Meiji Shipping Group Co., Ltd.
9115・Standard Market・Marine Transportation
Business
Meiko Group Co., Ltd. is a long-established ocean-going shipping company founded in 1911, operating ship-owning companies both domestically and internationally that hold tramp vessels such as tankers, car carriers, and bulk carriers. Its core business is the Vessel Chartering Business, with charter hire income as its main revenue source. The group comprises 16 consolidated subsidiaries and 15 affiliated companies, and in addition to the Ocean-going Shipping Business (approximately 82% of sales composition), it operates the Hotel-related Business (approximately 17% of sales), which runs hotels and golf courses at various locations in Japan, and the Real Estate Leasing Business (approximately 1% of sales), which leases tenant space in owned buildings. Major customers include large energy and shipping companies such as SEARIVER MARITIME LLC (15.2% of sales), Nippon Yusen Kabushiki Kaisha (12.1% of sales), and METHANE SERVICES LIMITED (7.6% of sales).
Business Model
In the Ocean-going Shipping Business, domestic and overseas ship-owning subsidiaries own vessels and earn charter income mainly through medium- to long-term charter contracts with major energy companies and shipping companies. While limiting direct exposure to spot market conditions, the company maintains its earnings base through fleet renewal, selling older vessels and introducing newly built ships. The Hotel and Real Estate businesses are designed to function as a buffer against fluctuations in shipping market conditions, contributing to the stabilization of the group's overall performance.
Company Strengths
Revenue in the Ocean-going Shipping Business is composed primarily of medium- to long-term charter contracts, giving it resilience against sharp fluctuations in spot market conditions. In FY2026 (ending March 2026), the company secured net sales of ¥50,489 million, with continuing business relationships with major customers such as SEARIVER MARITIME LLC and Nippon Yusen Kabushiki Kaisha supporting the stability of earnings.
In FY2026 (ending March 2026), the company sold a total of four vessels—two tankers, one bulk carrier, and one wood chip carrier—recording a gain on sale of vessels of ¥10,197 million as extraordinary income. The company has a track record of combining the disposal of aging vessels with the introduction of newbuildings as part of its fleet renewal strategy, achieving both the maintenance of asset efficiency and the generation of funds.
The company operates three segments—Ocean-going Shipping Business (segment assets of ¥246,086 million), Hotel-related Business (segment assets of ¥28,220 million), and Real Estate Leasing Business (segment assets of ¥18,514 million)—forming a diversified structure in which risks from fluctuations in shipping market conditions are hedged by other businesses. The Real Estate Leasing Business has stably recorded net sales of ¥652 million and profit of ¥197 million, supported by stable occupancy rates.
ENVALITH's Perspective
Performance Trend
Revenue achieved four consecutive years of growth, rising from ¥45,815 million in FY2022 to ¥58,062 million in FY2023, ¥65,018 million in FY2024, and ¥67,544 million in FY2025, but turned to its first decline in FY2026 at ¥61,271 million (down 9.3% year on year). The main causes were reduced utilization of vessels sold in the Ocean-going Shipping Business and the deconsolidation of SOLEIL TRANSPORT S.A. Operating profit peaked at ¥11,399 million in FY2024, then deteriorated rapidly to ¥11,014 million in FY2025 and ¥3,707 million in FY2026, with the operating margin falling from 16.3% to 6.1%. External factors—continued OPEC Plus production cuts, demand suppression from the slowdown in the Chinese economy, oversupply in container shipping, and higher vessel costs associated with an increase in the number of vessels undergoing dry-docking—pressured profitability. Net income attributable to owners of the parent rose to ¥4,314 million (up 53.4% year on year) due to the recognition of gains on vessel sales (¥10,197 million), but the underlying earning power of the core business has declined significantly.
Growth Strategy
Recovery of profitability in Ocean-going Shipping Business through fleet upgrades and new vessel acquisitions, along with facility renewal in the hotel business
In anticipation of increased utilization of two vessels scheduled for acquisition in FY2027 (ending March 2027), the company targets Ocean-going Shipping Business net sales of ¥49,800 million (down 1.4% year on year) and Ocean-going Shipping Business profit of ¥6,180 million (up 63.1% year on year). Reduced dry-docking expenses and lower vessel costs from ship sales are also expected to contribute to margin improvement.
On the premise of securing a safe operation framework, the company will continue to maintain and enhance its earnings base centered on medium- to long-term charter contracts. It aims to secure stable vessel chartering income by advancing fleet development and enhancement while responding to changes in the global economic environment.
The company is promoting the introduction of new facilities and phased renewal of existing facilities aimed at creating new added value at each hotel. Net sales for FY2027 (ending March 2027) are projected at ¥11,100 million (up 9.6% year on year). Although a loss of ¥100 million is expected due to continued cost increases, the company aims to improve profitability over the medium to long term.
Renovation aimed at improving future profitability is planned for real estate acquired during the current fiscal year. Occupancy rates are expected to remain at low levels for the time being, and due to the recording of depreciation and other expenses, a Real Estate Leasing Business loss of ¥80 million is expected for FY2027 (ending March 2027); the company aims to improve profitability once renovations are completed.
Last updated: July 19, 2026