WASEDA GAKUSHUKENKYUKAI CO.,LTD.

Business Details

Operates three divisions: group instruction for elementary and junior high school students "W Waseda Seminar" (Seminar Division), group instruction for high school students "W Waseda Seminar High School" (High School Division), and individualized instruction "First Kobetsu" (First Kobetsu Division). Characterized by a high-quality instruction system in which all teaching staff are full-time employees, along with thorough student care. In FY2026 (ending May 2026, an irregular 14-month period), the average number of students during the period was 19,182, and the number of locations at period-end was 66.

Recent Overview

14-month irregular fiscal period resulted in sales of ¥7,951 million, expanding to 66 locations with 5 newly opened campuses

Due to the change in fiscal year-end (from March to May), FY2026 (ending May 2026) constitutes an irregular 14-month accounting period. The operating margin declined to 16.6% (from 21.4% in the prior period) due to the inclusion of two occurrences of the typically weak April-May period, as well as temporary cost increases associated with new store openings, head office relocation, and construction of employee housing. During the fiscal year under review, the Seminar Division opened 4 new campuses and First Kobetsu opened 1 new classroom, expanding to 66 locations at period-end. FY2027 (ending May 2027) will return to a normal 12-month accounting period, with forecasted sales of ¥7,468 million, operating profit of ¥1,500 million, and net income of ¥1,044 million. Plans also call for opening 3 new locations.

Key Products

Growth Drivers

• Expansion of student numbers and sales through new campus openings centered on Saitama and Gunma Prefectures (3 new locations planned for FY2027, ending May 2027: Higashi-Kawaguchi, Kasukabe, and Fujioka campuses)
• Expansion of the First Kobetsu division (opening of the Takasaki classroom, etc., responding to demand for individualized instruction)
• Establishment of new customer acquisition methods through enhanced web advertising and website renewal
• Strengthening recruitment capabilities and developing human resource development systems through head office relocation and construction of new employee housing
• Rising demand for individualized and high-quality instruction against the backdrop of an increasing trend in educational investment per child
• Differentiation from competitors through high-quality instruction by full-time teaching staff and a large-scale suburban campus model

Risks

• Market shrinkage due to declining birthrate (ongoing decrease in school-age population)
• Increasing difficulty in securing quality properties and recruiting teachers as new campus openings accelerate
• Risk of declining profit margins due to temporary cost increases from new store openings, relocations, and head office relocation
• Risk of falling behind in the digitalization of education utilizing AI and ICT technology
• Changes in demand for cram schools due to free high school tuition and diversification of university entrance examination systems
• Risk of declining profit margins due to cost increase pressures such as rising utility costs and personnel expenses
• Intensifying industry competition due to new entrants from other industries and M&A activity
• Impact on financial statements from the new lease accounting standard (scheduled to apply from FY2028, ending May 2028) (currently under assessment)