Revenue distribution by industry:

• Railway transportation: approx. 70%
• Retail and services: approx. 20%
• Real estate and others: approx. 10%

TOP 3 markets and their percentage shares:

• Japanese domestic market: approx. 85%
• Tourism (international market): approx. 10%
• Other international markets: approx. 5%

The West Japan Railway Company generates the majority of its revenue from railway transportation, which is typical for a company in this industry. The Japanese domestic market dominates the revenue distribution, with international tourism also playing a significant role, especially in regions with high tourist activity.

Production Sites: Japan

West Japan Railway Company (JR West) is a Japanese company mainly active in the field of rail transport. As a railway company, it does not produce physical products in the traditional sense, but offers services in passenger and freight transport. The infrastructure and operations are mainly located in the western region of Japan, including the cities of Osaka, Kyoto, and Hiroshima.

JR West operates and maintains its trains and stations within Japan and is responsible for the operation and maintenance of its rail vehicles and infrastructure. The production of trains and other technical components is carried out in collaboration with specialized manufacturers, which are also based in Japan.

Strategy for Future Growth:

1. Diversification of Revenue Sources: West Japan Railway Company plans to diversify its revenue sources by investing in non-transport-related business areas. These include retail stores, real estate development, and tourism.

2. Technological Innovation: The company is investing in technological innovations to improve efficiency and customer service. This includes the use of AI and IoT to optimize railway operations and enhance the passenger experience.

3. Sustainability and Environmental Friendliness: Another focus is on promoting sustainable practices, including reducing CO2 emissions and using renewable energy in their operations.

These strategies aim to reduce dependence on traditional rail transport and unlock new growth opportunities while strengthening environmental responsibility.

Main Imported Raw Materials: Steel, Copper, Aluminum

Countries of Origin:

• Steel: China, South Korea
• Copper: Chile, Peru
• Aluminum: Australia, Canada

The West Japan Railway Company (JR West) imports various raw materials necessary for the construction and maintenance of its infrastructure and trains. Steel is mainly imported from China and South Korea, as these countries are leading producers with competitive prices. Copper, needed for electrical systems and wiring, is primarily sourced from Chile and Peru, two of the world's largest copper producers. Aluminum, used in the lightweight construction of trains, mainly comes from Australia and Canada, known for their high-quality aluminum products.

These import strategies enable JR West to source high-quality materials at competitive prices, which is crucial for the operation and maintenance of their extensive railway infrastructure.

Market share in rail transport in West Japan: approximately 60% (2023)
EBITDA margin: 25% (2023)
Net debt: 1.5 trillion JPY (2023)

West Japan Railway Company (JR West) has a significant competitive advantage due to its dominant market position in rail transport in West Japan. With a market share of around 60%, the company is the leading provider in this region. This strong market position allows JR West to benefit from economies of scale and achieve a high EBITDA margin of 25%, indicating an efficient cost structure and pricing power.

Furthermore, JR West has an extensive rail network covering both urban and rural areas, increasing barriers to entry for potential competitors. Continuous investments in infrastructure and technology enhance service quality and strengthen customer loyalty.

Despite a high net debt of 1.5 trillion JPY, resulting from extensive investments in infrastructure, the company's financial stability remains secure due to stable revenues and a strong market position. This further contributes to their competitive advantage.

Institutional Investor Share: approximately 45% (estimated, based on historical data from 2023)

Insider Purchases/Sales: No significant changes reported (2025)

The institutional investor share in West Japan Railway Company traditionally stands at around 45%, indicating the interest of large investment funds and institutional investors in stable and established companies in the transportation sector. These investors value the company's long-term stability and dividend yield.

Regarding insider purchases or sales, no significant transactions were reported in 2025. This suggests that the management and other insiders currently do not expect significant changes in the company's valuation or that they are satisfied with the current corporate strategy.

Market share of West Japan Railway Company: Estimated around 15% (2025)

Main competitors and their market shares:

1. East Japan Railway Company (TSE:9020): around 25%
2. Central Japan Railway Company (TSE:9022): around 20%
3. West Japan Railway Company (TSE:9021): around 15%
4. Kyushu Railway Company (TSE:9142): around 10%
5. Hankyu Hanshin Holdings, Inc. (TSE:9042): around 8%
6. Keio Corporation (TSE:9008): around 5%
7. Keikyu Corporation (TSE:9006): around 5%
8. Tokyu Corporation (TSE:9005): around 4%
9. Nankai Electric Railway Co., Ltd. (TSE:9044): around 4%
10. Odakyu Electric Railway Co., Ltd. (TSE:9007): around 4%

Moat of West Japan Railway Company:

West Japan Railway Company (JR West) has a significant moat, mainly due to its geographical monopoly in the Kansai region, including the cities of Osaka, Kyoto, and Kobe. This region is economically strong and densely populated, ensuring JR West a stable and continuous flow of passengers.

Compared to its competitors, East Japan Railway Company (JR East) has the largest moat as it serves the Tokyo metropolitan region, the most populous and economically significant region in Japan. Central Japan Railway Company (JR Central) benefits from the lucrative Tokaido Shinkansen route between Tokyo and Osaka, which is one of the busiest high-speed rail lines in the world.

While JR West is strong in its region, competitors also have strong moats due to their strategic routes and geographical advantages. JR East and JR Central may have an even stronger moat than JR West due to their route networks and service to economically significant regions.

Revenue Growth: 3.5% (2024) Profit Growth: 4.2% (2024) Debt Ratio: 1.8 (2024) Return on Equity: 7.5% (2024)

West Japan Railway Company recorded a moderate revenue growth of 3.5% in 2024, attributed to a recovery in passenger numbers and stabilization of economic conditions in Japan. The profit growth of 4.2% suggests that the company was able to enhance its efficiency, possibly through cost-cutting measures or improved operational efficiency.

The debt ratio of 1.8 indicates that the company has a relatively high level of debt compared to its equity. This could pose a risk, especially in times of rising interest rates or economic uncertainties. However, the return on equity of 7.5% is a positive sign, indicating solid profitability of the company.

Overall, West Japan Railway Company's stock could be a stable investment for investors interested in long-term recovery and stability in the transportation sector. Potential investors should, however, monitor the company's debt situation and consider the economic conditions in Japan.

Dividend Yield: 2.5% (estimated for 2025)
Dividend History: Consistent payout over the last 5 years

West Japan Railway Company has regularly distributed dividends to its shareholders in recent years. The company's dividend policy aims to provide shareholders with a stable and attractive return.

The reliability of the distribution is supported by the company's stable financial position and its ability to generate profits continuously. Despite economic fluctuations, the company has maintained its dividend policy in the past, indicating a strong commitment to shareholders. Analysts expect this stability to continue in the coming years.