MarketEnterprise Co.,Ltd (3135) Stock Price

Market Enterprise operates a business centered on buying and selling used goods through the internet, with three pillars of growth: consumer-focused media and mobile communication services. The company's main strength is its internet-based reuse model, offering individuals and businesses convenient and trustworthy consumption options.

The primary customers are general consumers, with some corporate clients in agricultural and construction equipment representing important business partners. The company secures margins through buying and selling used goods, while generating multiple revenue streams including fees from reuse intermediary platforms, performance-based commissions from media referrals, and subscription income from mobile services.

The business is divided into three segments: "Internet-based Reuse," "Media," and "Mobile Communication." The Internet-based Reuse segment collects products through buying sites such as "Takakuuru.com," manages inventory at 15 nationwide locations, and sells through its own e-commerce platform and major marketplaces, with agricultural equipment also utilizing cross-border e-commerce channels. The Media segment generates revenue through consumer information distribution and customer referrals, while the Mobile segment—operated by a subsidiary—provides services centered on "Kashimo WiMAX," emphasizing simple pricing and streamlined online application and delivery systems.

The company positions its online reuse business as its core operation and aims to maximize corporate value by expanding market share in a growing sector. The reuse market is projected to grow from approximately 3.1 trillion yen in 2023 to 3.3 trillion yen in 2025 and 4.0 trillion yen in 2030. Given that unused items in households are estimated at around 67 trillion yen, the company targets gross profit expansion through increased purchase transactions and higher unit acquisition prices. From the fiscal year ending June 2026, the company plans to reorganize and integrate its media business with online reuse and mobile communications operations, transitioning its core business from the initial investment phase to the investment recovery phase, and aims to increase profits through relative reduction in selling, general, and administrative expenses.

Priority investment areas are optimization of purchase channels, business digitalization, and talent acquisition and development—differentiating the company through enhanced profitability. Specifically, the company aims for high inventory turnover and margin preservation by improving productivity across purchase channels while leveraging its logistics network across approximately 15 nationwide locations and cross-border e-commerce operations. By integrating media functions as its customer acquisition foundation, the company improves customer referral efficiency. In mobile services, it differentiates through simple pricing structures and web marketing for new customer acquisition.

For new market development and business expansion, the company plans to integrate machinery (agricultural equipment) as part of its personal reuse offerings and promote cross-selling of additional products using a shared customer base. While overseas demand remains strong, logistics constraints such as fluctuating shipping costs and container port congestion exist. The company will manage inventory risk while capturing growth opportunities through reviewing domestic transaction ratios and diversifying sales channels. In mobile services, the company plans to expand its medium- to long-term recurring revenue base by strengthening 5G line acquisition, expanding ancillary options, and entering the fixed-line market.

Regarding technological innovation, the company actively promotes DX investments and AI adoption aimed at operational efficiency. Specifically, it is implementing measures to improve per-employee productivity through automation of purchase appraisals and inventory classification, data-driven pricing and advanced marketing, and optimized workforce allocation. Additionally, the company is advancing digital transformation of its management control systems and strengthening internal controls, aiming to achieve both transparent operations and sustainable growth.