KOHNAN SHOJI CO.,LTD. (7516) Stock Price

Kohnan Shoji is primarily engaged in the home center business. The company operates as a group that includes 3 consolidated subsidiaries and 6 non-consolidated subsidiaries, handling diverse business operations. In the home center business, Kohnan Shoji operates domestically, while KOHNAN VIETNAM CO., LTD. and KOHNAN (CAMBODIA) CO., LTD. handle overseas operations.

The company also operates a building materials wholesale business, managed by Kentatepo Co., Ltd. Additionally, it operates retail businesses for housing-related products and food, with Home Improvement Hirose Co., Ltd. overseeing this division. Through these operations, Kohnan Shoji provides products that meet diverse customer needs.

The company also handles building and facility maintenance services, managed by Osaka HC Co., Ltd. In real estate leasing, Minami-Osawa Inn Limited Partnership operates. Through these services, Kohnan Shoji provides real estate-related offerings.

Distribution-related services are handled by Kohnan Business Innovation Co., Ltd., while transportation and warehouse operations are managed by Southern Port Line Co., Ltd. Southern Port Line Co., Ltd. changed its company name from Kohnan Logistics Co., Ltd. on April 24, 2024. Through this restructuring, the company is improving logistics efficiency.

Kohnan Shoji announced its "Fourth Medium-Term Management Plan" in April 2025, aiming to become Japan's leading comprehensive company for housing and lifestyle solutions. The plan shifts all management activities to a customer-centric perspective and strengthens legal compliance and internal control systems to establish a stable, highly profitable business structure.

Under this three-year plan through February 2028, the company targets net sales of 560 billion yen, operating profit of 29 billion yen, EBITDA of 43 billion yen, and net income of 16.5 billion yen. The company also aims to achieve a total shareholder return ratio of 40% or higher and implement progressive dividend increases.

As its growth strategy, Kohnan Shoji is advancing seven key initiatives. In store expansion, the company focuses on aggressive openings of PRO-format stores in priority areas. For product and pricing strategy, it is strengthening private brand product development. The omnichannel strategy combines e-shop and corporate site enhancements to drive store traffic.

Additionally, the company aims to expand its proprietary app membership base as part of its customer loyalty strategy, while promoting efficiency and labor optimization in logistics. Operational strategy focuses on business efficiency improvements, and human capital management emphasizes talent development and workplace environment enhancement.

Through ESG management, Kohnan Shoji pursues corporate value enhancement via sustainability initiatives, community contribution, human resource development, and governance strengthening. Financial management prioritizes balanced cash allocation between growth investment and shareholder returns.

Through these strategies, Kohnan Shoji aims to become a company loved by all and establish itself as Japan's leading comprehensive company for housing and lifestyle solutions.