HIROSHIMA GAS CO.,LTD.
9535・Prime Market・Electric Power & Gas
Business
Hiroshima Gas Co., Ltd., founded in 1909, is a city gas operator based in Hiroshima Prefecture, primarily serving the cities of Hiroshima, Hatsukaichi, Higashihiroshima, Kure, Onomichi, Mihara, and Fukuyama. The group comprises 25 subsidiaries and 14 affiliated companies, with core operations in the manufacturing, supply, and sale of city gas, alongside LP Gas Sales, construction work, and the Elderly Services Business. The number of customer accounts reached 419,257 (as of the end of FY2026, ending March 2026), marking 10 consecutive years of growth. The company has also begun sales of its electricity retail service "Konomachi Denki" and has started developing renewable energy power sources, advancing its transformation into a comprehensive energy service provider. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
City gas manufactured at the Hatsukaichi Plant LNG receiving terminal is supplied through a 4,419km network of main and branch pipelines, generating stable recurring revenue through monthly meter reading and fee collection. The Gas Business accounts for 75.2% of net sales, complemented by the LPG Business (19.8%) and Other Business (5.0%). Raw material procurement costs are hedged using derivatives such as swaps, and investment gains from equity-method affiliates also contribute to earnings, forming a multi-layered revenue structure.
Company Strengths
Through proactive sales activities, the number of customer accounts reached 419,257 at the end of FY2026 (ending March 2026) (up 923 from the previous period), increasing for the 10th consecutive year. The penetration rate within the supply area reached 61.0% (63.8% in the Hiroshima area, 64.1% in the Kure area), and the depth of the regional customer base underpins stable earnings.
The company owns the Hatsukaichi Plant LNG receiving terminal and operates its own LNG carrier (HG LNG SHIPPING CORPORATION), building a flexible procurement structure that combines diversification of long-term suppliers, spot transactions, and use of third-party vessels. Together with a 4,419km network of trunk and branch pipelines (up 11km from the previous period), this forms an infrastructure base that is difficult for competitors to replicate in a short period of time.
At the end of FY2026 (ending March 2026), the equity ratio stood at 54.2% (up 1.5 points from the previous period), and interest-bearing debt was ¥40,347 million (down 10.0% from the previous period). With an interest coverage ratio of 69.0x, financial safety is high, and liquidity is also secured through a ¥10,000 million commitment line agreement with three partner financial institutions.
ENVALITH's Perspective
Performance Trend
Net sales peaked at ¥95,219 million in FY2023 (ending March 2023) and declined for three consecutive periods, reaching ¥88,396 million in FY2026 (ending March 2026), down 3.5% year on year. The main causes were a decrease in gas sales volume (City Gas down 0.5% year on year to 457 million m³) and a decline in unit selling prices. On the profit side, however, external factors—a drop in crude oil prices (JCC: $82 to $71/bbl) leading to a 5.1% decrease in cost of sales, reductions in various expenses (supply, selling, general and administrative expenses down 0.8%), and a doubling of equity in earnings of affiliates (from ¥260 million to ¥512 million)—combined to produce operating income of ¥1,584 million (up 26.5% year on year) and net income attributable to owners of parent of ¥2,105 million (up 24.7% year on year), marking an increase in profit for the first time in two periods. Operating cash flow also improved substantially, from ¥5,867 million to ¥11,667 million.
Growth Strategy
Pursuing the 2030 Vision along three axes: deepening the City Gas and LPG businesses, expanding electric power retail, and addressing decarbonization
Policy of continuously increasing customer households through active sales activities. Customer households reached 419,257 at the end of FY2026 (ending March 2026) (up 923 households year on year), steadily expanding. City Gas (Wholesale Supply, etc.) increased significantly, up 20.4% year on year to 83 million m³, contributed to by an increase in sales volume to existing customers. For the next fiscal year, City Gas sales volume is planned to increase 1.3% to 463 million m³.
Electric power sales volume achieved 41 million kWh in FY2026 (ending March 2026), up 10.0% year on year. The plan for the next fiscal year, FY2027 (ending March 2027), targets a doubling to 78 million kWh, aiming to strengthen comprehensive energy proposal capabilities through synergy with the Gas Business. If achieved, this is expected to contribute significantly to revenue diversification.
Continuing capital investment aimed at expanding the spread of natural gas and improving supply stability through trunk pipeline network development, as well as expanding the introduction of renewable energy. Consolidated capital investment for FY2026 (ending March 2026) actually totaled ¥9,313 million. For the next fiscal year, ¥10,200 million (up 9.5% year on year) is planned, advancing infrastructure development toward achieving carbon neutrality by 2050.
Last updated: July 19, 2026