ZERO CO.,LTD. (9028) Stock Price

Zero Corporation is a holding company operating a business group centered on automobile distribution, logistics, and maintenance services. The company handles a full range of operations at the field level, including vehicle intake and storage, inspection and maintenance, and shipment. It also operates logistics hubs.

The company's primary customers are corporations such as automobile manufacturers, sales companies, and transportation companies. Revenue is primarily generated from logistics and maintenance services provided to these clients. The company earns sales through service fees based on contracts, transportation charges, and commissions from personnel dispatch and recruitment services.

The business is divided into four operational segments: domestic automotive-related, human resources, general cargo, and overseas-related operations. Domestically, the company handles vehicle distribution and maintenance, cargo transportation using ports and warehouses, and business support through personnel dispatch. Internationally, it is expanding sales and logistics operations primarily in Asia.

The company aims for sustained growth over the medium term, with final-year targets of revenue of 150 billion yen or more, operating profit of 10 billion yen or more, operating margin of 6.5% or more, and ROE of 14.0% or more. Its core strategy is to enhance business scale and profitability by combining its existing vehicle transport operations with adjacent businesses and new services, while flexibly allocating resources—including through M&A—to increase corporate value.

The company prioritizes investment in strengthening its nationwide land and maritime logistics network and improving operational quality. Specifically, it is optimizing transport capacity allocation through regional block organization, implementing rigorous cost management, and reviewing billing and payment systems. It is also differentiating itself by expanding ancillary services such as pre-delivery vehicle maintenance, vehicle registration assistance, used car auction inspection and operations, and car cleaning. These efforts leverage high barriers to entry dependent on transport equipment and skilled personnel, maintaining competitive advantage.

The company is expanding into new markets through its staffing business and international operations. In the staffing sector, it is strengthening dedicated driver dispatch services for airports and corporate vehicle-sharing (mobility services), expanding its customer base into regional cities. Internationally, it aims to increase market share through used car exports to ASEAN and strengthening its China operations, with plans to address emerging demand such as transporting Chinese-made electric vehicles and building integrated logistics solutions. Additionally, the company is considering business expansion through M&A, including yard operations for rental equipment transport and large used vehicle sales.

The company is actively pursuing technological innovation, including digitalization of vehicle dispatch and operations management, and work automation and outsourcing at auction facilities to level workload. These initiatives enable planned dispatch and improved transport efficiency while reducing total labor hours and alleviating field workload, aiming to improve driver and mechanic retention rates. Through digitalization and operational improvements, the company seeks to enhance competitiveness in both profitability and employee engagement.