CHARM CARE CORPORATION
6062・Prime Market・Services
Business
Charm Care Corporation is a nursing care operator that manages paid nursing homes for elderly individuals requiring support or care under the Long-Term Care Insurance Act. Since opening its first facility in 2005, the company has concentrated openings in urban areas of the Greater Tokyo and Kinki regions, operating 105 facilities with 7,155 rooms as of the end of June 2025. It offers a diverse range of brands, from the high-priced brands "Charm Premier" and "Charm Premier Grand," targeting the upper-middle to affluent segment, to the standard-priced brands "Charm Suite" and "Charm." With the nursing care business at its core, the company also operates complementary businesses including staffing, visiting nursing, resident referral, and hospice-style residences. The company is listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Main revenue consists of monthly usage fees from residents (housing costs, meal costs, nursing care service fees) combined with nursing care compensation from long-term care insurance benefits. The business has a stock-type structure in which profitability improves as occupancy rates rise, since fixed costs are spread over a larger base. The company builds up sales scale by expanding room capacity through new openings and M&A while maintaining an average occupancy rate of 94.4% at existing facilities (those open for 2 years or more). It adopts a vertically integrated model in which the group's in-house staffing dispatch and resident referral functions support the maintenance of high occupancy rates.
Company Strengths
The average occupancy rate of existing facilities open for more than 2 years remained at 94.4% in FY2025 (ended June 2025). Existing facilities of Like Co., Ltd., acquired through M&A, improved from 74.5% at the time of acquisition to 98.9%, demonstrating the company's proven ability to raise occupancy rates through its in-house expertise.
As of the end of June 2025, the company operated 50 facilities with 3,048 rooms in the Greater Tokyo area and 55 facilities with 4,107 rooms in the Kinki region. In FY2025 (ended June 2025) alone, 13 facilities with 954 rooms were newly opened or acquired through M&A, and Nursing Care Business sales grew 17.0% year on year to ¥39,063 million, with segment profit up 9.0% year on year to ¥4,802 million.
In FY2025 (ended June 2025), the company acquired a total of 7 facilities through M&A, including 2 facilities from CM Care Co., Ltd. and 5 facilities from the former Care 21 Co., Ltd. Backed by industry recognition that generates numerous M&A information leads, the company leverages its post-acquisition occupancy improvement and operational efficiency expertise to drive earnings contribution.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of FY2026 (ending June 2026) (July 2025 to March 2026), net sales were ¥33,893 million (up 11.8% year on year), operating profit was ¥3,603 million (up 43.9% year on year), ordinary profit was ¥3,806 million (up 42.9% year on year), and quarterly net profit attributable to owners of the parent was ¥2,560 million (up 39.0% year on year). In the previous fiscal year (FY2025, ended June 2025), consolidated results showed a decline in both revenue and profit due to deterioration in the Real Estate Business and other factors; however, in the current fiscal year, the profit increase has expanded substantially owing to continued strength in the Nursing Care Business, reduced seasonal impact during the winter months, and progress in productivity improvements. Looking at the trend over the past five fiscal years, results peaked in FY2024, followed by a decline in both revenue and profit in FY2025, but FY2026 marks a return to a growth trajectory led mainly by the Nursing Care Business. As an external factor, the expansion of nursing care demand driven by the growing elderly population continues to serve as a tailwind.
Growth Strategy
Continued aggressive new facility openings and M&A in the Greater Tokyo and Kinki regions, combined with productivity improvements to enhance profitability
The company is opening the high-end brands "Charm Premier Grand" and "Charm Premier" in upscale residential areas, while also expanding the "Charm" and "Charm Suite" series. During the fiscal year under review, 9 facilities with 542 rooms were newly opened or acquired (7 facilities in the Greater Tokyo area, 2 facilities in the Kinki region). Charm Premier Kyoto Okazaki (60 rooms) is scheduled to open in May 2026.
Numerous M&A opportunities for paid nursing homes have been presented to the company, and it continues to pursue scale expansion through M&A while carefully vetting information. The company has accumulated a track record of improving occupancy rates after acquisition, such as the former Care 21 facilities (improved to 69.8% occupancy) and the former Biken Techno facilities (62.5% occupancy just one month after acquisition). CM Care Co., Ltd. (consolidated as a subsidiary in October 2024) has also maintained a high occupancy rate of 96.8%.
In anticipation of future labor shortages, the company filed notifications for relaxed staffing ratios at 10 facilities during the fiscal year under review (compared to 1 facility in the previous fiscal year). At present, notification for one additional facility has been accepted. Through phased expansion, the company aims to improve labor cost efficiency and profitability.
Through base pay increases for two consecutive periods, partial conversion of bonuses into monthly salary, and an optional four-day workweek system (selected by approximately 60% of nursing care staff), the company has achieved industry-leading compensation levels. The average length of service among employees has risen year by year, and the turnover rate has shown a medium- to long-term improving trend. The shift to an OJT-centered, "field-oriented" training system is also steadily yielding results.
The Real Estate Development & Sale Business has been discontinued following the completion of its sole project during the fiscal year under review (the Chofu City Kokuryo project). The sale is scheduled to be completed in the fourth quarter, with building construction already complete and contractual procedures with the buyer currently underway. The policy is to concentrate management resources on the Nursing Care Business.
Last updated: July 17, 2026