As Partners CO.,LTD.

Business Details

The segment centers on the operation of care-attached homes (fee-based nursing homes with care services), and also operates day services (adult day care) and short stays (short-term residential care). The company employs a dominant-area strategy centered on the Greater Tokyo metropolitan area, targeting middle- to high-income customers as its primary client base. Its proprietary IoT/ICT platform "EGAO link®" drives operational efficiency and enhanced individualized care as a source of competitive advantage. This core segment accounts for approximately 65% of consolidated revenue (FY2026, ending March 2026).

Recent Overview

Revenue up 12.5% on 4 new facility openings, but profit down 6.8% due to ramp-up costs

In FY2026 (ending March 2026), the company newly opened 4 care-attached home facilities (Iruma, 98 rooms; Kasukabe, 74 rooms; Kunitachi, 128 rooms; Adachi Rokucho, 95 rooms) and 2 day service facilities, achieving revenue of ¥15,462 million (up 12.5% year on year). However, due to upfront costs associated with the occupancy ramp-up of newly opened facilities, segment profit declined to ¥1,416 million (down 6.8% year on year). The overall occupancy rate fell to 86.7% (from 89.6% in the prior period), though the 27 existing facilities open more than 2 years maintained a rate of 93.5%.

Key Products

Growth Drivers

• Expanding demand for care-attached homes driven by the aging population (particularly the rapid increase in the population aged 85 and over through around 2035)
• Barriers to entry from total-volume regulation on care-attached homes, sustaining the competitive advantage of existing operators
• Improved occupancy rates and stronger recruitment capability through operational efficiency and productivity gains enabled by EGAO link®
• A virtuous cycle of improved brand recognition and easier securing of residents and staff through the Greater Tokyo dominant-area strategy
• Treatment improvement support through the FY2024 nursing care fee schedule revision (positive revision for care-attached homes), the FY2025 supplementary budget, and the FY2026 special nursing care fee schedule revision
• Continued opening of new facilities (6 facilities opened in FY2026; plans for FY2027 (ending March 2027) include 4 care-attached homes in Chofu, Tokorozawa, Kodaira, and Fuchu, plus 2 day service facilities)
• Maturation of occupancy at existing facilities (93.5% occupancy rate at facilities open more than 2 years indicates further monetization potential)

Risks

• Growing difficulty securing nursing care personnel and rising labor costs (labor costs up 10.6% year on year to ¥6,617 million) amid a rapidly shrinking working-age population
• Dilution of short-term profitability due to the time required (approximately 1.5 to 2 years) for newly opened facilities' occupancy rates to ramp up
• Decline in overall occupancy rate accompanying accelerated new facility openings (overall occupancy rate of 86.7% in FY2026, down 2.9 percentage points year on year)
• Risk of declining occupancy rates at existing facilities in areas with intensifying competition
• Impact on earnings from nursing care fee schedule revisions (risk of fluctuation in fee unit prices)
• Rising operating costs due to inflation and higher construction costs (increases in rent, outsourcing expenses, consumables, etc.)