SOUGOU SHOUKEN CO.,LTD.
7850・Standard Market・Other Products
Business
Sogo Shoken Co., Ltd. was founded in 1969 and, based in Hokkaido, operates an Information & Communications Business (single segment) spanning both the advertising and printing industries. The company provides Commercial Printing (flyers, pamphlets, catalogs, posters), New Year's Card Printing, sign product manufacturing, and Web & Digital Content Production under an integrated in-house system, while also handling SP (sales promotion) planning, BPO, internet connection services, and Free Paper & Regional Media publishing. The group, which includes consolidated subsidiaries Print House Co., Ltd. (on-demand printing) and Ajikaori Senryaku Kenkyusho Co., Ltd. (Taste & Aroma Strategic Research Institute; food taste analysis and marketing support), has bases in four areas—Hokkaido, Tohoku, Tokyo, and Western Japan—and serves distribution/retail businesses, municipalities, and general corporations as its main customers. The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The company receives orders for printed materials such as flyers, in-store promotional materials, and catalogs from major clients including distribution and retail businesses, and provides added value through integrated production at its own factories. In New Year's Card Printing, Japan Post (15.87% of sales) and My Print (11.84% of sales) are major business partners. The company combines this with service businesses such as BPO, Web production, and SP planning, giving it a structure that generates revenue as a comprehensive promotional solutions provider rather than being limited to printing alone.
Company Strengths
The company provides Commercial Printing, New Year's Card Printing, sign product manufacturing, and Web & Digital Content Production through an integrated in-house system. The new Shiroishi plant was completed in October 2020 (Reiwa 2), renewing the production base. Total capital expenditure in FY2025 reached ¥455 million, with focused investment in machinery and system development related to Commercial Printing and New Year's Card Printing.
The company operates across four areas—Hokkaido (net sales of ¥7,534 million, its largest base), Tohoku, Tokyo, and Western Japan. In FY2025, order intake grew steadily in the regional areas, up 105.5% in Hokkaido, 107.3% in Tohoku, and 110.5% in Western Japan. A regionally focused sales structure is contributing to the acquisition of new customers.
The company has maintained operating profit for five consecutive fiscal years from FY2021 through FY2025. Operating profit bottomed out at ¥121 million in FY2022 before recovering, reaching ¥351 million in FY2025, an increase of ¥102 million versus FY2021. This improvement reflects a combination of factors, including reduced costs related to New Year's cards, improved profitability in Commercial Printing, and lower depreciation expenses on large printing presses.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue has trended sideways, moving from ¥16,160 million → ¥15,311 million → ¥15,863 million → ¥15,796 million → ¥16,236 million, while operating profit followed a gradual improvement trend from ¥344 million → ¥121 million → ¥200 million → ¥253 million → ¥351 million. However, for FY2026 (ending July 2026), the full-year forecast points to a significant deterioration, with revenue of ¥15,700 million (down 3.3% year on year) and operating profit of ¥210 million (down 40.2% year on year). The fact that cumulative operating profit through the third quarter stood at ¥670 million against a full-year forecast of ¥210 million reflects the seasonal loss structure whereby only fixed costs related to New Year's cards are incurred in the fourth quarter. In terms of the external environment, sustained high raw material prices and the structural decline in demand for paper media are headwinds, while increased inbound demand and the recovery in personal consumption are providing support for promotional demand.
Growth Strategy
Promoting structural transformation away from dependence on New Year's Card Printing through digital and AI utilization and expansion of the sales promotion-related business
Accumulating orders for flyers, in-store promotional materials, and ISP/BPO services associated with major clients' new store openings and sales campaigns, cultivating this as a revenue pillar to offset the contraction of the New Year's Card-related business. Continued pursuit of new orders such as Web-related services and public relations magazine production for local governments. The business achieved revenue growth on a cumulative basis through the third quarter.
Actively increasing investment in generative AI and security measures, simultaneously advancing operational efficiency and new product development. In the short term, upfront costs such as personnel expenses and IT investment have increased, weighing on profits, but this is positioned as human capital investment for sustainable growth.
In response to the structurally declining demand for New Year's cards, the company is working to acquire new operations within its existing business areas, such as newly taking on operations related to a Web-based New Year's card application service. However, this has not been sufficient to offset the decline in order volume, and the supplementary effect remains limited.
Promoting talent acquisition and enhanced employee engagement through improved employee treatment. This has weighed on profits in the short term due to increased personnel expenses (salaries and allowances: ¥1,306 million in the same period of the previous year to ¥1,361 million in the current period), but is positioned as part of the personnel and organizational strategy aimed at realizing the long-term vision.
Last updated: July 17, 2026