PLATZ Co.,,Ltd.

Business Details

Platz Co., Ltd. is primarily engaged in the manufacture and sale of medical and nursing-care electric beds, operating across four markets: the welfare equipment distribution market, the medical and elderly care facility market, the furniture and bedding distribution market, and overseas markets. The company has a consolidated subsidiary, Yamato Sangyo Co., Ltd. (processing and sale of urethane mattresses), Fu Ruo Ci (Shanghai) Trading Co., Ltd. (sales in China), and an equity-method affiliate, SHENGBANG METAL CO.,LTD. (parts manufacturing). The company claims the top industry share in home care beds and the No. 2 position in the industry for medical and elderly care facility beds. Procurement is mainly denominated in US dollars, with risk hedged through forward exchange contracts.

Recent Overview

Net sales declined slightly, but margin improvement was notable, with the medical facility market offsetting a downturn in the furniture and bedding market

In the cumulative third quarter of FY2026 (ending March 2026) (July 2025–March 2026), net sales came to ¥6,300 million (down 0.6% year on year), a slight decline, but gross profit margin improved to 32.0% (up 2.5 points year on year) due to a yen appreciation trend (actual procurement rate of ¥147.79 to the US dollar) and a review of manufacturing and procurement costs. Operating profit rose significantly to ¥196 million (up 12.7% year on year), and quarterly net profit rose to ¥216 million (up 28.0% year on year), reflecting a marked profit improvement. By market, the medical and elderly care facility market led growth at ¥1,855 million (up 14.9% year on year), while the furniture and bedding distribution market declined significantly to ¥873 million (down 27.2% year on year). The full-year earnings forecast (net sales of ¥8,800 million, operating profit of ¥400 million) remains unchanged.

Key Products

Growth Drivers

• Continued growth in the number of persons certified as requiring support or long-term care under the long-term care insurance system (7.61 million as of November 2025, up 1.8% year on year) and an increase in the number of special bed usage cases (1,137,000 cases, up 1.6% year on year)
• Strengthened sales activity in the medical and elderly care facility market: achieved ¥1,855 million in the cumulative third quarter (up 14.9% year on year). Growth in the number of serviced housing facilities for the elderly and units (8,345 buildings, 291,000 units as of November 2025) is underpinning demand
• Expansion in overseas markets: strong shipments to Korea drove an 18.1% increase to ¥145 million in the cumulative third quarter. In China, the company aims to accelerate progress through a joint venture with the Haier group
• Improved gross profit margin through review of manufacturing and procurement costs: 32.0% in the cumulative third quarter (up 2.5 points year on year). Cost stabilization through use of forward exchange contracts also contributed
• Diversification of profit sources and expansion of the product lineup in the furniture and bedding distribution market through the consolidation of Yamato Sangyo Co., Ltd. as a subsidiary (April 2024)

Risks

• Risk of long-term care insurance system reform: stricter or more rationalized certification of care needs and continued declines in welfare equipment rental prices could pressure profitability in the welfare equipment distribution market
• Foreign exchange risk: procurement is mainly denominated in US dollars, and manufacturing costs rise when the yen depreciates. The actual procurement exchange rate for the cumulative third quarter was ¥147.79 to the US dollar, with an assumed rate of ¥155.00 for the second half (the actual rate as of the end of March 2026 was ¥159.88)
• Sluggish demand in the furniture and bedding distribution market: as with the general bed market, the medical and nursing-care electric bed market continues to show a declining trend. Yamato Sangyo's mattress sales also showed a clear pause in demand, down 27.2% year on year in the cumulative third quarter
• Risk of sales concentration in specific customers: Nishikawa Co., Ltd. accounts for 15.6% of net sales (¥1,314 million) and Japan Care Supply Co., Ltd. accounts for 10.5% (¥887 million), meaning changes in trading terms with these customers would have a significant impact
• Risk of concentrated production base: manufacturing is concentrated in Vietnam, and the company recognizes the need to review its production base as a countermeasure against risks of production stoppage or cost increases due to geopolitical risk, rising raw material costs, and exchange rate fluctuations