AFC-HD AMS Life Science Co.,Ltd. (2927) Stock Price

AFC-HD Amus Life Science is a corporate group engaged in research, development, manufacturing, and sales of health foods and cosmetics, as well as pharmaceutical manufacturing and the dissemination of health and beauty information. The company manufactures its own brand supplements and cosmetics while promoting products through advertising and program production, maintaining diverse customer touchpoints.

The company's primary customers are individual consumers, with products sold through mail order, direct sales, and department store retail. Pharmaceuticals are supplied to medical institutions and pharmacies. Additional revenue streams include subsidiary operations in department stores, food and beverage, and real estate, along with overseas sales conducted through subsidiaries in China and other markets.

The business is divided into six main segments: Healthcare (health foods and cosmetics), Pharmaceuticals (herbal prescription drugs and over-the-counter medicines), Department Stores, Food and Beverage, Real Estate and Property Management, and Other (tourism, travel, charter bus services, food service, etc.). Each segment is operated by multiple group companies including Honzo Pharmaceutical, Saika-ya, AFC Smile Real Estate, research and development companies, sales subsidiaries, and advertising production companies.

The company aims to become a leading player in the health food industry by strategically integrating research and development, manufacturing and quality assurance, and sales and marketing functions within its group. Its management objective is to ensure continuous growth each period while improving profitability, using the operating profit margin on sales as a key performance indicator. The business comprises six segments: health food and cosmetics, pharmaceuticals, department stores, food and beverage, real estate and construction, and other operations. The company pursues revenue growth through multiple sales channels including mail order, department stores, direct sales, and overseas subsidiaries such as in China.

The company prioritizes investment in research and development and strengthening manufacturing and quality management systems. It aims to establish industry-leading manufacturing controls and differentiate itself beyond price competition by focusing on proprietary technology and ingredient development. The company is building a low-cost, short-lead-time production system capable of handling orders from small to large volumes, and establishing a "total produce" function that provides end-to-end services from product planning and design through quality assurance to sales strategy support, enabling rapid response to customer needs.

Regarding new market development and business expansion, the company is advancing internationalization in response to domestic population decline. Specifically, it plans to expand sales channels and develop products tailored to each country's regulations and needs to strengthen overseas sales. Leveraging the 2021 consolidation of department store operator Saika-ya Co., Ltd. and food and beverage operator Nasubi Co., Ltd. as subsidiaries, the company aims to significantly expand its customer base through shared e-commerce content and infrastructure, and cross-promotional marketing research conducted in department stores. Expanding the customer base in mail order operations is positioned as a priority initiative.

For technological innovation, the company is pursuing evidence-based product development through industry-academia-government collaboration and developing preventive-focused supplements centered on the "anti-aging" theme. In marketing, the company produces in-house television shopping programs and health and beauty specialty programs to enhance product appeal. In logistics, the company is building a high-standard logistics system leveraging next-day delivery capabilities. It is also strengthening organizational capacity through human resource development (on-the-job training focused on field education and hiring experienced talent) and diversity initiatives, driving consistent technological and service innovation from research and development through sales.