Kanagawa Chuo Kotsu Co., Ltd.
9081・Prime Market・Land Transportation
Business
The Kanagawa Chuo Kotsu Group, founded in 1921 as Kanagawa Prefecture's largest bus operator, is composed of the parent company, 19 subsidiaries, and 2 affiliated companies. In addition to its core Passenger Motor Vehicle Business (Fixed-Route Bus Business, Taxi Business, and Chartered Bus Business), the group operates a diverse range of life-oriented businesses closely tied to daily living, including Real Estate Business (Leasing Business and Real Estate Sales Business), Automobile Sales Business (commercial vehicles and imported vehicles), and Distribution, Food & Beverage, Hotel, and Body-Fitting businesses. Its main customers are general passengers, corporations, and local residents within Kanagawa Prefecture, and it counts Odakyu Electric Railway among its affiliated companies. In January 2026, the group made Mizushima Shoji, Rinkan Shoji, and MS Kikaku into consolidated subsidiaries, strengthening its Real Estate Sales Business. Consolidated net sales for FY2025 reached ¥126,773 million.
Business Model
The Passenger Motor Vehicle Business (net sales of ¥57,908 million) forms a stable daily revenue base, with funds centrally managed group-wide through the Cash Management System (CMS). The Real Estate Business (operating margin of 23.2%) is positioned as a high-profitability segment, accumulating earnings through the advanced utilization of group-held land and expansion of the Real Estate Sales Business. The Automobile Sales Business (net sales of ¥44,907 million) secures stable earnings from sales of commercial and imported vehicles as well as maintenance revenue, complemented by peripheral businesses such as body-fitting and food & beverage.
Company Strengths
Since its founding in 1921, the company has operated fixed-route buses, taxis, and chartered buses within Kanagawa Prefecture, and in April 2025 it absorbed Kanagawa Chuo Kotsu East and West to unify its route network. Revenue from the Passenger Motor Vehicle Business reached ¥57,908 million, and the company has also conducted trials of AI on-demand buses and autonomous buses, establishing an irreplaceable position as regional transportation infrastructure.
The Real Estate Business boasts an operating margin of 23.2% (operating profit of ¥1,588 million), the highest level among all segments. In January 2026, the company made Mizushima Shoji, Rinkan Shoji, and MS Kikaku consolidated subsidiaries, strengthening its detached-house Real Estate Sales Business centered on the Shonan area. Through unified management and advanced utilization of the group's land assets, this business is positioned as a core business under the long-term vision "Vision 2030".
The four segments of Passenger Motor Vehicle, Real Estate, Automobile Sales, and Other (Body-Fitting, Food & Beverage, Hotel, etc.) operate in parallel, reducing dependence on any single business. In FY2025, the Automobile Sales Business achieved a 16.4% year-on-year increase in revenue and a 20.0% year-on-year increase in operating profit, while operating profit in Other Businesses grew 16.6% year-on-year, with these other segments offsetting the decline in profit from the Passenger Motor Vehicle Business.
ENVALITH's Perspective
Performance Trend
Revenue grew from ¥97,777 million in FY2022 (ended March 2022) to ¥126,773 million in FY2026 (ending March 2026), expanding approximately 1.3x over five fiscal periods, continuing the recovery trend from the COVID-19 pandemic. Meanwhile, operating profit peaked at ¥7,516 million in FY2024 (ended March 2024) before declining for two consecutive periods to ¥7,388 million in FY2025 (ended March 2025) and ¥6,776 million in FY2026 (ending March 2026). The main causes are an increase in depreciation expenses (up ¥871 million year on year) accompanying expanded capital expenditure and higher personnel costs, with wage increase pressure from an improving employment environment also having an impact as an external factor. Profit attributable to owners of parent fell sharply to ¥3,619 million (down 28.8% year on year). The forecast for FY2027 (ending March 2027) is for revenue of ¥129,700 million (up 2.3% year on year) and operating profit of ¥6,200 million (down 8.5% year on year), with the trend of increasing revenue but decreasing profit expected to continue.
Growth Strategy
Realizing sustainable mobility based on Vision 2030 and prioritizing investment in the real estate domain
The company continues to conduct trials of AI on-demand buses and autonomous buses in the Shonan area, aiming to maintain sustainable public transportation even amid labor shortages. It is also addressing new demand, including the launch of a new route connecting to the roadside station "Michi no Eki Shonan Chigasaki".
Suishima Shoji Co., Ltd., Rinkan Shoji Ltd., and MS Kikaku Co., Ltd. were made consolidated subsidiaries in January 2026, strengthening the detached-house sales structure centered on the Shonan area. The company is promoting the advanced utilization of the Group's landholdings and the expansion of the Real Estate Sales Business.
The company is proceeding with the closure of the Hiratsuka Annex in the Hotel Business and the closure of unprofitable outlets in the Food & Beverage Business, aiming to reduce costs and improve profitability. The effects of this improvement are becoming evident, with operating profit in Other Businesses up 16.6% year on year.
The Medium-Term Management Plan sets a target of achieving an interest-bearing debt/EBITDA ratio in the 6x range by FY2026 (ending March 2027). However, the balance of interest-bearing debt at the end of FY2026 (ending March 2026) stood at ¥72,267 million, an increase of ¥10,391 million from the end of the previous fiscal year, making the maintenance of financial discipline amid the expansion of investment a challenge.
Last updated: July 19, 2026