Hit Co., Ltd. (378A) Stock Price

Hit operates primarily in the planning, development, and placement of outdoor advertising. The company installs digital signage and billboards on rooftops and building facades in commercial districts and roadside locations, generating revenue by selling advertising space. The company maintains strong profitability while expanding its business through the development of large-scale media and multi-panel package offerings in the same areas.

The company's main customers are advertisers such as manufacturers and service providers. In addition to working through advertising agencies, Hit has emphasized direct sales to advertisers since its founding. The revenue structure differs by media type: digital media generates primarily advertising placement fees, while analog media generates advertising placement fees plus construction-related income including installation and removal fees. By owning a large portfolio of proprietary media, the company directly understands customer needs and leverages this insight to develop new services.

The company operates a single "advertising business" segment, classifying digital signage and billboards into commercial district media and roadside media. Hit primarily secures media independently, while also engaging in joint ownership, leasing, and operational management of third-party media. As of June 2025, the company operates a total of 63 media properties with 141 advertising faces. Additionally, the company provides cross-media services including advertising video production and planning (such as 3D naked-eye advertising) and "HIT-movi," which uses smartphone location data, delivering integrated advertising experiences that leverage outdoor advertising.

The company is capturing steady recovery in domestic and international outdoor advertising demand, with large-scale media development in premium locations as its core strategy to expand sales and profits. The Japanese outdoor advertising market expanded to 289.9 billion yen in 2024. The company uses three key performance indicators: the number of its own digital media units, digital media full-capacity revenue, and media utilization rate. Specifically, it targets developing 3-5 large digital media units annually in busy commercial districts. As of June 2025, the company owns 63 total media units with 141 display faces, operates 10 digital media units, generates 7.84 billion yen in digital media full-capacity revenue, and achieves approximately 42.7% media utilization rate. By improving these metrics, the company aims to accelerate capital recovery and expand its revenue base.

Priority investment areas are "large-scale, premium-location media development" and "ancillary service enhancement." New media targets display areas of approximately 80-100 square meters or larger, pursuing rapid capital recovery. The company differentiates itself through bundled product offerings that deploy multiple display faces simultaneously in the same area. Additionally, it strengthens advertising video production capabilities (including "naked-eye 3D" technology), operates a location-based smartphone service "HIT-movi" linked to outdoor advertising, and expands traffic advertising offerings to increase advertiser appeal. On the sales side, the company is reinforcing its team, developing specialized roadside media staff, and strengthening premium plan proposals through marketing initiatives including exhibitions, webinars, and email campaigns to improve media utilization rates.

For international expansion, the company plans to identify and deploy local media primarily in ASEAN markets. Building on past experience, it has converted its Singapore office (HIT SINGAPORE) into a hub for advertising market research and partner development. The company's representative director and chairman maintains a presence there, and a senior manager has been appointed as a company director to strengthen operations. The company plans to invest 3 billion yen in HIT SINGAPORE through June 2028 to acquire digital media and establish new operations in ASEAN, aiming to broaden growth opportunities through local media acquisition and agency network development. The company is also exploring business partnerships and M&A opportunities while developing new businesses with sustainability considerations.

In technological innovation, the company prioritizes productivity improvement through business digitalization (DX). Currently, order processing relies on email, multiple systems require duplicate data entry, and broadcast management depends heavily on operator involvement. The company aims to automate and standardize these processes to reduce non-productive work and allocate more time to sales and planning. Eliminating process dependency in broadcast management, demonstrating advertising effectiveness through data analysis, and reducing operational burden from increased digital media are core elements of the company's medium to long-term technology strategy.