MTG Co., Ltd. (7806) Stock Price

MTG develops brands, products, and services in the beauty and wellness sector, offering home-use beauty devices, EMS training equipment, hair care products, and smart rings. Its flagship brands include ReFa and SIXPAD, which the company strengthens through new product development, marketing, and research initiatives.

The company's primary customers include individual consumers, professional beauty salons and hospitality facilities, retailers such as department stores and specialty shops, and overseas consumers and distribution partners. Revenue comes from three main channels: direct sales through its own e-commerce, mail order, catalog, and TV shopping; wholesale to retail stores and salons; and international sales.

MTG operates its business across six segments: Direct Marketing, Professional, Retail Store, Global, Smart Ring, and Other. Each segment engages in direct sales via company e-commerce and mail order, wholesale to salons and member referral services, face-to-face sales at department stores and directly operated stores, overseas e-commerce and partner distribution, provision of contactless payment rings and payment services, and development of camellia-derived products and mobility and travel-related businesses.

Under its business vision "VITAL LIFE," the company positions revenue and operating profit as key management indicators and aims for stable high profitability and growth. The company has established the "Hikari Philosophy," formulated in 2021, as the foundation of management. Through a group management structure that divides the organization into profit centers directly linked to market conditions, the company clarifies each division's profit and loss, enabling swift decision-making. This approach aims to develop managers with entrepreneurial mindset and realize "management by all employees," where all staff participate in management.

The company has clearly prioritized concentrated brand investment, focusing marketing and research and development spending on core brands such as "ReFa" and "SIXPAD." Using its proprietary brand development system that integrates four elements—Creation, Technology, Branding, and Marketing—the company emphasizes product development based on academic evidence and counterfeit prevention measures. This strategy aims to differentiate through quality and reliability.

As a new revenue base, the company is strengthening recurring business models by launching repeat products and membership services such as "Smart Plan" and "Club Aira" to expand the proportion of steady-state revenue. The company operates diverse sales channels including direct sales centered on its own e-commerce platform, B2B2C through beauty salons, face-to-face sales at department stores and mass retailers, and overseas through agents and local e-commerce. The company is centralizing overseas business management at headquarters and strengthening its agency strategy in Asia to achieve early profitability.

The company positions research and development strengthening as central to its medium- to long-term growth strategy, incorporating technology through partnerships with domestic and international universities, research institutions, and companies. It has established an advanced development process using prototypes and a commercialization process coordinated with intellectual property and quality divisions. Additionally, the company institutionalized environmental and social initiatives by establishing a Sustainability Code in August 2024 and creating a dedicated committee. The company aims to enhance product value from both technological innovation and sustainability perspectives.