HOSHIIRYO-SANKI CO., LTD. (7634) Stock Price

Market cap
¥16.5B
P/E ratio
10.7x
Hoshi Medical Oxygen manufactures medical gases and provides home healthcare equipment rentals, medical facility installations, and elderly care services across Japan.

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Business Overview

Hoshi Medical Oxygen operates a diverse range of businesses centered on medical gas-related operations. In the medical gas segment, the company manufactures and sells medical gases, and also plans and sells related products. Manufacturing is handled by regional subsidiary companies: AMC, IMC, KMC, and TMC.

In the home healthcare business, Hoshi Medical Oxygen procures home oxygen generators and similar equipment, and provides rental services and sales of related products. This segment is a key business line addressing home healthcare demand.

In the medical gas equipment and installation business, Hoshi Medical Oxygen provides installation, maintenance, and repair services for medical gas piping systems, as well as fire suppression equipment installation. This supports the safety and efficiency of medical facilities.

In the long-term care and welfare business, Hoshi Medical Oxygen and Torasho rent and sell long-term care equipment. The company also operates visiting nursing and home care support offices serving regional care needs. Visiting nursing stations are located in Sugamo, Asagaya, and Oji.

In the facility-based care business, Hoshi Medical Oxygen operates the paid nursing home "Life Stage Asagaya" and the adult day service facility "Ashitsuyō," providing living support and care services for elderly residents.

In other operations, Hoshi Medical Oxygen sells nursing school-related products and medical equipment, addressing the needs of medical education and healthcare settings.

Management Policy

Hoshi Medical Gas is pursuing a diversified growth strategy based on its medical gas business. Since its founding, the company has expanded from manufacturing and selling medical oxygen gas to adjacent businesses including home healthcare and long-term care services. The company aims to provide total solutions in response to an aging society and evolving medical needs.

The company prioritizes operating profit margin as its key performance indicator, with a target of 12% or higher. Based on this metric, the company is enhancing operational efficiency and profitability while improving its equity ratio and shareholder returns. This approach balances sustainable growth with sound financial management.

Over the medium to long term, the company is strengthening five core business segments, including medical gas operations, and deploying community-focused healthcare and welfare services. The company is building a resilient operational foundation through sales force enhancement, M&A activities, expansion of product lines and distribution channels, and recruitment of diverse talent.

In medical gas operations, the company is reinforcing stable supply systems and improving efficiency to address cost pressures. The startup of a new oxygen filling facility strengthens regional supply capacity and aims to improve profitability.

In home healthcare operations, the company is expanding market share in home oxygen therapy and CPAP. Through proprietary product offerings and adoption of ICT and digital transformation, the company is enhancing sales capabilities and service quality to strengthen competitiveness.

In long-term care services, the company is expanding market share through rental and sales of welfare equipment. The company is strengthening its business foundation through visiting nursing and rehabilitation services and M&A strategies.

In facility-based care operations, the company provides differentiated care services and strengthens community partnerships. The company is building systems to deliver high-quality services while improving long-term occupancy rates.

Hoshi Medical Gas leverages organizational strength based on human capital as a core competitive advantage, advancing digital transformation and operational efficiency. The company fulfills its role as a supporter of healthcare while creating sustainable value in response to the needs of an aging society.

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