Co. Ltd. Comparison

Three major signaling companies in Japan(Nippon Signal, Kyosan and Daido Signal)


This section compares the sales and business activities of the three major Japanese signaling companies. The main businesses of these three companies are railroad signaling systems and traffic signal lights for pedestrians and vehicles.

  1. NIPPON SIGNAL CO., LTD.(日本信号) 
    <Tokyo, Prime Market (Code Number: 6741)>
  2. KYOSAN Electric Manufacturing Co.,Ltd.(京三製作所) 
    <Tokyo, Prime Market (Code Number: 6742)>
  3. DAIDO Signal Co., Ltd.(大同信号) 
    <Tokyo, Standard Market (Code Number: 6743)>

The sales and profit scale of the three companies are as follows. Unit : [millions of yen](Fiscal year ending March 2022)

  1. Nippon Signal
    85047(Net Sales) 4503(Net income)
  2. Kyosan Electric Manufacturing  
    72916(Net Sales) 11859(Net income)
  3. Daido Signal
    22171(Net Sales) 716(Net income)

Revenue size of railroad signal manufacturers

We will look at the sales size and operating profit margin of the three companies. (All three companies' figures are for the fiscal year ending March 31, 2022.)

Net Sales[millions of yen]Operating profit ratioOverseas sales ratio
Nippon Signal850476.3%-%(None stated)
Kyosan Electric Manufacturing729164.1%28.4%
Daido Signal221716.2%-%(None stated)

Operating profit margins for all three companies are somewhat lower than in other industries.


The main businesses of Nippon Signal, Kyosan, and Daido Signal are railroad signaling systems and traffic signal lights for pedestrians and vehicles.

Although we most often see traffic signal lights for pedestrians and vehicles, the main business of these three companies seems to be railroad signaling systems.

The financial statements show the railroad signaling system and traffic light business as a single segment, so it is difficult to say which has more sales, but it seems that the railroad signaling system business often receives larger orders and thus has higher sales per order.

Railroad Signaling Systems

They receive bulk orders for railroad signaling systems, and their main products are subdivided as follows

  • Impedance bond
    Transformer that separates the current for the train to run (return line current) and the current for detecting the presence or absence of a vehicle (train) (track circuit current)
  • train protection switch
    Switches to operate devices to stop trains in an emergency
  • ATS
    A system that prevents collisions and derailments by automatically operating the train's brakes when the driver misinterprets a stop signal and the train departs or proceeds, or when the train speed exceeds a predetermined speed limit.
  • Stepping cut security device
    Level crossing alarms, level crossing shunters, and controllers that notify these devices of an approaching train, as well as level crossing obstruction alarms that detect when a car or other vehicle is stuck at a level crossing and warn an approaching train of the danger.
  • ATC
    A system that automatically determines the allowable train speed based on information such as the position of the train in operation and track conditions, and transmits the information from the ground equipment to the onboard equipment to control the train speed below the allowable speed at all times.
  • Operation Management System
    A system that uses computers to ensure that train operations run according to a schedule. It automatically controls the operation of all trains within an area.

Road Traffic Signal Systems

  • Traffic signal lights for vehicles
  • Pedestrian Traffic Signal Lights
  • Traffic Control Systems
  • Information Display Devices
    This device is used to provide information to drivers by displaying arbitrary graphics, traffic congestion information, and other text information on multi-color LEDs under commands from a central device.

NIPPON SIGNAL <Tokyo, Prime Market (Code Number: 6741)>

Let's take a look at Nippon Signal's sales and net profit margin.

Net Sales(Consolidated)83770998571116759275585047
Net income20515306658449164503

Both sales and net income have been on a downward trend since 2020.

This can be attributed to the fact that railroad companies, Nippon Signal's main customers, have been cautious about new investments and capital expenditures as their business performance has been sluggish due to the Corona disaster.

Next, let us look at sales ratios and operating profit ratios by segment.

SegmentSales ratioOrdinary Income Ratio
Transportation Infrastructure57%10.7%
ICT solutions43%9.1%

In addition to the transportation infrastructure sector, which focuses on railroad signaling equipment, the company is also engaged in a wide range of other businesses, including parking lot-related equipment and security systems centered on access control for people and vehicles for office use.


Transportation Infrastructure : It mainly refers to the manufacture, sales, and maintenance services of railroad signal security equipment and road traffic safety systems.

ICT solutions : Mainly refers to the manufacture, sales, and maintenance services of AFC equipment and parking lot equipment.

(AFC equipment: automatic turnstiles, platform doors, station management systems, etc.)

Major Shareholders

West Japan Railway Company holds 3.0% of all shares and the Norwegian government holds 2.1%.

KYOSAN Electric Manufacturing  <Tokyo, Prime Market (Code Number: 6742)>

Let's take a look at Kyosan Manufacturing's sales and net profit margin.

Net Sales(Consolidated)7390569305728106221872916
Net income369223051974-792111859

Net income for the fiscal year ended March 31, 2021 was -7921 [million yen], a significant decrease.

The financial report states that this was due to a fire at the head office plant on January 14, 2021, which caused shipments to be postponed, resulting in a significant decrease in sales, and an extraordinary loss of 11,776 million yen due to the loss of inventory due to the fire and related expenses.

Net income for the fiscal year ending March 31, 2022 is significantly higher at 11,859 [million yen].

This is due to the fact that operating income and ordinary income nearly doubled from the previous year, as well as an extraordinary gain (+13758[million yen]) resulting from the receipt of insurance proceeds related to the fire. (Financial Results)

Next, let's look at the sales ratio and operating income ratio by segment.

SegmentSales ratioOrdinary Income Ratio
Signaling Systems77%9.6%
Power electronics23%9.5%


Signaling Systems : Production and sales of railroad signaling systems, road traffic control systems, etc.

Power electronics : Production and sales of semiconductor-applied equipment, etc. Specifically, it refers to power conversion systems and includes high-frequency power supplies, which boast a large share of the market for plasma generation.

Kyosan has strengths in power conversion systems as well as railroad signaling systems.

Major Shareholders

Keio Corporation holds 5.0% of all shares, and Tokai Railway holds 3.1%.

Daido Signal <Tokyo, Standard Market (Code Number: 6743)>

Let's take a look at Daido Signal's sales and net profit margin.

Net Sales(Consolidated)2127724809249422294322171
Net income-654178615651084716

As with Nippon Signal, sales and profits have declined since 2020 as railroad companies, the company's main customers, have been cautious about new investments and capital expenditures due to the Corona disaster, which has caused their business performance to slump.

SegmentSales ratioOrdinary Income Ratio
Railroad Signaling Business92%12.5%
Industrial equipment-related business6%0.3%
Real estate related business2%44.6%

Among the three major signaling companies, railroad signaling systems have the highest sales at 92%.

The real estate-related business has an outstandingly high profit margin of 44.6%, and this high profit margin is shared by all JR companies!


Railroad Signaling Business : Manufacturing, sales, and installation of railroad signal systems.

Industrial equipment-related business: Manufacturing and sales of information and telecommunications equipment. Specifically

  • Non-contact heat-resistant ID systems
  • Control equipment for ladder trucks and high-altitude water trucks
  • Internal and external illuminated signs for highway sign numbering

Real estate related business : Leasing of real estate.

Major Shareholders

Nihon Densetsu Kogyo <Tokyo, Prime Market (Code Number: 1950)>holds 11.6% of all shares.

Nihon Densetsu Kogyo

Has the largest market share in railroad electrical construction. East Japan Railway Company owns 18.8% of the company's stock and is an equity method affiliate of the company.

Annual income and average age of employees

Net SalesThe number of employees(consolidated)The number of employees(Non-consolidated)Average income
Nippon Signal85047[millions of yen]3043 people1270 people7.37 million yen
Kyosan72916[millions of yen]2120 people1404 people7.42 million yen
Daido Signal22171[millions of yen]913 people539 people6.30 million yen

Sales are generally proportional to the number of employees.

Generally, larger companies with more sales tend to have higher annual revenues, and this is also true for these three companies.


The main customers of Japan's major signal manufacturers are railroad companies, and they will be affected for better or worse by trends in the railroad industry.

Through the fiscal year ending March 31, 2022, sales and profits have continued to decline except for Kyosan, which posted an extraordinary gain on the receipt of insurance proceeds related to a fire, but we will be watching to see how performance will recover with the relaxation of corona regulations in the future.


Japan Company Handbook Collection 1, 2023 (Toyo keizai Inc.)

Financial statements of each company

Nippon Signal Kyosan Daido Signal

-Co. Ltd. Comparison