DAIICHI CO.,LTD. (7643) Stock Price

Daiichi operates 26 supermarket locations nationwide, primarily focused on groceries. The company centers its business on daily food sales and manages store operations along with related activities.

The primary customers are local households and residents, with daily shopping needs forming the core of sales revenue. The company's earnings are mainly derived from food sales at its stores, with rental income from in-store tenants and leasing portions of shopping center properties serving as an important additional revenue source.

The business is divided into two main segments: supermarket operations and ancillary rental operations. The supermarket segment handles everyday consumer products including fresh produce, prepared foods, and daily necessities, while the ancillary segment provides tenant management support and property lease administration.

The company's core growth strategy is a community-focused dominant market approach, aiming to increase sales share in the Obihiro, Asahikawa, and Sapporo regions. Recently, in fiscal periods 70-71, the company opened one new store in Obihiro and three in Sapporo, achieving a 20 billion yen sales target in the Sapporo region. For the full fiscal year ending September 2026, the final year of the medium-term management plan, the company projects net sales of 61.5 billion yen (5.0% increase year-over-year), operating profit of 1.68 billion yen (28.4% increase), and net income of 1.2 billion yen (22.5% increase). The company targets a return on assets (ROA) exceeding 10% and a price-to-book ratio (PBR) of 1.0 or higher, focusing on financial and profitability improvements.

Key investment priorities include realizing low-cost operations through store expansion and standardization, while enhancing customer satisfaction. The company is establishing store development standards to maintain competitiveness and differentiating through strengthened core products focused on freshness and quality, as well as private brand expansion. On the human resources front, the company is expanding educational investments through external seminars, in-house training sessions, and instruction by specialist lecturers to improve labor productivity and customer service quality, thereby enhancing store profitability.

New store openings and strategic store replacement are central to the plan. Going forward, the company will prioritize new openings in the Asahikawa region, where expansion has lagged, while optimizing the store network through existing store revitalization and competitive measures. Additionally, the company views rental income from in-store tenants and land leasing as part of its revenue base, aiming to achieve medium-term targets through increased revenue from new store operations.

On the technology front, the company is strengthening product development capabilities and promoting operational improvements. By enhancing product development expertise, the company will increase the added value of prepared foods and processed items. In store operations, standardization of tasks and efficiency tools will reduce labor and utility costs. The company is also investing in strengthened governance, disaster preparedness, and compliance enforcement to reinforce its management foundation, pursuing sustainable growth and shareholder returns in tandem.