OLBA HEALTHCARE HOLDINGS,INC. (2689) Stock Price

Orva Healthcare Holdings is a holding company that operates primarily in the sale of medical devices, materials management services for hospitals, and the sale and rental of home care products.

The company oversees its group subsidiaries and provides a comprehensive supply of equipment and services needed by medical institutions and care facilities.

Its main customers are procurement departments at hospitals and clinics, care facilities, home care users, and their care service providers. Medical device sales form the core of its revenue.

Additionally, contract revenue from SPD services—which handle inventory and purchasing management—and rental income from care products provide a stable revenue base.

The business is structured around three main pillars: medical equipment sales, SPD operations, and care products operations.

The medical equipment business handles the sale of hospital equipment and related devices, the SPD business manages inventory, information, and purchasing, and the care products business handles the sale and rental of home care beds and similar items.

In recent years, the company has strengthened its group structure by consolidating overseas subsidiaries and establishing new companies.

The company aims to achieve consolidated net sales of 142 billion yen and consolidated operating profit of 2.7 billion yen for the fiscal year ending June 2028 under its medium-term management plan. Under "VISION2030," the company has set targets to become the top medical device distributor in Japan, generate 20% of operating profit overseas by 2030, and launch 30 or more new products and services. Based on a five-year average ROE of 14.2%, the company plans to strengthen its equity base. Recently, profit margins have declined due to inflation and customers' cautious capital expenditure, making revenue structure improvement a key priority.

Priority investment areas include strengthening specialized fields such as surgical equipment, orthopedics, and cardiovascular devices. The company's core business is medical device sales, supplemented by revenue pillars including materials management (SPD) and home care product sales and rental services. It differentiates itself through integrated supply via group collaboration and expanded sales of proprietary products. Specifically, the company aims to expand sales of original products such as self-checkout machines, strengthen procurement negotiating power, and establish logistics infrastructure to ensure stable supply while improving profit margins on consumables and customer satisfaction.

For new market development, the company is pursuing overseas expansion and new business cultivation. These include establishing a business foundation in Thailand, expanding clinic-focused business through Kawanishi Bark Med, and developing and selling next-generation waste processing equipment through the new company Orseed. The company plans to increase its overseas ratio and secure 20% of operating profit from overseas by 2030. Additionally, through group restructuring and subsidiary consolidation, the company will invest in high-growth potential fields and create new revenue streams by launching 30 or more new products and services.

Regarding technological innovation, the company is advancing digitalization (DX) to improve efficiency in non-production operations and enhance sales quality. Specific initiatives include automating business processes, maximizing customer response time through ICT tool adoption, conducting IT skills training for employees, and building a stable supply system through logistics digitalization. The company is also expanding partnerships with external companies possessing new technologies and expertise to accelerate research, development, and commercialization, strengthening the delivery of products and services that meet healthcare facility needs.