WDB HOLDINGS CO., LTD.

Business Details

Provides staffing and placement services targeting research professionals in chemistry and biology (natural sciences) as well as engineering technicians and general clerical staff. Key clients include R&D departments of manufacturers in pharmaceuticals, food, chemicals, electrical/electronics, and precision machinery, as well as public institutions and universities. Accounted for approximately 86% of consolidated revenue (based on external customer revenue) in FY2026 (ending March 2026). Achieved higher revenue and profit by passing on staff wage increases through higher staffing fees.

Recent Overview

Absorbed wage increase costs through higher staffing fees, achieving higher revenue, higher profit, and improved margins

For the full year FY2026 (ending March 2026), Staffing Services Business revenue was ¥43,547 million (up 1.3% year on year), segment profit was ¥4,301 million (up 6.4% year on year), and segment profit margin improved to 9.9% (from 9.4% in the prior year). This was mainly because wage increases for staffing personnel were absorbed through higher staffing fees. From April 2025, the company strengthened its sales structure and promoted recruitment of senior workers, part-time candidates, and region-limited regular-employee-type staffing personnel, resulting in improvement in both the order acceptance rate for staffing requests and the staff turnover rate. The Doko1 staffing service platform, launched in May 2025, has seen steady growth in contract numbers.

Key Products

Growth Drivers

• Continued solid demand for science and engineering professionals (FY2026 average effective job openings-to-applicants ratio of 1.20 and average unemployment rate of 2.6%, reflecting a labor shortage environment)
• Passing on wage increase costs through progress in staffing fee negotiations (in FY2026, wage increases were absorbed through higher staffing fees, achieving improved margins)
• Expansion of new customer acquisition channels and steady increase in contracts through the Doko1 staffing service platform (launched May 2025)
• Strengthened recruitment of senior workers, part-time candidates, and region-limited regular-employee-type staffing personnel to enhance candidate sourcing
• Improved order acceptance rate for staffing requests and reduced staff turnover through strengthened sales structure
• Business expansion through development of multiple new platforms

Risks

• Difficulty securing job seekers: while demand remains solid, securing candidates continues to be a structural challenge (labor shortage environment with an effective job openings-to-applicants ratio of 1.20)
• Upward pressure on labor costs: rising costs and SG&A expenses from continued improvement in treatment of staffing personnel and employees may pressure profit margins
• Limits to fee increase negotiations: risk of margin deterioration if passing on price increases to clients becomes difficult
• Regulatory change risk related to the Worker Dispatching Act, Employment Security Act, and related laws: increased business operating costs due to legal amendments
• Structural changes in the Japanese staffing business model: industry-wide margin decline trend due to rising wages and soaring recruitment advertising costs