MIC (300A) is a company that supports promotional activities for drugstores and manufacturers. Although it was newly listed in12/24, the company has been around since 1971.
Originally a printing company, MIC has evolved into a fully integrated provider of promotional solutions, handling everything from planning to production. In response to the shift toward paperless systems, the company has diversified beyond printing, offering campaign management, inventory storage, and joint delivery services—now used by 53% of drugstores in Japan.
Amid labor shortages and rising costs, outsourcing has become more common, positioning MIC as a key player in streamlining operations. To drive growth, the company is leveraging cross-selling opportunities, promoting its joint distribution system as a cost-efficient solution for promotional flyer clients (drugstores) seeking operational efficiency.
MIC’s small size, with a market cap of ¥17 billion, and low liquidity may deter some investors from considering this stock. However, with FY3/25 operating profit growth of 89% and an expected 30% increase in FY3/26, MIC presents a compelling opportunity to monitor. With no foreign ownership, early investors have the chance to be among the first to capitalize on its growth potential.
I’ve outlined the key reasons why MIC warrants your attention below. If you’d like to explore further, feel free to reach out!
Strengths:
1) Differentiation: Seamless one-stop service offerings
The company offers a 360° full-service approach, covering the following areas:
- Consulting for store operations, including strategies to maximize the effectiveness of promotional materials in retail stores.
- System development, such as creating business systems and building databases.
- Business process outsourcing (BPO) services, including designers and sales staff stationed at client locations, as well as campaign management support.
- Creative design for both digital and printed promotional materials.
- Manufacturing services, including printing and processing promotional materials.
- Fulfillment solutions include individual sorting, delivery (either joint or separate), and inventory storage for promotional materials.
- Field support, which involves dispatching personnel to retail stores for merchandising and display setup.
2) Cross-sell opportunities:
Alongside its 360° full-service offerings, the company focuses on strategic services that streamline promotional activities for both retail businesses and manufacturers selling products to them.
Key initiatives include:
- Co.HUB
A logistics service that bundles promotional materials from multiple manufacturers and delivers them weekly to drugstores. This reduces costs, packaging waste, and operational burdens for both manufacturers and retailers. Revenue comes from manufacturers outsourcing their promotional distribution.
Co.HUB has gained strong support from retail drugstores, securing 341 new accounts in just three years.
Japan has approximately 20,000 drugstores, and 54% of them—around 10,500 stores—now receive their promotional materials through MIC’s logistics center before being delivered to individual locations.
This approach not only reduces the burden on stores receiving shipments but also helps cut down on cardboard usage, delivery costs, and CO2 emissions.
- PromOS (Promo DX Cloud Servic)
PromOS is a SaaS-based cloud platform that serves as a core system for managing promotional activities within MIC’s 360° full-service framework.
Retailers and manufacturers use PromOS to issue instructions, track progress, and streamline promotional operations. It also supports customization to meet the specific needs of each client.
PromOS is closely integrated with MIC’s logistics center and warehouse, requiring its usage for full service functionality.
3) A huge TAM
The digital signage market is expanding, with content creation and distribution services growing 6.8% YoY in 2022, reaching Y37.9 Bn. By 2027, it is expected to rise 36.4% from 2022 levels, hitting Y51.7 Bn (By Fuji Chimera Research Institute’s “Digital Signage Market Survey 2023(July 2023)).
This growth is fueled by increased adoption in retail stores, commercial facilities, and restaurants, where digital signage complements traditional promotional tools like posters and POP displays. However, the shift adds to operational workloads, while chronic labor shortages further drive the need for efficiency in promotional operations, i.e. need for MIC’s services.
Financial Summary
For FY3/25, MIC reported revenues of Y12.2 Bn (+21.3% YoY) and an operating profit of Y 990 MM (+88.6%), exceeding expectations.
The forecast for FY3/26 projects revenues of Y13.8 Bn (+12.4%) and an operating profit of Y1.3 Bn (+30.2%), anticipating continued double-digit growth. Following this announcement, MIC’s stock price temporarily hit a limit up.
Weakness:
Reliance on major clients – Sales to Rakuten Group companies and FamilyMart, key customers, accounted for 46.5% of total revenue in FY 3/24.
Mitigants:
As 360° full-service adoption expands among new customers acquired through Co.HUB, the company’s revenue dependency on key clients is expected to decrease.