*13:09JST C&R Research Memo (9): Performance targets for the fiscal year ending February 2026 are sales of 60.5 billion yen and operating income of 5.65 billion yen.
■Medium- to long-term growth strategy
1. Medium-term management plan
Creek and River Co.＜4763＞has continued to grow by developing its business in professional fields defined by the company, such as video, games, web, medical, accounting, and legal fields. Going forward, in addition to digging deeper into these existing business areas, we aim for further growth by expanding into peripheral areas and creating and developing new services with high added value. The three-year medium-term management plan that started in the fiscal year ending February 2024 has the theme of “creating a prosperous society by creating business together with professionals,” and aims to improve the lifetime value of professionals and contribute to value creation for clients. Based on our vision, we are working to improve our corporate value.
Priority measures include “further expansion of the professional field,” “creation of new services,” “creation of management personnel,” and “strengthening of corporate governance,” with the aim of achieving sales of 60.5 billion yen and operating income of 5.65 billion yen in the fiscal year ending February 2026. is set as a goal. The average annual growth rate for the three years is 11.1% increase in sales and 12.6% increase in profit. The idea is to achieve performance targets based on the growth of existing production and agency businesses, and the expected value of new services and newly established subsidiaries that are being developed are hardly factored into performance targets.
Until the first fiscal year, February 2024, and the interim period of February 2025, business results did not exceed company plans due to the proactive promotion of human resources investment and the time required for structural reforms in the medical field. Although the progress was slightly slower, we hope to catch up in the fiscal year ending February 2026, when the effects of these investments will become apparent. Recently, the demand for human resources is shrinking in some occupations due to the spread of management DX and AI, but the professional human resources developed by the company are difficult to replace with computers, and stable demand is expected to continue in the future. We believe that the company has a lot of room for growth in these areas, as it has built an extensive human resources network of over 390,000 people and can also be expected to expand into peripheral areas.
With the expansion of the number of fields, the long-term goal is sales of 100 billion yen and operating income of 10 billion yen.
2. Long-term goals
The company has set long-term performance targets of 100 billion yen in sales and 10 billion yen in operating profit. In addition to expanding the professional field from the current 8 areas and 18 fields to 50 fields in the future, we will focus on developing new services that make use of the group’s assets, increasing the professional human resources network from the current 394,000 people to 1.5 million people. The company aims to increase the number of customers from 50,000 to 150,000 companies. The engineering field is an area in which they have not yet entered, but they have invested in Nexus Holdings Co., Ltd., which dispatches engineers at the C&R Incubation Lab, and are expected to establish a foothold in the future.
Furthermore, in the future, the company is envisioning a global network of professional human resources, and the platform for this, “C&R Creative Studios Metaverse,” was released in March 2023. It will be Japan’s first metaverse dedicated to work and interaction exclusively for creators. Currently, in addition to exchanges between creators within the group and exhibitions of their works, it is also possible for outsiders to participate in seminars and events. In the future, we will continue to expand various functions such as the exhibition area (collections of creators’ works and exhibitions and presentations), the exchange area (a place for creators and customers to interact), and the seminar room (where events such as live performances and lectures are held). If it develops into a platform that allows overseas creators and clients to participate, it is expected that the company’s revenue growth opportunities will further expand.
(Written by: FISCO Visiting Analyst Yuzuru Sato)
＜MY＞
