KOHSOKU CORPORATIONJP:7504Stock Price

Market cap
¥65.6B
P/E ratio
16.7x
Kousoku manufactures and sells food packaging materials and industrial packaging through its main operations and network of specialized subsidiaries.

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Business Overview

Kousoku's primary business is the manufacturing and sales of food light-duty packaging materials and industrial packaging materials. This business is operated as the "Packaging Materials Manufacturing and Sales Business" and provides a diverse range of products together with affiliated companies.

Kousoku Seapack Co., Ltd. is a 100% subsidiary of Kousoku that manufactures and sells printed paperboard, seals, and labels. It also handles planning and design services for confectionery boxes and flyers.

Seiwa Co., Ltd. is also a wholly owned subsidiary of Kousoku and manufactures and sells tea-related packaging materials. Specifically, it handles the manufacturing and sales of tea bags, wrapping paper, and paperboard products.

Nippon Contec Co., Ltd. is a subsidiary of Kousoku that sells logistics materials and equipment. It handles containers, pallets, cage carts, and steel fish boxes.

Plus Packaging System Co., Ltd. manufactures and sells synthetic resin products. As a subsidiary of Kousoku, it handles the manufacturing and sales of plastic bags and similar products.

Tokiwa Package Co., Ltd. manufactures and sells corrugated cardboard and cushioning materials. As a subsidiary of Kousoku, it handles the manufacturing and sales of corrugated cardboard products.

Management Policy

Kousoku is pursuing its mid-to-long-term plan launched in 2018 to become a "Good Company" that contributes to society through packaging. Under this plan, the company is expanding nationwide by opening new sales offices and pursuing M&A to develop new markets.

The company prioritizes customer satisfaction and strengthens relationships with clients through reliable service delivery. It is also advancing joint development with business partners, aiming to become the number one company customers want to do business with. For shareholders, the company maintains a policy of enhancing corporate value and continuing consecutive dividend increases.

Regarding local communities, the company promotes ESG management and aims to become a company loved by the regions it serves. For employees, it seeks to improve employee satisfaction by creating a workplace where people find fulfillment.

In the second phase of the medium-term management plan, the company targets sales of 100 billion yen and operating profit of 4 billion yen, ensuring steady growth of existing businesses. Additionally, it pursues further sales and profit expansion through supplementary initiatives.

Despite Japan's declining population, Kousoku continues to grow backed by expanding demand for food-grade lightweight packaging materials. The company actively pursues new market development and sales expansion with existing customers, aiming for sustainable growth.

Key priorities include strengthening headquarters and sales support functions, improving operations through digital transformation, developing talent, creating new businesses, acquiring new customers, and realizing synergies across the Kousoku Group. Through these efforts, the company aims to expand sales and profit.