QLS Holdings Co., Ltd (7075) Stock Price

QLS Holdings is a group company centered on operating its own childcare facilities, with additional services in elderly care and disability support, as well as specialized staffing dispatch. Its main offerings include licensed childcare centers and after-school care programs, home-visit nursing care and paid nursing homes, group homes for people with disabilities, and dispatch of specialized professionals such as automotive technicians.

The company's primary customers are local governments, parents, service users (elderly and people with disabilities), and businesses (such as automotive dealers and hotels). Revenue comes from government contracts and subsidies, care and disability welfare reimbursements, user fees, and staffing dispatch contracts. For licensed childcare centers, parents pay fees directly to local governments rather than to the company, while for other facilities and care services, the company collects user fees directly.

The business is divided into three pillars: "childcare operations," "care and welfare operations," and "staffing dispatch operations." Childcare operations run licensed childcare centers, small-scale childcare, corporate-sponsored childcare, and after-school care programs. Care and welfare operations provide diverse services including home-visit care, home-visit nursing, day services, group living assistance for dementia care, and after-school and employment support programs for people with disabilities. The staffing dispatch business has particular strength in emergency automotive-related staffing and specialized professional placement in the welfare and hospitality sectors.

The company aims for sustainable growth and increased corporate value. It prioritizes revenue, operating profit, and ordinary income as key performance indicators. While stabilizing its core childcare business, the company is expanding revenue in care services and staffing dispatch. This strategy reflects strong market demand: as of April 2024, there are 2,567 children on national childcare waiting lists and 17,686 on after-school care waiting lists. Additionally, home nursing care services are projected to grow approximately 27% between 2030 and 2040, while home care services are expected to increase about 25%. Based on these market conditions, the company aims to increase users and revenue through expanding existing services and opening new facilities.

The company focuses investment on three pillars—childcare, care and disability support, and staffing dispatch—to differentiate itself from competitors. Specifically, it practices "inclusive childcare" at childcare centers, where children of all nationalities and abilities develop together in the same space, alongside child development support facilities. It has enhanced meal safety and introduced free programs such as English classes, music, and gymnastics taught by specialist instructors, tailored to community needs. Leveraging its multi-business structure, the company promotes internal career transitions for employees to reduce turnover and improve hiring cost efficiency through effective in-group talent utilization.

In market development and business expansion, the company accelerates growth by capitalizing on government initiatives. It is expanding after-school childcare by taking advantage of public support opportunities for private sector participation. The company is also increasing facilities for disability group homes, fee-based senior housing, and home nursing and care service bases. In staffing dispatch, it has strengths in emergency automotive technician services and hotel industry placements, and is actively recruiting foreign technical workers. With foreign workers projected to grow from 420,000 in 2019 to 670,000 in 2030 and 930,000 in 2040, the company is establishing reception systems by deploying foreign coordinators.

In technology innovation and operational improvement, the company advances both digital adoption in childcare and education, and workforce development. To address elementary school programming requirements and education that develops critical thinking, it develops and implements programs at each childcare facility and enhances staff training to raise service quality. Additionally, the company has introduced systems supporting work style reform, including strict overtime management, and uses IT to support attendance management and emergency assistance coordination between facilities, achieving both quality maintenance and operational efficiency.