NICHII GAKKAN COMPANY (E04930) Stock Price

Nichii Gakkan is a comprehensive healthcare services company with a core focus on the medical and long-term care sectors. The company operates a wide range of businesses tailored to Japan's aging society with fewer children, spanning from administrative work outsourcing at medical institutions to long-term care services and childcare operations. Its primary services are medical-related and long-term care businesses, with service bases nationwide.

The company serves diverse customers including medical institutions, users of long-term care insurance, and childcare facility users. In the medical division, it generates revenue by outsourcing medical administrative work to hospitals and clinics. In the long-term care division, primary revenue comes from long-term care insurance, including home care services for elderly individuals requiring care and facility operations. These businesses are characterized by stable revenue structures based on established systems.

The company operates seven major divisions. In the medical division, it handles medical administration and medical equipment sterilization services. In the long-term care division, it provides comprehensive services ranging from home care assistance to paid nursing home operations. The company also operates childcare facilities in its childcare division, offers one-on-one English conversation lessons in its education division, and runs a unique therapy division that breeds and sells dogs.

Nichiigakkan is pursuing medium to long-term growth through a back-to-basics strategy centered on healthcare and nursing care. The company has set performance targets for the fiscal year ending March 2025 of consolidated net sales exceeding 500 billion yen, consolidated operating profit margin of 10% or higher, and maintaining ROE of 8% or higher with a target level of 15% or above. The company is executing business restructuring in its education and global operations, and strengthening growth and profitability by concentrating management resources on its core, high-margin businesses.

The company has positioned "human resources training," "healthcare-related services," and "nursing care" as its three pillar businesses, focusing on building sustainable service delivery systems. To respond to changing business conditions—including labor shortages and rising personnel costs in the nursing care industry, and advancing ICT adoption in the healthcare sector—the company has prioritized strengthening profitability in existing operations. For unprofitable businesses, the company has executed fundamental reforms including withdrawal from the COCO塾 education business and liquidation of its joint venture in China, optimizing its business portfolio.

For new market development, the company plans to allocate management resources to high-growth sectors while actively leveraging external talent and management expertise beyond internal resources. As part of this strategy, the company executed a management buyout with Bain Capital as sponsor in 2020, establishing a framework to utilize the international investment firm's approximately 105 billion dollars in assets under management and extensive track record in business operations support.

Regarding technological innovation, the company aims to enhance enterprise value by leveraging Bain Capital's advanced management expertise, particularly through collaborative deployment of human resources and capital. Following the founder's passing, the company has established a collective management system to replace strong individual leadership, enabling all executives to share a common vision for the business and make decisions swiftly. The company is accelerating execution of its medium to long-term growth strategy while leveraging the stable demand characteristics of its business, which has proven relatively resilient even amid the COVID-19 pandemic.