ENVALITH
HYUGA PRIMARY CARE株式会社 logo

HYUGA PRIMARY CARE Co.,Ltd.

7133・Growth Market・Retail Trade

Official website
HYUGA PRIMARY CARE株式会社 logo
HYUGA PRIMARY CARE Co.,Ltd.7133

Business

HYUGA PRIMARY CARE Co., Ltd. operates three core businesses: its Home-Visit Pharmacy Business, the core operation, runs a total of 63 stores under the "Kirari Pharmacy" brand across western Japan, eastern Japan, and Hokkaido; "Kirari Prime," an operational support platform for home-visit care aimed at small and medium-sized pharmacies (2,879 affiliated stores across all 47 prefectures nationwide); and "Primary Care Home," a housing-type paid nursing home for care-requiring individuals with high medical dependency needs (4 facilities, total capacity of approximately 576 residents). While directly supporting 12,474 home-care patients (as of the end of March 2026), the company also broadly covers home-care patients indirectly through its affiliated pharmacy network, positioning itself as a "primary care platform company." Founded in 2007, listed on the Tokyo Stock Exchange Growth Market in 2021.

Business Model

The Home-Visit Pharmacy Business consists of dispensing income based on prescriptions (approximately 60% of sales is home-visit dispensing income); the Kirari Prime Business consists of subscription-type recurring revenue linked to franchisee home-visit patient numbers and pharmaceutical purchase amounts (profit margin of 61.1%); and the Primary Care Home Business consists of nursing care service income based on facility occupancy rates. The three businesses share home medical care expertise and networks, forming a mutually complementary structure.

Company Strengths

Approximately 60% of sales consist of home-visit revenue, with an average of over 200 home-visit patients per store and more than 400 monthly implementations of at-home medical treatment management guidance. Of home-visit patients, 95% are certified as requiring long-term care and 89% reside in elderly care facilities; this high-density, home-visit-focused model boasts overwhelmingly greater home-visit business density compared to general storefront pharmacies (which average around 53 times per month).

The Kirari Prime Business, launched in 2019, had expanded to all 47 prefectures nationwide, with 936 member companies and 2,879 stores as of the end of March 2026. Through a subscription-based recurring revenue model, the segment achieved a segment profit margin of 61.1% in FY2026 (ending March 2026) (sales of ¥1,266 million, segment profit of ¥773 million). The in-house developed home-visit support information system, Famcare, serves as the core of its differentiation.

Primary Care Home operates large-scale facilities with average capacities of 102 to 168 residents, compared to the industry average of 41, catering to residents with an average care-need level of around 3.5 and high medical dependency, including terminal cancer, Parkinson's disease, and tracheostomy care. This differentiated model leverages the home-visit medical care know-how and network cultivated through the Home-Visit Pharmacy Business, and the two existing facilities have achieved occupancy rates exceeding 90%.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales increased to ¥11,983 million (up 20.0% year on year), maintaining top-line growth, but operating profit fell sharply to ¥816 million (down 22.3% year on year) and net income to ¥501 million (down 30.2% year on year). The main causes were a sharp rise in travel expenses, recruitment costs, and labor costs associated with the simultaneous opening of three stores in Sapporo, sluggish occupancy at Primary Care Home Hyuga Kumamoto Hamasen (opened December 2024), and the recognition of an impairment loss of ¥96 million. The company has entered an "upfront investment phase" in which sales growth significantly outpaces profit growth, and the progress of investment recovery will be the key evaluation criterion going forward.

Within the Kirari Prime Business, regarding the elderly-care facility opening support consulting service (Region Prime), a difference of opinion with the accounting auditor continues over revenue recognition for a project in Nishi Ward, Fukuoka City (total sales equivalent to approximately ¥200 million). Sales for this project could not be recognized in the current period and have also been excluded from the earnings forecast for FY2027 (ending March 2027). Because the project scale is large and could cause significant swings in results, uncertainty over the timing of resolution and revenue recognition remains a risk factor for investors.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥13,102 million (up 9.3%), operating profit of ¥904 million (up 10.7%), and net income of ¥631 million (up 25.8%), marking a return to growth in both sales and profit. Key drivers include stable operations at the four existing facilities, monetization of the Sapporo area, and an increase in Kirari Prime franchise stores. On the other hand, the reduction in dispensing fees resulting from the April 2026 revision of drug pricing and dispensing fee schedules is an external factor that will put downward pressure on the unit sales price of the Home-Visit Pharmacy Business, and whether the expansion in the number of home-visit patients can offset this negative factor will be key to achieving the earnings forecast.

Growth Strategy

Building home healthcare infrastructure through three pillars: expansion of directly-operated pharmacies, growth in platform franchise stores, and expansion of care facilities

For FY2027 (ending March 2027), the company plans to open 5 new stores (totaling 68 stores) and exceed 14,000 home-visit patients. It will strengthen the operational structure and profitability of the Sapporo area, newly entered in the previous fiscal year, and drive aggressive patient acquisition in the Kanto region (Tokyo to northern Chiba area) as a key strategic region. The policy is to offset the decline in technical fees from the dispensing fee revision through expanded patient numbers.

In cooperation with Sumitomo Mitsui Finance and Leasing, the company plans to launch full-scale operation from October 2026 of a POS register system designed to reduce the administrative workload of collections and outstanding receivables management unique to home-visit pharmacies. This aims to address the labor shortage environment and support employee wage increases, thereby improving pharmacist turnover and accelerating store openings.

The company will strengthen consulting services by increasing the number of pharmacist consultants, capturing demand from small and medium-sized pharmacies seeking support for entering the home-visit care market amid a worsening business environment following the April 2026 dispensing fee revision. It plans to exceed 3,000 franchise stores, achieve net sales of ¥1,242 million, and segment profit of ¥724 million by the end of FY2027 (ending March 2027).

The company plans to open its 5th facility, "Primary Care Home Hyuga Fukuoka Yanaga (tentative name)" (Minami-ku, Fukuoka City), in January 2027. All 4 existing facilities have already achieved profitability and are expected to continue stable operation. The company aims to improve per-resident revenue by raising the proportion of residents with high medical care needs (currently around 13%) and strengthening the nursing care structure. It plans net sales of ¥2,899 million and segment profit of ¥148 million for FY2027 (ending March 2027).

The Bed Sensor, which has obtained nursing care insurance coverage (TAIS code and rental mark certification), is being expanded from rental within group facilities to external sales. The company will expand its product lineup through additional development of the Excretion Monitoring Sensor, strengthening collaboration with its three core businesses as a solution to reduce labor burden in nursing care settings.

Last updated: July 19, 2026