Hikari Tsushin

Basic Information

Stock Code
9435
Industry
Information and Communications
Category Detail
Consumer Electronics Retailers
Prefecture
Tokyo
Establishment Year
February 1988
Listing Year
February 1996
Official Website
https://www.hikari.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ZOA, Kōki, Kyōritsu Information Communications, System Lisa, Benefit Japan, Hiro Holdings, NJ Holdings, ReYuu Japan, Crops, Bell Park, Toshin Holdings, Sakai Holdings

Overview

Hikari Tsushin is a Tokyo-based information and communications holding company founded in 1988. It is the largest independent agency offering services to SMEs and individuals through telecommunications lines, electricity, and home-delivered water sales.

Current Situation

As of March 2023, Hikari Tsushin recorded group consolidated sales of approximately ¥524.5 billion and operating profit of approximately ¥73 billion, maintaining solid performance centered on telecommunications line sales, electricity services, and home-delivered water business. For corporate customers, it provides telecommunications lines and various electricity plans to SMEs, while for individuals, it offers broadband lines and home-delivered water. It previously grew as a major mobile phone sales agency but shifted business models due to changes in the mobile sales market, now focusing on insurance and OA equipment sales. With numerous subsidiaries, it secures a stable revenue base by leveraging diverse sales channels and networks. In recent years, it has promoted bundled proposals of telecommunications and electricity, as well as investments in digital services, enhancing market competitiveness through diversified service expansion. From fiscal 2025 onward, it plans sustainable growth through new product development and sales network strengthening.

Trivia

Interesting Facts

  • Founder Yasumitsu Shigetada was a pioneer in nationwide mobile phone sales agency expansion.
  • Once drew significant social attention due to fictitious mobile phone contract issues.
  • Large organization with over 170 group consolidated subsidiaries.
  • Formerly operated mobile phone sales chains like 'HIT SHOP'.
  • Pioneering presence in Japan's telecommunications sales agency industry.
  • Tokyo Stock Exchange Prime listed since 1999.
  • Information communications holding company diversifying across multiple fields.
  • Maintained stable performance for over 30 years since founding.
  • Company name combines part of founder's name with telecommunications industry.
  • Expands diverse services through numerous subsidiaries.

Hidden Connections

  • Strengthened partnership with Premium Water in home-delivered water business via affiliates.
  • Actively expanding into insurance sector through subsidiary network.
  • Maintains long-term contractual relationships with carriers including NTT.
  • Social attention from past fictitious contract scandal became turning point for management reform.
  • Expanded stepwise from Tokyo-centric stores to nationwide.
  • Stock price volatility that triggered consecutive daily limit-down records on TSE.
  • Built sales network through partnerships with numerous IT and building materials wholesalers.
  • Founder's management approach featured extensively in books for young executives.

Future Outlook

Growth Drivers

  • Increasing demand for bundled telecommunications and energy sales
  • Diversification of services for segmented corporate markets
  • Demand for digital transformation
  • Social trends emphasizing sustainability
  • Expansion of home-delivered water demand in aging society
  • Synergies from strengthened carrier collaborations
  • Digitalization of sales and distribution channels
  • Further expansion of insurance agency business
  • Expansion of services for IoT and smart society
  • Strengthened ties with regional revitalization projects
  • Stable revenue from expanding customer base
  • Ongoing subsidiary integrations and management efficiency improvements

Strategic Goals

  • Expand share in telecommunications-electricity bundled sales
  • Double corporate services sales
  • Sustainable business ratio over 50%
  • 500 billion yen in new digital services sales
  • Strengthen customer base through nationwide expansion
  • Improve productivity via employee DX skills enhancement
  • Achieve community contributions and reduced environmental impact
  • Diversify new business portfolio
  • Improve market competitiveness in insurance agency business
  • Maintain group-wide financial soundness

Business Segments

Corporate Telecommunications Line Sales

Overview
Provides high-speed and secure telecommunications lines and related services to corporations.
Competitiveness
Extensive agency network and diverse proposal capabilities
Customers
  • SMEs
  • IT companies
  • Store owners
  • Local governments
  • Medical institutions
Products
  • Corporate fiber optic lines
  • VPN services
  • Cloud communication services
  • Corporate mobile contracts

OA Equipment Sales and Leasing

Overview
Offers sales and leasing services for high-performance OA equipment.
Competitiveness
Strong partnerships with manufacturers and comprehensive maintenance systems
Customers
  • SMEs
  • Government offices
  • Educational institutions
  • Medical institutions
  • Financial institutions
Products
  • Copiers
  • Multifunction devices
  • Printers
  • FAX machines

Electricity and Energy Sales

Overview
Provides diverse electricity and energy solutions for businesses.
Competitiveness
Bundled sales with telecommunications and responsiveness to customer needs
Customers
  • SMEs
  • Factories
  • Facility managers
  • Commercial buildings
  • Apartment management associations
Products
  • Deregulated electricity plans
  • Energy management services
  • Renewable energy supply

Insurance Agency Business

Overview
Agencies a wide range of insurance products to support risk management.
Competitiveness
Handling of diverse insurance products and consulting expertise
Customers
  • Individual customers
  • Small corporations
  • Medical professionals
  • Nursing homes
  • Self-employed
Products
  • Life insurance
  • Casualty insurance
  • Medical insurance
  • Annuity insurance

Corporate Home-Delivered Water Services

Overview
Provides safe water supply and services for offices and facilities.
Competitiveness
High-quality services and rapid delivery system
Customers
  • Offices
  • Stores
  • Medical facilities
  • Schools
  • Public facilities
Products
  • Natural water delivery
  • Water servers
  • Maintenance services

IT and System Development Business

Overview
Provides IT solutions tailored to various industries.
Competitiveness
Abundant development track record and customer-focused services
Customers
  • Financial sector
  • Insurance sector
  • Manufacturing
  • Services
  • Sales agencies
Products
  • Contract system development
  • Cloud services
  • Security solutions
  • Business efficiency tools

Competitive Advantage

Strengths

  • One of Japan's largest telecommunications agency networks
  • Diversified business portfolio
  • Abundant sales channels
  • Years of market experience and know-how
  • Strong corporate customer base
  • Diverse product lineup
  • Flexible business transformation capabilities
  • Stable cash flow
  • Synergies from numerous group subsidiaries
  • High sales and marketing capabilities
  • Nationwide network of bases
  • Strong fundraising capabilities
  • Robust risk management system
  • Advanced customer service capabilities
  • Comprehensive after-sales service system

Competitive Advantages

  • Bundled proposal capabilities for diverse products like telecommunications, electricity, and insurance
  • Extensive sales infrastructure and customer network
  • Strong sales foundation in both corporate and individual markets
  • Customer retention through long-term trust relationships
  • Rapid market response and flexibility in introducing new products
  • Stable management by experienced leadership
  • Service expansion via diverse subsidiaries
  • Customized proposals tailored to customer needs
  • Regionally focused sales deployment
  • Powerful incentive programs
  • Efficient sales using information systems
  • Continuous investment supported by solid financial base
  • Market analysis from abundant sales data
  • Approach capabilities to diverse customer segments
  • Strategic subsidiary acquisitions and management integrations

Threats

  • Intensifying competition in telecommunications market leading to price declines
  • Risks from regulatory changes in electricity and energy sector
  • Market share erosion by new entrants
  • Risk of lagging behind rapid technological innovations
  • Diversification of customer needs and shifts in advanced demands
  • Demand fluctuations from social changes like COVID-19
  • Operational constraints from strengthened regulations
  • Risks from changes in transaction terms with major carriers
  • Cost increases from exchange rate and material price fluctuations
  • Impacts on logistics and sales networks from natural disasters
  • Increasing cyber security threats
  • Concerns over declining sales power due to talent acquisition difficulties

Innovations

2023: Development of Bundled Electricity and Telecommunications Plans

Overview
Launched bundled plans combining telecommunications services and electricity sales to improve customer convenience.
Impact
Successfully retained customers and increased contracts

2022: Enhanced Digital Marketing

Overview
Introduced AI-powered sales support tools to improve sales efficiency and expand marketing effectiveness.
Impact
Contributed to sales growth and reduced sales costs

2021: Expanded Insurance Product Lineup

Overview
Focused on developing diverse insurance products through subsidiaries to strengthen sales.
Impact
New contracts increased 20% year-over-year

2024: Entry into IoT-Related Services

Overview
Launched IoT-based equipment management services for corporations to secure new revenue sources.
Impact
Improved customer satisfaction and strengthened market position

2023: Automation of Home-Delivered Water Services

Overview
Introduced AI-optimized delivery routes for efficient service operations.
Impact
Successfully reduced delivery costs by 15%

Sustainability

  • Expansion of renewable energy electricity sales
  • Promotion of digital contracts to reduce paper usage
  • Introduction of eco-delivery systems
  • Employee environmental awareness programs
  • Participation in local environmental protection activities