On March 18, 2025, System Location Co., Ltd. made headlines by announcing its new shareholder benefit program involving QUO cards, aimed at enhancing shareholder engagement and investment attractiveness.
The announcement, made at 3:30 PM (UTC+9), indicated significant changes to the company's shareholder benefits structure, which will be applicable to shareholders listed as of the end of March and September each year. Specifically, shareholders owning 100 or more shares would receive QUO cards on two occasions annually—at the end of March and September—reflecting the number of shares held.
The QUO card benefits will differ based on the number of shares owned. For those holding shares as of the end of September, QUO cards worth between 1,000 to 10,000 yen will be distributed. Meanwhile, shareholders with 100 or more shares at the end of March will receive QUO cards valued between 500 to 4,000 yen, depending on their share holdings. This initiative is poised to express gratitude to shareholders for their continued support.
According to the company, the purpose of this new shareholder benefit system is manifold. “We are thankful for the support of our shareholders and aim to increase stock liquidity and our attractiveness as an investment,” said a spokesperson from System Location, reinforcing the company's commitment to fostering long-term relationships with its investors.
Following the announcement, System Location's stock experienced significant movement. The stock, which closed at 1,250 yen on March 18, jumped to 1,499.7 yen during nighttime trading on SBI Securities, marking a 19.97% increase and astonishing 249.7 yen spike from the closing price. Investors seem optimistic about the new rewards structure enhancing the company’s appeal and liquidity.
The specifics of the shareholder benefits include the following tiered approach for QUO cards, particularly notable for shareholders holding different amounts of stock:
- For the end of September:
- 100 shares: 1,000 yen QUO card
- 300 shares: 5,000 yen QUO card
- 500 shares: 10,000 yen QUO card
- For the end of March:
- 100 shares: 500 yen QUO card
- 300 shares: 4,000 yen QUO card
- 500 shares: 4,000 yen QUO card
With the company’s shares priced at 1,250 yen at the time of the announcement, the benefit yield can be calculated. For shareholders holding 100 shares, they would have invested 125,000 yen, rendering the benefit as 1,500 yen worth of QUO cards, translating to a yield of approximately 1.20%. For those with 300 shares, the yield would increase to about 2.40%, and for 500 shares, it slightly dips to about 2.24%. This structured approach to shareholder benefits clearly showcases System Location's focus on maximizing shareholder value.
Besides these benefits, System Location has been recognized for its strengths in analyzing data related to used car transactions and system development. Looking at the consolidated earnings forecast for the fiscal year closing March 2025, the company anticipates maintaining its sales at approximately 17.42 billion yen, with net profit expected to reach 392 million yen—a 4.8% increase from the previous year, signaling stability for investors.
With the introduction of these shareholder benefits, System Location aims to cultivate not only appreciation among stakeholders but also generate broader market interest. Such initiatives could potentially lead to enhanced stock liquidity and sustained engagement from their investor base.
Market analysts will be closely monitoring the price movements of System Location's stock post-announcement. The anticipated attention on the QUO card benefits and the influx of new and existing investors could signal exciting times for System Location as they navigate future endeavors within their industry.
This new program is certainly positioned to motivate shareholders, as the appealing structure of the QUO card rewards can make owning shares even more profitable. The coming months will be pivotal as investors observe how these initiatives influence stock performance and corporate reputation.
Overall, the introduction of the QUO card shareholder benefit program demonstrates System Location's proactive stance toward investor relations and its commitment to fostering shareholder loyalty.
