Shinnihonseiyaku Co., Ltd. (4931) Stock Price

Shin Nippon Pharmaceutical develops and sells cosmetics and healthcare products as its core business. The company offers all-in-one skincare cosmetic brands and healthcare products such as supplements, creating products aimed at bringing smiling, fulfilling daily lives to customers.

The company primarily sells directly to consumers through mail order via call centers, its own online shop, and external e-commerce platforms. Additionally, it conducts wholesale sales to drugstores and general merchandise supermarkets, securing revenue through subscription services for recurring income and bulk sales to retail partners. In recent years, the company has expanded test sales in the United States and Asia to diversify its sales channels.

The company's business consists of two main pillars: cosmetics and healthcare. In cosmetics, it operates skincare lines centered on multi-functional gels and pore-care lines targeting younger consumers. In healthcare, it addresses the needs of a wide range of age groups through functional foods, pharmaceuticals, and health foods such as MCT oil handled by group companies.

Based on its medium-term management plan "Growth Next 2027," the company has designated fiscal years 2025 through 2027 as a period for building growth foundations. It aims to achieve net sales of 52 billion yen, operating profit of 6 billion yen, and an operating profit margin of 11.5% by September 2027. Additionally, the company targets a return on equity (ROE) exceeding 15% and a consolidated dividend payout ratio of 35% or higher, balancing stable profitability with shareholder returns. By setting these numerical targets clearly, the company is pursuing management that simultaneously pursues business expansion and profit improvement.

Key investment areas focus on expanding the product lineup centered on the flagship brand "PERFECT ONE" and strengthening customer touchpoints. The company aims to capture a broad range of generations, including middle-aged consumers, by expanding from skincare to oral care and body care, while achieving differentiation through coordinated product development and marketing. The company is strengthening marketing that leverages customer data and aims to maximize repeat purchases and customer lifetime value (LTV) through proposals tailored to individual needs.

The company is also focusing on developing new markets, including overseas expansion. In the United States, it has completed feasibility studies and test sales, and is now transitioning to expanding sales SKUs and validating local market appeals. In Asia, the company has launched cross-border e-commerce in Malaysia and plans to conduct test rollouts in Vietnam and China. Domestically, it is diversifying its revenue base by leveraging direct mail as a foundation while expanding wholesale distribution to drugstores and general merchandise retailers, as well as strengthening subscription services.

On the technology innovation front, the company is investing in exploring hit products using artificial intelligence (AI) and building systems to accelerate development speed. In addition to strengthening research and development capabilities, the company is advancing information technology (IT) infrastructure, digital foundation development, human capital investment, and cost structure reform to accelerate the launch of new products and services, aiming to enhance customer loyalty and achieve sustainable growth.