HIRAGA CO., LTD.
7863・Standard Market・Other Products
Sales Promotion Related Business (Single Segment)
A single-segment company providing end-to-end sales promotion and printing services for the retail industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, FY71 actual) | ¥9,967 million | ¥9,792 million | ↑ |
| Operating profit (full year, FY71 actual) | ¥215 million | ¥365 million | ↓ |
| Ordinary profit (full year, FY71 actual) | ¥288 million | ¥437 million | ↓ |
| Net income (full year, FY71 actual) | ¥188 million | ¥311 million | ↓ |
| Operating profit margin | 2.2% | 3.7% | ↓ |
| Equity ratio | 59.2% | 57.5% | ↑ |
| ROE (return on equity) | 4.4% | 7.5% | ↓ |
| Earnings per share | ¥65.58 | ¥108.37 | ↓ |
| Net assets per share | ¥1,544.35 | ¥1,440.96 | ↑ |
| Cash and cash equivalents at end of period | ¥2,338 million | ¥2,256 million | ↑ |
Business Details
Hiraga Co., Ltd. is a single-segment company in the Sales Promotion Related Business, whose core operations comprise Sales Promotion, planning and management of the Sales Promotion Management System, WEB/SNS digital marketing, and Comprehensive Printing. Its main customers are in the retail industry, and it operates two factories in Saitama and Wakayama, providing comprehensive sales promotion support that combines in-house printing with a proprietary business improvement system. Based on the medium-term management plan SPX2027 (FY2025 (ending March 2025) to FY2027 (ending March 2027)), the company is promoting business structure transformation and expansion into higher value-added areas.
Recent Overview
Net sales rose slightly, but cost pressures caused operating profit to decline sharply by 40.9% year on year
In FY2026 (ending March 2026), net sales were ¥9,967 million (up 1.8% year on year), securing a slight increase in revenue, but operating profit fell sharply to ¥215 million (down 40.9% year on year). The main causes were persistently high raw material prices and outsourcing costs, a decline in orders from certain high-margin clients, increased personnel expenses due to wage base increases and additional holidays (salaries and allowances rose from ¥573 million to ¥610 million), a sharp increase in sales promotion expenses (from ¥106 million to ¥175 million), and higher commission fees paid (from ¥185 million to ¥211 million). Total selling, general and administrative expenses increased by ¥176 million, from ¥1,565 million to ¥1,741 million. On the other hand, the full-scale ramp-up of projects with major retail companies that began transactions in recent years has driven certain sales growth, and in areas excluding specific transactions, both sales and gross profit have been improving. For the following fiscal year (FY2027, ending March 2027), the company forecasts net sales of ¥10,200 million and operating profit of ¥310 million (up 43.5% year on year), anticipating a recovery in profitability.
Key Products
Growth Drivers
- Sales growth driven by the full-scale ramp-up of projects with major retail companies that began transactions in recent years (net sales for FY2026 (ending March 2026) up 1.8% year on year)
- Increase in the proportion of transactions in higher value-added areas through expanded provision of proposals from the marketing design stage and targeted digital initiatives
- Achieving both customer lock-in and productivity improvement through expanded adoption of comprehensive sales promotion support utilizing the proprietary business improvement system
- Strengthening profitability resilience by promoting transformation of cost structures and business processes through DX and in-house systems
- Curbing factory operating costs through revised outsourcing standards and promotion of in-house production (avoiding significant cost increases even amid rising raw material prices)
- Transformation of the revenue structure with a focus on "quality of sales" and healthier value-added portfolio based on the medium-term management plan SPX2027
- Strengthening of the net assets base through an increase in valuation difference on available-for-sale securities (from ¥346 million to ¥570 million) driven by a rise in the market value of investment securities (from ¥687 million to ¥1,029 million)
Risks
- Client concentration risk, whereby a decline in orders from certain high-margin clients directly impacts profit (one of the main causes of the 40.9% year-on-year decline in operating profit)
- Risk of rising cost ratio due to persistently high raw material prices and outsourcing costs (cost of sales increased from ¥7,861 million to ¥8,009 million)
- Continued increase in personnel expenses due to human resources measures such as wage base increases and additional holidays (salaries and allowances increased by ¥36 million year on year)
- Risk of profitability deterioration due to increased SG&A expenses such as sales promotion expenses and commission fees paid (total SG&A expenses increased by ¥176 million year on year)
- Risk of declining orders from existing customers due to the structural shrinkage in demand for paper media and the shift to digital
- Uncertainty regarding achievement of the forecast for the following fiscal year (operating profit of ¥310 million), as profitability improvement remains in progress
- Risk of increased financial burden due to a rise in short-term borrowings (from ¥400 million to ¥600 million)
- Risk of restrained sales promotion investment by the retail industry due to macroeconomic uncertainties such as trade friction, geopolitical risk, and the continuation of negative real wage growth
Last updated: June 29, 2026