ENVALITH
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SHUEI YOBIKO Co., Ltd.

4678・Standard Market・Services

Official website
株式会社秀英予備校 logo
SHUEI YOBIKO Co., Ltd.4678

Business

Shuei Yobiko Co., Ltd. was founded in Shizuoka City in 1984 and is now a cram school/prep school group operating campuses across 10 prefectures nationwide, including Hokkaido, Tohoku, Tokai, Kanto, and Kyushu. It provides diverse instructional formats—Group Classes (blackboard-based group instruction), Individual Tutoring (one-on-one instruction by instructors), video-based instruction, and Live Online Classes—to students ranging from first-grade elementary school students to high school graduates. The core Elementary & Junior High School Division accounts for approximately 87% of sales, complemented by the High School Division and the Franchise (FC) Development Business. Group-wide sales, including consolidated subsidiary Higashi Nihon Gakuin Co., Ltd. (Fukushima Prefecture), totaled ¥10,715 million in FY2026 (ending March 2026). The company primarily operates in mid-sized regional cities, providing educational services that address a wide range of needs from high-achieving students to lower- and middle-tier students.

Business Model

Main revenue consists of tuition fees (monthly payments) from students and fees for various seminars held in spring, summer, and winter, ensuring stable cash flow through monthly payments. In addition, revenue is supplemented by exam fees for mock tests such as the "Nationwide Open Achievement Test," consignment sales of high school entrance exam preparation workbooks through bookstores, sales of mock exams to other cram schools, and royalty income from franchise member schools. The structure is designed to maximize customer lifetime value by capturing students from lower grades through After-School Childcare and early childhood education as an entry point, encouraging progression from the Elementary & Junior High School Division to the High School Division.

Company Strengths

The company promotes enrollment from lower-grade elementary school students by leveraging the "Nationwide Open Achievement Test" and has expanded the After-School Childcare service "Shuei KIDS," launched in 2019, across multiple school locations, building relationships with students and parents from an early stage. In FY2026 (ending March 2026), the number of elementary and junior high school students exceeded the previous year's level, reflecting the effectiveness of the strategy to capture lower-grade students in the numbers.

The company combines four class formats—Group Classes, Individual Tutoring, video-based instruction, and Live Online Classes—to cater to students ranging from high performers to those in the middle and lower academic tiers. The High School Division also offers "ASSIST" (a self-study room staffed by instructors from top-tier universities) and "1:1 Individual Tutoring," enabling the maintenance of high per-customer pricing. In FY2026 (ending March 2026), segment profit for the High School Division reached ¥120 million, up 45.6% year on year.

By timing school relocations and closures to coincide with the expiration of lease contracts, the company reduces rent and utility costs. Combined with reduced labor costs through greater use of part-time instructors and reduced teaching material costs through in-house material development, the company reduced operating expenses year on year in FY2026 (ending March 2026), achieving an operating margin of 4.2% (an improvement of 0.6 percentage points year on year).

ENVALITH's Perspective

Net income attributable to owners of parent for FY2026 (ending March 2026) fell sharply to ¥43 million (down 85.5% year on year). The main cause was the recording of ¥325 million in extraordinary losses, including a ¥311 million provision for losses on school relocation and closure, resulting in a large divergence from ordinary income of ¥461 million (up 15.9% year on year). As long as the company continues its scrap-and-build strategy, there is a risk that similar extraordinary losses will recur each period, making it necessary to continuously monitor the scale and frequency of such provisions when assessing the stability of net income.

The company's forecast for FY2027 (ending March 2026) is net sales of ¥11,055 million (up 3.2% year on year), operating income of ¥525 million (up 15.7%), and net income of ¥450 million (up 938.5%). The large increase in net income is mainly due to the drop-off of the large extraordinary loss recorded in FY2026 (ending March 2026), and the 15.7% increase in operating income more accurately reflects the actual improvement in business performance. Given the external environment of accelerating declining birthrate and falling real wages amid rising prices, it is necessary to closely examine both the feasibility of achieving the 3.2% sales growth and cost control measures.

The High School Division showed significant improvement in FY2026 (ending March 2026), with net sales of ¥1,322 million (up 2.0% year on year) and segment profit of ¥120 million (up 45.6%). This was driven by maintaining a high per-customer unit price and cost reductions from school relocations. On the other hand, the Other Education Business (FC segment) has been on a downward trend, with total FC student numbers falling below the previous year through the third quarter, resulting in net sales of ¥43 million (down 6.2% year on year) and segment profit of ¥25 million (down 13.2%). Whether concrete measures exist to revive growth in the FC business is a point of attention from the perspective of medium-term revenue diversification.

Growth Strategy

Strengthening the earnings base through four pillars: capturing lower-grade elementary students, improving unit prices, differentiating the High School Division, and enhancing FC efficiency

Continuing to promote enrollment from lower-grade elementary school students using the "Nationwide Open Achievement Test" and expanding After-School Childcare offerings. In FY2026 (ending March 2026), the number of Elementary & Junior High School Division students exceeded the previous year, and Live Online Classes also increased in both student numbers and sales. The company continues to focus on early childhood education and After-School Childcare to improve customer LTV.

Continuing to relocate to well-located properties upon lease expiration and to close unprofitable schools. In FY2026 (ending March 2026), the company decided to relocate three school locations in Hokkaido, Yamanashi Prefecture, and Miyagi Prefecture, achieving reductions in rent and utility costs. The effect of closing 11 schools at the end of the previous fiscal year also contributed, resulting in a decrease in overall operating expenses.

In addition to Group Classes (blackboard-based group instruction) organized by academic level and school, taught by full-time instructors, the company offers a diverse range of services combining the Self-Study Room "ASSIST" staffed by student instructors from top-tier universities, the high-priced "1:1 Individual Tutoring", and Online Classes. In FY2026 (ending March 2026), segment profit improved significantly, up 45.6% year on year, as efforts to maintain high customer unit prices proved effective.

Rolling out live-format online classes that do not rely on recorded video lessons, across both the Elementary & Junior High School Division and the High School Division. In FY2026 (ending March 2026), both student numbers and sales increased steadily, and the business is being developed as a new revenue channel to complement school network expansion in mid-sized regional cities.

Last updated: July 19, 2026