The stock reacted positively to the great Q1 FY3/26 results. The company’s cross-selling potential is the key driver of this stock’s growth story.

Please refer to the quantified cross-selling opportunities detailed at the conclusion of this update note.

MIC is a company that supports promotional activities for drugstores and manufacturers through its 360° Full Service. This service is designed to address inefficiencies* faced by companies conducting sales promotional activities, providing a comprehensive support solution.

*When multiple manufacturers send separate shipments and promotional materials to the same retailer, it creates logistical inefficiencies and increases labor demands. MIC consolidates these shipments into a unified delivery, streamlining operations and reducing the burden on retail staff and promoters

As a result, the company’s Q1 FY 3/26 was solid as follows:

– Net Sales: ¥3,436 MM +26% y/y

– Operating profits: Y321 MM +77.3% y/y

– Ordinary Profit: ¥336 MM + 74% y/y (margin 9.8%)

– Net profits: Y220 MM + 76% y/y

Key Drivers Behind MIC’s Strong 1Q FY3/26 Performance

1. Expansion of Customer Base

– Initiated joint delivery services with major drugstore chains such as MatsukiyoCocokara & Company and Fuji Yakuhin Group, which began transactions in the previous fiscal year.

– Secured new contracts with multiple restaurant chains and manufacturers, contributing to steady growth in client volume.

2. Growth in Existing Client Transactions

– Increased volume from top-tier existing clients, driven by:

a rise in large-scale promotional campaign projects

– Broader adoption of MIC’s 360° full-service offerings which has led to an increase in sales/customer.

3. Progress in Digital Promotion Services

– Continued expansion of its DX cloud service PromOS, which streamlines promotional operations.

– Grew to 27 accounts, up by 2 from the previous fiscal year-end. 4 Additional customers are planning to use PromOS.

Cross-selling opportunities quantified:

As of FY3/25, the company serves 400 clients.

These clients generated an average of ¥10 million in sales each when using only MIC’s joint delivery service. However, upon adopting PromOS—MIC’s digitized platform—the average sales/client surged to ¥140 million.

Notably, among clients utilizing more than five services under MIC’s comprehensive 360 Full Service offering, the average sales reached ¥1.5 billion, underscoring the significant revenue uplift tied to deeper service integration.

MIC’s Valuations:

Equity Ratio: 77.5%

FY3/26 PE 22.4x

PB: 2.35x

Div yield: 1.34%

My 6/25 note is available for clients. If you’re interested in learning more about MIC and its growth potential, I’d like to invite you to experience my service—completely free of charge. I am confident that once you discover the value I offer, you’ll be glad you gave me a try.

#MIC #DigitalInventoryMgt #Japanesestocks