NEXTAGE Co., Ltd. (3186) Stock Price

Nextstage is a company that operates used car sales and automotive retail businesses nationwide. The company provides a comprehensive range of automotive services, including used car sales and purchases, new car sales, vehicle inspections and maintenance, and insurance agency services. With 353 stores across the country, the company builds long-term customer relationships by handling everything from vehicle procurement to post-sale maintenance.

The company's primary customers are individual consumers, with revenue centered on vehicle sales. By providing ongoing maintenance and insurance services to customers who have purchased vehicles, the company aims to increase lifetime transaction value rather than relying on one-time transactions. The core of its revenue model is securing a stable revenue base through after-sales services such as vehicle inspections and regular maintenance, while building relationships that lead to repeat business when customers purchase their next vehicle.

The business is divided into automotive sales operations and other operations, with automotive sales accounting for the majority of revenue. Used car sales are conducted through three formats: "General Stores," "SUV LAND," and "UNIVERSE." For new car sales, the company operates authorized dealerships for multiple imported car brands including VOLVO, BMW, MINI, and AUDI. The company also operates 172 dedicated used car purchase stores, establishing an integrated system from procurement to sales, while its subsidiary ASAP handles car coating services.

NextStage operates under the management philosophy of "a car dealership loved by everyone." The company is pursuing an aggressive growth strategy, targeting revenue of 684 billion yen and operating profit of 24 billion yen for the fiscal year ending November 2026, with plans to improve the operating profit margin from the current 3.0% to 3.5%. The company prioritizes expanding lifetime customer relationships by providing integrated services spanning vehicle sales, maintenance, vehicle inspections, and vehicle buyback, thereby strengthening its sustainable revenue base.

As priority investment areas, the company is focusing on becoming the leading dealership in each region and improving store profitability. The strategy promotes customer satisfaction by aligning with customers' automotive lifestyles across all regions nationwide and enhancing the quality of products, services, and customer service. Additionally, the company is improving productivity through stronger interdepartmental collaboration and operational efficiency improvements, while implementing improvement measures in coordination with headquarters for underperforming stores. In inventory management, the company is strengthening direct sales to automotive dealers in addition to retail and auto auction sales, diversifying sales channels to maximize revenue opportunities.

For new market development and business expansion, the company plans to expand its transaction areas through continuous new store openings, pursuing growth through both improved profitability at existing stores and new store development. In human resources development, the company is strengthening the cultivation of personnel with specialized expertise and problem-solving capabilities, while gradually delegating authority to stores to enhance autonomous responsiveness at the operational level. Securing automotive technicians is a critical priority, and the company is strengthening recruitment efforts and supporting automotive technician schools to develop next-generation talent.

Regarding technological innovation, the company is advancing digitalization to improve operational efficiency and automation. The company is expanding IT tool adoption across diverse operations including inventory management, sales activities, and customer management, aiming to optimize inventory turnover days and achieve appropriate pricing. To address the declining working-age population, the company is leveraging digital technology to improve operational efficiency, simultaneously reducing employee burden and enhancing customer convenience, while strengthening information security infrastructure to build a secure digital environment.