CHIIKISHINBUNSHA CO.,LTD.
2164・Standard Market・Services
Business
Chiiki Shimbunsha Co., Ltd., founded in 1984, is a community-based advertising media company that publishes the weekly free newspaper "Chiiki Shimbun" (Community Newspaper) with a circulation of approximately 1.74 million copies across 40 areas in Chiba and Ibaraki Prefectures, centered on Chiba Prefecture. Its core business is the "Newspaper Publishing Business," which integrates advertising space sales, production, and door-to-door delivery, while the "Advertising-Related Business," comprising the flyer insert distribution business and comprehensive sales promotion support business, accounts for approximately 94% of net sales. The company complementarily operates a Real Estate Business (rental apartments and rental land in Ichikawa City, Chiba Prefecture) and "Other Businesses" such as web, culture, and educational media. Listed on the Growth Market of the Tokyo Stock Exchange.
Business Model
Sells advertising space in "Chiiki Shimbun" (a community newspaper) either directly or through advertising agencies, providing an end-to-end service from ad production to distribution by approximately 2,500 "Posmate" (door-to-door distributors). By subdividing areas into units of 500 to 1,000 households, advertisers can flexibly set their trade area from pinpoint targeting to broad coverage. Revenue is diversified through inserted flyer distribution, contracted work for government publications, and event planning. Real estate leasing income functions as a stable revenue source.
Company Strengths
As of the end of August 2025, the company publishes 40 editions with weekly circulation of approximately 1.74 million copies, mainly covering northwestern Chiba Prefecture and southwestern Ibaraki Prefecture. It has independently organized and operates a door-to-door distribution network of approximately 2,500 "Posmates," maintaining a high distribution reach rate that extends even to households not subscribing to general newspapers. The segmentation into areas of 500 to 1,000 households is a differentiating factor not found among competing media.
The company holds tangible and intangible assets including approximately 7,000 client companies annually, interactive relationships with approximately 60,000 readers, and a distribution staff of approximately 2,500 people. These form the foundation of the "Asset Utilization-type Sea Power Strategy," functioning as a receptacle for external alliances such as membership in Chuko VC (a nationwide network of 13 million households) and the business alliance with Tsunagu Group.
The company utilizes a proprietary Geographic Information System (GIS) customized by region to visualize advertisers' target customers, enabling efficient distribution of inserted flyers. It has captured demand from a wide range of industries including real estate, ceremonial occasions (weddings and funerals), home renovation, schools, and election-related services, and is preparing to introduce an ordering system to accommodate growing demand.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of the third quarter of FY2026 (ending August 2026), net sales came to ¥2,525 million (up 7.9% year on year), marking the highest sales growth rate in the past five fiscal years. Gross profit was ¥1,796 million (up 7.1% year on year), and operating profit improved substantially to ¥69 million (up 119.9% year on year). However, the recording of ¥104 million in expenses related to responding to a case of coordinated conduct as an extraordinary loss resulted in a quarterly pre-tax loss of ¥62 million and a quarterly net loss of ¥67 million, causing the company to fall into a net loss for the period. As an external factor, a recovering trend in advertising demand has been boosting sales, while concerns over economic deterioration stemming from geopolitical risk remain. On the financial front, the issuance of new shares improved the equity ratio from 28.4% (at the end of the previous fiscal year) to 36.1%, strengthening the financial base. Operating profit over the past five fiscal years has followed an improving trend: FY2021 -¥51 million → FY2022 ¥9 million → FY2023 -¥21 million → FY2024 ¥34 million → FY2025 ¥46 million, and for FY2026 (ending August 2026), on a basis excluding one-time expenses, operating profit was ¥126 million, indicating a substantial improvement in underlying earnings power.
Growth Strategy
The SEAPOWER Strategy aims for discontinuous growth through asset-utilizing alliances, underpinned by stable revenue from core businesses.
The company is opening up its proprietary assets—a distribution network covering approximately 1.74 million households, roughly 60,000 readers, and about 2,500 distribution staff—to other companies, promoting the creation of new services with alliance partners. On April 13, 2026, the company disclosed "Strategic Plan～mid-term～ Series XIII," updating its strategic progress, and is targeting a market capitalization scale of ¥10 billion.
The company has expanded media offerings including "Hakken Tanken," "Bu-Labo," "Overture," and "Happiness," achieving approximately 19% year-on-year growth in cumulative sales of these media through the third quarter. The switchover to integrated publication of "Happiness" within "Chiiki Shimbun" has optimized printing costs, also contributing to improved profit margins.
In the flyer insert distribution business, which provides high-value-added services utilizing GIS, the company is preparing to introduce an order management system to respond to expanding demand. Strong performance continues in sectors such as renovation, funeral services, real estate, and gas stations, and expansion of order-taking capacity through system development is expected.
In addition to production and distribution contracts for municipal publications, centered on the contracted distribution work for "Chiba Shisei Dayori," the company is promoting national client development through shopping center event planning and operation, as well as flyer insert proposals to nationwide free papers in collaboration with VC member companies. The number of contracted projects is steadily increasing due to strengthened organizational structure.
On April 15, 2026, the company listed on the main market of the Fukuoka Stock Exchange, strengthening ties with Fukuoka City, which is focused on supporting startups and creating new industries. This is expected to accelerate the practical deployment of the regional co-creation platform and build relationships with new candidate alliance companies.
The company is earning rental income as expected from real estate acquired in the previous fiscal year, recording cumulative sales of ¥33 million and segment profit of ¥22 million through the third quarter. This functions as a hedge against revenue fluctuation risk in the advertising-related business, serving as a stable revenue source.
Last updated: July 17, 2026