LEOCLAN Co.,Ltd.

Business Details

Provides consulting from the planning stage through opening for new construction, relocation, and reorganization/integration projects at medical institutions, health checkup facilities, and long-term care/welfare facilities, and offers one-stop provision of medical equipment/facilities sales, Medical Information System (Electronic Medical Records, etc.) Sales, maintenance, and interior/installation construction contracting. Business operations are centered on large-scale relocation, new construction, and renovation projects nationwide. In the first half of FY2026 (ending September 2026), this segment accounted for approximately 51% of consolidated net sales of ¥24,280 million.

Recent Overview

Despite higher sales, operating profit fell sharply by 32.7% year-on-year due to a decline in high-margin large-scale projects

In the first half of FY2026 (ending September 2026) (October 2025 to March 2026), the Medical Total Solution Business secured a slight increase in net sales to ¥12,475 million (up 1.1% year-on-year) due to sales growth in other areas. On the other hand, gross profit declined due to a lower margin resulting from a decrease in high-margin large-scale projects, and operating profit fell sharply to ¥304 million (down 32.7% year-on-year). Sales from the core Comprehensive Medical Equipment Sales business, associated with new construction, relocation, and reorganization/integration of medical institutions, decreased year-on-year.

Key Products

Growth Drivers

• Increase in large-scale comprehensive sales projects associated with new construction, relocation, and reorganization/integration of medical institutions (recovery in high-margin projects is key to profit improvement)
• Expansion of demand for new implementation and replacement of Medical Information Systems (Electronic Medical Records, etc.)
• Group scale expansion and portfolio strengthening through the consolidation of Fascia Holdings Co., Ltd. as a subsidiary (effective October 1, 2025)
• Strengthening of consulting sales capabilities utilizing the nationwide network of information on hospital new construction and relocation
• Expected improvement in medical institutions' earnings due to the FY2026 medical fee schedule revision (recovery in capital expenditure appetite)
• Diversification of the earnings base through sales expansion in areas other than comprehensive sales (such as individual large medical equipment sales)

Risks

• New construction and relocation projects at medical institutions show significant year-to-year fluctuation in order count and value, resulting in high seasonality and project concentration risk for net sales (the presence or absence of high-margin large-scale projects significantly affects profit levels)
• Risk that deterioration in the management environment of medical institutions due to rising prices and labor shortages could lead to restrained capital expenditure
• Increased financial leverage due to the recording of long-term borrowings (fixed liabilities of ¥4,375 million) associated with the acquisition of Fascia Holdings, with the consolidated equity ratio declining from 51.8% to 21.6%, and risk of impairment of goodwill of ¥1,303 million
• Risk that securing and developing excellent specialized personnel responsible for consulting sales could constrain business expansion
• Declining trend in gross profit margin (profit margin pressure from a decrease in high-margin projects and intensifying competition)
• Risk that one-time expenses, such as costs related to the acquisition of subsidiary shares (¥59 million in the current interim period), may arise as adjustments to segment profit