Nokyo Tourist Corporation (E04355) Stock Price

Nokyo Kanko is a travel company affiliated with the National Federation of Agricultural Cooperative Associations. Its core business is planning and selling domestic and international travel packages. As a Category 1 travel agency under the Travel Industry Act, the company handles a wide range of tour packages—both solicited and commissioned—as well as travel arrangement services. It provides travel services primarily to agricultural cooperative members and related parties, while also serving general consumers. In recent years, the company has expanded beyond traditional travel services to include human resources matching services in the agricultural sector.

The company's primary customers are members and stakeholders of agricultural cooperatives, generating stable revenue from both group and individual travel bookings. Revenue is primarily derived from travel product sales commissions and planning fees. Through its consolidated subsidiary Coop Service, the company also sells travel-related products to expand ancillary revenue. Additionally, the company operates as a general insurance agent, diversifying revenue streams through comprehensive service offerings to customers. The company also handles general insurance agency operations to further diversify revenue through comprehensive customer services.

Business segments are divided into "Domestic and International Travel" and "Other." The travel division focuses on planned and arranged tours both domestically and internationally. The Other division develops labor support services as a new pillar, matching farms nationwide with diverse workforces through agriculture-welfare collaboration initiatives. These services connect various workers—including corporate volunteers, side-job workers, and people with disabilities—with agricultural operations, supporting both the development of domestic agriculture and the realization of an inclusive society through socially meaningful initiatives.

In addition to its traditional travel business, Nōkyō Kanko is actively pursuing business diversification to support future growth. The company aims to increase revenue in non-travel sectors from fiscal year 2026 onward, positioning "Regional Co-creation Business" and "Agrimpian® Business" as its second and third business pillars. To establish these new business foundations, the company is making strategic advance investments in personnel allocation. Fiscal year 2025 is positioned as a critical year—the third year of the medium-term business plan—for achieving profitability in these new business areas.

In priority investment areas, Nōkyō Kanko will establish a new sales support division at headquarters to assist branch offices in expanding the Regional Co-creation Business, and will open Regional Co-creation branches in the Greater Tokyo and Western Japan regions to handle direct sales of public tender projects. This business is gaining traction across nationwide branches through educational programs and public tender initiatives, with differentiation strategies that include comprehensive service offerings encompassing international exchange and workforce support programs. Meanwhile, the Agrimpian® Business is in its fourth year of operation and expanding steadily, with plans to open two agricultural-welfare ports in fiscal year 2025 and three additional ports in fiscal year 2026.

In new market development, the company demonstrates distinctive capabilities in the socially significant field of agricultural-welfare collaboration. Through the Agrimpian® Business, it develops markets by serving as a bridge between agriculture and welfare via partnership proposals with JA direct sales outlets and strengthened sales efforts to welfare facilities. In the Regional Co-creation Business, the company is actively entering public tender projects for educational institutions and local governments, aiming to secure revenue sources beyond travel.

Regarding technological innovation, Nōkyō Kanko focuses on strengthening sales capabilities to improve productivity. To address the increasing proportion of younger employees, the company is enhancing educational training programs while implementing operational consolidation for efficiency gains and expanding sales hours and opportunities. Particularly in the Regional Co-creation Business, the company is strengthening support systems from headquarters to branches to maximize sales performance. Financially, the company is working to eliminate accumulated losses through expanded operating revenue, appropriate cost management, and cash flow-conscious management practices.