ENVALITH
株式会社AFC-HDアムスライフサイエンス logo

AFC-HD AMS Life Science Co.,Ltd

2927・Standard Market・Foods

Official website
株式会社AFC-HDアムスライフサイエンス logo
AFC-HD AMS Life Science Co.,Ltd2927

Business

AFC-HD AMS Life Science Co., Ltd. is a diversified group with 23 consolidated subsidiaries, built on the foundation of a healthcare company founded in Shizuoka in 1969. Its core Healthcare Business (manufacturing and sale of health foods and cosmetics, including OEM) accounts for approximately 58% of net sales. The group also operates a Pharmaceutical Business handling Kampo (traditional Chinese herbal medicine) and generic drugs, a Department Store Business centered in Kanagawa Prefecture (Saikaya), a Restaurant Business centered in Shizuoka (Nasubi), a Real Estate/Build-to-Suit Leasing Business, and other businesses including tourism, travel, and food services. Consolidated net sales for FY2025 (ending August 2025) were ¥32,655 million. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

In the healthcare business, the company operates on two pillars: OEM contract manufacturing for drugstores and e-commerce malls, and a subscription-based mail-order model centered on foods with function claims. The pharmaceutical business secures stable earnings through the manufacture and sale of Kampo (traditional Chinese herbal) medicines and generic drugs. The department store, food and beverage, real estate, and tourism businesses are handled by a group of subsidiaries acquired through M&A, building up diverse cash flows from tenant rental income, real estate transactions, and bus tourism, among others.

Company Strengths

Research and development by Japan Institute of Preventive Medical Research Co., Ltd., manufacturing at in-house factories (Shizuoka and Chiba), sales by AFC Co., Ltd., and health information dissemination by Kenko TV Co., Ltd. have all been brought in-house. R&D expenses for FY2025 (ended August 2025) were ¥143,122 thousand. Order volume in the OEM segment continues to expand, reaching ¥11,019,732 thousand (107.2% year-on-year).

Operating income of the healthcare business in FY2025 (ended August 2025) was ¥2,452 million (operating margin of approximately 13%). In addition to establishing local subsidiaries in China (Hangzhou, Shanghai, and Chongqing), the Chiba factory obtained Halal certification for three products in November 2024, launching sales into Islamic markets. Strong performance in the overseas segment drove consolidated net sales growth of 108.2% year-on-year.

Since 2021, the company has successively made subsidiaries through consolidation, including Saikaya (department store), Nasubi (food service), Clearise (real estate), and Rabbit Express (chartered bus service). Total fixed assets stood at ¥26,401 million and total net assets at ¥15,200 million as of the end of FY2025 (ended August 2025). A tourism business foundation leveraging tangible assets, including ownership of 32 buses, has also been established.

ENVALITH's Perspective

For the cumulative 3Q of FY2026 (ending August 2026), net sales increased 2.2% year-on-year to ¥25,279 million, securing revenue growth, while operating profit decreased 2.9% year-on-year to ¥1,800 million and profit attributable to owners of parent decreased 17.4% year-on-year to ¥1,166 million, falling below the prior year on the profit side. The main factor was an increase of ¥416 million in selling, general and administrative expenses, from ¥6,641 million in the prior year period to ¥7,057 million. In addition, the absence of the ¥268 million gain on debt forgiveness (extraordinary income) recorded in the prior year period also weighed on net profit, resulting in a larger decline at the ordinary profit level and below. To achieve the full-year forecast (operating profit of ¥2,545 million), operating profit of ¥745 million is required in Q4, with progress remaining at only 70.8%.

As of the end of May 2026, the total of short-term borrowings of ¥10,058 million, current portion of long-term borrowings due within one year of ¥9,107 million, and long-term borrowings of ¥4,544 million reached ¥23,709 million, while the equity ratio improved to 32.3% (up from 30.9% at the end of the prior fiscal year). Interest expenses increased from ¥143 million in the prior year period to ¥185 million, indicating an emerging risk of rising financial costs amid an environment of increasing interest rates. Net assets are on an increasing trend at ¥16,427 million, but the interest-bearing debt multiple remains high, and financial flexibility would be limited if the recovery of investments in real estate, tourism, and other areas is delayed.

In the Healthcare segment, net sales increased 3.0% year-on-year to ¥14,798 million, securing revenue growth, but operating profit declined sharply by 13.6% year-on-year to ¥1,699 million, and the segment operating profit margin fell to 11.5% (from 13.7% in the prior year period). Higher SG&A expenses (personnel recruitment and training costs, etc.) are squeezing profit. Meanwhile, the Other Businesses segment (including tourism) continued to post an operating loss of ¥131 million, and it is expected to take time for Rabbit Express and AFC Tourism to become profitable. The Real Estate/Kentaku business also remained in the red with an operating loss of ¥29 million (an improvement of ¥66 million year-on-year), and the pace of profit improvement in these new business areas holds the key to achieving the full-year forecast.

Growth Strategy

Strengthening the earnings base in healthcare and pharmaceuticals while cultivating real estate and tourism as a third pillar of growth

An automatic tablet collection machine was introduced in November 2025. A PTP automatic packaging machine is scheduled for introduction in August 2026, with labor-saving in manufacturing processes being advanced in stages. The company aims to expand production capacity and improve profitability in response to increasing orders in the OEM segment.

The company has positioned four items—Pimuro Granules, sildenafil tablets, finasteride tablets, and tadalafil tablets—as key sales products, continuing expansion in both the prescription drug and OTC OEM markets. Cumulative operating profit for the first three quarters of FY2026 (ending August 2026) grew 154.5% year on year, and strong performance is expected to continue in the fourth quarter as well.

The opening of Round1 at the Yokosuka store (opened May 28, 2026) and Matsumotokiyoshi at the Fujisawa store (opened July 10, 2026) are aimed at achieving a triple effect of increased rental income, increased customer traffic, and expanded department store zone sales. The acquisition of a portion of the Yokosuka store premises is also progressing, expected to reduce fixed costs by more than ¥40 million annually.

Three new branches in Tokyo, Shizuoka, and Toyohashi were opened in November 2025, beginning full-scale operations in coordination with the existing Hamamatsu branch. While capturing the buoyant used housing market (driven by demand shift due to soaring new-build prices) as an external tailwind, the company aims to expand sales through three pillars: buy-and-resell, brokerage, and apartment construction. Cumulative operating loss for the first three quarters of FY2026 (ending August 2026) was ¥29 million, an improvement of ¥66 million year on year.

AFC Kanko Co., Ltd. was newly established in May 2025, and preparations are underway for full-scale development of the tourism business in cooperation with Rabbit Kyuko Co., Ltd. (32 buses, travel business). The company is promoting efforts to improve the convenience of Mt. Fuji Shizuoka Airport, lobbying for a new Shizuoka Airport Shinkansen station, and new initiatives such as a round-Japan bus tour. Currently, the Other Businesses segment continues to post an operating loss of ¥131 million, and profitability remains a medium- to long-term challenge.

Last updated: July 17, 2026