(E04658) Stock Price

Omote-Zao International Golf Club is a golf course operator based in Miyagi Prefecture. The company operates a full-scale golf course in the Tohoku region with 27 holes and conducts business as a membership-based club.

The company's primary customers are members of Omote-Zao International Golf Club, consisting of regular members (shareholders and those who have made deposits), their family members, and special members. Revenue is generated from annual membership fees (¥25,000 per year for regular and family members) and play fees along with ancillary service charges. Members can play with only their annual fee, while general visitors pay ¥10,190 on weekdays and ¥15,470 on weekends and holidays.

The company's core business centers on operating two courses: the Southeast Course (18 holes) and the West-West Course (9 holes). The Southeast Course also provides caddy services, and the company operates equipment rental services including golf clubs and shoes. Additionally, the company operates a dining facility, sells sporting goods, and provides insurance agency services, offering a comprehensive range of services related to golf course operations.

Omizao International Golf Club is moving away from its traditional business model focused on large corporate tournaments and seeking to establish a new approach. The company has adopted a two-pronged strategy combining "active outreach sales" and "attraction-based sales," maintaining its efforts to engage corporate clients while strengthening its appeal to younger players and women—the drivers of the current golf boom. Through this dual approach, the company aims to recover and stabilize its revenue base, which was impacted by the COVID-19 pandemic.

On the capital investment front, the company is undertaking planned upgrades to its aging clubhouse and course maintenance equipment. Recognizing unexpected repair costs as a challenge, the company plans to strategically allocate maintenance and renewal budgets to simultaneously improve customer satisfaction and operational efficiency. Building a high-profit business structure is also a core management principle, with the company focusing on optimizing cost management.

As part of its new market development strategy, Omizao International Golf Club has prioritized building a retail strategy for individual customers. Drawing lessons from the COVID-19 pandemic, when its traditional strength in securing large corporate tournaments was disrupted, the company is expanding its approach to serve more diverse customer segments. Through strengthened sales capabilities and improved weekday attendance, the company aims to secure stable revenue while building resilience against external risks such as rising energy costs and natural disasters.

The company views high customer satisfaction and talent development as key competitive differentiators. Its management goal is to provide members with "the joy of remaining an Omizao International Golf Club member," while its corporate vision centers on delivering "safety, comfort, and satisfaction" to all visitors. As the company anticipates a normalization of the golf boom following the end of the pandemic, it remains committed to continuous performance improvement initiatives.