NIPPON EXPRESS CO., LTD. (E04319) Stock Price

Nippon Express is a comprehensive logistics company that operates integrated logistics services both domestically and internationally. The company handles a wide range of services including truck transportation, rail freight, air and maritime shipping, port operations, and warehousing, providing customers with consistent solutions for their logistics needs. Today, the company operates not only in Japan but also across the Americas, Europe, East Asia, and South Asia/Oceania, building a global logistics network.

The company's customer base spans from manufacturing to retail, with particularly specialized logistics services for industries such as automobiles, electronics, and chemicals. Revenue is primarily driven by its core logistics business, supplemented by stable income from security transport services (including cash delivery) and heavy equipment construction services (for transporting large machinery). While Japan remains the largest revenue source by region, the proportion of overseas business is steadily increasing.

The business is organized into four main segments. The largest pillar, the logistics business, operates across five regions—Japan, the Americas, Europe, East Asia, and South Asia/Oceania—through local subsidiaries that provide region-specific services. Additionally, the company maintains a comprehensive structure to address a wide range of logistics-related needs through security transport services (cash delivery for banks and similar institutions), heavy equipment construction services (including factory equipment relocation), and logistics support services (sales of logistics-related products and real estate operations).

Nippon Express aims to become "a logistics company with a strong presence in global markets" as it works toward its 100th anniversary in 2037. The company targets increasing its overseas sales ratio from approximately 20% in fiscal 2019 to 50% by fiscal 2037, marking a shift from a domestically-focused business structure to a global enterprise. Under the "NX Group Management Plan 2023" currently underway, the company has set numerical targets of achieving 10% ROE within five years and realizing a 5% operating margin within ten years, pursuing non-linear growth.

In priority investment areas, the company is strongly advancing a three-axis approach—"customer axis," "business axis," and "area axis"—centered on five priority industries: electrical and electronics, automotive, apparel, pharmaceuticals, and semiconductors. Nippon Express is deploying the customer base and business expertise cultivated in Japan globally, focusing on expanding ocean and air forwarding operations and developing non-Japanese client bases. The company is also clarifying its M&A strategy to strengthen and expand its global management foundation and enhance market presence.

In new market development, the company is moving away from a customer structure centered on Japanese companies and actively approaching non-Japanese clients in each region. While expanding operations in emerging areas and increasing investment in priority industry sectors, the company is broadening its contribution to customers' global supply chains. Domestically, it is concentrating management resources on major markets including the Kanto, Chubu, and Kansai regions while optimizing its business portfolio.

In technology innovation, the company is actively promoting digital transformation utilizing advanced technologies such as AI, RPA, IoT, and automation and labor-saving equipment. Through practical application of cutting-edge logistics technology, Nippon Express aims to address labor shortages and achieve safe, high-quality operations while securing competitive advantage and improving productivity. Since January 2022, the company has introduced a new group brand logo "NX" and is focusing on global branding activities to enhance brand recognition in world markets.