WASEDA GAKUSHUKENKYUKAI CO.,LTD. (5869) Stock Price

Waseda Learning Research Institute is an educational company that operates cram schools (juku) offering group and individual instruction for elementary, middle, and high school students. The company provides educational services combining in-person classes and online supplementary lessons under three main brands: "W Waseda Zemi" (group instruction for elementary and middle school students), "W Waseda Zemi High School" (group instruction for high school students), and "First Individual" (individual instruction for elementary through high school students).

The company's primary customers are students and their parents. Revenue is generated mainly through enrollment fees and monthly tuition. The company operates schools in a community-focused manner, maximizing the number of enrolled students per location to improve customer acquisition efficiency and reduce fixed costs, thereby improving profit margins.

The company operates a single business segment: the cram school business. As of March 31, 2025, it operates 37 Zemi branch schools for elementary and middle school students, 14 High School branch schools for high school students, and 11 First Individual classrooms for individual instruction. The company differentiates itself through full-time instructor development, proprietary teaching materials, free supplementary classes, an online learning system called "Wovie," and large suburban school facilities with parking, while strengthening brand recognition in each region.

The company is pursuing growth by deepening its existing strengths without making major changes to its fundamental strategy. Over the medium term, it plans to increase large-scale suburban school locations centered in Saitama Prefecture, with a standard size of 150–200 tsubo per campus. The company prioritizes revenue and operating profit, targeting an operating margin of 18.0% as it works to enhance corporate value. Growth will be realized through stable student recruitment and the expansion of highly profitable school operations.

Key investment areas are strengthening teacher quality, improving service offerings (learning environment), and developing teaching materials. Specifically, the company has established systems for selective nationwide hiring and post-hire training (minimum 2 months, up to nearly 1 year), as well as quality assurance through student surveys and recorded lecture reviews at headquarters. In instruction, the company differentiates itself through attentive student support, including ability-based class organization, free supplementary classes, homeroom teacher systems, three-way conferences with parents, and assistant teacher support for grading in mathematics and English.

Market expansion and business growth are primarily advanced through securing properties in suburban areas and strengthening teacher recruitment capabilities. The company plans to secure quality properties and talent by establishing a new development division to improve property development capabilities and enriching internship and pre-employment training programs. It aims to broaden its customer base through developing courses for younger grades and new offerings, and creating synergies through knowledge-sharing across divisions. Currently, the company operates 37 school locations for elementary and middle school students, 14 for high school students, and 11 individual tutoring classrooms (as of March 31, 2025), and seeks to expand from this foundation.

Regarding technological innovation, the company actively promotes online supplementary classes and video-based instruction. Recorded lectures are used for teacher quality management, and ICT is being introduced for learning management and supplementary instruction to standardize and improve teaching quality. Additionally, the company is working to increase brand awareness through internet advertising and developing new business models centered on online offerings. Through these initiatives, it aims to improve key metrics including student enrollment and revenue.