Company Overview

1. Business Overview. P-B Systems <4447> is an independent SIer based in Fukuoka, with expertise in system virtualization technology and strong cloud-based infrastructure building capabilities that builds various information systems for mid-sized enterprises, SaaS providers, and public agencies. The secure cloud system business is the core of the business, supporting total security, resilience building related to cybersecurity, and the realization of DX with cloud technology, ranging from digital work promotion to experience-sharing VR theaters with MetaWalkers, a series of emotional system businesses. The company is also fostering metaverse businesses. The company has claimed to have been a "small group of professionals in system virtualization" to date. However, steering toward further growth in the future, the company plans to expand its scale from the FY2024, aiming to transform itself into a "professional group of hybrid clouds."

Beauty Kadamb Holdings Co., Ltd. (3041) focuses on providing fresh flower altars and offering flowers to funeral-related companies in the "Fresh Flower Altar Business," as well as supplying fresh flowers to the fresh flower altar department and selling flowers to funeral-related companies and retail stores in the "Fresh Flower Wholesale Business." It mainly consists of the "Bridal Floral Arrangement Business" that produces and sets up floral products for wedding venues, and the "Other Business" including system development. The main "Fresh Flower Altar Business" accounts for about 55% of revenue and most of the profit.

(1) Fresh Flower Altar Business

They provide services to funeral-related companies ranging from the production of fresh flower altars and floral offerings to their setup. Beauty Hanadan Higashi Nihon Co., Ltd. (Tokyo), Beauty Hanadan Nishi Nihon Co., Ltd. (Kumamoto), and Hanatoki Co., Ltd. (Okinawa) have expanded their sales bases nationwide. As pioneers of fresh flower altars, they differentiate themselves through their long-established high technical skills and design, aiming to expand their market share by a strategy that balances differentiation and cost reduction through their unique distribution system and bulk procurement.

※ A fresh flower altar is a funeral altar created using only fresh flowers. By bringing fresh flowers to funeral sites and decorating the altars according to specifications, various original ideas tailored to the altars have become possible. They have evolved into three-dimensional fresh flower altars with a broad spread. The company has been a pioneer in fresh flower altars and introduced the style to the Kanto region for the first time, widely popularizing it.

(2) Fresh Flower Wholesale Business

Utilizing information obtained from domestic and foreign producers, wholesale markets, wholesalers, and retail traders, they procure products tailored to customer needs and wholesale them to funeral-related companies and flower retail stores nationwide, including their own "Fresh Flower Altar Business" and "Bridal Floral Arrangement Business." The business was consolidated under My Success Co., Ltd., a subsidiary established in October 2013. They have strengths in unique distribution systems such as collaboration with central and local wholesale markets nationwide and networks with producers. They are engaged in building logistics networks, exploring new production areas, and developing new products, focusing on partnering with Agri Flower Co., Ltd., which handles the production and sales of flowers.

(3) Bridal flower arrangement business

Mainly providing services to wedding venues (hotels, specialized venues, guest houses, restaurant weddings, etc.) by creating fresh flower products such as table flowers and bouquets for weddings, including setting up. Handled by Beauty Flower Garden Western Japan (formerly One Flower). In recent years, although the number of marriages in Japan is decreasing, efforts are being made to enhance profitability through the creation of business synergies, exploration of new business partners (Kansai and Kyushu areas), and enhancement of added value.

(4) Other businesses

Consists of system development handled by SHF, a subsidiary established in April 2014, consultant services for ceremonies and celebrations provided by Ceremony Services Inc., established in December 2012, and continued employment support services by Career Life Support Inc., a subsidiary established in June 2015. Since the fiscal year ending June 2019, it has consolidated Agri Flower, engaged in flower production, and is working towards diversifying its business. SHF provides core systems for funeral-related companies and is also involved in the development of nametag writing systems, electronic catalogs and simple quoting systems using mobile devices, as well as CAD systems for construction companies.

2. Group Structure (Transition to a Holding Company Structure)

The company changed its name from Beauty Flower Garden Co., Ltd. to Beauty Carden Holdings Co., Ltd., transitioned to a holding company structure, and implemented a group reorganization effective January 1, 2024. To achieve further business expansion and increased corporate value, it aims to strengthen collaboration among group companies, clarify management responsibilities, and develop the next generation of business leaders.

3. History

Founded in May 1974 in Kumamoto City, Kumamoto Prefecture by the current Representative Director and Chairman Misao Mishima to sell floral altars and wholesale fresh flowers. With the aim of expanding its business, it changed its organization to a limited company in January 1997 and to a corporation in January 2000, achieving expansion into Tokyo.

After that, the company steadily improved its performance, and in 2006, it listed its shares on the Tokyo Stock Exchange (TSE) Mothers Market. In 2007, to strengthen its fresh flower services in the bridal market, it established Crown Gardenex Co., Ltd. (now Beauty Hanadan Nishinippon) as a wholly-owned subsidiary in Kumamoto Prefecture. The company actively pursued M&A, acquiring System House Fukuchiyama (now SHF) in April 2012, Hanatoki in April 2013, My Success in October, and Career Life Support in June 2015, expanding and diversifying its business. In February 2016, it established AgriFlower in Narita City, Chiba Prefecture to produce rose hips, roses, chrysanthemums, and entered the flower production business towards the sixth industry.

In October 2016, it changed its market from TSE Mothers to TSE Second Section, and in April 2022, it transitioned to the TSE Standard Market. In September 2020, Masuda Shoichi assumed the position of new president (while Mishima became chairman with representative rights), and from July 2021, they initiated a new mid-term management plan under the new organization structure (covering the period from June 2022 to June 2024). From January 1, 2024, they are transitioning to a holding company structure to strengthen group collaboration and develop the next generation of leaders.

(Written by Fisco Guest Analyst Ikuo Shibata)