ODAWARA AUTO-MACHINE MFG.CO.,LTD.
7314・Standard Market・Transportation Equipment
Business
Odawara Kiki Co., Ltd. is a specialist manufacturer of fare collection equipment for route buses, established in 1979 (originally founded in 1950), and listed on the TSE Standard Market. The group, which includes three consolidated subsidiaries (Oval Tech Co., Ltd., Sota System Co., Ltd., and Azuma Co., Ltd.), develops on-board and ground equipment such as fare boxes, cashless payment terminals, ticket dispensers, and fare adjustment devices, distributing them nationwide through 5 sales offices and a network of sales agents. Major customers are route bus operators across Japan, including major public and private bus operators such as Nagoya Municipal Transportation Bureau (13.3% of FY2025 sales) and Nagoya Guideway Bus (10.1% of the same). In the System Development Business, the company also engages in the development of public infrastructure-related systems in the fields of ETC, road traffic information, and IoT/M2M.
Business Model
The company builds transactional relationships with bus operators through the sale of equipment centered on fare boxes, and subsequently expands into the sale of peripheral equipment such as card devices, cashless payment terminals, and ticket-issuing machines. It further secures ongoing revenue through after-sales services including maintenance contracts, parts sales, and software updates. Products are efficiently provided under a "common specifications + custom specifications" framework, enabling the company to respond to the complex fare collection requirements of each bus operator. The Fare Collection Equipment Business accounts for approximately 91% of net sales.
Company Strengths
The company developed the Real-Time Counting Fare Box in 1986, ahead of other industry players, and has continued to evolve the product through ongoing improvements up to the cashless-payment-compatible RX-FCM Type. Years of accumulated technology and continuous product improvement form the foundation of its deep business relationships with bus operators.
The company has a nationwide business structure comprising five branch offices—Tokyo, Sendai, Kansai, Western Japan, and Kyushu—together with sales agents, and maintains a customer base of bus operators nationwide, including major operators such as Nagoya Municipal Transportation Bureau, Nagoya Guideway Bus, and Kanachu Shoji.
The company has Sota System Co., Ltd. (ETC and transportation infrastructure system development) and Azuma Co., Ltd. (IoT/M2M and embedded device development) as consolidated subsidiaries, and has established an in-house project structure in which the technical divisions and group companies collaborate to provide integrated support from new product development through to demonstration testing.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded from ¥3,584 million in FY2021 to ¥6,110 million in FY2024 and ¥7,673 million in FY2025, but the full-year forecast for FY2026 (ending December 2026) calls for revenue of ¥6,962 million (down 9.3% year on year), marking the company's first expected decline in revenue. First-quarter results for FY2026 (ending December 2026) showed revenue of ¥1,220 million (down 37.0% year on year), operating profit of ¥68 million (down 22.6% year on year), and net income of ¥36 million (down 46.7% year on year). The main cause was the drop-off of special demand recorded in the same quarter of the previous year (revenue of ¥1,938 million). As an external factor, in the route bus industry, rising labor costs due to worsening driver shortages and soaring fuel costs stemming from geopolitical risk have led bus operators to restrain investment. For the cumulative first half, the company forecasts an operating loss of ¥409 million, and recovery through delivery of large-scale projects in the second half is the premise for achieving the full-year results.
Growth Strategy
ONG2030: Driving structural reform around three pillars—enhancing earning power, growth investment, and accelerating revenue growth
Promoting expanded sales of cashless-compatible products such as the Multi-Payment Terminal "BOSS". Management commentary confirms continued focus on capturing demand in the first quarter of FY2026 (ending December 2026), functioning as an opportunity for additional sales into the existing customer base.
Advancing development of a "Digital Bus Stop System" and a "Timetable Creation Support System" as part of efforts to deliver new value. As of the first quarter of FY2026 (ending December 2026), development is confirmed to be ongoing, laying the groundwork for future commercialization and sales expansion.
Large-scale replacement demand for fare collection equipment expected in the greater Tokyo metropolitan area is positioned as a priority initiative. FY2026 (ending December 2026) is structured to expect delivery of large-scale projects in the second half, serving as the key driver toward achieving full-year net sales of ¥6,962 million. Trends in the order backlog serve as an important indicator for tracking progress.
Scheduled to issue 23,000 shares (at ¥1,167 per share, total issuance amount of approximately ¥27 million) to 230 employees of the company and its subsidiaries, with payment due on May 22, 2026. The aim is to provide incentives to drive sustained enhancement of corporate value and to share value with shareholders.
Last updated: July 17, 2026