Nippon Express Holdings (9147.T): IR Day: Looks to improve domestic/overseas margins and deploy end-to-end solutions

Nippon Express Holdings held its IR Day on September 18 (starting from 13:00 JST). The key takeaways are as follows. We are Not Rated (NR) on the stock. (1) Initiatives in management plan to achieve long-term vision: The company has already achieved ¥11.7 bn in cost reductions as of end-2Q, against its FY12/26 cost reduction target of ¥13 bn. That said, against the backdrop of higher fuel prices and other cost increases, it emphasized efforts to step up cost reduction initiatives aimed at improving profitability in the domestic and overseas businesses. Specific areas included reviewing resource allocations and rationalizing costs overseas, improving productivity through business reforms in Japan, and promoting AI and DX measures. Regarding the Japan logistics business, Nippon Express said it will rank its warehouse locations and work to upgrade low-ranking warehouses to higher standards and functionality through space and labor savings, or promote larger locations through consolidation