HOKURIKU RAILROAD CO.,LTD (E04130) Stock Price

**Hokuriku Railroad Business Overview**

Hokuriku Railroad is a comprehensive transportation and service company based in Ishikawa Prefecture, operating a diverse range of businesses centered on railway and bus services. The company operates bus routes throughout Ishikawa Prefecture and runs two railway lines in Kanazawa City—the Ishikawa Line and the Asanogawa Line—providing essential public transportation for the region. Together with 11 subsidiaries, the company pursues diversified business operations with transportation as its core.

The company's primary customers are commuters, students, and tourists in Ishikawa Prefecture, establishing a stable revenue base through community-focused transportation services. In the transportation business, the company meets daily mobility needs through local buses, highway buses, charter buses, and two railway lines. The revenue structure centers on transportation operations while being complemented by related service businesses.

The company's operations are organized into four divisions: transportation, leisure and services, construction, and real estate rental. The leisure and services division provides diverse offerings including information processing, travel services, driving schools, and airport-related operations. The construction division handles electrical work and road-related projects. The real estate rental division operates apartments and parking facilities, advancing comprehensive business operations by leveraging the regional network developed through its transportation business.

Hokuriku Railway is implementing its new medium-term management plan "Brand Build 2026 ~ Creating a New Hokuriku Railway Group ~" from fiscal year 2024 through 2026, aiming to strengthen its foundation as a community-focused transportation company. The company has newly established its corporate mission as "supporting people's daily lives, acting with integrity, and contributing to regional society as a trusted and accessible presence." Over these three years, the entire organization is working to achieve priority initiatives. The plan outlines a strategy for sustainable growth by balancing the maintenance and development of regional public transportation with stabilization of the business foundation.

The company's most critical investment area is railway line reconstruction. A large-scale 15-year project using a deemed vertical separation model began in April 2025. In collaboration with national and local governments, this project will implement convenience improvements such as introducing new vehicles and promoting cashless payment systems, while conducting major renovations of aging facilities. Through these efforts, the company plans to significantly enhance the competitiveness of the Ishikawa Line and Asanogawa Line, positioning them as a new model case for regional railways and creating differentiation.

In the bus business, addressing the critical driver shortage has become urgent. The company is deploying a personnel strategy focused on both recruitment strengthening and workplace environment improvements. In addition to new hiring through active bus driving experience events and company tours, the company aims to improve retention rates of existing employees through higher wages and improved working conditions. This initiative is positioned as foundational work for continuously fulfilling the public transportation mission and represents a critical strategy directly linked to the company's sustainability.

Regarding revenue improvement, the company is considering early implementation of fare increases to address rising costs from inflation and material price hikes, while continuing capital investment for service enhancements. By attracting diverse customer segments including Ishikawa residents, tourists, and international visitors, the company aims to enhance brand value as a trusted transportation provider through sincere service delivery prioritizing "safety and security."