ENVALITH
兵機海運株式会社 logo

HYOKI KAIUN KAISHA,LTD.

9362・Standard Market・Warehousing & Harbor Transportation Services

Official website
兵機海運株式会社 logo
HYOKI KAIUN KAISHA,LTD.9362

Business

Hyoki Kaiun Co., Ltd., founded in 1942 and listed on the Standard Market of the Tokyo Stock Exchange, is an integrated logistics company. It operates four businesses: Coastal Shipping Service (domestic marine transportation of steel, agricultural and marine products, etc.), Ocean-going Shipping Service (international transportation of construction machinery, etc. to Central Asia and China), harbor transportation (handling and customs clearance of import/export cargo at the ports of Kobe, Osaka, and Himeji), and warehousing (storage and cargo handling at each port-based facility). Its major customers are the Yamato Kogyo Group (27.5% of net sales) and the JFE Logistics Group (8.9% of net sales), with steel-related cargo accounting for more than half of net sales. In January 2025, the company entered into a capital and business alliance with Yamato Kogyo Co., Ltd. and Yamato Steel Co., Ltd., aiming to stabilize logistics functions and strengthen marine transportation.

Business Model

In the Marine Transportation Business, the company earns ocean freight revenue from coastal shipping using its own vessels and chartered ships, as well as ocean-going shipping through consigned vessels. In the Harbor Transportation & Warehousing Business, it conducts customs clearance, cargo handling, and storage of import/export cargo at its Kobe, Osaka, and Himeji port facilities, earning handling fee and warehousing fee revenue. Through joint sales activities and joint proposals coordinated across business segments, the company provides integrated comprehensive logistics services spanning coastal shipping through customs clearance and warehousing, structured to secure customer retention and diversify revenue sources.

Company Strengths

The company owns warehousing and cargo-handling bases at three major ports—Kobe, Osaka, and Himeji—and obtained AEO customs broker (Authorized Customs Broker) certification from the Director-General of Kobe Customs in 2020. The integrated system that can provide coastal transportation, customs clearance, and warehousing as a package is a proprietary asset that competitors find difficult to replicate in a short period, as demonstrated by the actual results of the Harbor Transportation Business, whose revenue in FY2026 (ending March 2026) increased 10% year on year to ¥4,085 million.

In January 2025, the company entered into a capital and business alliance with Daiwa Steel Industry Co., Ltd. and Yamato Steel Co., Ltd. This group is the company's largest customer, accounting for 27.5% (¥3,681 million) of revenue in FY2026 (ending March 2026), and the stated purpose of the alliance includes stabilizing logistics functions, strengthening marine transportation, and securing seafarers. This serves as a foundation for securing stable cargo volumes and expanding business scale over the long term.

The Marine Transportation, Harbor Transportation, and Warehousing divisions collaborate on joint sales activities and joint proposals, and the company has a track record of securing multiple large-scale, specialized orders, including plant cargo, railway vehicles, storage batteries, and ODA infrastructure cargo. In FY2026 (ending March 2026), the Harbor Transportation Business turned profitable, moving from an operating loss of ¥18 million in the previous fiscal year to operating income of ¥130 million, and the Warehousing Business likewise turned profitable, moving from an operating loss of ¥8 million in the previous fiscal year to operating income of ¥57 million.

ENVALITH's Perspective

In FY2026 (ending March 2026), the Marine Transportation Business segment recorded profit of ¥248 million (down from ¥575 million in the prior period), a 57% decrease. The coastal shipping business saw operating profit fall to ¥165 million (from ¥339 million) due to a combination of reduced operational efficiency stemming from stagnant steel demand, chartered vessel contract cancellations, and vessel suspensions caused by crew shortages. The ocean-going shipping business saw operating profit plunge to ¥82 million (from ¥234 million), driven by a sharp decline in construction machinery transport to Central Asia and weakness in shipments to China, South Korea, and Taiwan. Externally, the timing of domestic steel demand recovery and the economic trends in China will be key drivers of performance.

Cash flow from operating activities decreased 40.6% to ¥521 million (from ¥877 million in the prior period). The interest coverage ratio fell sharply to 10.8x (from 23.0x in the prior period and 27.8x two periods prior), highlighting a decline in cash-generating capacity relative to interest-bearing debt (short-term borrowings of ¥1,856 million plus long-term borrowings of ¥2,966 million). Against long-term debt repayments of ¥1,156 million, the company raised ¥900 million in new borrowings, and the trend in reliance on borrowing warrants continued monitoring.

The earnings forecast for FY2027 (ending March 2027) calls for net sales of ¥14,500 million (up 8.3% year on year), operating profit of ¥510 million (up 16.8%), and net income attributable to owners of parent of ¥400 million (up 0.7%). Revenue growth is expected to be driven by the commencement of operations of the company's own 499-ton vessel at the end of June 2026 and continued expansion of the Harbor Transportation Business. However, numerous external factors—including disruption from US tariff policy, fuel procurement risks stemming from the situation in the Middle East, and uncertainty over the outlook for China's economy—leave uncertainty regarding achievement of the forecast. The dividend will be maintained at ¥110 (forecast payout ratio of 33.0%).

Growth Strategy

Advancing diversification of the earnings base through expansion of self-owned vessels, growth in the harbor transportation business, and the exercise of comprehensive logistics capabilities

A self-owned 499-ton class vessel currently under construction is scheduled to commence operation at the end of June 2026. Construction in progress increased to ¥226 million (¥27 million in the previous fiscal year), reflecting progress in investment. The introduction of the new vessel aims to expand the business area and improve profitability in the coastal shipping business.

Multiple large-scale spot projects, including power plant, storage battery, and ODA infrastructure cargo, were secured, and the Harbor Transportation Business returned to profitability in FY2026 (ending March 2026) (operating profit of ¥130 million). In the next fiscal year, the company plans to maintain focus on AI-related data centers and storage battery-related project cargo, and to sustain the momentum of an over 10% year-on-year increase in the number of export customs clearance cases.

The company continues to strengthen direct employment of seafarers, an initiative implemented since fiscal year 2025, combining it with securing seafarers through affiliated companies to reduce the risk of vessel suspension due to seafarer shortages. In FY2026 (ending March 2026), temporary vessel suspensions occurred due to seafarer shortages, making the establishment of a stable operation system an urgent priority.

The Kobe area warehouse returned to profitability in FY2026 (ending March 2026), recovering from an operating loss in the previous fiscal year. The newly established Rokko Island ISO tank container terminal still faces the challenge of improving profitability through strengthened cargo collection sales activities. The company aims to improve profitability by strengthening the collection of special cargo, such as containerized storage batteries, in cooperation with the Harbor Transportation segment.

In response to rising personnel costs (including base pay increases) in the Harbor Transportation Business and increasing complexity in customs clearance operations, the company is working on negotiations to revise handling fees and customs clearance fees. It is also promoting appropriate freight payments to truck transport operators and price pass-through to customers in parallel, aiming to improve profit margins.

Last updated: July 19, 2026