CE Holdings Co.,Ltd.

Business Details

The company sells electronic medical record systems mainly to small and medium-sized hospitals, centered on its proprietary package product "MI・RA・Is Series," combined with departmental systems and hardware. It also provides contracted development and operation management of medical information systems, and sells deferred payment systems for medical institutions. As a new business, the company is promoting the smartphone service "Doctor Connect," aiming to resolve challenges in medical settings through information sharing between patients and doctors and digitalization of the medical consultation flow. The company holds a top-3 position in the industry, with over 950 installations to date.

Recent Overview

Simultaneous rollout of two large-scale projects and front-loaded project starts drove record-high first-half sales and profit

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), simultaneous operation start of two particularly large-revenue customer projects (Koka Public Hospital, a local independent administrative agency: ¥1,404 million (12.9% of sales); Nihonkai General Hospital, operated by the Yamagata Prefecture/Sakata City Hospital Organization, a local independent administrative agency: ¥1,286 million (11.8% of sales)), along with front-loaded operation starts for several projects originally scheduled for the third quarter and beyond, drove segment sales to a record first-half high of ¥10,605 million (up 19.4% year on year) and segment profit to ¥1,400 million (up 17.0% year on year). Meanwhile, the new business "Doctor Connect" recorded an impairment loss of ¥148 million as the originally expected revenue became unattainable. The order backlog decreased 37.1% year on year to ¥2,828 million, due to Micron becoming an equity-method affiliate and sales recognition on large-scale projects. Progress toward the full-year forecast stood at a high 68.0% for sales and 87.5% for operating profit, but the impact of front-loaded operation starts means that the business trend from the third quarter onward requires careful scrutiny.

Key Products

Growth Drivers

• Expanding upgrade demand from existing users of "MI・RA・Is V" (upgrades by existing users have contributed to revenue growth since its launch in January 2024)
• Market expansion driven by the government's medical DX promotion policy (building a nationwide medical information platform, with a goal of electronic medical record adoption at all medical institutions by 2030)
• Promotion of system investment by medical institutions driven by the April and June 2026 revisions to medical service fees (medical DX promotion structure development add-on) and government supplementary budgets
• Expansion into new service areas through the strategy of extending electronic medical record systems along the "time axis (before and after hospital visits)" and "spatial axis (examination rooms, lobbies, patients' homes, pharmacies)"
• Strengthening collaboration with sales partners and expanding the scope of AI services that support efficiency improvements in medical settings
• R&D on next-generation electronic medical record systems for further improvements in efficiency, safety, and convenience

Risks

• Contraction of consolidated sales and order scale due to Micron becoming an equity-method affiliate (while year-on-year comparisons show a higher apparent growth rate, the absolute scale has contracted)
• Risk of quarter-to-quarter earnings volatility due to dependence on the timing of order receipt and sales recognition for large-scale projects (in the current first half, the top two customers accounted for a high concentration of 24.7% of sales)
• Uncertainty regarding the accumulation of projects in the latter half of the year needed to achieve the full-year forecast, due to the impact of front-loaded operation starts pulled forward from the third quarter onward
• New business investment risk, as exemplified by the failure to monetize the new business "Doctor Connect" (resulting in a ¥148 million impairment loss)
• Demand volatility risk due to delays in the progress of medical DX policy or changes in the content of medical fee schedule revisions
• Rising personnel cost risk due to intensifying competition for IT talent recruitment and increased training costs
• Increased cost of sales due to rising prices and personnel costs (cost of sales ratio increased year on year), affecting the ability to secure stable profits