ENVALITH
株式会社WOLVES HAND logo

WOLVES HAND Co., Ltd.

194A・Growth Market・Services

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株式会社WOLVES HAND logo
WOLVES HAND Co., Ltd.194A

Business

WOLVES HAND Co., Ltd. is an animal medical group that upholds "Animal is my life" as its corporate philosophy, operating 38 animal hospital locations (11 center hospitals and 27 satellite hospitals) across three areas: Kansai, Kanto, and Kyushu-Okinawa. It seamlessly provides primary and secondary care ranging from everyday care such as nail trimming to advanced medical treatment using CT, MRI, and radiation therapy equipment. Centered on Animal Hospital Operations, the group also engages in Pet Salon Operations, provision of the Animal Hospital Software "Wantaro" customer management system, distribution of the Veterinary Medical Education Seminar "VMN", and Manufacture and Sale of Medical Machinery and Equipment (an equity-method affiliate). The company listed on the Tokyo Stock Exchange Growth Market in June 2024. In the 7th fiscal period (FY2025, ended June 2025), consolidated net sales reached ¥5,464 million, and annual medical examinations reached 395,059 cases.

Business Model

With Animal Hospital Operations (medical treatment revenue), accounting for 87.1% of net sales, at its core, the company combines Pet Salon Operations (8.5%) and subscription revenue from software and educational seminars (approximately 2.2% in total). Center hospitals serve as hubs with satellite hospitals arranged in a dominant configuration around them, maximizing treatment opportunities by completing primary and secondary care within the group. The company expands its network of locations through business succession via M&A while adopting a model that improves profitability after PMI. Operating margin has remained around 15%, and EBITDA margin has stayed above 20%.

Company Strengths

Centers 11 core hospitals and 27 satellite hospitals, totaling 38 locations, in a dominant regional configuration, enabling everything from nail trimming to advanced treatments such as neurosurgery to be completed within the same group. The company boasts a strong track record with 395,059 annual medical treatment cases (7th fiscal period), achieving continuous improvement in medical quality through the accumulation and sharing of clinical data.

Since its founding, the company has successively made subsidiaries of Soyokaze Co., Ltd., Bahati Co., Ltd., Modena Animal Hospital Co., Ltd., Pet Medical Center Co., Ltd., Eil, and others. In the 7th fiscal period, it carried out 4 M&A/business transfer transactions, expanding the number of veterinarians from 91 in the previous period to 111 (average on an operating basis). The company possesses a structural advantage in capturing the business succession needs of individually-owned hospitals struggling with a shortage of successors.

In the 7th fiscal period, the operating margin was 16.6% (operating profit of ¥909 million ÷ net sales of ¥5,464 million), and operating cash flow was ¥948 million. The company maintained a cash balance of ¥895 million while carrying out business investment of the same scale as the previous period without new borrowings. The EBITDA margin has remained above 20%, indicating a high capacity for self-funding M&A and capital expenditures through internal funds.

ENVALITH's Perspective

Net income attributable to owners of the parent for the cumulative nine months of FY2026 (ending June 2026) was ¥597 million (up 98.5% year on year). Progress against the full-year forecast of ¥840 million reached 71.1%, implying that ¥243 million in profit would need to be recorded in Q4 alone. Note that special gains totaling ¥167 million—consisting of a ¥154 million gain on negative goodwill and a ¥13 million gain on step acquisitions—boosted net income during the period, and attention should be paid to the divergence from the progress rate on an ordinary income basis (¥687 million ÷ ¥1,100 million = 62.5%).

Following the consolidation of Asuka Medical, Cartec, and others, the scale of businesses outside the animal hospital segment has expanded, as seen in the sharp increase in merchandise and product inventory balances from ¥86 million to ¥437 million. On the other hand, since segment information is disclosed only as the single Animal Hospital Business segment, the revenue contribution and profitability of these adjacent businesses remain unclear at this stage. External factors such as US tariff policy and rising raw material prices could affect the cost structure of the medical equipment and hygiene products businesses, making further expansion of disclosure a key point of investor attention going forward.

The goodwill balance remains elevated at ¥1,805 million (27.9% of total assets) and is expected to continue increasing as the M&A strategy continues. No impairment loss was recorded in the current third quarter, although an impairment loss of ¥3 million occurred in the same period of the previous fiscal year. While demand for animal medical care remains solid in the market environment, if profitability at existing hospitals deteriorates due to difficulty securing veterinarians or intensifying competition, the risk of goodwill impairment could materialize.

Growth Strategy

Expanding the animal medical group through two pillars: expansion of sites and business fields via M&A, and improved profitability at existing hospitals

The company is advancing treatment price revisions, optimal staff allocation, and cost synergies through group management. Gross profit margin improved 3.5 percentage points year-on-year for the cumulative nine months of FY2026 (ending June 2026), reflecting the effects of these measures in the numbers.

The company made See Co., Ltd. (Hokkaido) a subsidiary in November 2025, continuing its geographic expansion. Results from Soyokaze Co., Ltd. and Bahati Co., Ltd., which joined the group in the previous fiscal year, are also contributing, with the revenue-boosting effects of M&A becoming evident.

In October 2025, the company made Asuka Medical, which develops, manufactures, and sells therapeutic laser medical machinery and equipment, a subsidiary. It is advancing revenue diversification through the supply of medical equipment to animal hospitals and external sales, reflected in the sharp increase in merchandise and product balances.

In January 2026, the company acquired the research and development, manufacturing, and sales business of healthcare and environment-related products utilizing photocatalyst technology from Cartec Corporation (now K Seisan Kabushiki Kaisha). It plans to promote the introduction of in-hospital environmental control technology at animal hospitals and external sales.

The company completed refinancing in December 2025, significantly reducing long-term borrowings due for repayment within one year. The equity ratio improved to 51.8%, establishing the foundation for a "virtuous cycle spiral" in which operating cash flow is directed toward growth investment.

Based on clinical knowledge accumulated at animal hospitals, the company aims to link its veterinary medical database, advanced medical research, AI, digital technology, medical equipment, and sanitary environment technology to enhance corporate value and diversify revenue opportunities over the medium to long term. The ¥95 million in software under construction reflects continued development investment.

Last updated: July 17, 2026