SHIMOJIMA Co.,Ltd.JP:7482Stock Price

Market cap
¥33.1B
P/E ratio
13.1x
Shimojima sells packaging materials like paper bags, plastic bags, and wrapping supplies to businesses and consumers through stores, dealers, and online channels across Japan and Asia.

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Business Overview

Shimojima Co., Ltd. is primarily engaged in the sales and procurement of packaging materials. Specifically, the company handles paper bags, wrapping paper, plastic bags, adhesive tape, string, ribbon, and store supplies. Shimojima operates alongside 9 consolidated subsidiaries, 3 non-consolidated subsidiaries, and 1 affiliated company under the equity method.

Shimojima's business is divided into three sales divisions: the sales division, the retail store division, and the mail-order division. The sales division conducts dealer sales to secondary wholesalers and packaging supply retailers, direct sales to end users, and wholesale sales to franchise partners under the "Package Plaza" brand.

The retail store division handles direct sales through physical stores. The mail-order division operates e-commerce sales through the internet. This multi-channel approach allows the company to serve a diverse customer base.

Shimojima's suppliers include Saikō-sha, Asahi Resin Industry, Shimojima Seibag, and Shimojima (Shanghai) Trading Co., Ltd. Saikō-sha manufactures sealing materials, while Asahi Resin Industry produces plastic bags and other chemical products.

In addition to Shimojima's direct sales, subsidiary companies handle specialized distribution: Reido Shoji sells floral and gardening materials, Mitachi Package sells industrial-related materials, and Ōkura Sangyo sells hygiene products for hospitals and care facilities. This structure leverages specialized expertise across different sectors.

Logistics operations are primarily outsourced to Shimojima Processing Paper. Internationally, Shimojima (Shanghai) Trading Co., Ltd. handles sales and trading in China, while Taiwan Shimojima Packaging Co., Ltd. operates retail stores and conducts sales activities in Taipei. This enables the company to maintain a global business presence.

Management Policy

Shimojima Corporation's core mission is to contribute to building a comfortable society through packaging products. The company aims to be a total partner delivering vitality to customers through "Packaging × Service," with long-term strategies focused on business expansion, strengthening management foundations, and reinforcing management structure.

Under its medium-term management plan through March 2026, the company targets revenue of 65 billion yen, an operating profit margin of 5.5%, and ROA of 8.5%. Notably, through the "Shimojima Online Shop 1 Million × 1 Million Project," the company is significantly increasing product variety and membership to strengthen sales capabilities.

For product strength enhancement, the company is prioritizing the development and promotion of environmentally conscious products. It has developed PFAS-free oil-resistant bags and paper food trays, aiming to make 20% of original products environmentally conscious by 2030. This contributes to realizing a sustainable society.

To strengthen management foundations, the company is promoting management with awareness of capital costs and stock price. With a target to raise ROE to 8.0%, it is working to expand equity spread. Additionally, through enhanced information disclosure and investor dialogue, the company aims to reduce capital costs.

For management structure reinforcement, the company is advancing sustainability-focused management. This includes tree-planting activities in Shimojima Forest and recycling used cardboard, emphasizing environmental contributions. The company is also fostering an open and candid corporate culture through improved employee engagement and diversity promotion.

Through these initiatives, Shimojima is advancing sustainability-focused management toward realizing a sustainable society and aims to provide happiness to all stakeholders.