CRG HOLDINGS CO.,LTD.JP:7041Stock Price

Market cap
¥1.7B
P/E ratio
17.4x
CRG Holdings provides staffing, manufacturing outsourcing, and financial services to corporations across manufacturing, logistics, and retail industries.

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Business Overview

CRG Holdings is a holding company that operates human resources and financial businesses through its group companies. The company provides staffing and recruitment services, manufacturing outsourcing, support for people with disabilities, and on-site services such as interpretation, translation, and accommodation management. It also offers financial services including business loans, merger and acquisition support, and investment and brokerage services.

Major clients are corporations in manufacturing, logistics, retail, telecommunications, and finance sectors, as well as manufacturing subcontractors and tourism-related businesses. The company generates revenue from staffing and recruitment fees, manufacturing and logistics contract income, interpretation and accommodation service fees, as well as interest income from loans and fees from investment and brokerage activities.

The business is divided into two main segments: HR-related and Financial. In the HR-related segment, Mirail handles a wide range of services including office work, manufacturing and logistics, sales support, and technical staffing. Protex operates manufacturing outsourcing and warehouse and transportation services across multiple domestic locations. Palet provides employment transition support for people with disabilities and satellite offices in regional areas. Oshiete provides multilingual interpretation and translation online services as well as accommodation management. On the financial side, the core operations include a lending company and an investment company focused on investments and mergers and acquisitions that create synergies with the group.

Management Policy

As a holding company, the company pursues growth through two core pillars: HR-related services and financial services. It targets improved corporate value by focusing on revenue growth rate and operating profit margin as key performance indicators. To strengthen its business foundation, the company is undertaking organizational restructuring, including the merger of three staffing subsidiaries to establish "Mirail Inc." This approach aims to achieve stable revenue expansion through expanded cross-selling and diversified business risk.

The company prioritizes investment in talent acquisition and development, as well as higher-value services. Specifically, it strengthens the utilization of women, senior workers, and global talent. The company pursues priority project acquisition through "unit-type staffing" (dispatching supervisors and operators as a team), conversion to contract-based arrangements, and commitment-based headcount guarantees to clients. By enhancing the core system "C3," implementing AI-powered matching systems, and improving operational efficiency through RPA (robotic process automation), the company differentiates service levels. It also focuses on high-margin projects targeting middle and executive-level positions to improve profitability.

For new market development and business expansion, the company plans to expand contract manufacturing operations across four existing domestic locations and pursue non-pet-care business areas, with the goal of eventually serving clients' entire domestic operations. It is also establishing a system to accept, train, and eventually dispatch overseas talent from Vietnam and other countries to clients' international locations. Additionally, Oshiete's interpretation and translation platform supports 35 languages with over 2,000 interpreters, while the accommodation management business expands services to inbound customers leveraging multilingual capabilities. On the financial side, the company diversifies revenue through Craylish (which provides business loans) and M&A and investment activities by CRG Investment to capture group synergies, while reducing dependency risk on specific clients.

Regarding technological innovation, the company emphasizes productivity improvements for both clients and itself. It promotes RPA solutions utilizing AI and OCR (optical character recognition), smartphone-compatible attendance management applications, and support for diverse salary payment methods. By providing these IT solutions through custom development and delivery, the company resolves clients' operational challenges while reducing costs through internal automation and developing high-value talent (future AI and RPA implementation support specialists). This strategy aims to increase billing rates and profitability.