ENVALITH
株式会社明光ネットワークジャパン logo

MEIKO NETWORK JAPAN CO.,LTD.

4668・Prime Market・Services

Official website
株式会社明光ネットワークジャパン logo
MEIKO NETWORK JAPAN CO.,LTD.4668

Business

Meiko Network Japan Co., Ltd. is an education service company founded in 1984, centered on the individualized tutoring school "Meiko Gijuku." It operates 476 directly-operated classrooms and 1,184 franchise classrooms, totaling 1,660 classrooms (as of the end of August 2025), nationwide, along with diverse businesses including Japanese language schools (2 schools), Jiritsu Gakushu RED, Kids (After School), foreign talent placement and specified skilled worker support, Childcare Worker/Nutritionist Career Change Support, digital advertising, and Child Development Support / After-School Day Service, managed through 13 consolidated subsidiaries. The main customers, primarily elementary, junior high, and high school students and their guardians, have expanded to include international students, foreign workers, people with disabilities, childcare workers, and others. The company transitioned to the Prime Market of the Tokyo Stock Exchange in 2022.

Business Model

The Meiko Gijuku Business, accounting for approximately 75% of net sales, consists of tuition fees and teaching material sales at directly-operated classrooms, together with royalties from franchisees (primarily 10% of monthly sales), franchise fees, and product sales. The FC segment recorded net sales of ¥4,173 million against operating profit of ¥1,111 million (margin of approximately 26.6%), reflecting a highly profitable, stable-earnings model. The remaining approximately 25% is covered by Others (HR, training, welfare, etc.), which is positioned as a growth investment area.

Company Strengths

As of the end of FY2025 (ended August 2025), the company operated a total of 1,660 classrooms nationwide, comprising 476 directly-operated classrooms and 1,184 franchise classrooms. The number of enrolled students across Meiko Gijuku as a whole recovered to 99,820 (up 2,263 from the previous period). Total classroom-level sales reached ¥37,696 million, with brand recognition and a community-based network forming a barrier to entry.

The Meiko Gijuku Franchise Business recorded sales of ¥4,173 million and segment operating profit of ¥1,111 million (profit margin of approximately 26.6%) in FY2025 (ended August 2025). Its asset-light model, based primarily on royalty income, secures relatively stable earnings against economic fluctuations.

The company improves classroom operation efficiency through DX initiatives utilizing its proprietary learning management system "ClaMaS" and App Student ID / App Instructor ID. The cumulative number of group-wide holders of hospitality certifications (such as Hospitality Coordinator) has reached 802, forming the foundation for improved instruction quality and customer retention.

ENVALITH's Perspective

For the cumulative nine months of FY2026 (ending August 2026), revenue was ¥18,509 million (up 5.3% year on year), securing revenue growth. However, profitability declined sharply, with operating profit of ¥829 million (down 26.2% year on year), ordinary profit of ¥926 million (down 22.8% year on year), and quarterly net income attributable to owners of the parent of ¥430 million (down 41.8% year on year). Selling, general and administrative expenses increased by ¥281 million to ¥3,333 million (versus ¥3,052 million in the same period last year), and total corporate expenses also expanded to ¥1,243 million (versus ¥1,189 million in the same period last year). The impact of the "investment period" as defined in the medium-term management plan "MEIKO Transition" is clearly reflected in the figures, and the structure in which cost increases outpace the effects of revenue growth continues.

The full-year earnings forecast (revenue of ¥25,500 million, operating profit of ¥1,800 million, net income of ¥1,010 million) remains unchanged. The operating profit progress rate for the cumulative nine months stood at only 46.1% (¥829 million ÷ ¥1,800 million), meaning that ¥971 million in operating profit will be required in Q4 (June to August 2026) to achieve the full-year target. Compared with the actual Q4 result for the same period last year (full-year ¥1,691 million minus cumulative 3Q ¥1,123 million = ¥568 million), the skew toward the second half is remarkable, and achieving the target will require substantial improvement. It should also be noted that net income is still expected to decline sharply by 41.5% year on year.

As of April 28, 2026, the company cancelled 2,000,000 treasury shares (resulting in decreases of ¥2,134 million each in capital surplus and treasury shares due to the cancellation), reducing the number of shares issued from 27,803,600 to 25,803,600. While the shareholder return stance can be evaluated positively, retained earnings declined significantly from ¥11,830 million to ¥9,379 million. The annual dividend forecast has been revised to ¥29 (an increase from ¥27 in the previous fiscal year), and the dividend policy is being maintained. On the other hand, comprehensive income shrank substantially to ¥236 million (versus ¥1,476 million in the same period last year), and a decrease in valuation difference on available-for-sale securities (down ¥199 million) also contributed to the decline in net assets.

Growth Strategy

Simultaneously pursuing the re-growth of Meiko Gijuku and the monetization of diversified businesses under 'MEIKO Transition'

Promoting a community-based strategy that transcends the boundary between directly-operated and FC classrooms through a company system. Aiming to restore customer satisfaction and enrolled student numbers through classroom renewals, utilization of Plus 10 teaching materials, DX initiatives such as App Student ID and App Instructor ID, and promotion of hospitality qualification acquisition. Results are beginning to emerge, with the directly-operated segment profit up +13.7% on a cumulative 3Q basis.

Promoting the monetization of businesses in the development phase, including the Jiritsu Gakushu RED Business (121 classrooms), Meiko Career Partners (foreign human resources and reskilling), Simple Corporation (staffing), and Meiko Wellness (15 facilities). Cumulative 3Q segment profit for 'Others' was ¥208 million (down 46.3% year-on-year), reflecting a heavy investment burden, with progress toward monetization somewhat behind schedule.

Opened 'Meiko Gijuku Koto Gakuin' (Takadanobaba Campus) in April 2026, entering the correspondence high school support school business. Also operates the online free schools 'Class Japan Elementary and Junior High School' and 'Meiko Free School' (4 campuses). Aims to respond to diverse learning needs and create new revenue sources. Added to the scope of consolidation this period (Meiko Mirai Co., Ltd.).

From April 2026, unified the school name of 'JCLI Japanese Language School' to 'Waseda EDU Japanese Language School Oji Campus,' promoting greater brand recognition through brand consolidation and productivity improvements through collaboration between the two schools. Steadily growing, with cumulative 3Q net sales of ¥1,158 million (up 5.0% year-on-year) and segment profit of ¥159 million (up 16.9% year-on-year).

Cancelled 2,000,000 shares of treasury stock as of April 28, 2026, reducing the number of shares issued to 25,803,600. Revised the annual dividend forecast to ¥29 (up from ¥27 in the previous fiscal year), aiming to enhance per-share value and strengthen shareholder returns.

Last updated: July 17, 2026