Care Service Co., Ltd. (2425) Stock Price

Market cap
¥3.2B
P/E ratio
6.9x
Provides home care services and senior support in Japan and China, including day care centers, nursing assistance, and specialized bathing services.

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Business Overview

Care Service operates two main business segments: home care services and comprehensive services for seniors. These businesses are deployed in Japan and China.

In the home care services segment, Care Service provides various services based on Japan's long-term care insurance system. Specifically, these include adult day service centers, home bathing services, home care assistance, home nursing care, care management support, small-scale multi-functional home care, rental of care equipment, sales of specified welfare equipment, and meal delivery services outside the insurance system. The company is actively expanding day service facilities for adult day care, particularly building its operational base in the Tokyo metropolitan area.

In the comprehensive services for seniors segment, Care Service provides angel care services in both Japan and China. In Japan, the company contracts with mutual aid associations in the funeral and ceremonial services industry and funeral homes, while in China it contracts with state-run funeral facilities to provide bathing services and CDC services. Additionally, the company offers cleaning services in Japan, including estate cleaning and memorial services for personal belongings. In China, the company also operates care-related services.

Management Policy

Care Services aims to achieve growth in the long-term care industry as society ages. The company is establishing a community-focused brand centered in Tokyo's 23 wards and expanding services outside the long-term care insurance system to deliver value to all stakeholders.

In its medium-term management plan, the company targets improved operating profit margins in the short term, and aims to increase corporate value by enhancing profitability and capital efficiency over the long term. This approach supports sustainable growth.

Care Services' growth strategy includes promoting a dominant market position in the greater Tokyo region for home care services. The company is opening offices centered in Tokyo's 23 wards, strengthening partnerships with medical institutions within the community-based integrated care system, and building a framework to provide diverse services.

Expanding non-insurance care services is also a key strategy. Through nationwide expansion of angel care services and growth in end-of-life planning businesses, the company is developing new non-insurance businesses and enhancing service offerings by leveraging its existing customer base.

To strengthen its operational foundation, the company is establishing systems to deliver high-quality services. This builds a robust organization supporting long-term growth and realizes a sustainable business model.

In domestic operations, the company is pursuing a dominant strategy centered in the greater Tokyo region and expanding long-term care services to meet local needs. Tokyo's 23 wards are a particular focus due to higher care insurance reimbursement rates and efficient operational logistics.

Recruiting and retaining talent is a critical priority. Care Services is strengthening recruitment capabilities, raising compensation levels, and developing career pathways to secure and retain top talent. This reinforces the human resources foundation needed to deliver high-quality services.

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