KOSHIDAKA HOLDINGS Co.,LTD. (2157) Stock Price

Koshidaka Holdings is a holding company with karaoke as its core business. Domestically, it operates "Karaoke Manekineko" and "One Kara," a single-person karaoke specialty chain, as directly managed stores. The company also owns directly managed stores and holding companies overseas, including in South Korea, and is expanding its business centered on store operations.

The primary customers are individual users and consumer groups such as friends and workplace colleagues. Revenue is primarily generated from room charges based on usage time and food and beverage sales. The company's main revenue pillar is sales from directly managed stores, with real estate rental and bathing facility and food and beverage sales serving as supplementary income sources.

The business is divided into three segments: karaoke operations, real estate management operations, and other operations, with karaoke operations representing the largest share. In addition to domestic directly managed karaoke stores, the company operates bathing facilities called "Manekinoyu" and select food and beverage establishments, and is diversifying its revenue base through overseas expansion.

The company is positioning the final phase of its mid-to-long-term vision "Entertainment as Infrastructure (EIP)" by August 2027 as a pillar of its growth strategy. It is adopting a policy of prioritizing return on assets (ROA), controlling invested capital, and accelerating capital recovery. Specifically, it aims to increase sales through store expansion to grow customer numbers and by enlarging and improving efficiency at existing stores, while enhancing investment returns. Additionally, the company is expanding scale through external acquisitions, such as having a subsidiary assume operations of approximately 70 "JOYSOUND" brand stores as of November 1, 2025.

Priority investment areas are expanding the store network and increasing added value per room. The company plans to accelerate openings in major stations and entertainment districts in the Tokyo metropolitan area, with priority given to the Kansai and Chubu regions. As a differentiation strategy, it is converting karaoke rooms into "Private Entertainment Rooms (PER)" to enhance non-food value and increase customer dwell time and spending per visit. The company is also relocating existing stores to create larger formats, thereby differentiating from competitors and improving profitability.

For new market development, the company is clearly prioritizing international expansion. It will leverage existing direct operations and regional headquarters in South Korea and other markets while refining its revenue model to expand into new areas. Domestically, it is creating customer touchpoints through related businesses such as the hot spring facility "Maneki no Yu" and food and beverage operations centered on karaoke, thereby diversifying its revenue base. While leveraging its direct-operation-focused business model, the company is also using M&A and business succession as growth drivers.

The company is also investing in technological innovation and human capital. Its entertainment platform "E-bo," being rolled out across all stores, is being enhanced with features including personal vocal recordings, screen mirroring, sports broadcast viewing, and game implementation. On the human resources front, the new personnel system WIP (Koshidaka Workstyle Innovation Plan) aims to improve recruitment, development, and compensation. Additionally, new POS system implementation is expected to drive productivity gains. Through these initiatives, the company aims to balance customer satisfaction with operational efficiency while accelerating capital recovery and achieving sustainable growth.