DAIKOKUTENBUSSAN CO.,LTD. (2791) Stock Price

Market cap
¥70.6B
P/E ratio
15.2x
Operates supermarkets and manufactures food products through 19 subsidiaries, serving local communities with an integrated approach from farming to retail sales.

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Business Overview

Daikokuten Bussan operates primarily as a supermarket business focused on food products. Together with 19 consolidated subsidiaries, the company manufactures and sells food items. The supermarket business is the company's core operation, providing daily necessities and food products to consumers.

Daikokuten Bussan's group includes multiple subsidiaries operating supermarket businesses. Examples include Value 100, Nishigen, Oda Shoten, and Mamie's, which operate stores with a strong community focus. Additionally, Ebisu-ten handles store development consulting and real estate rental operations.

The company also emphasizes food manufacturing. Okayama Instant Noodles manufactures noodle products, Hotei Dairy handles dairy product manufacturing, and Daikokuten Farm Kasaoka raises dairy cattle. This integrated approach enables the company to provide services spanning from manufacturing to retail sales.

Other business operations include wholesale distribution and Yoru Sushi, which provides sushi and kaiseki cuisine. Olive Suisan engages in fish farming, and Mizutable Farm handles vegetable production. These operations complement the supermarket business.

Daikokuten Bussan provides a wide range of services including trademark management, recycling operations, and store cleaning. Through this diversified business portfolio, the company contributes to local communities.

Management Policy

Daikokuten Bussan pursues "the pursuit of affluence" and aims to contribute to local communities. The company is implementing a strategy to expand its market presence and strengthen competitiveness through store expansion in new regions. The company places particular emphasis on realizing "Everyday Low Price (ESLP)" to provide consumers with high-quality products at low prices.

As a medium to long-term management strategy, Daikokuten Bussan is expanding its store network from southern Okayama Prefecture to the Sanyo, Kansai, Sanin, Shikoku, Kyushu, Hokuriku, Chubu, and Tokai regions. Through this expansion, the company aims to further expand its market and increase its corporate scale. Additionally, the company seeks to establish low-cost operations and build a foundation capable of withstanding price competition.

The company has set targets of consolidated ROE of 10% or higher and consolidated ROA of 15% or higher. While improving capital efficiency, the company emphasizes balancing profit returns to customers and shareholders. Through optimal allocation of management resources, the company aims to achieve these targets.

Daikokuten Bussan has established "five strategic initiatives": store development strategy, product category strategy, logistics strategy, organizational strategy, and human resources strategy. Through these initiatives, the company is promoting business expansion, strengthening profitability, reducing logistics costs, and developing talent. Through these efforts, the company aims to realize its philosophy of "the pursuit of affluence."

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