NISSEN INC.

Business Details

The company establishes direct relationships with client companies in targeted industries, providing integrated one-stop solutions including advertising strategy planning, various sales promotion services, and digital marketing. Following the transfer of all shares in Nissen Printing Co., Ltd. in February 2026, the company transitioned to a single-segment structure. Based on the new medium-term management plan, operations are organized around three core businesses: the "CATV & Regional Community Business," the "Housing Construction & Life Community Business," and the "Brand & Fan Community Business."

Recent Overview

In Q1, revenue and operating profit declined year on year, but ordinary profit and net income increased due to a sharp rise in equity-method gains

In Q1 of FY2027 (ending March 2027) (March-May 2026), revenue was ¥1,556 million (down 1.9% year on year) and operating profit was ¥118 million (down 22.8% year on year), reflecting a decline in core business revenue and profit. On the other hand, equity-method affiliate Hometown Energy Co., Ltd. recorded a gain on power futures valuation associated with rising crude oil prices, resulting in equity-method investment income of ¥41 million (compared to ¥4 million in the same period last year). As a result, ordinary profit reached ¥169 million (up 12.4% year on year) and net income reached ¥124 million (up 16.7% year on year), securing an increase in bottom-line profit. Selling, general and administrative expenses rose to ¥298 million from ¥281 million in the same period last year, reflecting the impact of upfront costs from human capital investments such as the introduction of the executive officer system and the appointment of a CAO/CINO. There is no change to the full-year earnings forecast (revenue of ¥6,600 million, operating profit of ¥500 million).

Key Products

Growth Drivers

• Expansion of orders for the next-generation digital program guide "CCG" and improved operational efficiency and expanded services through AI utilization (CATV & Regional Community Business)
• Maximizing synergy with Asty Co., Ltd. and developing new businesses by uncovering latent needs in the housing and construction industry (Housing Construction & Life Community Business)
• Expanding the client base through systematization and standardization of SNS-driven Fan-Based Marketing (FBM) for restaurant chains (Brand & Fan Community Business)
• Expanding the business portfolio by acquiring and establishing new fourth and fifth markets through M&A and other means
• Strengthening the management execution structure and accelerating growth through the introduction of the executive officer system and the recruitment of advanced talent (CAO/CINO)
• Contribution to ordinary profit from gains on power futures valuation at equity-method affiliate Hometown Energy Co., Ltd. (dependent on market conditions)

Risks

• Revenue dependence on the Asahi Kasei Homes Group (¥1,088 million in revenue in FY2026 (ending March 2026), 16.8% of total revenue)
• Skew in the industry portfolio due to a sharp decline in revenue from the medical and health industry (down 77.0% year on year)
• Risk that orders for the next-generation program guide "CCG" fall short of initial expectations, and the long-term decline in demand for print media in the cable television industry
• Short-term pressure on operating margin due to increased upfront costs from human capital investments (recruitment of CAO/CINO, introduction of the executive officer system)
• Risk of clients reducing advertising budgets due to deteriorating macroeconomic conditions such as inflation, labor shortages, and rising crude oil prices
• Increasing concentration toward major companies in the advertising industry and intensifying competition from new entrants
• Instability in ordinary profit due to fluctuations in gains/losses on power futures valuation at equity-method affiliate Hometown Energy