CHUCO CO.,LTD.

Business Details

Operating as a single segment under the corporate philosophy of "contributing to local communities through the advertising business," the company publishes and operates the all-household-distributed free magazine "Happy Media® Chiiki Micchaku Seikatsu Joho-shi®" (Community Close-Knit Lifestyle Information Magazine) and provides advertising agency and sales promotion services. As of the end of March 2026, it publishes 170 titles across 34 prefectures with a monthly circulation exceeding 11.75 million copies in print, and offers "hybrid advertising" combining print with digital media to local governments and commercial/industrial businesses. It promotes nationwide expansion through collaboration with VC (voluntary chain) affiliate companies.

Recent Overview

Achieved five consecutive years of increased revenue and profit, with profitability significantly improved through the consolidation of Chuko Workin and the use of AI

In FY2026 (ending March 2026), the company achieved net sales of ¥12,153 million (up 7.2% year on year), operating profit of ¥387 million (up 24.9%), and ordinary profit of ¥401 million (up 24.4%), marking five consecutive years of increased revenue and profit. Although standalone net sales declined 3.5% year on year due to a review of directly operated magazine distribution areas, this was offset by the contribution of Chuko Workin, consolidated as a subsidiary in July 2025, and productivity improvements from the full-scale operation of the AI system "CAI (Kai)." The standalone gross margin improved from 43.7% to 46.8%, and the operating margin improved from 3.0% to 4.5%. For the next fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥13,000 million and ordinary profit of ¥500 million (a record high), with the dividend also planned to increase from ¥12 to ¥14.

Key Products

Growth Drivers

• Improvement in gross margin and operating margin through full-scale operation of the AI-equipped system "CAI (Kai)," which enhances sales DX and advertisement production efficiency
• Significant strengthening of the recruitment field and creation of group synergies through the consolidation of Chuko Workin Co., Ltd. (Workin / Workin.jp / TalentClip)
• Transformation into a regional data infrastructure company through the promotion of "Hybrid Advertising 2.0" and "AI Driven" initiatives
• Continued strong growth in sales promotion and other services (¥5,280 million in FY2026 (ending March 2026), up 17.9% year on year)
• Acceleration of nationwide expansion through collaboration with VC affiliate companies (trademark usage fees and system usage fee income)
• Strengthening of the business foundation for the next 50 years through the "50X" strategy, looking ahead to the company's 50th anniversary in May 2027

Risks

• Continued rise in cost of sales such as printing and distribution expenses poses a risk of pressuring profitability
• Risk of declining operating margin due to increased personnel expenses (salaries and allowances: ¥2,739 million → ¥3,019 million) and overall rise in selling, general and administrative expenses
• Long-term risk of contraction in the print media advertising market due to accelerating digital shift
• Risk of adverse effects on the domestic economy from heightened geopolitical risks and deteriorating international conditions
• Decline in standalone net sales due to review of directly operated magazine distribution areas (standalone net sales for FY2026 (ending March 2026) down 3.5% year on year)
• Short-term increase in expenses related to integrating and developing newly consolidated subsidiaries such as Chuko Workin, and an increase in provision for doubtful accounts (extraordinary loss of ¥45 million recorded)
• Risk of sluggish regional advertising demand due to widening income disparity between urban and rural areas and an increase in bankruptcies among small and medium-sized regional enterprises