KANAME KOGYO CO.,LTD.
6566・Standard Market・Services
Business
Yo-Kohgyo Co., Ltd. was established in 1973 and is a comprehensive waste management company that handles collection, transport, disposal, and recycling of industrial waste, commercial general waste, and household waste on an integrated basis, with Tokyo's 23 wards as its primary base of operations. Together with its consolidated subsidiary Yodosei Co., Ltd., the company operates across three business segments: the Collection, Transport & Disposal Business, the Recycling Business, and the Government-Contracted Services Business. The company holds collection and transport permits for commercial general waste across all 23 wards of Tokyo, and operates 8 proprietary recycling centers with a fleet of 477 owned vehicles and approximately 420 drivers. Its main customers are business establishments within Tokyo's 23 wards (with regular contracts covering more than 8,200 locations) and administrative bodies in Tokyo's 23 wards. The company views the social demands for stronger discharger responsibility in waste management and the transition to a recycling-oriented society as business opportunities.
Business Model
The company receives waste disposal on consignment from waste-generating businesses and government agencies, collecting processing fees in return. Collected waste is sorted and turned into resources at the company's own recycling centers, and valuable materials such as waste paper, bottles, cans, and PET bottles are sold to recyclable material buyers, securing a dual revenue stream. Through its in-house developed dispatch software and electronic manifest registration support system (EDI system), the company achieves operational efficiency and customer retention, and by maintaining long-term continuous contracts with compliance-conscious customers, it enhances the stability of its earnings.
Company Strengths
The company holds collection and transport permits for commercial general waste across all 23 wards of Tokyo, as well as industrial waste permits in various prefectures and cities in the greater Tokyo metropolitan area. It further operates 8 proprietary recycling centers within the 23 wards of Tokyo and has disposal routes to 19 government-operated cleaning plants, establishing a system capable of handling nearly all waste categories through a single, integrated process. Its ability to significantly simplify emitters' regulatory administrative work serves as a key differentiator from competitors.
The company uses proprietary vehicle dispatch software to "route-ize" numerous sites, vehicles, and drop-off destinations, improving collection efficiency. It has also developed in-house and provided to numerous customers an electronic manifest registration support system (EDI system), which supports customers' regulatory compliance while raising switching costs, contributing to the maintenance of long-term continuing contracts.
The company has a track record of government-contracted services across multiple wards, including sorting and recycling of non-combustible waste in Adachi, Itabashi, Nakano, Arakawa, Toshima, and Taito wards, and processing of household plastic waste in Adachi, Itabashi, Chuo, and other wards. In FY2026 (ending March 2026), the company newly secured a household plastic waste contract from Ota Ward, continuing to build up its track record, which forms a competitive advantage over rivals in expanding into new wards.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved net sales of ¥14,949 million (up 3.0% year on year), operating income of ¥2,114 million (up 0.2%), and net income of ¥1,580 million (up 4.3%), marking five consecutive years of revenue and profit growth. However, the operating margin declined by 0.4 percentage points to 14.1% from 14.5% in the prior year, as external factors such as rising fuel costs and wage base increases pushed up costs and pressured margins. The Collection, Transport & Disposal Business and the Government-Contracted Services Business drove revenue growth, while the Recycling Business saw a decline in revenue due to falling resource prices. In extraordinary income and losses, the company recorded ¥225 million in insurance proceeds related to a fire and ¥196 million in losses from disasters. For FY2027 (ending March 2027), the company expects net sales of ¥15,575 million (up 4.2%), but net income is projected to decline to ¥1,536 million (down 2.7%) due to increased personnel expenses and other factors.
Growth Strategy
A three-pronged growth strategy combining new municipal client acquisition in the Government-Contracted Services Business, expansion of recycling facilities, and renewal of IT infrastructure
The company newly began contracted collection of household plastic waste in Ota Ward in FY2026 (ending March 2026), expanding the Government-Contracted Services Business by 4.7% year on year to ¥3,382 million. By capturing municipalities' needs for outsourcing waste management to the private sector, the company aims to stabilize and expand its revenue base. For FY2027 (ending March 2026), steady growth in the number of collection sites is expected to be the main driver of increased revenue.
In connection with the construction of the head office building of consolidated subsidiary Yodosei Co., Ltd., buildings and structures increased by ¥747 million in FY2026 (ending March 2026). The company invested ¥903 million in capital expenditures for tangible fixed assets to strengthen its processing capacity and service infrastructure. Construction in progress decreased from ¥293 million to ¥43 million, indicating that the main construction work is nearing completion.
The company continues to expand in-house developed IT tools such as the electronic manifest registration support system (EDI system), aiming to increase customer switching costs and reduce costs through optimization of collection routes. Capital expenditures for intangible fixed assets amounted to ¥61 million (down from ¥78 million in the previous fiscal year), reflecting continued IT investment.
Last updated: July 19, 2026