Kamakura Shinsho, Ltd.

Business Details

A matching platform business that starts with funerals, graves, and Buddhist altars, and expands broadly into asset management (inheritance, real estate, etc.), nursing care facility referrals, public-private partnership business, and services for elderly individuals living alone. The business provides one-stop services for the end-of-life planning needs of elderly people and their families. Against the backdrop of Japan's demographic trends, in which the number of deaths is expected to continue increasing until around 2040, the market is expected to continue expanding.

Recent Overview

In Q1 of FY2027 (ending March 2027), revenue and all profit items reached record highs for a first quarter

In the first quarter of FY2027 (ending March 2027) (February to April 2026), revenue was ¥2,202 million (up 12.0% year on year), operating profit was ¥303 million (up 30.0%), ordinary profit was ¥311 million (up 35.5%), and net profit attributable to owners of the parent was ¥195 million (up 24.8%), with all indicators marking record highs for a first quarter. The nursing care business grew 48.1% year on year and the funeral business grew 20.7% year on year, driving overall results. The full-year earnings forecast (revenue of ¥10,500 million, operating profit of ¥1,700 million) remains unchanged. Additionally, effective February 1, 2026, the consolidated subsidiary Age Plus absorbed and merged with its subsidiary Yutel Co., Ltd., consolidating management resources in the nursing care business.

Key Products

Growth Drivers

• High growth in the nursing care business (up 48.1% year on year in Q1 of FY2027 ending March 2027) and expansion of scale and efficiency through subsidiary consolidation (Age Plus's absorption merger with Yutel)
• Strengthening of the core business's revenue base through steady growth in the funeral business (up 20.7% year on year in Q1 of FY2027 ending March 2027)
• Establishment of a new revenue source through the rapid expansion of the public-private partnership business
• Structural expansion of the end-of-life planning market driven by Japan's progressing aging population (the proportion of people aged 65 and over is projected to reach 38.4% by 2065)
• Gaining access to the nursing care and insurance customer base through the capital and business alliance with SOMPO Holdings
• Improved matching accuracy and promotion of cross-usage through accumulation of customer databases and utilization of AI

Risks

• Risk that, due to the single-segment structure, there is no diversification effect across businesses, so changes in the end-of-life planning market environment directly affect overall performance
• Risk that increased cost of sales accompanying business expansion (¥1,007 million in Q1 of FY2027 ending March 2027, up 4.7% year on year) will compress profit margins
• Risk that the continued increase in selling, general and administrative expenses (¥891 million in Q1 of FY2027 ending March 2027, up 15.7% year on year) will persist
• Risk that the synergies from the business alliance with SOMPO Holdings will not materialize as planned
• Investment recovery risk, including the occurrence of losses on disposal of fixed assets (¥3 million in Q1 of FY2027 ending March 2027)
• Decline in net assets (¥5,726 million at the end of Q1 of FY2027 ending March 2027, down ¥622 million from the end of the previous fiscal year): decrease in retained earnings due to dividend payments of ¥823 million