(E02537) Stock Price

Nichi Kyohan Co., Ltd. is a wholesale company that handles education-related publications and equipment. The company's core business includes distributing approved textbooks used in elementary, middle, and high schools, as well as selling dictionaries, study guides, and specialized books. It also provides distribution services for educational software and electronic dictionaries. Product delivery and logistics are integral parts of its service offerings.

The company's primary customers are schools and bookstores throughout Japan, where it plays a key role in supplying stable educational materials and equipment to schools. Revenue is primarily generated through commissions on distribution sales, positioning the company as a middleman distributor supporting the flow of textbooks and books. Additionally, rental income from its headquarters building serves as a secondary revenue source.

The company's business is divided into two main segments: "Publication Distribution Sales" and "Real Estate Rental." The Publication Distribution Sales segment handles the distribution of textbooks, books, and information equipment, as well as e-commerce operations and global talent development programs. The company operates in coordination with its subsidiary Book Mall Japan Co., Ltd., while another subsidiary, Tosho Ryutsu Co., Ltd., is currently dormant.

Nichi-Kyohan, a specialized distributor in the education sector, is advancing a growth strategy that responds to the wave of digitalization. For bookstores, the company is strengthening proposal-based sales through advanced sales infrastructure, including MOST data for bestseller lists and VISUAL書店WEB, a screen-based ordering system. For special distributors and out-of-store sales divisions, the company provides web-enabled solutions such as "採用WEB" and "特約ネット," supporting customers' operational efficiency while enhancing its own competitive advantage.

As a priority investment area, the company is expanding partnerships with digital educational content developers to address digitalization needs in educational settings. It is advancing work to optimize educational materials received from publishers as digital content, seeking to move away from its traditional paper-based business model. Additionally, "Famima Print," which uses Family Mart copy machines to sell problem sets on a page-by-page basis, is expanding its item count and showing strong growth as a new revenue stream.

In new market development, the company is building its own proprietary e-book platform business to strengthen its response to educational digitalization. It continues business partnerships with Nippon Shuppan Hanbai, expanding its business scope through proposal activities to bookstores and publishers leveraging return data, and undertaking sales operations based on its sales expertise. The company's YouTube channel "Nichi-Kyohan Promo Channel" distributes seasonal promotional videos, actively engaging in digital marketing.

On the organizational front, the company is improving productivity through strengthened inter-departmental coordination and enhanced employee training. By establishing a robust and efficient organizational structure, Nichi-Kyohan aims to strengthen its earnings base. As a specialized distributor in the education industry, it pursues sustainable growth while fulfilling its mission to lead the market.