UP GARAGE GROUP Co., Ltd. (7134) Stock Price

UpGarage Group operates in two business segments: a used goods business for car and motorcycle products, and a distribution wholesale business. In the used goods segment, the company buys and sells used products across 45 prefectures nationwide through company-owned stores, franchise stores, and the EC site "upgarage.com". In the distribution wholesale segment, the company uses an order management platform to streamline its supply chain.

In the used goods segment, UpGarage Group buys and sells used car and motorcycle products. The company's practice of offering warranties on used products has been well-received. Through store locations and the EC site, the company provides customers with multiple sales channels. Store brands include "UpGarage," "UpGarage Riders," and "UpGarage Wheels," each specializing in different product categories.

UpGarage Group developed the EC site "upgarage.com" in-house and operates it as a mall-type platform where franchise stores and external retailers can participate. This approach has increased the proportion of EC sales and is expected to generate EC commission revenue based on affiliate store sales. The company also operates international sites and conducts cross-border sales.

In the distribution wholesale segment, the company sells new products through "Tire Distribution Center" and "order management platforms for chain retailers." These services are built on the order management platform "NexLink," which enables operational efficiency. The "Tire Distribution Center" in particular packages pricing structures by tire size and manufacturer into a "3-Price" model and offers it to affiliate stores.

Up Garage Group operates under the brand slogan "Good Mobility, Happy Life" and aims to expand the market by enhancing convenience in mobility parts trading. The company's vision is to establish itself as a leading company by increasing domestic and international trading venues and opportunities.

The company has formulated a medium-term management plan through March 2029, positioning itself as a core service provider for mobility parts in a circular economy. Specifically, the company plans to accelerate store openings domestically and internationally while expanding its product range to grow the market. Additionally, it is advancing the commercialization of high-value-added services through M&A activities.

Up Garage Group is strengthening systems and digital transformation to expand and improve its circular model. By developing data infrastructure and advancing digital transformation in stores and headquarters, the company aims to evolve toward its proprietary circular model encompassing both new and used mobility parts.

Strengthening human capital is also a key strategic priority. The company is focusing on organizational culture reform and talent recruitment and development, advancing the cultivation of next-generation management and digital talent. This approach aims to achieve both job satisfaction and workplace ease, thereby enhancing human capital.

The company targets improvements in revenue, operating profit, ROE, and ROIC to enhance corporate value and increase shareholder returns. Through these efforts, the company aims to achieve sustainable growth and establish itself as a leading company in the circular economy.