JOTETSU CORPORATION (E04116) Stock Price

Jotetsu is a diversified business company headquartered in Hokkaido, with transportation as its core business and operations spanning real estate, retail, and service industries. Its primary business is operating shared buses and charter buses, playing a vital role in supporting regional public transportation. The company forms a group with a parent company and three subsidiaries, conducting regionally-focused, multi-faceted operations.

The company's customer base varies by business segment: in transportation, general passengers and group travelers; in real estate, homebuyers and rental tenants; and in retail, travelers at New Chitose Airport are primary targets. Revenue is generated from multiple sources centered on transportation, including real estate construction sales and rental income, retail sales at airport shops, and management service income from subsidiaries.

Business segments are divided into five categories: transportation, real estate, retail, services, and other. The transportation segment operates route buses and sightseeing buses; the real estate segment handles residential and condominium construction sales and rental operations. The retail segment operates shops within New Chitose Airport; the service segment provides security, facility management, and personnel dispatch through subsidiaries; and the other segment offers care services. The company operates as a comprehensive enterprise supporting Hokkaido's living infrastructure.

Jotetsu has been implementing a medium-term management plan that began in fiscal 2021, pursuing "safety, security, and comfort" while advancing structural reforms to improve financial performance. In the fiscal year ending March 2023, the company's second year under this plan, results exceeded target profits. Leveraging the recovery in tourism demand following the reclassification of COVID-19 to Category 5, Jotetsu aims to achieve planned targets in the final year of its medium-term management plan, with key priorities on improving operating cash flow across all business segments and strengthening financial position.

In the transportation business, the company prioritizes transport safety while focusing on securing drivers through improved working conditions and capturing tourism demand. Jotetsu is advancing the development of new transportation systems through collaboration with local communities and government agencies. In the charter bus business, the company is actively capturing recovering tourism demand by leveraging government programs to enhance tourism services, offering high-value travel packages and premium bus tours.

In the real estate business, amid rising construction costs and price increases, the company is actively promoting market-responsive product supply and joint ventures with other companies to establish stable supply systems. In the rental business, the company is accurately addressing changing customer needs resulting from the pandemic, maintaining high occupancy rates through differentiation from competitors, and pursuing revenue expansion through diversified rental offerings. At the New Chitose Airport retail store, the company is flexibly adapting to changing travel patterns and focusing on providing attractive products and services that meet customer needs in a timely manner.

In the service business, Jotetsu is actively promoting business diversification through AI and IoT technology applications, in addition to strengthening revenue foundations and improving productivity. In the care services business, the company is reducing vacancy periods and improving occupancy rates through enhanced sales operations, while advancing employee treatment improvements through promotion to full-time and semi-full-time positions. The company is pursuing a strategy to enhance competitiveness through both digital technology and human resource development.