HOTMAN Co.,Ltd. (3190) Stock Price

Market cap
¥4.2B
P/E ratio
9.6x
Hotman operates franchise stores across Japan including Yellow Hat car accessories, TSUTAYA bookstores, and various retail chains serving communities in the Tohoku region.

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Business Overview

Hotman operates various businesses through franchise agreements with companies such as Yellow Hat Co., Ltd. and Culture Experience Co., Ltd. Its primary business is "Yellow Hat," which sells car accessories and performs installation, vehicle inspections, and maintenance services. This core business operates 90 stores.

Hotman also operates the "TSUTAYA" brand, which sells books, stationery, and miscellaneous goods while offering DVD rentals across 6 stores. Additionally, the company runs "Up Garage," which buys and sells used car accessories, operating 8 stores.

Other businesses include "Car Seven," which handles automobile retail and purchasing; "Daiso," which sells Daiso products; "Komeda Coffee," a coffee shop chain; "Chateraise," which sells confectionery; and "Kaitori Taikichi," a specialty shop for purchasing precious metals and brand-name goods. These businesses each operate between 1 and 6 stores.

Hotman also operates "Lottery Sales Outlets" and manages real estate rental services. These businesses provide community-focused services that meet diverse customer needs. The company primarily operates stores throughout the Tohoku region, including Fukushima, Miyagi, and Iwate prefectures, and has also expanded into Nagano, Ibaraki, and Tochigi prefectures.

Management Policy

Hotman is a community-focused mega-franchisee company pursuing diversified growth strategies centered on automotive products sales. The company is strengthening its store expansion strategy to achieve efficient customer acquisition. In particular, it is pursuing synergy effects through acquiring franchise stores via M&A and implementing a multi-store strategy centered on Yellow Hat locations.

In the Yellow Hat business, the company is reducing dependence on seasonal tire sales by strengthening vehicle inspection and car maintenance services. This strategy aims to secure stable high-margin profits and drive product sales through inspection and maintenance services. In the TSUTAYA business, the company is enhancing its selection of books and stationery to improve customer convenience.

In the Up Garage business, the company is strengthening the purchase of used automotive products and maintaining liquid inventory management to increase sales opportunities. Across other business segments, the company is expanding sales opportunities by staying responsive to market trends and enriching product assortment. Through these strategies, Hotman aims to secure stable operating profits.

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