{"id":436,"date":"2023-02-19T12:53:09","date_gmt":"2023-02-19T03:53:09","guid":{"rendered":"https:\/\/kimamev.com\/?p=436"},"modified":"2023-03-11T15:15:39","modified_gmt":"2023-03-11T06:15:39","slug":"signal","status":"publish","type":"post","link":"https:\/\/kimamev.com\/en\/en_compare\/signal\/","title":{"rendered":"Three major signaling companies in Japan(Nippon Signal, Kyosan and Daido Signal)"},"content":{"rendered":"\n<p>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.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<ol class=\"is-style-st-border has-st-border has-st-solid-border has-st-thick-border-width has-white-background-color has-background has-st-regular-font-size\">\n<li>NIPPON SIGNAL CO., LTD.(\u65e5\u672c\u4fe1\u53f7)\u3000<br>&lt;Tokyo, Prime Market (Code Number: 6741)&gt;<\/li>\n\n\n\n<li>KYOSAN Electric Manufacturing Co.,Ltd.(\u4eac\u4e09\u88fd\u4f5c\u6240)\u3000<br>&lt;Tokyo, Prime Market (Code Number: 6742)&gt;<\/li>\n\n\n\n<li>DAIDO Signal Co., Ltd.(\u5927\u540c\u4fe1\u53f7)\u3000<br>&lt;Tokyo, Standard Market (Code Number: 6743)&gt;<\/li>\n<\/ol>\n\n\n\n<figure class=\"is-layout-flex wp-block-gallery-1 wp-block-gallery has-nested-images columns-default is-cropped\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"640\" height=\"427\" data-id=\"429\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25325871_s.jpg\" alt=\"\" class=\"wp-image-429\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25325871_s.jpg 640w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25325871_s-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"640\" height=\"375\" data-id=\"430\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25662444_s.jpg\" alt=\"\" class=\"wp-image-430\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25662444_s.jpg 640w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25662444_s-300x176.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>The sales and profit scale of the three companies are as follows. Unit : [millions of yen](Fiscal year ending March 2022)<\/p>\n\n\n\n<ol class=\"is-style-st-no-border has-st-border has-st-solid-border has-st-thick-border-width has-light-green-cyan-background-color has-background has-st-regular-font-size\">\n<li>Nippon Signal<br><strong><span class=\"st-mymarker-s\"><span class=\"st-mymarker-s-b\">85047<\/span><\/span><\/strong>(Net Sales)   <span class=\"st-mymarker-s-b\">4503<\/span>(Net income)<\/li>\n\n\n\n<li>Kyosan Electric Manufacturing\u3000\u3000<br><span class=\"st-mymarker-s-b\">72916<\/span>(Net Sales)\u3000<span class=\"st-mymarker-s-b\">11859<\/span>(Net income)<\/li>\n\n\n\n<li>Daido Signal<br><span class=\"st-mymarker-s-b\">22171<\/span>(Net Sales)\u3000<span class=\"st-mymarker-s-b\">716<\/span>(Net income)<\/li>\n<\/ol>\n\n\n\n<figure class=\"is-layout-flex wp-block-gallery-3 wp-block-gallery has-nested-images columns-default is-cropped\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"660\" height=\"548\" data-id=\"447\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-9.png\" alt=\"\" class=\"wp-image-447\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-9.png 660w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-9-300x249.png 300w\" sizes=\"(max-width: 660px) 100vw, 660px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"684\" height=\"572\" data-id=\"448\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-10.png\" alt=\"\" class=\"wp-image-448\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-10.png 684w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-10-300x251.png 300w\" sizes=\"(max-width: 684px) 100vw, 684px\" \/><\/figure>\n<\/figure>\n\n\n\n<p><br><\/p>\n\n\n\n<div id=\"toc_container\" class=\"no_bullets\"><p class=\"toc_title\">\u76ee\u6b21<\/p><ul class=\"toc_list\"><li><a href=\"#Revenue_size_of_railroad_signal_manufacturers\"><span class=\"toc_number toc_depth_1\">1<\/span> Revenue size of railroad signal manufacturers<\/a><\/li><li><a href=\"#Business\"><span class=\"toc_number toc_depth_1\">2<\/span> Business<\/a><\/li><li><a href=\"#NIPPON_SIGNAL_ltTokyo_Prime_Market_Code_Number_6741gt\"><span class=\"toc_number toc_depth_1\">3<\/span> NIPPON SIGNAL &lt;Tokyo, Prime Market (Code Number: 6741)&gt;<\/a><\/li><li><a href=\"#KYOSAN_Electric_Manufacturing_ltTokyo_Prime_Market_Code_Number_6742gt\"><span class=\"toc_number toc_depth_1\">4<\/span>  KYOSAN Electric Manufacturing \u3000&lt;Tokyo, Prime Market (Code Number: 6742)&gt;<\/a><\/li><li><a href=\"#Daido_SignalltTokyo_Standard_Market_Code_Number_6743gt\"><span class=\"toc_number toc_depth_1\">5<\/span> Daido Signal\u3000&lt;Tokyo, Standard Market (Code Number: 6743)&gt;<\/a><\/li><li><a href=\"#Annual_income_and_average_age_of_employees\"><span class=\"toc_number toc_depth_1\">6<\/span>  Annual income and average age of employees<\/a><\/li><li><a href=\"#Prospect\"><span class=\"toc_number toc_depth_1\">7<\/span> Prospect<\/a><\/li><\/ul><\/div>\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Revenue_size_of_railroad_signal_manufacturers\">Revenue size of railroad signal manufacturers<\/span><\/h2>\n\n\n\n<p class=\"has-white-background-color has-background\">We will look at the sales size and operating profit margin of the three companies. (All three companies&#8217; figures are for the fiscal year ending March 31, 2022.)<\/p>\n\n\n\n<div class=\"is-layout-flex wp-container-6 wp-block-columns\">\n<div class=\"is-layout-flow wp-block-column\" style=\"flex-basis:100%\">\n<figure class=\"wp-block-table is-style-st-table-line-2 has-huge-font-size\"><table class=\"has-very-light-gray-background-color has-background\"><tbody><tr><td><\/td><td>Net Sales[millions of yen]<\/td><td>Operating profit ratio<\/td><td>Overseas sales ratio<\/td><\/tr><tr><td>Nippon Signal<\/td><td>85047<\/td><td><span class=\"st-mymarker-s-b\">6.3%<\/span><\/td><td>-%(None stated)<\/td><\/tr><tr><td>Kyosan Electric Manufacturing<\/td><td>72916<\/td><td><span class=\"st-mymarker-s-b\">4.1%<\/span><\/td><td>28.4%<\/td><\/tr><tr><td>Daido Signal<\/td><td>22171<\/td><td><span class=\"st-mymarker-s-b\">6.2%<\/span><\/td><td>-%(None stated)<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n<\/div>\n\n\n\n<p>Operating profit margins for all three companies are somewhat lower than in other industries.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Business\">Business<\/span><\/h2>\n\n\n\n<p>The main businesses of Nippon Signal, Kyosan, and Daido Signal are railroad signaling systems and traffic signal lights for pedestrians and vehicles.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<div class=\"is-layout-constrained wp-block-group\"><div class=\"wp-block-group__inner-container\">\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s\">Railroad Signaling Systems<\/span><\/p>\n\n\n\n<p>They receive bulk orders for railroad signaling systems, and their main products are subdivided as follows<\/p>\n\n\n\n<ul class=\"has-st-border has-st-dashed-border has-st-thick-border-width is-style-st-square-checkbox has-st-regular-font-size\">\n<li>Impedance bond<br>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)<\/li>\n\n\n\n<li>train protection switch<br>Switches to operate devices to stop trains in an emergency<\/li>\n\n\n\n<li>ATS<br>A system that prevents collisions and derailments by automatically operating the train&#8217;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.<br><\/li>\n\n\n\n<li>Stepping cut security device<br>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.<\/li>\n\n\n\n<li>ATC<br>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.<\/li>\n\n\n\n<li>Operation Management System<br>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.<br><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s\">Road Traffic Signal Systems<\/span><\/p>\n\n\n\n<ul class=\"has-st-border has-st-dashed-border has-st-thick-border-width is-style-st-border\">\n<li>Traffic signal lights for vehicles<\/li>\n\n\n\n<li>Pedestrian Traffic Signal Lights<\/li>\n\n\n\n<li>Traffic Control Systems<\/li>\n\n\n\n<li>Information Display Devices<br>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.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-large-font-size\"><br><\/p>\n\n\n\n<figure class=\"is-layout-flex wp-block-gallery-8 wp-block-gallery has-nested-images columns-default is-cropped\">\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"678\" data-id=\"412\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m-1024x678.jpg\" alt=\"\" class=\"wp-image-412\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m-1024x678.jpg 1024w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m-300x199.jpg 300w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m-768x509.jpg 768w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m-1536x1018.jpg 1536w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25882669_m.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"640\" height=\"427\" data-id=\"413\"  src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25829052_s.jpg\" alt=\"\" class=\"wp-image-413\" srcset=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25829052_s.jpg 640w, https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/25829052_s-300x200.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n<\/figure>\n\n\n\n<p><br><\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"NIPPON_SIGNAL_ltTokyo_Prime_Market_Code_Number_6741gt\">NIPPON SIGNAL &lt;Tokyo, Prime Market (Code Number: 6741)&gt;<\/span><\/h2>\n\n\n\n<p>Let&#8217;s take a look at Nippon Signal&#8217;s sales and net profit margin.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-11.png\" alt=\"\" class=\"wp-image-449\" width=\"406\" height=\"327\"\/><\/figure><\/div>\n\n\n<figure class=\"wp-block-table is-style-st-table-line\"><table><tbody><tr><td><br><\/td><td><strong>2018.3<\/strong><\/td><td><strong>2019.3<\/strong><\/td><td><strong>2020.3<\/strong><\/td><td><strong>2021.3<\/strong><\/td><td><strong>2022.3<\/strong><\/td><\/tr><tr><td>Net Sales(Consolidated)<\/td><td>83770<\/td><td>99857<\/td><td>111675<\/td><td>92755<\/td><td>85047<\/td><\/tr><tr><td>Net income<\/td><td>2051<\/td><td>5306<\/td><td>6584<\/td><td>4916<\/td><td>4503<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Both sales and net income have been on a downward trend since 2020.<\/p>\n\n\n\n<p>This can be attributed to the fact that railroad companies, Nippon Signal&#8217;s main customers, have been cautious about new investments and capital expenditures as their business performance has been sluggish due to the Corona disaster.<\/p>\n\n\n\n<p>Next, let us look at sales ratios and operating profit ratios by segment.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td><strong><span class=\"st-mymarker-s-b\">Transportation Infrastructure<\/span><\/strong><\/td><td>57%<\/td><td>10.7%<\/td><\/tr><tr><td><span class=\"st-mymarker-s-b\">ICT solutions<\/span><\/td><td><span class=\"st-mymarker-s-b\">43%<\/span><\/td><td>9.1%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>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.<\/p>\n\n\n\n<div class=\"wp-block-st-blocks-midashi-box freebox has-title\" style=\"background-color:#fafafa;border-color:#919191;border-radius:0 5px 5px 5px\"><p class=\"p-free\" style=\"border-color:#919191;font-weight:bold\"><span class=\"p-entry-f\" style=\"color:#000;font-weight:bold;background-color:#919191;border-radius:0 0 5px 0\"><i class=\"st-fa st-svg-file-text-o st-css-no\" aria-hidden=\"\"><\/i>Business<\/span><\/p><div class=\"free-inbox\">\n<p><strong><span class=\"st-mymarker-s-b\">Transportation Infrastructure<\/span><\/strong> : It mainly refers to the manufacture, sales, and maintenance services of railroad signal security equipment and road traffic safety systems.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">ICT solutions<\/span> : Mainly refers to the manufacture, sales, and maintenance services of AFC equipment and parking lot equipment.<\/p>\n\n\n\n<p>(AFC equipment: automatic turnstiles, platform doors, station management systems, etc.)<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s-b\"><strong>Major Shareholders<\/strong><\/span><\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">West Japan Railway Company<\/span> holds 3.0% of all shares and the <span class=\"st-mymarker-s-b\">Norwegian<\/span> government holds 2.1%.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"KYOSAN_Electric_Manufacturing_ltTokyo_Prime_Market_Code_Number_6742gt\"> KYOSAN Electric Manufacturing \u3000&lt;Tokyo, Prime Market (Code Number: 6742)&gt;<\/span><\/h2>\n\n\n\n<p> Let&#8217;s take a look at Kyosan Manufacturing&#8217;s sales and net profit margin.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-12.png\" alt=\"\" class=\"wp-image-450\" width=\"447\" height=\"358\"\/><\/figure><\/div>\n\n\n<figure class=\"wp-block-table is-style-st-table-line\"><table><tbody><tr><td><br><\/td><td><strong>2018.3<\/strong><\/td><td><strong>2019.3<\/strong><\/td><td><strong>2020.3<\/strong><\/td><td><strong>2021.3<\/strong><\/td><td><strong>2022.3<\/strong><\/td><\/tr><tr><td>Net Sales(Consolidated)<\/td><td>73905<\/td><td>69305<\/td><td>72810<\/td><td>62218<\/td><td>72916<\/td><\/tr><tr><td>Net income<\/td><td>3692<\/td><td>2305<\/td><td>1974<\/td><td><span class=\"st-mymarker-s\">-7921<\/span><\/td><td><span class=\"st-mymarker-s-b\">11859<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Net income for the fiscal year ended March 31, 2021 was -7921 [million yen], a significant decrease.<\/p>\n\n\n\n<p><a href=\"https:\/\/contents.xj-storage.jp\/xcontents\/67420\/96c9e033\/43b4\/454d\/9c31\/9d9018f7a0d1\/140120220512545170.pdf\">The financial repor<\/a>t 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 <span class=\"st-mymarker-s-b\">extraordinary loss of 11,776 million yen<\/span> due to the loss of inventory due to the fire and related expenses.<\/p>\n\n\n\n<p>Net income for the fiscal year ending March 31, 2022 is significantly higher at 11,859 [million yen].<\/p>\n\n\n\n<p>This is due to the fact that operating income and ordinary income nearly doubled from the previous year, as well as an <span class=\"st-mymarker-s-b\">extraordinary gain (+13758[million yen])<\/span> resulting from the receipt of insurance proceeds related to the fire. (<a href=\"https:\/\/contents.xj-storage.jp\/xcontents\/67420\/4edf7bee\/afa4\/461e\/bb21\/426d36ea64da\/140120210512414349.pdf\">Financial Results<\/a>)<\/p>\n\n\n\n<p>Next, let&#8217;s look at the sales ratio and operating income ratio by segment.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td><span class=\"st-mymarker-s-b\">Signaling Systems<\/span><\/td><td>77%<\/td><td><span class=\"st-mymarker-s-b\">9.6%<\/span><\/td><\/tr><tr><td><span class=\"st-mymarker-s-b\">Power electronics<\/span><\/td><td>23%<\/td><td><span class=\"st-mymarker-s\">9.5%<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-st-blocks-midashi-box freebox has-title\" style=\"background-color:#fafafa;border-color:#919191;border-radius:0 5px 5px 5px\"><p class=\"p-free\" style=\"border-color:#919191;font-weight:bold\"><span class=\"p-entry-f\" style=\"color:#000;font-weight:bold;background-color:#919191;border-radius:0 0 5px 0\"><i class=\"st-fa st-svg-file-text-o st-css-no\" aria-hidden=\"\"><\/i>Business<\/span><\/p><div class=\"free-inbox\">\n<p><span class=\"st-mymarker-s-b\">Signaling Systems<\/span> : Production and sales of railroad signaling systems, road traffic control systems, etc.<\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Power electronics<\/span> : 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.<\/p>\n<\/div><\/div>\n\n\n\n<p>Kyosan has strengths in power conversion systems as well as railroad signaling systems.<\/p>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s-b\">Major Shareholders<\/span><\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Keio Corporation<\/span> holds 5.0% of all shares, and <span class=\"st-mymarker-s-b\">Tokai Railway<\/span> holds 3.1%.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Daido_SignalltTokyo_Standard_Market_Code_Number_6743gt\">Daido Signal\u3000&lt;Tokyo, Standard Market (Code Number: 6743)&gt;<\/span><\/h2>\n\n\n\n<p>Let&#8217;s take a look at Daido Signal&#8217;s sales and net profit margin.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/kimamev.com\/wp-content\/uploads\/2023\/02\/image-13.png\" alt=\"\" class=\"wp-image-451\" width=\"447\" height=\"380\"\/><\/figure><\/div>\n\n\n<figure class=\"wp-block-table is-style-st-table-line\"><table><tbody><tr><td><br><\/td><td><strong>2018.3<\/strong><\/td><td><strong>2019.3<\/strong><\/td><td><strong>2020.3<\/strong><\/td><td><strong>2021.3<\/strong><\/td><td><strong>2022.3<\/strong><\/td><\/tr><tr><td>Net Sales(Consolidated)<\/td><td>21277<\/td><td>24809<\/td><td>24942<\/td><td>22943<\/td><td>22171<\/td><\/tr><tr><td>Net income<\/td><td>-654<\/td><td>1786<\/td><td>1565<\/td><td>1084<\/td><td>716<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>As with Nippon Signal, sales and profits have declined since 2020 as railroad companies, the company&#8217;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.<\/p>\n\n\n\n<figure class=\"wp-block-table has-st-td-width has-st-td-width--1 is-style-st-table-line-2\"><table><thead><tr><th>Segment<\/th><th>Sales ratio<\/th><th>Ordinary Income Ratio<\/th><\/tr><\/thead><tbody><tr><td>Railroad Signaling Business<\/td><td><span class=\"st-mymarker-s-b\">92%<\/span><\/td><td>12.5%<\/td><\/tr><tr><td>Industrial equipment-related business<\/td><td>6%<\/td><td>0.3%<\/td><\/tr><tr><td><strong>Real estate related business<\/strong><\/td><td>2%<\/td><td><span class=\"st-mymarker-s-b\">44.6%<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Among the three major signaling companies, railroad signaling systems have the highest sales at 92%.<\/p>\n\n\n\n<p>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!<\/p>\n\n\n\n<div class=\"wp-block-st-blocks-midashi-box freebox has-title\" style=\"background-color:#fafafa;border-color:#919191;border-radius:0 5px 5px 5px\"><p class=\"p-free\" style=\"border-color:#919191;font-weight:bold\"><span class=\"p-entry-f\" style=\"color:#000;font-weight:bold;background-color:#919191;border-radius:0 0 5px 0\"><i class=\"st-fa st-svg-file-text-o st-css-no\" aria-hidden=\"\"><\/i>\u4e8b\u696d\u69cb\u6210<\/span><\/p><div class=\"free-inbox\">\n<p><span class=\"st-mymarker-s-b\">Railroad Signaling Business<\/span> : Manufacturing, sales, and installation of railroad signal systems.<\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Industrial equipment-related business<\/span>: Manufacturing and sales of information and telecommunications equipment. Specifically<\/p>\n\n\n\n<ul>\n<li>Non-contact heat-resistant ID systems<\/li>\n\n\n\n<li>Control equipment for ladder trucks and high-altitude water trucks<\/li>\n\n\n\n<li>Internal and external illuminated signs for highway sign numbering<\/li>\n<\/ul>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Real estate related business :<\/span> Leasing of real estate.<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"has-large-font-size\"><span class=\"st-mymarker-s-b\"><strong>Major Shareholders<\/strong><\/span><\/p>\n\n\n\n<p><span class=\"st-mymarker-s-b\">Nihon Densetsu Kogyo <\/span>&lt;Tokyo, Prime Market (Code Number: 1950)&gt;holds 11.6% of all shares.<\/p>\n\n\n\n<div class=\"wp-block-st-blocks-my-box st-mybox has-title\" style=\"background-color:#fff;border-color:#757575\"><p class=\"st-mybox-title\" style=\"color:#424242;font-weight:bold;text-shadow:#fff 3px 0px 0px, #fff 2.83487px .981584px 0px, #fff 2.35766px 1.85511px 0px, #fff 1.62091px 2.52441px 0px, #fff .705713px 2.91581px 0px, #fff -0.287171px 2.98622px 0px, #fff -1.24844px 2.72789px 0px, #fff -2.07227px 2.16926px 0px, #fff -2.66798px 1.37182px 0px, #fff -2.96998px .42336px 0px, #fff -2.94502px -0.571704px 0px, #fff -2.59586px -1.50383px 0px, #fff -1.96093px -2.27041px 0px, #fff -1.11013px -2.78704px 0px, #fff -0.137119px -2.99686px 0px, #fff .850987px -2.87677px 0px, #fff 1.74541px -2.43999px 0px, #fff 2.44769px -1.73459px 0px, #fff 2.88051px -0.838246px 0px;background:linear-gradient(0deg, #fff 0%, #fff 55%, rgba(0, 0, 0, 0) 55%, rgba(0, 0, 0, 0) 100%)\"><i class=\"st-fa st-svg-check-circle st-css-no\" aria-hidden=\"\"><\/i>Nihon Densetsu Kogyo<\/p><div class=\"st-in-mybox\">\n<p>Has the largest market share in railroad electrical construction. East Japan Railway Company owns 18.8% of the company&#8217;s stock and is an equity method affiliate of the company.<\/p>\n<\/div><\/div>\n\n\n\n<p> <br><\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Annual_income_and_average_age_of_employees\"> <strong>Annual income and average age of employees<\/strong><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-st-table-line-2\"><table><tbody><tr><td><\/td><td>Net Sales<\/td><td>The number of employees(consolidated)<\/td><td>The number of employees(Non-consolidated)<\/td><td>Average income<\/td><\/tr><tr><td>Nippon Signal<\/td><td>85047[millions of yen]<\/td><td>3043 people<\/td><td>1270 people<\/td><td><span class=\"st-mymarker-s-b\">7.37 million yen<\/span><\/td><\/tr><tr><td>Kyosan<\/td><td>72916[millions of yen]<\/td><td>2120 people<\/td><td>1404 people<\/td><td><span class=\"st-mymarker-s-b\">7.42 million yen<\/span><\/td><\/tr><tr><td>Daido Signal<\/td><td>22171[millions of yen]<\/td><td>913 people<\/td><td>539 people<\/td><td><span class=\"st-mymarker-s-b\">6.30 million yen<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Sales are generally proportional to the number of employees.<\/p>\n\n\n\n<p>Generally, larger companies with more sales tend to have higher annual revenues, and this is also true for these three companies.<\/p>\n\n\n\n<h2 class=\"is-style-st-heading-custom-diagonal has-background\" style=\"background-color:#d0eff2\"><span id=\"Prospect\">Prospect<\/span><\/h2>\n\n\n\n<p>The main customers of Japan&#8217;s major signal manufacturers are railroad companies, and they will be affected for better or worse by trends in the railroad industry.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-st-blocks-my-box st-mybox has-title\" style=\"background-color:#fff;border-color:#757575\"><p class=\"st-mybox-title\" style=\"color:#424242;font-weight:bold;text-shadow:#fff 3px 0px 0px, #fff 2.83487px .981584px 0px, #fff 2.35766px 1.85511px 0px, #fff 1.62091px 2.52441px 0px, #fff .705713px 2.91581px 0px, #fff -0.287171px 2.98622px 0px, #fff -1.24844px 2.72789px 0px, #fff -2.07227px 2.16926px 0px, #fff -2.66798px 1.37182px 0px, #fff -2.96998px .42336px 0px, #fff -2.94502px -0.571704px 0px, #fff -2.59586px -1.50383px 0px, #fff -1.96093px -2.27041px 0px, #fff -1.11013px -2.78704px 0px, #fff -0.137119px -2.99686px 0px, #fff .850987px -2.87677px 0px, #fff 1.74541px -2.43999px 0px, #fff 2.44769px -1.73459px 0px, #fff 2.88051px -0.838246px 0px;background:linear-gradient(0deg, #fff 0%, #fff 55%, rgba(0, 0, 0, 0) 55%, rgba(0, 0, 0, 0) 100%)\"><i class=\"st-fa st-svg-check-circle st-css-no\" aria-hidden=\"\"><\/i>References<\/p><div class=\"st-in-mybox\">\n<p><strong>Japan Company Handbook<\/strong>&nbsp;<strong>Collection 1, 2023<\/strong>&nbsp;(Toyo keizai Inc.)<\/p>\n\n\n\n<p>Financial statements of each company<\/p>\n\n\n\n<p><a href=\"https:\/\/contents.xj-storage.jp\/xcontents\/AS06275\/9d5bb0dc\/980e\/410a\/b01d\/0aa7c0f4035e\/140120220509535552.pdf\">Nippon Signal<\/a>\u3000<a href=\"https:\/\/contents.xj-storage.jp\/xcontents\/67420\/4edf7bee\/afa4\/461e\/bb21\/426d36ea64da\/140120210512414349.pdf\">Kyosan<\/a>\u3000<a href=\"https:\/\/www.daido-signal.co.jp\/financial\/file\/77_4.pdf\">Daido Signal<\/a><\/p>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>This section compares the sales and business activities of the three major Japanese signaling compan &#8230; 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