Daikokuya Holdings Co.,LTD.【JP:6993】Stock Price

Daikokuya Holdings operates primarily through two business segments: an electrical equipment business and a pawn shop and used goods trading business. These operations are conducted by the company and 10 consolidated subsidiaries.

In the pawn shop and used goods trading business, the subsidiary Daikokuya serves as the core operation, providing pawn shop services under the Pawn Shop Business Law. The company also engages in the purchase and sale of pre-owned branded goods under the Used Goods Business Law, including bags, watches, and jewelry.

The electrical equipment business manufactures and sells industrial lighting fixtures and electrical conduit fittings. Products are divided into three categories: industrial lighting fixtures, control equipment, and electrical construction materials, distributed through regional dealers and agents. Control equipment is primarily supplied as OEM products.

Regarding the UK-based SFL Group, the company decided to exit the business in 2019 and has been proceeding with withdrawal, including transferring debt claims to Harvey & Thompson Limited. Through these actions, the company is optimizing its domestic and international operations.

Daikokuya Holdings is advancing technological innovation using AI and DX as part of its growth strategy. Specifically, the company has developed AI dynamic pricing technology and achieved automation of its appraisal process. This enables the company to calculate appropriate product prices instantly and maximize inventory turnover.

The company is improving the efficiency of its buying and selling processes through business partnerships with LINE Yahoo and Mercari. Through its partnership with LINE Yahoo, the company has launched the "Otegaru Nandemo Kaitori" service, which utilizes AI chatbots to enable users to easily apply for appraisals and purchases. Through its partnership with Mercari, the company offers a "Purchase Request" service and has improved user experience through AI-based appraisals. These initiatives have enabled the company to reduce appraisal and purchase process time by over 50%, strengthening its competitive advantage.

Daikokuya Holdings is also focusing on strengthening its pawnshop business. During the COVID-19 pandemic, the role of pawnshops in supporting individuals' funding needs was reaffirmed. The company is leveraging its expertise as "Daikokuya the Pawnshop" to build systems that meet customer needs.

Additionally, the company is advancing structural reforms in its electronics business by reducing manufacturing costs and strengthening inventory management. Through these efforts, the company aims to improve profit margins and promote cash flow-focused management. These strategies position the company for sustained growth.