Daiei Kankyo (9336) Corporate presentation summary

Company overview and business model

• Founded in 1979 in Osaka, with FY2026 net sales of JPY 87.9 bn and operating profit of JPY 22.2 bn; employs 2,814 people.

• Core business is waste management and recycling, accounting for 97% of segment sales; other activities include soil remediation, facility construction, consulting, and electricity generation.

• Operates nationwide, with a strong presence in Kansai and Chubu regions, and has expanded to 80 locations as of June 2026.

• Business model covers collection, transportation, sorting, recycling, incineration, and final disposal, generating revenue from each stage.

• High barriers to entry due to regulatory, capital, and community requirements for large-scale facilities.

Industry environment and market trends

• Waste management industry is evolving from public health infrastructure to a key supplier of recycled resources, supporting carbon neutrality and circular economy goals.

• Waste is classified as industrial or general, with processing responsibilities split between private companies and municipalities.

• Domestic waste generation has declined by about 10% over the past decade due to population decline, but market size has grown 1.5x, driven by recycling.

• The market is highly fragmented, with about 120,000 companies and low concentration; major listed firms hold only about 4% of total market share.

Industry challenges and growth opportunities

• Industry faces rising costs, succession issues, and the need for capital investment due to stricter regulations and environmental goals.

• Municipalities are increasingly outsourcing waste management due to depopulation, financial constraints, and rising facility costs.

• These trends create opportunities for large, financially stable companies to expand via M&A and by entering the general waste management market.