KYORITSU PRINTING CO., LTD. (E00746) Stock Price

Kyoritsu Printing is a comprehensive printing services company with printing at its core. The company provides integrated services spanning planning and production, pre-press processes, printing, binding and finishing, and delivery. Its main products include commercial printed materials such as catalogs, pamphlets, and flyers, as well as publishing printed materials including magazines and books. The company has built an efficient production system utilizing digital technology.

The Kyoritsu Printing Group operates with seven consolidated subsidiaries, each handling specialized business areas. Subsidiary SIC Inc. handles planning and production, Akatsuki Printing Inc. manages publishing printing and e-book data production, and Nishikawa Printing Inc. provides printing services in the Kyushu region. This regional expansion enables the company to serve customers nationwide.

The company's business scope extends beyond printing through diversification efforts. Imano Inc. manufactures environmentally friendly biodegradable plastic products, while Intermedia Communications Inc. operates a real estate rental business. Through this multifaceted business approach, the company aims to establish a stable revenue base while adapting to changes in the printing market.

Kyoritsu Printing is pursuing a growth strategy aimed at achieving a mid-to-long-term return on equity (ROE) of 10.0% in a challenging printing market environment. The company transitioned to a holding company structure in October 2022 and is enhancing corporate value by expanding investments in digital comic-related businesses and environmentally conscious biodegradable film manufacturing, while maintaining its core printing and bookbinding operations. Through company-wide and cross-departmental "Quality Assurance Projects" and "Profit Improvement Projects," the company pursues both efficiency and profitability by conducting revenue analysis and rigorous quality control on a project-by-project basis.

The company's differentiation strategy prioritizes strengthening its manufacturing operations with quality assurance as the foundation. By conducting manufacturing quality meetings for each order type and ensuring thorough information sharing across departments, the company has established a cross-functional manufacturing design system. Additionally, the company pursues group synergies through clear division of sales activities leveraging each group company's strengths, joint procurement of materials, and coordination of manufacturing and logistics, thereby improving cost competitiveness. These initiatives build a revenue foundation to counter market contraction driven by e-commerce growth and declining newspaper circulation.

For new market development, the company is actively expanding into high-growth sectors beyond traditional commercial and publishing printing. In digital comic-related businesses, it captures growth in the e-book market, while in biodegradable film manufacturing, it aims to develop new revenue streams responding to heightened environmental awareness. Under the holding company structure, the company is building an optimized business portfolio where each subsidiary leverages its expertise to achieve overall optimization.

Regarding technological innovation, the company aims to realize next-generation printing factories with energy efficiency and low CO2 emissions. It continuously implements equipment energy conservation, improved color matching efficiency to enhance equipment utilization, and the 3R activities of reduce, reuse, and recycle. Furthermore, the company has installed solar panels on the roofs of its three factories—Honjo 1st, 2nd, and 3rd—in Saitama Prefecture, simultaneously pursuing environmental impact reduction and manufacturing cost optimization through renewable energy utilization. These environmental initiatives have become strategic measures attracting investor attention from an ESG management perspective.