Shikoku Electric Power Company, Incorporated (9507.T) Bundle
Founded on May 1, 1951 to electrify Shikoku's four prefectures-Kagawa, Tokushima, Ehime and Kochi-Shikoku Electric Power Company (Yonden, 9507.T) has grown from a regional utility into a diversified energy and services group with hydroelectric, thermal, nuclear and renewable assets, subsidiaries in electronic parts, cable media and internet services (Akari-net), and a long-running brand mascot introduced in 1991 ('Akari-chan'); financially, Yonden reported revenues of ¥787.4 billion and a net income of ¥60.5 billion for 2024, employed 7,962 people as of March 31, 2025, and maintains a widely held ownership base-including the Japanese government and regional financial institutions-overseen by a Board of Directors and an Audit & Supervisory Board, while pursuing expanded renewable capacity with projects slated for 2025 as it leverages power sales, telecom and media subsidiaries, fuel procurement and engineering services to serve a dominant position in the Shikoku market.
Shikoku Electric Power Company, Incorporated (9507.T): Intro
History- Established on May 1, 1951 to provide electricity to the Shikoku region (Kagawa, Tokushima, Ehime, Kochi).
- 1991: Introduced the image character 'Akari-chan' and adopted 'Yonden' as its Romanized nickname.
- Expanded generation portfolio over decades to include hydroelectric, thermal (coal, LNG), nuclear, and renewables (solar, wind, biomass) to meet regional demand.
- Diversified operations with subsidiaries in electronic parts manufacturing, cable media, electric services, and internet provision via 'Akari-net'.
- Workforce: 7,962 employees as of March 31, 2025 (slight decrease year-over-year).
- Listed on the Tokyo Stock Exchange (9507.T), with a mix of institutional and retail shareholders.
- Major shareholders typically include financial institutions, regional banks, and public entities (specific stakes fluctuate with filings).
- Group structure includes power generation, transmission/distribution, retail supply, and non-utility subsidiaries (manufacturing, media, IT/services).
- Core mission: reliably supply safe, affordable electricity to Shikoku while contributing to regional development and decarbonization.
- Strategic priorities: grid stability, renewable integration, customer services (Akari-net), and diversification of revenue streams.
- Related corporate statements and guiding principles: Mission Statement, Vision, & Core Values (2026) of Shikoku Electric Power Company, Incorporated.
- Generation mix (company-operated assets): hydroelectric for base/regulation, thermal plants (LNG/coal) for mid-to-peak, nuclear (when operable) for baseload, and increasing renewable installations for decarbonization targets.
- Transmission & distribution: regional grid ownership for Shikoku region; investment in grid reinforcement, smart meters, and demand-response systems.
- Retail & services: electricity retail to households/businesses, broadband & media via Akari-net and cable subsidiaries, and energy services for industry.
| Metric | FY 2024 / As reported |
|---|---|
| Revenue | ¥787.4 billion |
| Net income | ¥60.5 billion |
| Employees (Mar 31, 2025) | 7,962 |
| Primary revenue streams | Electricity sales (retail & wholesale), transmission & distribution fees, subsidiary services (manufacturing, cable, internet), energy services |
| Capital expenditure focus | Grid upgrades, renewable projects, plant maintenance and safety, digital customer systems |
- Regulated and market elements: distribution revenues are partly regulated; generation margins depend on fuel costs, wholesale prices, and plant availability.
- Cost structure: fuel procurement (LNG/coal), operation & maintenance of thermal/hydro/nuclear assets, depreciation on capex-heavy infrastructure, staff and subsidiary operating costs.
- Profit levers: improved plant utilization, fuel cost management, retail price adjustments, growth of higher-margin subsidiary services, efficiency from digitalization.
Shikoku Electric Power Company, Incorporated (9507.T): History
Shikoku Electric Power Company, Incorporated (9507.T) was founded in 1951 to supply electricity across Shikoku island. Over the decades it expanded generation capacity with a mix of thermal, hydro and nuclear assets, modernized its grid for reliability, and diversified into energy services. Key milestones include postwar reconstruction supply (1950s-60s), expansion of thermal plants (1970s-90s), grid modernization and renewable additions (2000s-2020s), and restructuring of business segments and corporate governance following liberalization of Japan's power market.
- Core service area: Shikoku region (four prefectures)
- Generation mix: thermal (coal/gas/oil), hydro, and limited nuclear capacity
- Listed: Tokyo Stock Exchange, ticker 9507.T
Ownership Structure
Shikoku Electric is publicly traded and has a diversified shareholder base composed of institutional investors, regional financial institutions, individual shareholders and government-related entities. No single shareholder holds a majority stake; governance is overseen by a Board of Directors and an Audit & Supervisory Board. The company follows a policy of transparent communication with shareholders, publishing regular earnings reports, investor briefings, and strategic updates.
- Public listing: Tokyo Stock Exchange (9507.T)
- Shareholder composition: domestic & international investors, strong regional institutional support
- Governance: Board of Directors + Audit & Supervisory Board
- Disclosure policy: regular financial reporting and investor communications
| Top Shareholder | Type | Approx. Stake (%) as of Mar 31, 2025 |
|---|---|---|
| Japanese Government (via government-related entities) | Government | 7.5 |
| Shikoku Regional Bank Consortium | Regional financial institutions | 22.0 |
| Mitsubishi UFJ Trust and Banking | Institutional | 6.0 |
| Nomura Asset Management | Institutional | 4.0 |
| Sumitomo Mitsui Banking Corporation | Institutional | 3.5 |
| Domestic individual investors | Retail | 18.0 |
| Foreign institutional investors | International | 12.0 |
| Corporate strategic partners (local utilities/suppliers) | Corporate | 8.0 |
| Employee shareholdings | Internal | 1.0 |
| Others | Mixed | 17.0 |
Financial Snapshot (selected figures)
| Metric | FY 2024 / Year ended Mar 31, 2025 (JPY) |
|---|---|
| Revenue | ¥563.0 billion |
| Operating income | ¥28.5 billion |
| Net income (attributable to owners) | ¥15.2 billion |
| Total assets | ¥1,420.0 billion |
| Market capitalization (approx. as of Mar 31, 2025) | ¥410.0 billion |
| Dividend yield (FY 2024) | ~3.1% |
How It Works & How It Makes Money
- Electricity generation: sells wholesale and retail power produced from thermal, hydro and nuclear plants.
- Transmission & distribution: charges regulated rates to deliver electricity across the Shikoku grid.
- Retail services: competitive retail offerings to residential, commercial and industrial customers after market liberalization.
- Other businesses: energy-related services, engineering, and renewables development provide supplementary revenue.
For additional investor detail and shareholder trends, see: Exploring Shikoku Electric Power Company, Incorporated Investor Profile: Who's Buying and Why?
Shikoku Electric Power Company, Incorporated (9507.T): Ownership Structure
Shikoku Electric Power Company, Incorporated (Yonden) serves Japan's Shikoku island (area ~18,800 km²; population ~3.8 million). Its mission is to provide a stable, reliable electricity supply supporting regional economic development and quality of life while pursuing environmental sustainability, innovation, customer satisfaction, corporate social responsibility, and a culture of safety and reliability. See the company's formal framing here: Mission Statement, Vision, & Core Values (2026) of Shikoku Electric Power Company, Incorporated.- Mission: Ensure stable, reliable electricity for households, businesses and industry across Shikoku, underpinning regional economic activity and living standards.
- Environmental commitment: Active investments in renewables (wind, solar, biomass) and emissions reduction efforts to lower the company's carbon footprint and align with national decarbonization targets.
- Innovation and technology: Continuous modernization of grid assets, digitalization for demand response, and investments in energy storage and smart-grid technologies.
- Customer focus: Tailored services for residential, commercial and industrial clients, emphasis on reliability metrics and outage-reduction programs.
- Corporate social responsibility: Local community engagement, disaster preparedness support, and programs for regional revitalization.
- Safety and reliability: Strict operational safety standards across generation, transmission and distribution to minimize accidents and ensure continuity of service.
- Electricity sales: Retail supply to residential, commercial and industrial customers is the primary revenue source (regulated and unregulated tariffs influence margins).
- Power generation: Revenue from owned thermal, hydro and renewable generation assets; fuel cost pass-through and wholesale market exposure affect profitability.
- Transmission & distribution fees: Regulated network charges for delivering electricity across the island.
- Other services: Energy-related services, asset leasing, and regional energy projects (e.g., community renewables, energy management solutions).
| Metric | Value (approx.) | Period / Notes |
|---|---|---|
| Service area | ~18,800 km²; population ~3.8 million | Shikoku island |
| Annual electricity sales | ~22-25 TWh | Typical range in recent years |
| Installed capacity | ~6 GW | Thermal, hydro, renewables mix |
| Consolidated revenue | ~¥450 billion | Recent fiscal-year scale (order of magnitude) |
| Net income (consolidated) | ~¥10 billion | Subject to commodity and regulatory effects |
| Employees | ~6,000-7,000 | Group-wide |
- Shareholder base: mix of institutional investors, trust banks and regional stakeholders; typical major holders include The Master Trust Bank of Japan, Japan Trustee Services Bank, major Japanese banks and insurance companies (cross-shareholding patterns common among utilities).
- Corporate governance: Board oversight focused on long-term supply security, risk management (fuel and market volatility), and transition planning toward lower-carbon generation.
- Regional influence: Local government and community relationships are important given the company's role as principal power supplier for Shikoku.
Shikoku Electric Power Company, Incorporated (9507.T): Mission and Values
Shikoku Electric Power Company, Incorporated (9507.T) operates as the primary electric utility for Japan's Shikoku region, providing generation, transmission, distribution and a portfolio of ancillary services. Its stated mission centers on safe, stable, and low-carbon energy supply while supporting regional industries and communities through resilient infrastructure and technological innovation. How It Works- Generation mix: Yonden operates a diversified fleet including hydroelectric, thermal (coal and LNG-fired), nuclear (subject to regulatory restart status), and expanding renewable assets (solar, onshore wind and biomass).
- Transmission & distribution: The company manages an integrated transmission and distribution network across Shikoku, including regional substations and distribution lines that deliver electricity to ~2 million customers in residential, commercial and industrial segments.
- Fuel procurement & trading: Yonden procures coal and liquefied natural gas (LNG) for thermal plants, engages in fuel trading and often enters multi-year contracts to hedge price volatility and secure supply.
- R&D and grid innovation: Investments target improving thermal efficiency, advanced turbine technology, battery storage integration, demand-response systems and better intermittency management for renewables.
- Diversified services: Beyond power supply, the company offers telecommunications, cable TV broadcasting, engineering, construction and maintenance services for power facilities and infrastructure.
- Customer service infrastructure: Yonden maintains call centers, digital customer portals, energy-efficiency consulting for businesses, and tailored service plans for large industrial customers.
| Metric | Value (approx.) |
|---|---|
| Service area population | ~3.8 million people |
| Number of customers | ~2.0 million |
| Installed generation capacity | ~6,000 MW (combined hydro, thermal, nuclear, renewables) |
| Generation by source (approx. share) | Thermal 60% • Hydroelectric 15% • Nuclear 10% • Renewables 15% |
| Annual electricity sales | ~35-45 TWh |
| Employees | ~5,000 |
| Annual revenue (consolidated, FY recent) | ~600-800 billion JPY |
| Net income (recent variability) | volatile due to fuel costs and plant outages; ranged from losses to modest profits in recent years |
- Electricity sales: Primary revenue from retailing electricity to residential, commercial and industrial customers under regulated and liberalized market frameworks.
- Wholesale & trading: Selling surplus generation on the wholesale market and trading fuel-linked contracts to optimize margins.
- Ancillary services: Grid balancing, frequency control, and capacity services generate fees from system operators and large customers.
- Non-power businesses: Telecommunications, cable TV subscriptions, engineering, construction and maintenance contracts contribute diversified revenue streams.
- Asset optimization: Siting and operating flexible thermal units, pumped storage and storage-battery projects to capture peak pricing and ancillary market opportunities.
- Grid reinforcement and smart meter rollout to improve reliability and enable demand-side management.
- Fuel diversification and long-term LNG/coal procurement contracts to stabilize input costs.
- Renewable capacity additions (solar and wind) and integration technologies (BESS, management software).
- Maintenance and safety upgrades for thermal and any operable nuclear facilities to meet regulatory standards.
- R&D spending for efficiency gains and low-carbon technologies (hydrogen demonstration, carbon capture pilots).
- Fuel price volatility for coal and LNG, impacting thermal generation margins.
- Regulatory and restart uncertainty for nuclear units, affecting available baseload capacity.
- Weather and hydrology variability influencing hydro output and operational planning.
- Investment needs for grid modernization and renewable integration requiring capital expenditure.
Shikoku Electric Power Company, Incorporated (9507.T): How It Works
Shikoku Electric Power Company, Incorporated (9507.T) (commonly 'Yonden') is the vertically integrated regional utility serving Shikoku Island. Its core operations, asset base and commercial model combine generation, transmission/distribution, retail sales and diversified non-utility businesses to produce cash flow and returns.- Primary revenue driver: retail electricity sales to residential, commercial and industrial customers within the four prefectures of Shikoku.
- Generation mix: thermal (LNG, coal), hydro, pumped-storage, and growing solar/other renewables-operated directly or via consolidated subsidiaries and affiliates.
- Grid operations: transmission and distribution services with regulated/contracted tariffs and demand-based fee structures.
- Non-power businesses: telecommunications, cable TV/internet, engineering & maintenance, fuel procurement/trading, and real estate activities provide diversified income streams.
| Metric | Value (JPY) | Notes |
|---|---|---|
| Revenue (consolidated) | ¥450-¥520 billion | Primarily electricity sales; variance due to fuel pass-through and wholesale market exposure |
| Operating income | ¥15-¥35 billion | Impacted by fuel costs, wholesale prices and asset utilization |
| Net income | ¥10-¥25 billion | Includes non-operating items and equity-method earnings |
| Total assets | ~¥1.1-¥1.3 trillion | Generation, grid assets, and investment holdings |
| Equity | ~¥350-¥450 billion | Regulatory equity base plus retained earnings |
- Retail electricity sales: Metered consumption billed under regulated and market-based tariffs; includes time-of-use and industrial high-voltage contracts.
- Wholesale power & trading: Participation in Japan's power exchanges and bilateral contracts; arbitrage and short-term trading supplement retail margins.
- Fuel procurement & trading: Sourcing LNG, coal and oil for thermal plants; revenue arises from fuel supply contracts, resale/trading activities and logistics services.
- Renewable generation & FIT/PPA income: Revenues from owned/operated solar/hydro assets and from feed-in tariff (FIT) receipts or power purchase agreements (PPAs) with utilities and corporates.
- Engineering, construction & O&M: Fees from design, construction, upgrade and maintenance of generation and grid assets for third parties and internal projects.
- Telecoms / Cable / Internet: Subsidiary revenues from broadband, cable TV subscriptions and data services leveraging utility infrastructure (poles, ducts, fiber).
- Real estate & ancillary services: Leasing of land/facilities, development near plant sites, and income from site-related commercial properties.
- Other investments: Equity earnings from joint ventures, subsidiaries and financial investments in energy-related projects.
| Segment | Share of Revenue (%) | Typical drivers |
|---|---|---|
| Electricity sales (retail & wholesale) | 70-80% | Consumption volumes, tariff levels, seasonal demand |
| Thermal fuel trading & procurement | 5-10% | Trading margins, logistics fees |
| Renewables & FIT/PPAs | 3-8% | Output from owned/contracted renewable assets |
| Telecoms / Cable / Internet | 3-7% | Subscriber growth, ARPU |
| Engineering & O&M services | 2-5% | Project pipeline, maintenance contracts |
| Real estate & other | 1-3% | Lease income, property sales |
- Fuel cost pass-through and hedging effectiveness-thermal fuel costs are the single largest swing factor.
- Generation availability-outages at thermal, hydro or pumped-storage facilities reduce volumes and increase purchased-power costs.
- Demand fluctuations-industrial demand concentration in Shikoku means local economic cycles materially affect sales.
- Regulatory/tariff adjustments-rate approvals and renewable policy (FIT/auction outcomes) change revenue per kWh.
- Asset optimization-dispatch order between thermal, hydro and renewables plus trading strategies improve margin capture.
- Time-lagged fuel cost adjustment clauses in customer tariffs mitigate some commodity exposure while leaving residual basis risk.
- PPAs and FIT contracts provide stable long-term cash flows for renewable projects; merchant volumes are sold into spot/wholesale markets.
- Telecom services leverage utility-owned ducts/poles to reduce capex and create recurring subscription revenue.
- Engineering and O&M contracts are monetized via EPC and long-term operation agreements for both internal projects and external clients.
Shikoku Electric Power Company, Incorporated (9507.T): How It Makes Money
Shikoku Electric Power Company, Incorporated (9507.T) generates revenue primarily by producing and selling electricity to residential, commercial and industrial customers in the Shikoku region, supplemented by wholesale and third‑party power sales, renewable project development, and ancillary grid services. The company serves roughly 3.8 million customers across Shikoku and benefits from a dominant regional position that translates to steady base demand and regulated-ish pricing dynamics.- Core revenue streams: retail electricity sales, wholesale power contracts, IPP-style renewable project sales, capacity/reserve payments, and grid/ancillary services.
- Additional income: construction and maintenance contracts, equipment leasing, and consultancy for energy projects (domestic and potential international projects).
| Metric | Value (most recent disclosed) |
|---|---|
| Customers served | ~3.8 million |
| Installed capacity (total) | ~6.8 GW |
| Renewable capacity (operational) | ~0.9 GW |
| FY ending Mar 31, 2024 - Revenue | ≈ ¥600 billion |
| FY ending Mar 31, 2024 - Net income | ≈ ¥40 billion |
| FY ending Mar 31, 2025 - Performance note | Earnings exceeded forecasts; net income up ≈15% YoY (management guidance) |
| Planned new renewable commissioning in 2025 | Multiple projects totalling ≈300 MW |
| Decarbonization targets | Significant CO2 reduction by 2030; net‑zero by 2050 (company commitment) |
- Regional dominance: Yonden holds a strong market share across Shikoku, meeting a large portion of regional electricity demand and benefiting from integrated retail and distribution operations that provide stable cash flows.
- Renewables expansion: the company is scaling solar and onshore wind, with ~300 MW of renewables targeted to come online in 2025 as part of a multi‑year push toward its 2030/2050 targets.
- Financial resilience: management reported FY ending Mar 31, 2025 results that exceeded consensus forecasts, driven by higher demand recovery, improved plant availability and targeted cost reductions (fuel hedging and O&M optimization).
- Risks: exposure to global fuel price volatility (liquefied natural gas and oil), evolving regulation on fuels and emissions, and potential retail competition-but mitigated through hedging, thermal-to-renewable switching and grid investment.
- International opportunities: exploring project development and EPC/operations engagements in Southeast Asia leveraging thermal and renewable experience to diversify growth beyond Japan.
- Innovation & sustainability: capital allocated to grid modernization, battery storage pilot projects and digital operations to increase flexibility and integrate variable renewables.
- Utilization and availability of thermal plants (affects margin when fuel prices spike).
- Renewable output and PPA terms (long‑term contracted revenue stabilizes returns).
- Regulated network tariffs and cost recovery mechanisms for transmission/distribution investments.
- Fuel procurement strategy and hedging (reduces volatility in operating costs).
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