Nakanihon KOGYO CO.,Ltd. (9643) Stock Price

Nakanipon Kogyo's main businesses are operating movie theaters, producing and handling advertising media, and leasing real estate. The company operates movie theaters and food and beverage services through its own facilities and partnerships.

Its primary customers are movie theater visitors, companies purchasing advertising, and tenants. Revenue is primarily generated from ticket sales, food and beverage sales, advertising fees, and rental income. In addition to revenue from its own operations, the company also receives equity earnings from joint ventures.

The business is divided into three segments: movie exhibition, advertising, and real estate leasing. Movie exhibition is operated jointly with the Midland Square Cinema partnership, in which the company holds a 64% partnership interest. The advertising segment focuses on billboard production and advertising agency services, while the real estate leasing segment primarily handles office and commercial space rentals.

The company contributes to local communities through its service business and aims to provide customers with "inspiring services" as its fundamental growth strategy. The cinema business in particular experiences significant revenue fluctuations by title, so rather than setting specific performance targets, the company focuses on "strengthening a stable revenue foundation." Revenue sources center on ticket sales, food and beverage sales, advertising fees, rental income, and equity earnings from joint ventures. The company holds a 64% stake in the Midland Square Cinema joint venture, making co-operative operations an important pillar for revenue expansion. As the company marks its 70th anniversary, it aims to become a facility chosen by customers through talent development and service improvement.

Priority investment areas include content enhancement both inside and outside theaters, as well as improved customer service and product offerings. Specifically, the company is expanding programming through art and anime labels, planning and operating live viewings and theater-exclusive events, and developing renewed and new food and beverage products. Through these initiatives, the company positions "regional film culture promotion" as its competitive differentiator, pursuing a strategy that enhances visitor satisfaction through events and original programming rather than functioning as a mere screening facility.

For new market development and business expansion, real estate rental operations represent a visible initiative. Clinic Terrace Gakuozan is scheduled for grand opening in May 2025, while the Gakuozan Medical Mall Phase Two project is slated to begin construction in June 2025 and open in 2026. In advertising, the company is strengthening sales of exhibition and decoration-related services, expanding cross-selling and deepening existing film-related channels through partnership proposals to general corporations, aiming for combined revenue growth in rental and advertising.

Technology innovation efforts are pursued to enhance customer experience and operational efficiency. The company maintains and upgrades screening equipment, improves audio and video quality, and plans to enhance customer visit patterns through digital sales and strengthened membership services. Additionally, through advanced programming utilizing visitor data and customer feedback, and value creation via food and beverage and event coordination, the company pursues revenue base stabilization with technology and service as dual drivers.