CARE TWENTYONE CORPORATION (2373) Stock Price

Care21 is a comprehensive care services company with long-term care insurance-based services as its core business, including home care services, adult day services, and paid nursing home operations. The company provides a wide range of care services 24 hours a day, 365 days a year—from home care services that provide personal assistance such as bathing and meals at users' homes to facility-based care including care-provided paid nursing homes and group homes. The company also operates childcare facilities, sells and rents welfare equipment, and handles home modifications, providing comprehensive support for elderly people's daily living.

The company's primary customers are elderly people certified as requiring care and their families. The majority of revenue is supported by stable payments under the long-term care insurance system. Seventy to ninety percent of service fees are paid through the National Health Insurance Association, which receives commissions from municipalities, while users bear 10 to 30 percent of costs themselves. This revenue structure based on public systems ensures stable cash flow for the company.

The company's business is divided into three segments: home-based care services, facility-based care services, and other services. In home-based care, it operates home care services, home care support, and adult day services. In facility-based care, it operates care-provided paid nursing homes and group homes for people with dementia. In other services, through subsidiaries, the company operates childcare centers, provides education and dispatch of care workers, offers meal services, provides visiting nursing care, and supports employment of people with disabilities—building a diversified business portfolio that delivers comprehensive social security services centered on care.

Care21 aims to become "a good company that lasts 100 years" and is establishing itself as a comprehensive welfare enterprise across four sectors: welfare, healthcare, education, and culture. The company has set revenue growth rate, operating profit margin, and ROE (return on equity) as its primary management indicators, targeting steady growth aligned with new store openings and continuous year-over-year improvement in profit margins. Against the backdrop of sustained growth in the overall care market, the company pursues a strategy of maximizing enterprise value by achieving both business expansion and improved profitability.

In home-based visiting care services, the company promotes strategic store openings based on detailed market analysis and improves its revenue base through consolidation of unprofitable facilities and M&A opportunities. For facility-based care services such as paid nursing homes and group homes, where occupancy trends are improving and revenues are on an upward trajectory, the company implements rigorous cost management to drive further revenue growth. For licensed childcare centers, disability support day services, and welfare equipment service facilities, the company pursues selective expansion while focusing on strengthening the revenue base of existing operations.

In new market development, the company is accelerating international expansion. Its overseas subsidiaries have already launched education businesses, with multiple facility-based care service projects currently in progress. By establishing the company's management philosophy and distinctive care service characteristics in overseas markets, the company aims to enhance the feasibility of medium- to long-term business development and pursue sustained expansion of enterprise value.

The company strengthens competitiveness through both human resource acquisition and technological innovation. To address the chronic shortage of care service providers, the company diversifies its talent acquisition methods through internal employee referral programs, the introduction of foreign technical intern training programs, and active recruitment of international students. Additionally, the company achieves improved service quality and operational efficiency through its proprietary core system and strengthens its compliance framework by enhancing internal control systems.