SANYO SHOKAI LTD. (8011) Stock Price

Sanyo Shokai is a corporate group primarily engaged in the manufacturing and sales of clothing and textile products. The group consists of Sanyo Shokai and three subsidiaries. Operations are managed as a single segment focused on fashion-related businesses centered on apparel.

Sanyo Shokai directly handles the manufacturing and sales of clothing. Additionally, its subsidiary Sanyo Sewing Co., Ltd. is responsible for garment sewing and processing, supplying finished products to Sanyo Shokai through trading companies. This enables an integrated process from manufacturing to sales.

Furthermore, the subsidiary Shanghai Sanyo Fashion Trading Co., Ltd. provides overseas production support operations. This supports a global production system and enables efficient product supply. Additionally, Ecoalf Japan Co., Ltd. manages licensing operations by granting Sanyo Shokai exclusive trademark rights for use within Japan.

Sanyo Shokai's fundamental policy is to create a beautiful and enriched lifestyle culture through fashion and contribute to society's development. The company has formulated a medium-term management plan with fiscal year 2028 as the final year, setting long-term targets of 100 billion yen in sales, 10% operating profit margin, and 10% ROE. To achieve these goals, the company will strengthen competitive advantages in the upper-middle market segment and pursue new growth strategies.

Under the medium-term management plan, the company aims to reach 70 billion yen in sales, 7.1% operating profit margin, and 10.7% ROE by 2028. To accomplish this, the company will actively invest in expanding existing operations through organic growth and securing new market areas. The company will also expand its business domains through brand value enhancement and considers market expansion through M&A.

As part of its brand strategy, Sanyo Shokai aims to enhance the value of its core brands and establish a 10 billion yen sales structure for each brand. In its channel strategy, the company will leverage department stores, directly operated stores, and e-commerce sites to capture new customer segments and enhance brand value. The company will also launch EC-exclusive brands and strengthen the complementary relationship between online and offline channels.

In its capital strategy, the company aims to improve PBR through achieving ROE targets and strengthening investor relations activities. The company will increase profits through growth strategies and M&A, and enhance shareholder returns through improved dividend levels and share buybacks. Cash accumulated through profit maximization will be actively allocated to growth investments, employee benefits, and shareholder returns, with appropriate optimization.