CEDAR.Co.,Ltd.
2435・Standard Market・Services
Business
Cedar Co., Ltd. is a group specializing in nursing care services that began operations in 2000 in Kitakyushu City, Fukuoka Prefecture. The group consists of the Company and two subsidiaries, operating nationwide with a focus on the Kyushu/Yamaguchi and Kanto regions. Its core businesses are the Facility Services business (net sales of ¥12,752 million), which operates fee-based nursing homes and group homes, and the Day Service business (net sales of ¥4,138 million), which centers on rehabilitation. In addition, the group comprises the Home-based Services business, including visiting nursing and home-visit care, and Other business, including meal services and welfare equipment, for a total of four segments. The company's primary customers are individuals certified as requiring long-term care or support, and it provides services based on the Long-Term Care Insurance Act. In October 2025, the company achieved a dual listing on the Main Market of the Nagoya Stock Exchange.
Business Model
The facility services business, which accounts for approximately 70% of net sales, is a stock-type business that generates stable nursing care fee income through residents' continuous occupancy at facilities. The day service business builds up revenue through increased visit frequency and per-user unit prices. Since both operate under the fixed pricing system based on the long-term care insurance system, improving occupancy rates and securing additional fee premiums (kasan) are the main levers for earnings improvement. There is also a synergy structure in which the group's in-house catering business supports facility operations.
Company Strengths
The founder is a former rehabilitation staff member at a medical corporation, and the company positions rehabilitation-focused services provided by specialists such as physical therapists and occupational therapists at the core of its business. It actively utilizes nursing care compensation add-ons such as the Functional Training Add-on and the Scientific Nursing Care-related Add-on, achieving improved per-user service pricing. The segment profit margin for the day service business has reached 10.1%.
The company operates residential care facilities with nursing care (kaigo-tsuki yuryo rojin homu) and day service facilities across seven regions nationwide: Hokkaido, Tohoku, Kanto, Koshin, Tokai, Kansai, Chugoku-Shikoku, and Kyushu. Since its listing in 2005, it has a track record of expanding its facility network, utilizing M&A as well. In April 2026, it made Double H.O. Co., Ltd. a subsidiary at an acquisition cost of ¥918 million, newly strengthening its business foundation in the Tokai area.
Amid a worsening labor shortage across the nursing care industry, the company has positioned the hiring and development of foreign nursing care personnel as a management strategy, significantly expanding hiring numbers in recent years. It continuously provides support for entry-level training courses from the time of joining, as well as support for Japanese language education and nursing care skill acquisition; in the most recent national certification examination for certified care workers (kaigo fukushishi), 11 foreign employees passed. The company has also invested ¥53 million in acquiring dormitories for foreign employees, building a foundation to support retention.
ENVALITH's Perspective
Performance Trend
Revenue has grown steadily for five consecutive fiscal years, from ¥15,749 million in FY2022 (ended March 2022) to ¥18,164 million in FY2026 (ended March 2026), up 1.9% year on year in FY2026. Operating profit, however, deteriorated sharply, falling 24.2% year on year from ¥892 million in FY2025 (ended March 2025) to ¥676 million in FY2026 (ended March 2026). The main causes were an increase in cost of sales driven by higher personnel costs for care workers and an increase in SG&A expenses associated with strengthening the administrative function. Net income rose to ¥523 million (up 17.7% year on year), supported by a special gain of ¥211 million from the transfer of a business, but ordinary profit fell 20.4% year on year to ¥532 million, indicating an underlying deterioration in profitability. For FY2027 (ending March 2027), the company forecasts revenue of ¥18,823 million (+3.6%), operating profit of ¥664 million (-1.7%), and net income of ¥260 million (-50.2%), with a sharp decline in net income expected as the special gain drops out. Externally, expanding demand for nursing care driven by the progression of an ultra-aging society is a tailwind, but industry-wide labor shortages and wage inflation pressure are structurally squeezing profit margins.
Growth Strategy
Pursuing medium- to long-term growth through three pillars: improving facility occupancy rates, expanding the day service business, and geographic expansion via M&A
Focus on securing residents for existing residential care homes with services for the elderly, making occupancy rate improvement the top priority. Strengthen facility operations with an emphasis on compliance, along with the development and reinforcement of internal control systems, while also focusing on employee education and training to improve customer satisfaction. Segment profit for FY2026 (ended March 2026) declined to ¥1,622 million (down 8.5% YoY), making occupancy rate improvement an urgent priority.
Work to raise unit prices by providing services tailored to users' needs and conditions, thereby improving profit margins. FY2026 (ended March 2026) results were strong, with net sales of ¥4,138 million (+6.1% YoY) and segment profit of ¥417 million (+19.1% YoY), functioning as a growth engine for the group.
Effective April 1, 2026, acquired all issued shares of Double H.O. Co., Ltd. (operator of two residential care homes with services for the elderly and a home-visit nursing office in Nagoya City) at an acquisition cost of ¥918 million, making it a subsidiary. This establishes a business foundation in the Tokai area, and the company aims to leverage its operational know-how and management resources to improve the target company's profitability and efficiency. The amount of goodwill and the assets and liabilities to be assumed have not yet been finalized.
Work to improve profit margins through efficient operations, including reviewing staffing allocation and business procedures. The segment loss for FY2026 (ended March 2026) widened to ¥138 million (from a loss of ¥62 million in the prior period), making it urgent to realize the effects of improvement measures. As an external environment factor, the use of foreign care worker personnel for home-visit services was liberalized starting April 2025, and this is expected to be leveraged to reduce personnel acquisition costs.
Last updated: July 19, 2026