KOA SHOJI HOLDINGS CO.,LTD. (9273) Stock Price

Coa Shoji Holdings is a business group primarily engaged in the import and sale of active pharmaceutical ingredients (APIs), as well as the manufacturing and sale of prescription and over-the-counter medicines. The company also provides contract manufacturing services, establishing an integrated supply system from APIs through finished pharmaceutical products.

Its main customers are generic drug manufacturers and pharmaceutical companies both domestically and internationally, including contract manufacturing partnerships with major domestic pharmaceutical firms. The company's revenue is driven by API sales, pharmaceutical product sales, and contract manufacturing orders, with additional profit contributions from its own developed generic products.

The business is divided into two main segments: the API sales division and the pharmaceutical manufacturing and sales division. The API sales division provides stable supply of high-quality, cost-effective imported active ingredients while supporting customers from the development stage through analysis, market research, and specification development. The manufacturing and sales division produces and sells prescription and over-the-counter medicines, and operates contract manufacturing facilities that meet GMP standards and are capable of producing high-potency injectable drugs.

Koua Shoji Holdings has established a "10-Year Long-Term Business Plan toward 2030," with specific financial targets of consolidated net sales of 40 billion yen and consolidated operating profit of 8 billion yen. As of the most recent period (fiscal year ending June 2025), the company reported sales of 23.2 billion yen and operating profit of 5.3 billion yen. To close this gap, the company aims to pursue growth through two pillars: active pharmaceutical ingredient (API) sales and pharmaceutical manufacturing and sales. Beyond generic drugs, the company is expanding its API portfolio to include long-listed drugs and authorized generics, advancing its transformation into a specialized pharmaceutical trading company.

Key investment areas include strengthening injection production capacity and diversifying the supply chain. The company is enhancing syringe line capacity at its Zao plant, improving vial line utilization rates, and investing in pharmaceutical warehouses and manufacturing equipment to establish a stable supply system. The company's competitive differentiation lies in its ability to control the entire process from raw material procurement to finished formulations. Leveraging a supplier network of over 90 companies across 10 countries and a domestic customer base of over 100 companies, the company aims to build competitive advantage through supply reliability and speed that competitors cannot match.

For new market development and business expansion, the company is promoting the import and sale of pharmaceuticals manufactured overseas and license-in activities that bridge overseas intellectual property to domestic companies. The company is expanding its contract development and manufacturing services (CDMO) business and launching full-scale contract manufacturing operations at its Zao plant to drive sales growth in the formulation sector, while also pursuing new development initiatives that leverage synergies within the group. These initiatives are concrete measures aimed at expanding market reach and diversifying revenue streams.

Regarding technological innovation, the company is advancing digitalization and AI utilization in both operational efficiency and quality management. By digitalizing order placement, inventory management, and quality testing data, the company is strengthening process management and improving productivity. The company is also reinforcing quality management systems in response to pharmaceutical law revisions, implementing thorough compliance training, and pursuing sustainable growth through capital allocation that balances ESG-conscious equipment investment with returns.