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ネオマーケ Research Memo(7):売上高・営業利益の増大及び企業価値の向上を目指す(1)

Neo Market Research Memo (7): Aiming for an increase in revenue and operating profit, as well as an enhancement of corporate value (1)

Fisco Japan ·  Dec 12, 2024 10:37

■Neo Marketing <4196>’s mid-to-long term growth Global Strategy

1. Medium-term management plan

The company has established a three-year mid-term business plan (from the fiscal year ending September 2024 to the fiscal year ending September 2026). Up until the fiscal year ending September 2023, a corporate structure was built to provide services in marketing support, and a customer base and support achievements were accumulated. Going forward, as it enters a growth phase, the first mid-term business plan was formulated. In the initial year of the plan, fiscal year ending September 2024, a temporary decline in profitability was observed until the newly hired sales personnel become effective, but in the final fiscal year ending September 2026, it anticipates the active involvement of the new workforce, setting extremely ambitious numerical targets of revenue 4,000 million yen (a 75.8% increase compared to the fiscal year ending September 2023), operating profit 500 million yen (a 60.5% increase), and ROE 24.2%, among others, as it starts.

However, the performance for the fiscal year ending September 2024 fell significantly short of initial expectations due to the need for more time to train new hires and delays in acquiring customers. Therefore, based on the current situation, the numerical targets of the mid-term business plan have been revised downward, with the new plan for the fiscal year ending September 2026 set at revenue 3,100 million yen, operating profit 250 million yen, and ROE 20.5%, as part of a renewed plan to work toward achieving these targets. Achieving these numerical targets aims to enhance corporate value.

The revised sales volume targets for the fiscal year ending September 2026 by service are as follows: Incyte driven 729 million yen (an increase of 47.3% from the fiscal year ending September 2024), customer driven 1,141 million yen (an increase of 34.9%), digital marketing/PR 663 million yen (an increase of 64.5%), and customer success/ETC 565 million yen (an increase of 60.5%). These sales targets are based on ground-up assessments. Additionally, the key KPIs for achieving the numerical targets for the fiscal year ending September 2026 on a standalone basis are planned as follows: 86 marketing consultants (an increase of 34), 980 trade partners (an increase of 260), and a customer unit price of 2.95 million yen (an increase of 0.17 million yen).

To support medium-term corporate growth, active investments in human resources will be made, leading to an increase in the number of trade partners, while aiming to raise customer unit price by expanding service offerings. Furthermore, there are plans to promote integrated services from research such as Incyte driven and customer driven to marketing initiatives such as digital marketing and PR.

(Written by FISCO guest analyst Nozomi Kokushige).

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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