M H GROUP LTD.【JP:9439】Stock Price

MH Group is a company primarily engaged in the beauty industry, operating company-owned salons and providing hair and makeup services. The group provides management guidance across all operations and delivers services leveraging its scale.

The company's main customers are individual salon users and business operators such as salon and beauty shop owners. Revenue is primarily generated from company-owned salon sales and fees and sales from services provided to salons. Additionally, revenue is supported by human resources-related career support services and salon operations overseas.

The business is divided into major segments: company-owned salon operations, business partner (BS) salon operations, hair and makeup services, salon support services (payment processing, POS system sales, premium property referrals, etc.), and career design services. The group also operates BS salons through subsidiary companies in China and South Korea, expanding its service offerings both domestically and internationally.

The company is positioning itself in a "second founding period" with the fiscal year ending June 2030 as its target milestone. Specifically, it has divided this into two phases: a "runway" period from July 2024 to June 2027, followed by a "leap forward" period from July 2027 to June 2030. During this time, the company will focus on strengthening profitability and restructuring existing operations. It is prioritizing return on equity (ROE) as a key metric for shareholder returns and operational efficiency, with the goal of building a stable and profitable business model.

Key investment areas include strengthening direct salon operations and expanding salon support services. As customer traffic recovers, the company aims to increase spending per customer while investing in recruitment, training, and retention initiatives to improve both customer and employee satisfaction. The company also plans to differentiate itself through new men's salon openings to meet market demand, direct-to-consumer (D2C) sales of private brand (PB) products, and rebranding existing salons to increase brand visibility.

For new market development, the company emphasizes both supporting existing locations and opening new stores domestically and internationally. It will continue overseas expansion, including BS salon operations through group companies in China and South Korea, while actively pursuing beauty-related acquisitions to create new revenue streams. The company sees growth potential in its hair and makeup studio, bridal, and media divisions through improved conversion rates and enhanced capacity, and plans to strengthen partnerships and secure talent to drive bottom-up growth.

The company is pursuing technological innovation in both digitalization and environmental sustainability. Salon support services such as payment processing and POS systems remain strong, and the company has begun offering B2B credit payment processing alongside its traditional B2C services. Through business process optimization, enhanced customer service via data utilization, and initiatives in digital transformation (DX) and environmental sustainability (GX), the company aims to strengthen its industry presence.