CHUOKEIZAI-SHA HOLDINGS,INC.

Business Details

The Group is a single-segment company comprising the "Publishing Business," which publishes and sells specialized books and magazines in the fields of management, economics, law, accounting, taxation, and information, and the "Publishing-Related Business," which handles advertising agency services and other operations. Its major customers are Nippon Shuppan Hanbai (20.7% of net sales) and TOHAN CORPORATION (20.4% of net sales). Founded in 1948 as a specialized publisher, the company provides books and magazines that meet the specialized knowledge needs of practitioners, researchers, and qualification examinees.

Recent Overview

Sales declined but operating profit increased; gain on sale of investment securities pushed H1 net income up 54.7% year on year

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), consolidated net sales were ¥1,666 million (down 1.8% year on year), affected by the shrinking print media market. However, due to a decrease in cost of sales, gross profit improved to ¥640 million (up 1.8% year on year), and operating profit was ¥148 million (up 8.1% year on year). Furthermore, with a gain on sale of investment securities of ¥99 million recorded as extraordinary income, net income attributable to owners of parent increased substantially to ¥201 million (up 54.7% year on year). In the Publishing Business, new titles in the accounting, taxation, and legal fields performed well, leading to successive reprints. There has been no change to the full-year earnings forecast, which remains at net sales of ¥3,096 million and operating profit of ¥100 million.

Key Products

Growth Drivers

• Growing demand for books related to the new lease accounting standards (mandatory application from April 2027) and SSBJ standards (to be applied sequentially from the fiscal year ending March 2027)
• Sales boosted by an increase in the number of reprints of new titles that meet practical needs in the accounting, taxation, and legal fields
• Continued growth in the provision of electronic data to subscription services
• Strengthening of the customer base through diversified communication strategies such as author seminars and note article distribution
• Securing stable demand through expanded adoption of textbooks for university use (in fields such as business administration, macroeconomics, and accounting)
• Strengthening of magazine-article-linked advertising acquisition activities in the Publishing-Related Business

Risks

• Long-term shrinking trend of the publishing market (estimated sales value of books and magazines in the current H1 fell 3.8% year on year)
• Pressure on profitability from rising logistics costs and raw material costs
• Shrinking of sales channels due to the decrease in the number of bookstores and reduction in sales floor space
• Concentration risk in sales channels, with Nippon Shuppan Hanbai and TOHAN together accounting for approximately 41% of net sales
• Risk of a sales gap due to the discontinuation of commissioned magazines and other periodicals in the lifestyle and practical fields
• Impact on corporate activity and publishing demand from a deteriorating macro environment, including US trade policy, exchange rate fluctuations, and overseas economic slowdown
• The full-year forecast anticipates a significant decline in operating profit to ¥100 million (down 57.4% year on year), making recovery of profitability in the second half a key challenge