KANAME KOGYO CO.,LTD.
6566・Standard Market・Services
Comprehensive Waste Management Business
A single-segment company engaged in waste collection, disposal, and recycling, primarily based in Tokyo's 23 wards
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated, full year) | ¥14,949 million | ¥14,507 million | ↑ |
| Operating profit (consolidated, full year) | ¥2,114 million | ¥2,109 million | ↑ |
| Ordinary profit (consolidated, full year) | ¥2,264 million | ¥2,168 million | ↑ |
| Profit attributable to owners of parent (consolidated, full year) | ¥1,580 million | ¥1,514 million | ↑ |
| Operating profit margin | 14.1% | 14.5% | ↓ |
| Equity ratio | 80.9% | 81.1% | — |
| Earnings per share | ¥99.53 | ¥95.39 | ↑ |
| Net assets per share | ¥1,312.90 | ¥1,233.35 | ↑ |
| Cash and cash equivalents at end of period | ¥5,826 million | ¥4,673 million | ↑ |
Business Details
This is the only segment operated by Youkogyo Co., Ltd. (and its consolidated subsidiary, Yodosei Co., Ltd.). It comprises three business categories: collection, transport and disposal of industrial and general waste; recycling (sale of recyclable resources); and government-contracted services (waste treatment entrusted by municipalities), centered on Tokyo's 23 wards. The company operates multiple recycling centers within Tokyo's 23 wards, providing an integrated service from collection through intermediate processing and resource recovery. Under its management philosophy of "contribution to environmental conservation and a circular society," the company conducts business activities aimed at realizing a circular economy.
Recent Overview
Achieved increased sales and profit, driven by growth in government-contracted services including new contract for plastic waste collection in Ota Ward
In FY2026 (ending March 2026), the company achieved increases across all profit items, with net sales of ¥14,949 million (up 3.0% year on year), operating profit of ¥2,114 million (up 0.2%), ordinary profit of ¥2,264 million (up 4.5%), and net income of ¥1,580 million (up 4.3%). The Collection, Transport & Disposal Business saw a 3.6% increase in sales due to higher collection volume, and the Government-Contracted Services Business saw a 4.7% increase in sales driven by the new contract for household plastic waste collection from Ota Ward, among other factors. Meanwhile, the Recycling Business saw a 4.2% decrease in sales due to falling resource prices. Cost increases from soaring fuel prices and wage base increases were absorbed through cost reduction efforts. While making capital investments such as the construction of the head office building of consolidated subsidiary Yodosei, cash balances increased by ¥1,153 million compared to the end of the previous period, aided by the refund of insurance reserve funds. For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥15,575 million (up 4.2%) and operating profit of ¥2,188 million (up 3.5%), while forecasting a decrease in ordinary profit to ¥2,244 million (down 0.9%) and net income to ¥1,536 million (down 2.7%) due to increased expenses from wage hikes and other factors.
Key Products
Growth Drivers
- Expansion of the Government-Contracted Services Business: Progress in expansion into new municipalities, including the start of the contracted household plastic waste collection business in Ota Ward
- Increased collection volume in the Collection, Transport & Disposal Business: Increased contracted volume due to more active urban activity in Tokyo's 23 wards and the shift "from public to private"
- Price pass-through of cost increases: Cost increases such as processing fee hikes have been passed through to prices to a certain extent, maintaining sales unit prices
- Capital investment in recycling centers: Strengthened processing capacity and service infrastructure through facility expansion, including the construction of the head office building of consolidated subsidiary Yodosei
- Customer retention and operational efficiency through in-house developed IT such as the electronic manifest registration support system (EDI system)
Risks
- Resource price volatility risk: Declines in the market for waste paper and other materials, which account for the majority of Recycling Business sales, directly reduce sales (Recycling Business sales fell 4.2% in the current period)
- Rising labor and processing costs: Ongoing wage increases continue to push up personnel costs, and expense increases are expected to weigh on profits in the next fiscal year as well
- Tightening regulation under the Waste Management Act and related laws: The risk of permit revocation or administrative sanctions has a direct impact on business continuity, making maintenance and strengthening of the compliance framework essential
- Driver labor shortage: A domestic shortage of drivers in this labor-intensive business model could constrain business expansion
- Facility aging risk: Aging of recycling center facilities is progressing, requiring continuous investment in facility renewal
Last updated: June 22, 2026