NJ Holdings Inc. (9421) Stock Price

NJ Holdings is a corporate group with multiple consolidated subsidiaries centered on game and mobile businesses. The company's core operations include planning, developing, and operating games for various platforms, as well as managing retail stores that handle mobile devices and telecommunications services.

The company's primary customers are game users, mobile device purchasers, and telecommunications carriers. Game business revenue comes from game sales, in-app purchases, and operational income. Mobile business revenue is primarily generated from device sales, commissions on telecommunications contracts, and retail store operations.

The business is divided into three segments: "Game Business," "Mobile Business," and "Other." In the Game Business, multiple consolidated subsidiaries including game studios and Tri-Ace handle planning, development, and operations. In the Mobile Business, Nepro Create operates carrier shops and multi-carrier retail stores called "PiPoPark" to provide devices and services. The Other segment includes credit payment-related services.

The company has set targets in its medium-term management plan (fiscal year ending June 2025 through fiscal year ending June 2027) to achieve consolidated operating profit of 400 million yen in the final year, game business segment profit of 600 million yen, and mobile business segment profit of 100 million yen. Fiscal year ending June 2025 marked the first year of the plan. While consolidated operating profit reached 51 million yen against a planned 100 million yen, the mobile business achieved its initial target of 100 million yen through new store openings, and the game business secured 236 million yen despite a challenging environment. Based on these results, the company aims to strengthen business revenue capacity and improve returns on invested capital.

Priority investment areas span both the game and mobile business divisions, with a focus on investing in human resources and on-site expertise. On the game side, the company is developing planning and proposal capabilities among development staff and strengthening core talent, while expanding overseas operations in areas such as translation and market analysis. Differentiation will be achieved through "continuous supply of high-quality content via creator support" and "comprehensive support covering distribution and operations." On the mobile side, the company is leveraging store operations as its foundation to strengthen customer touchpoints through service and events while differentiating from online sales through community-focused services.

Regarding new market development and business expansion, the company prioritizes leveraging expertise and talent cultivated through existing store operations to open new locations and expand store-based businesses. In the mobile business, it will explore store opening opportunities through community-focused retailers such as "PiPoPark" and pursue business development in adjacent fields with high compatibility to store operations. In the game business, it will strengthen expansion into overseas markets and multiple platforms while making small-scale, rapid hypothesis-testing investments to pursue future high-growth areas.

In technology innovation, the company will apply artificial intelligence (AI) to quality improvement and development efficiency automation. Specifically, it will establish systems that achieve high quality with lean teams while minimizing job specialization through quality checks and automated work support, and will increase development productivity and forecast accuracy to address rising development costs. Additionally, the company is working to enhance human capital value through training programs and establish management systems that capture opportunities to acquire intangible assets not readily reflected in accounting.