[Company analysis] Keio Corporation (京王電鉄)

「Keio Corporation (京王電鉄)」is a core company of the「Keio Group」, and is one of the major private railway companies with a railway route from southwest Tokyo to northern Kanagawa Prefecture. Their total operating distance is the average level of private railways, but almost all railway lines exist in Tokyo, so it covers almost all areas of Tokyo. The number of consolidated employees is approximately 13,342.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Keio Corp.
Company name (Japanese)	京王電鉄
Date of establishment	Tuesday, June 1, 1948
Headquarters location	〒206-8502 東京都多摩市関戸一丁目9番地1
Capital	59,023
Consolidated sales	447,508
Consolidated operating profit	40,078
Consolidated total assets	889,341
Consolidated capital	368,022
Capital adequacy ratio	41.4%
Consolidated number of employees	13,342

 

 

 

2. Summary and Features

 
The beginning of「Keio Electric Railway」dates back to December 12, 1905, when「Nippon Electric Railway(日本電気鉄道株式会社)」 requested the relevant departments to construct an electric railway. In 1906, the company name was changed to 「Musashi Electric Railway Co., Ltd.(武蔵電気軌道株式会社)」and the route between Tachikawamurauchi-Fuchu-Kokubunji was established. This route become the current basis of「Keio Electric Railway」.

In 1938, this company also carried out bus and real estate businesses. However, due to the "Land Transport Business Coordination Act(陸上交通事業調整法)" during the World WarⅡ, they transferred bus business to other company. And even its own power supply business was transferred to「Tokyo Electric Power Company(東京電力)」 according to the distribution control order from government. In 1944, this company was integrated with other companies by the above-mentioned "Land Transport Business Coordination Act", but in 1948 it was separated and became independent.

 

Currently,「Keio Electric Railway」has 6 railway routes and about 84.7km of total operating distance. Almost all railway route they have is located in Tokyo. Geographical, Tokyo has a long shape in the east-west direction, and Keio Electric Railway's railway network is also long in the east-west direction. In other words,「Keio Electric Railway」can covers almost almost all area of Tokyo.

However,「Keio Electric Railway」have several weaknesses. Their railway route can be largely divided into the "Keio Line(京王線)" and "Inokashira Line(井の頭線)". The problem is, the width of the railroads on these lines is different. "Keio Line" is 1372mm and "Inokashira Line" is 1067mm. For this reason, transfer and transshipment at the contact stations on both lines is unavoidable.

In addition, if you are on the Keio Line, even if you are on a limited express or an express train, you will not get the impression that it is "fast". This is because the railway is hardly double-tracked, and express trains and normal trains run on the same track. So even if you're on an express train, it occasionally slow down to matching the pace of the normal trains that run ahead. However, the punctuality is quite excellent. According to a document released by the government on December 22, 2017, the issue of delay certificate for「Keio Electric Railway(京王電鉄)」in 2016 was about 6.3 days per month, which is the lowest among metropolitan railways.

 

 

 

3. Major Business

 

■ Transportation industry

■ Distribution industry

■ Real estate industry

■ Leisure and service industry

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		418,996	434,697	447,508
Consolidated operating profit		37,976	38,537	40,078
Consolidated total assets		834,682	889,162	889,341
Consolidated net assets		332,020	352,241	368,022
Breakdown of sales	Transportation business	127,100	129,074	129,939
	Distribution business	153,043	158,720	162,665
	Real estate business	38,543	41,737	47,181
	Leisure・Service business	70,951	73,084	76,191
	Others	29,358	32,080	31,529