SI Holdings plc (E35014) Stock Price

SI Holdings is a company that provides comprehensive care services for elderly people. The company operates 71 senior housing facilities with services under the "Nagoyaka Residence" brand and runs adult day service centers called "Kagayaki Day Service" at these locations. Aligned with the government's policy to build community-based integrated care systems, the company's core business is providing social infrastructure for elderly people as a regional welfare hub.

The company's customers are primarily elderly people and their families, with a stable revenue structure based on the long-term care insurance system. Senior housing facilities generate revenue from residents' housing fees and living support service charges, while day service centers earn revenue from long-term care insurance benefits and user copayments. Additionally, the company operates a franchise business leveraging its expertise, with brand expansion at 19 locations nationwide.

The business is divided into two main segments: Care Center Operations and Food Service Operations. Care Center Operations provide housing services, adult day services, and home care support services in an integrated manner. Food Service Operations supply nutritionally balanced meals and boxed lunches based on home-style cooking from the 1970s to the company's own facilities and elderly care facilities in the community. The company also operates supplementary businesses including sales of care-related products, facility maintenance, and personnel dispatch services specializing in the medical and healthcare industries, creating a comprehensive service delivery system for elderly people.

SI Holdings has adopted the vision of "creating a prosperous super-aged society" and is implementing a comprehensive growth strategy. In its medium-term management plan, the company has set operating revenue growth rate and ordinary profit growth rate as key growth indicators, aiming to expand its business scale on a sound financial foundation. Specifically, the company has clarified its policy to pursue sustainable growth while emphasizing financial health indicators such as ROE and net asset ratio.

As priority investment areas, the company is concentrating on three major projects. The senior housing development project focuses on building housing infrastructure in alignment with national policies, including Japan's version of CCRC and community-based integrated care systems. The senior support services development project develops integrated systems for diverse life support services including nursing care, meal delivery, retail, and health foods. The business support services promotion project leverages accumulated expertise to provide comprehensive services such as franchising and construction consulting.

In new market development, the company is accelerating the establishment of comprehensive care centers. Building on the track record of adding two centers in fiscal 2021, the company plans further acceleration of expansion from fiscal 2022 onward. The company is also strengthening its capacity to provide seamless services across day services, overnight stays, and residential housing, and aims to enhance brand image and expand market share by establishing services that enable care-dependent seniors to lead fulfilling lives. The company is actively expanding its lineup of new businesses including food operations, meal delivery services, construction services, and human resources services that leverage synergies with the centers.

In technology innovation efforts, the company aims to establish "new work styles" prompted by the COVID-19 response. Through promoting telework using ICT technology, the company is achieving both infection prevention and operational efficiency. The company is also advancing the efficiency and standardization of service operations at centers, and is working to simultaneously realize improved service quality and efficiency by establishing optimal standard operations with appropriate staffing levels.