(7818) Stock Price

Transaction is a holding company group that handles miscellaneous goods from planning and design through contract manufacturing, quality control, and sales on an integrated basis. The company directly sells made-to-order custom products to corporate clients based on customer specifications, supplies easy-order items from its own planning to wholesalers, and also conducts direct sales through its EC (e-commerce) site.

Its primary customers are end-user companies, wholesalers, and general consumers through e-commerce. Revenue is primarily generated from corporate sales through made-to-order production, wholesale of forecast-based inventory products, and direct sales via e-commerce. The company maintains inventory for wholesalers to meet short lead times while securing added value and profitability through made-to-order production.

The business is organized into separate divisions by function, with roles divided among planning, design, and engineering; domestic printing, processing, inspection, and packaging; sales and order management; and overseas production quality control and trade. Operating as a fabless manufacturer, the company leverages optimal factories to respond quickly to market changes and offers its product portfolio across four categories: eco products, lifestyle products, wellness products, and design-related services.

The company is pursuing growth based on its Fifth Medium-Term Management Plan (fiscal year ending August 2026 through August 2030), with clear numerical targets. Specifically, it aims to increase e-commerce sales 2.5 times over five years, double entertainment (IP) related sales in the same period, and increase climate change and disaster prevention product sales 2.5 times over five years. The company has also secured 4 billion yen for M&A funding and plans to allocate approximately 25 billion yen of its five-year cumulative operating cash flow of roughly 250 billion yen toward growth investments and shareholder returns. Regarding dividend policy, the company targets a payout ratio of 40% or higher and aims for consecutive dividend increases with a minimum DOE (dividend on equity) of 7%.

The company has identified priority investment areas as online sales (e-commerce), entertainment products (IP), and eco-related and disaster prevention product development. Its competitive advantage lies in handling the entire process from planning and design through printing, processing, inspection, packaging, and sales. The company secures profitability through both made-to-order production with added value and maintaining inventory for wholesale customers to ensure short lead times. On its own e-commerce platform, the company visualizes printing and processing workflows. By opening the platform to other manufacturers' products, it expands customer choice while streamlining administrative tasks and processing arrangements for sellers—providing benefits to all three parties.

The company is actively expanding into overseas markets and new sales channels. Specifically, it plans to launch five new specialized e-commerce sites in addition to its existing B2B site, aiming to increase the e-commerce ratio and expand its customer base. In the entertainment sector, the company directly sells its own planned products through its e-commerce platform and pop-up stores while pursuing overseas expansion to double sales over five years. Additionally, through M&A and business investments, the company plans to strengthen its business foundation by bringing manufacturing, logistics, and distribution in-house and expanding into new product categories.

Regarding technological innovation, the company is promoting AI and digital transformation (DX) company-wide. It is implementing measures to streamline sales and marketing, enhance its e-commerce platform to complete the entire process from order to sales to payment, and leverage accumulated and analyzed customer data for new product development and promotional activities. The company is also strengthening on-site investigations and production process visualization to refine inventory management and manage supply chain risks. Through setting KPIs for diversity and employee development, the company aims to drive sustainable growth by leveraging both technology and human capital.