TSUNAGU GROUP HOLDINGS Inc. (6551) Stock Price

Tunagu Group Holdings operates primarily in recruitment support and human resources services for businesses. The company provides recruitment process outsourcing (RPO), DX recruiting leveraging data and digital technology, and niche job boards as core services, while also operating convenience stores that combine staffing, placement, and training functions.

Key customers are companies in labor-intensive industries such as multi-location retail, food service, manufacturing, logistics, and healthcare and nursing, primarily seeking to improve hiring efficiency and application volumes. The company generates revenue through service fees, bulk purchasing of job advertisements, staffing and placement commissions, and store operations. Its business model is characterized by stable demand that is relatively resistant to economic fluctuations.

Operations are divided into two main segments: Human Capital Business and Staffing Business. The Human Capital Business includes RPO, DX recruiting (including proprietary platform Findin), and segment-specific job boards (Spotwork and Regular Work). The Staffing Business encompasses staffing and placement services, healthcare-specialized talent placement, and convenience store operations that serve dual functions as training facilities.

Tsunagu Group Holdings aims to become "infrastructure for the recruitment market," pursuing growth centered on recruitment support and human resources services. Japan faces a serious labor supply-demand gap due to its aging population and declining birth rate. The company is expanding its business based on projections that this gap will reach approximately 5 billion labor hours annually by 2030. Specifically, it is building a business model resilient to economic fluctuations by combining multiple revenue streams: RPO (recruitment process outsourcing), job advertising, staffing and placement fees, and store operation income.

The company prioritizes investment in expanding and strengthening RPO service capabilities. It is implementing concrete measures to improve response speed, broaden service scope, and optimize recruitment strategy planning and selection processes, thereby enhancing clients' hiring capabilities. Additionally, in industries with high labor demand—such as service, healthcare and nursing care, and logistics and manufacturing—the company is differentiating itself by supporting the use of foreign talent and building circular recruitment models that include alumni (former employees).

For new market development and business expansion, the company is actively pursuing group restructuring and M&A to broaden its service areas. For example, in July 2024, Tsunagu Group Consulting Inc. (formerly AIGATE Career) joined the group, bringing its staffing business for medical institutions and strengthening talent supply in the healthcare sector. Going forward, the company plans to simultaneously strengthen recruitment of dispatch staff and develop new client companies, aiming to expand market share in industries seeking stable supply of immediately productive workers.

Regarding technological innovation, the company is strengthening DX recruiting by leveraging "Findin," its proprietary recruitment service launched in 2016, combined with web advertising, social media, and search engines. Moving beyond traditional job posting platforms, it is improving application volume and hiring efficiency through directing candidates to company career pages and implementing digital tools. The company also plans to actively adopt emerging recruitment services and analytics tools to maximize hiring outcomes.