KEIYO GAS CO., LTD.
9539・Standard Market・Electric Power & Gas
Business
Keiyo Gas Co., Ltd. is a long-established city gas company, founded in 1927 and listed on the Tokyo Stock Exchange in 1962. Its main supply areas are Ichikawa City, Matsudo City, Kamagaya City, Urayasu City, Funabashi City, and Kashiwa City, with its consolidated subsidiary Keiwa Gas covering Nagareyama City. The number of city gas customers (installed gas meters) stood at 1,074,418 (as of the end of 2025). Centered on its Energy segment (City Gas Sales and Electricity Retail), the company operates across three business domains: Life Service (Gas Appliance Sales and Home Renovation Service) and Real Estate (development of the former Ichikawa plant site). The group operates its businesses through 8 subsidiaries and 5 affiliated companies, and has also begun engaging in renewable energy-related businesses in the United States.
Business Model
The core of earnings is an infrastructure-based business that sells city gas directly through a pipeline network spanning a total length of 7,244km. Of total revenue of ¥117,665 million, the Energy segment accounts for ¥109,085 million (approximately 93%). The gas sales unit price incorporates a raw material cost adjustment mechanism that passes through raw material costs, and the company aims to maximize revenue from its existing customer base by combining Electricity Retail, Gas Appliance Sales, and Real Estate Leasing.
Company Strengths
As of the end of 2025, the number of city gas customer accounts stood at 1,074,418, up 1.2% year on year. Since the start of gas supply in 1928, the company has held a pipeline network (with a total main and branch pipe length of 7,244km) rooted in major cities in northwestern Chiba Prefecture, forming a regionally monopolistic supply base. The number of customer accounts continues to increase, supporting stable sales volume.
Fluctuations in the price of LNG and other gas raw materials are reflected in gas sales unit prices through the raw material cost adjustment system. In FY2025, amid a decline in gas raw material prices, the sliding time lag acted as a factor boosting profit, and Energy segment profit increased 70.5% year on year to ¥5,842 million. This cost recovery function supports the stability of earnings over the medium to long term.
Through the Leaf City Ichikawa development project, which utilizes the site of the former Ichikawa plant, Real Estate segment sales expanded 21.8% year on year to ¥2,172 million. The segment holds assets of ¥20,544 million, and with the completion and occupancy progress of rental housing, it represents a growth asset expected to generate an accumulation of future rental income.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥118,757 million in FY2022, adjusted down to ¥115,609 million by FY2024, then recovered to ¥117,665 million in FY2025. The full-year forecast for FY2026 (ending March 2026) is ¥120,000 million (+2.0% YoY), indicating expected revenue growth. On the profit side, operating profit plunged to ¥39 million in FY2022 due to soaring raw material costs, before recovering sharply to ¥3,839 million in FY2025. In Q1 FY2026, cost of sales decreased by -3.9% due to the pass-through time-lag effect from the external factor of falling gas raw material prices, resulting in strong operating profit of ¥3,679 million (+46.1% YoY). However, the full-year forecast points to a profit decline, with operating profit projected at ¥2,900 million (-24.5% YoY), reflecting a conservative revision that accounts for uncertainty over future raw material prices. Depreciation expense remained stable at ¥2,542 million, at the same level as the same period of the previous year.
Growth Strategy
Building on stable Energy supply, the company is pursuing growth across three areas: Real Estate development, Electricity Retail, and decarbonization investment
Real Estate leasing income is expanding as rental housing on the former Ichikawa plant site is completed and occupancy progresses. In Q1 FY2026, the Real Estate segment posted net sales of ¥554 million and profit of ¥259 million, contributing steadily. Development investment continues to be promoted as a priority area under the Medium-Term Management Plan 2025-2027.
Leveraging the City Gas customer base for cross-selling, the company is strengthening Home Renovation Service, lifestyle support services, and Gas Appliance Sales. In Q1 FY2026, the Life Service segment posted net sales of ¥2,652 million (up 45.2% year on year) and segment profit of ¥483 million (up 112.8% year on year), a substantial expansion.
The company is expanding its customer count through cross-selling of Electricity Retail leveraging its Gas customer base, positioning this as one of the growth drivers of the Energy segment. Managing both this growth and wholesale electricity market risk remains a challenge.
To respond to changes in the business environment driven by progress in decarbonization, the company is promoting investment in low-carbon and decarbonized energy services. The direction is clearly stated in the Medium-Term Management Plan 2025-2027, though specific investment amounts and measures are not disclosed in the earnings report.
Last updated: July 17, 2026