HOSHI IRYO-SANKI CO., LTD.
7634・Standard Market・Wholesale Trade
Business
Hoshi Medical Corporation is a company listed on the TSE Standard Market, founded in 1974. Starting from the manufacture and sale of medical oxygen, the company broadly covers the healthcare and nursing care value chain, spanning Home Healthcare-related Business such as Home Oxygen Therapy (HOT) and CPAP (Continuous Positive Airway Pressure) Device, Medical Gas Piping Construction work, Nursing Care and Welfare Equipment rental and sales, and the operation of paid nursing homes and day care facilities. The group structure, including five consolidated subsidiaries, operates nationwide with a focus on the greater Tokyo metropolitan area. Its main customers are medical institutions such as hospitals and clinics, as well as patients receiving home-based treatment. Consolidated net sales for FY2026 (ending March 2026) were ¥15,520 million.
Business Model
Medical gases are filled by four in-house manufacturing subsidiaries and continuously supplied to medical institutions. In the home healthcare business, oxygen concentrators and other equipment are held as rental assets, adopting a stock-type model that generates recurring rental income from patients. In the equipment construction business, recurring revenue is also secured through maintenance, inspection, and repair services. The nursing care and facility businesses derive revenue from nursing care fees. By combining multiple segments, the company has built a stable revenue base that is less susceptible to economic fluctuations.
Company Strengths
The Home Healthcare-related Business achieved net sales of ¥7,226 million (up 7.4% year on year) and segment profit of ¥999 million (up 10.2% year on year) in FY2026 (ending March 2026), with a profit margin of 13.8%. Both HOT and CPAP expanded steadily, driving overall group earnings as the largest segment. DX promotion through the in-house developed Home Healthcare Support System "Pallet's-R" is also contributing to improved operational efficiency.
Four manufacturing subsidiaries in Tokyo, Ibaraki, Kanagawa, and Aichi (AMC, IMC, KMC, and TMC) handle oxygen filling in-house. A new plant in the Tokai region was completed and became operational in FY2024, strengthening the supply system. In-house production has reduced costs and established a stable supply system, serving as a key differentiator from competitors.
As of the end of FY2026 (ending March 2026), net assets stood at ¥20,325 million, with a current ratio of 317.3%, indicating high financial soundness. Cash flow from operating activities amounted to ¥2,477 million (up ¥287 million year on year). Cash and cash equivalents reached ¥5,910 million, providing ample capacity to fund capital expenditures and M&A activities.
ENVALITH's Perspective
Performance Trend
Revenue increased 21.5% over five fiscal periods, from ¥12,772 million in FY2022 (ending March 2022) to ¥15,520 million in FY2026 (ending March 2026), maintaining a revenue growth trend. However, in FY2026 (ending March 2026), operating income was ¥1,919 million (down 3.2% year on year), ordinary income was ¥2,000 million (down 2.5%), and net income attributable to owners of the parent was ¥1,373 million (down 6.2%), with all major profit indicators falling below the previous period. As an external factor, persistently high energy costs and raw material prices pushed up both cost of sales and SG&A expenses. The operating margin declined from 13.1% to 12.4%. Home Healthcare-related Business (revenue +7.4%, profit +10.2%) served as the sole high-growth segment supporting the entire company, while Medical Gas-related Business (profit -27.4%) and construction-related business (revenue -7.6%) acted as a drag.
Growth Strategy
Diversified growth through M&A, DX, and expanded capital investment in home healthcare and nursing care, along with strengthening the medical gas supply system
Continued aggressive investment in rental assets for home healthcare equipment such as HOT and CPAP devices. In FY2026 (ending March 2026), the increase in tangible and intangible fixed assets in the Home Healthcare-related segment was ¥954 million, the largest among all segments. Aiming to expand recurring revenue by strengthening equipment procurement capabilities in response to the increasing number of patients.
Positioning M&A in the medical and nursing care fields as a pillar of growth strategy, promoting area expansion and strengthening of business foundations. In FY2026 (ending March 2026), ¥2 million was spent on acquisition of shares of affiliated companies. The balance of investment securities stood at ¥4,164 million (up ¥1,197 million year on year), continuing investments that leverage financial capacity.
Promoting DX in home healthcare operations through the use of the in-house developed system "Pallet's-R". ¥22 million in construction in progress for software was newly recorded, with system development investment underway. Aiming to optimize the allocation of human resources and improve profitability through operational efficiency improvements.
In response to rising energy costs and transportation expenses, continuing negotiations to adjust prices to appropriate levels reflecting cost increases while monitoring market conditions. Promoting the expansion of human resources and organizational structure improvements in the logistics and transportation field in response to the post-2024 issue. In FY2026 (ending March 2026), profit declined significantly, making the acceleration of price pass-through an urgent priority.
Promoting improvement in occupancy rates at the Paid Nursing Home "Life Stage Asagaya" and improving utilization rates at three day care locations. In FY2026 (ending March 2026), the loss in the Facility-based Care segment was ¥15 million (improved from a loss of ¥18 million in the previous fiscal year). Segment profit in the Nursing Care and Welfare-related business improved significantly to ¥61 million (up 38.3% year on year). Resolving staffing shortages in home visit nursing remains a challenge.
Last updated: July 19, 2026