perspective of regional energy independence, it has entered fields like small-scale wind power generation as renewable energy initiatives, promoting environmentally considerate management. Backed by a stable customer base and strong regional ties, it is advancing electricity retailing and collaborations with local companies. Moving forward, it aims to expand new energy businesses and technological innovations based on stable urban gas supply through a medium- to long-term strategy. It has a robust financial foundation and is actively responding to growth areas through capital investments. While rooted in the local community, it focuses on balancing environmental measures with economic rationality.

Trivia

Interesting Facts

  • Established in 1909, a veteran company supporting Hiroshima Prefecture's energy infrastructure.
  • Headquarters and factory destroyed by the atomic bomb but quickly rebuilt and contributed to reconstruction.
  • Provides rotary engine cogeneration systems co-developed with Mazda.
  • Business area limited to Hiroshima urban sphere, emphasizing regional integration services.
  • Company logo designed with a valve handle motif.
  • Listed on Hiroshima Stock Exchange since the 1950s, now on Tokyo Stock Exchange Prime Market.
  • Active in renewables with track record in small wind power entry.
  • Gastopia Center showroom operated by Hiroshima Gas-related entities is well-known locally.
  • Strong focus on community contributions, including active educational support.
  • Approximately 410,000 urban gas supply accounts, evaluated for stable supply as a mid-tier gas company.
  • Historical capital and personnel ties with Hiroshima Electric Railway.
  • Traditionally maintains close collaboration with local Hiroshima companies.
  • Major shareholders include players from various industries.
  • Stable presidential transitions and management structure historically.
  • Focuses on production technology improvements and safety management, earning high trust.

Hidden Connections

  • Indirect technical ties with automotive industry through technology partnership with Mazda for engine development.
  • Hiroshima Electric Railway listed as shareholder, with historical connections in local transportation and energy sectors.
  • Multiple energy-related companies like Iwatani Corporation among major shareholders, forming industry network.
  • Strong historical background of mergers with former Kure Gas and Onomichi Gas in Hiroshima Prefecture for regional integration.
  • Hiroshima Gas actively partners across sectors for regional renewable energy expansion.
  • Contributes to local industry development and safety management through product supply and equipment sales to regional companies.
  • Long-term cooperation with Hiroshima City and local governments in disaster recovery support.
  • Contributes to Hiroshima Prefecture's environmental conservation and community development through energy supply and educational activities.

Future Outlook

Growth Drivers

  • Promotion of new businesses from expanding renewable energy demand
  • Expansion of electricity services in liberalized market
  • Increasing needs for energy-saving and environmentally friendly technologies in the region
  • Customer expansion leveraging stable urban gas supply base
  • Tailwinds from government environmental and energy policies
  • Efficiency improvements and cost reductions through new technology introduction
  • High customer loyalty from regionally integrated management
  • Improved trust through enhanced disaster response capabilities
  • Deepening collaborations with local companies and governments
  • Increasing demand for ZEB (Zero Energy Buildings)
  • Spread of smart energy management systems
  • Customer touchpoint expansion utilizing diverse sales channels

Strategic Goals

  • Achieve 50% renewable energy ratio
  • Surpass 100,000 electricity sales accounts
  • Maintain customer satisfaction above 90%
  • Reduce CO2 emissions by 40%
  • B2B business sales exceed 30 billion yen
  • Promote digitalization of equipment and IoT utilization
  • Enhance environmental education in collaboration with local community
  • Further strengthen safe and secure gas supply
  • Accelerate introduction of new energy technologies
  • Expand contributions to regional economic revitalization

Business Segments

Industrial Gas Supply

Overview
Provides stable industrial gas and energy services to local manufacturing and factories.
Competitiveness
Reliable local supply and technical support capabilities
Customers
  • Manufacturing Plants
  • Food Processing
  • Chemical Plants
  • Metal Processing Companies
  • Construction Companies
  • Major Manufacturers
  • Local Factories
Products
  • Industrial City Gas
  • High-Pressure Gas
  • Cogeneration Systems
  • Gas Safety Management Services
  • Energy Efficiency Consulting
  • Equipment Maintenance
  • Fuel Supply

Commercial Facilities and Building Energy Services

Overview
Supports energy efficiency and stable supply for large facilities.
Competitiveness
System proposal capabilities for diverse needs
Customers
  • Commercial Facilities
  • Office Buildings
  • Hotels
  • Hospitals
  • Public Facilities
  • Educational Institutions
  • Logistics Centers
Products
  • Building Cogeneration
  • Water Heating Equipment
  • Energy-Saving Monitoring Systems
  • Equipment Inspection Services
  • Energy Management

Electricity Retail Business

Overview
Offers regionally focused electricity retail services in response to liberalization.
Competitiveness
Total energy proposals through bundled gas sales
Customers
  • Individual Homes
  • Corporate Customers
  • Regional Groups
  • Small Businesses
  • Manufacturing
  • Services
  • Agricultural Corporations
Products
  • Electricity Sales
  • Electricity Contract Management
  • Renewable Energy Procurement
  • Energy Efficiency Improvement Consulting

Renewable Energy Business

Overview
Supports sustainable regional development through renewable energy adoption.
Competitiveness
Renewable energy development tailored to local characteristics
Customers
  • Local Governments
  • Companies
  • Business Investors
  • Agriculture and Fisheries
  • General Consumers
  • Energy-Related Businesses
Products
  • Small Wind Power
  • Solar Power Systems
  • Renewables for Cogeneration
  • Environmental Consulting Services

Gas Appliance Sales and Maintenance

Overview
Provides sales and long-term maintenance services for gas appliances.
Competitiveness
Technical expertise and close customer after-sales service
Customers
  • General Households
  • Building Managers
  • Factory Managers
  • Real Estate Management Companies
  • Gas Appliance Retailers
  • Service Providers
  • Management Associations
Products
  • Gas Stoves
  • Gas Water Heaters
  • Gas Heating Equipment
  • Inspection and Repair Services
  • Equipment Leasing

Real Estate Management and Services

Overview
Advances real estate rental management and related services within the group.
Competitiveness
Broad service deployment rooted in the Hiroshima region
Customers
  • Corporate Owners
  • Rental Property Managers
  • Employee Dormitories
  • Commercial Facility Managers
  • Local Governments
  • General Customers
Products
  • Rental Management Services
  • Building Maintenance
  • Energy Management
  • Renovation Proposals

Education and Environmental Outreach

Overview
Supports local environmental education and awareness of sustainable energy use.
Competitiveness
Detailed activities closely tied to the community
Customers
  • Schools
  • Local Residents
  • Local Government Officials
  • Environmental Groups
Products
  • Energy-Saving Education Programs
  • Environmental Event Support
  • Energy Consultation Services

Safety Management Services

Overview
Comprehensive support for gas usage safety management.
Competitiveness
Rapid and specialized response capabilities
Customers
  • General Households
  • Companies
  • Public Facilities
  • Real Estate Management Companies
Products
  • Gas Leak Detection
  • Regular Safety Inspections
  • Emergency Response Services

Consulting Business

Overview
Provides strategic consulting to enhance energy utilization.
Competitiveness
Customized proposals considering local characteristics
Customers
  • Companies
  • Local Governments
  • Facility Managers
  • Factories
Products
  • Energy Efficiency Proposals
  • Equipment Improvement Plans
  • New Technology Introduction Support

Logistics and Equipment Delivery

Overview
Smooth logistics services for gas appliances and related products.
Competitiveness
Rapid response through local integration
Customers
  • Retail Stores
  • Corporate Customers
  • Construction Sites
Products
  • Gas Appliance Delivery
  • Consumables Supply
  • Emergency Delivery Services

Equipment Rental and Leasing Services

Overview
Offers rental and leasing services for gas appliances and equipment.
Competitiveness
Flexible services meeting diverse needs
Customers
  • Companies
  • Event Organizers
  • Construction Firms
  • Leisure Facilities
Products
  • Gas Appliance Leasing
  • Short-Term Equipment Rental
  • Installation Support

Competitive Advantage

Strengths

  • Strong regionally integrated customer base
  • Abundant urban gas supply track record and technical expertise
  • Diverse energy service offerings
  • Stable financial foundation
  • Long history and ties with local community
  • Proven track record in proprietary cogeneration technology development
  • Active entry into renewable energy
  • Comprehensive energy consulting capabilities
  • Robust support system for customers
  • Strong connections with local economy
  • Utilization of diverse sales channels
  • High safety management awareness
  • Proactive stance on advanced technology adoption
  • Network of collaborations with local companies
  • Environmentally considerate management policy

Competitive Advantages

  • High market share in urban gas supply within Hiroshima Prefecture
  • Cogeneration technology co-developed with Mazda
  • 対応 to advanced renewable energy businesses like small wind power
  • Reliability from strong community relationships
  • Differentiation through comprehensive energy services
  • Promotion of sustainability-oriented management strategy
  • Broad sales channels and diverse product lineup
  • Long-term stable supply capacity and technical support
  • Flexible service deployment understanding local needs
  • Strong financial position enabling capital investments
  • Partnership network with local companies
  • Operations considering safety and environment
  • Enhanced maintenance and inspection services close to customers
  • Strategic response to electricity retail liberalization
  • Support system for regional energy independence

Threats

  • Risk of declining urban gas demand
  • Intensified competition from renewable energy expansion
  • Fluctuations in raw material prices and fuel costs
  • Impact from regional economic trends
  • Changes in business environment due to regulations and laws
  • Shrinkage of local demand from population decline
  • Increased competitors in liberalized electricity market
  • Diversification of consumer energy choices
  • Rising costs for climate change measures
  • Damage to supply equipment from natural disasters
  • Expanding investment burden for technological innovation
  • Growth limitations from lack of overseas market expansion

Innovations

2024: Entry into Small Wind Power Generation Business

Overview
Began installation and operational support for small wind power equipment targeted at local areas.
Impact
Contributes to increasing renewable energy ratio and diversifying revenue.

2023: Advanced Cogeneration System Technology

Overview
Promoted efficiency improvements in rotary engine equipment co-developed with Mazda.
Impact
Achieved improved energy efficiency and reduced environmental impact.

2022: Expansion of Electricity Retail Business

Overview
Strengthened sales with a target of 100,000 electricity retail accounts.
Impact
Enhanced competitiveness in the regional energy market.

2021: Strengthened Collaboration with Regional New Power Companies

Overview
Expanded supply and services jointly with regional new power operators.
Impact
Supported regional energy independence and improved customer satisfaction.

Sustainability

  • Equipment investments to promote renewable energy adoption
  • Operation of programs to enhance energy consumption efficiency
  • Promotion of technology development aimed at CO2 emission reductions
  • Active contributions to local environmental conservation
  • Thorough social responsibility through safe and secure gas supply
  • Waste reduction and recycling promotion activities
  • Active participation in environmental education and community awareness
  • Optimization of energy use and energy-saving support
  • Environmental load reduction through high-efficiency equipment maintenance
  • Regular issuance of sustainability reports