Hiroshima Tourist and Golfing Incorporated (E04649) Stock Price

**Hiroshima Golf Tourism Business Overview**

Hiroshima Golf Tourism is a community-focused golf course operator that owns and manages two golf courses in Hiroshima Prefecture. The company operates the Itsuka Course (opened in 1962) and the Shiwa Course (opened in 1971) under the brand name "Miyajima Country Club." Since 2000, the company has transitioned from a leasing model to direct management, consolidating all golf course operations under unified management.

The company's primary customers are members of its country club, consisting of approximately 1,200 individual members and approximately 285 corporate members. Revenue streams include annual membership fees, greens fees, facility charges and utility fees, cart usage fees, and play fees from general users (non-member and guest players). The company has established a stable, recurring revenue model supported by a solid membership base.

The company operates solely in the golf course business and employs different pricing structures for each of its two courses. The Itsuka Course is positioned with relatively affordable pricing to serve a broad customer base, while the Shiwa Course is positioned as a more premium golf facility, with differentiation particularly evident in weekend rates. The company maintains a stable business foundation through membership transfer fees and annual membership fee income.

Hiroshima Golf Tourism is pursuing a long-term growth strategy in response to a challenging operating environment marked by declining golf participation and stagnant consumer spending. The company leverages its strengths—a membership base of approximately 1,500 members built over a long history and community-focused operations—and maximizes the competitive advantages of its course locations to counter the industry-wide trend of declining visitors. While taking a cautious approach to specific numerical targets, the company aims for sustained profit growth based on a stable membership-based revenue model.

In priority investment areas, the company positions course safety and disaster prevention as its top priorities, adopting a strategy of rigorous capital expenditure screening. It carefully evaluates investment projects and concentrates management resources in areas expected to deliver maximum returns, thereby using limited funds efficiently. Through this differentiation strategy, the company seeks to simultaneously improve playing conditions and enhance safety, building trust with members and customers.

Regarding new market development, the company expands its products and services while building on its existing membership system and accurately responding to changing customer needs. Leveraging its strength in operating two golf courses with distinct characteristics—the Itsukaichi Course and the Shiwa Course—the company offers diverse pricing structures and services to meet the needs of a broad customer base. This strategy simultaneously drives existing customer satisfaction and new customer acquisition, aiming to maintain and expand market share.

In technological innovation and operational efficiency, the company prioritizes further rationalization of administrative functions and focuses on cost reduction through digitalization and business process improvements. By combining these efficiency measures with optimized capital investment, the company pursues a strategy to secure profitability even in a challenging market environment and establish itself as an attractive golf course operator.