SUNWELS Co.,Ltd.
9229・Prime Market・Services
Business
Sun Wells Co., Ltd. is a nursing care business company whose core operation is "PD House," a fee-based nursing home specializing in Parkinson's disease, a designated intractable disease. The company began offering day services in Ishikawa Prefecture in 2006, and after opening its first PD House in 2019, accelerated nationwide expansion. As of the end of FY2026 (ending March 2026), the company operates 56 facilities with 3,070 beds nationwide. It employs a composite revenue model combining nursing care insurance, medical insurance, and welfare services for the disabled, providing 24-hour nursing care, collaboration with specialist physicians, and rehabilitation programs specialized for Parkinson's disease. Its main customers are Parkinson's disease patients and their families, providing a stable demand base premised on long-term residency.
Business Model
Revenue mainly consists of public insurance benefits from nursing care insurance, medical insurance, and disability welfare service compensation (users bear 10–30%, with the remaining 70–90% billed to review and payment organizations), together with hotel costs such as rent, meals, and utilities (borne by the resident). Because Parkinson's disease patients are covered under medical insurance and disability welfare services, the revenue per resident is higher compared to general nursing care facilities. In FY2026 (ending March 2026), PD House revenue was ¥25,170 million, accounting for 89.5% of total revenue.
Company Strengths
No paid nursing homes specializing in Parkinson's disease existed previously; the company has pioneered this field in Japan. It has built a specialized care system that is difficult for competitors to replicate in a short period by combining rehabilitation programs supervised by specialist physicians, a 24-hour nursing system, and specialized talent development through its in-house certification, the "PD License" system. As of the end of FY2026 (ending March 2026), the company operates 56 facilities with 3,070 beds.
In October 2019, the company established a joint research chair with the Department of Neurology, Juntendo University Faculty of Medicine, titled "ICT Control-Based Home Medical Care Development Chair." In April 2024, it additionally established the "PD Long-Term Observation Joint Research Chair," advancing big data accumulation and large-scale cohort studies using wearable devices and multi-sensor technology. R&D expenses of ¥46 million were recorded in FY2026 (ending March 2026), reflecting continued investment in building barriers to entry.
In FY2026 (ending March 2026), the applicant-to-hire ratio remained at 6.3x. The company has established a system in which leader-level staff are hired six months prior to a facility's opening and undergo thorough training before opening. By introducing its in-house certification, the "PD License" system supervised by specialist physicians, and working to develop experts in Parkinson's disease care, the company has built a unique framework to address the industry-wide challenges of securing and retaining talent in the nursing care sector.
ENVALITH's Perspective
Performance Trend
Revenue expanded 3.4x over four years, from ¥8,175 million in FY2022 to ¥28,136 million in FY2026, but growth decelerated sharply, from +52% YoY in FY2024 to +32% YoY in FY2025 to +6% YoY in FY2026. Operating profit deteriorated rapidly after peaking at ¥2,237 million in FY2024, falling to ¥1,114 million in FY2025 and to an operating loss of ¥1,223 million in FY2026. The implementation of recurrence-prevention measures (overhaul of the operational structure) in response to the fraudulent medical fee claims issue, together with the FY2026 revision to medical fee reimbursement rates, dealt a direct blow to profitability. The cost of sales ratio worsened from 81.5% in FY2025 to 90.2% in FY2026, causing gross profit to plunge from ¥4,914 million to ¥2,763 million. Interest expenses also increased from ¥814 million to ¥1,196 million, widening the ordinary loss to ¥2,168 million. A ¥1,000 million donation from the Representative Director (recorded as extraordinary income) narrowed the net loss for the period to ¥1,656 million, but the underlying decline in earning power is severe.
Growth Strategy
FY2027 (ending March 2027) is positioned as a period of structural reform, with focus concentrated on suspending new store openings, improving occupancy rates, and transforming the revenue model
The Company will proceed with optimization of service provision and transform its business toward a sustainable revenue model aligned with the system following the FY2026 nursing care fee revision. This serves as a key premise for the projected operating profit of ¥420 million (return to profitability) in FY2027 (ending March 2027).
The Company is reviewing its cost structure from both fixed and variable cost perspectives to improve profitability. The cost of sales ratio deteriorated to 90.2% in FY2026 (ended March 2026), making recovery of the gross profit margin through cost reductions an urgent priority.
The Company aims to raise the occupancy rate of existing facilities through strengthened medical collaboration and occupancy promotion, thereby boosting overall earnings capacity. Raising the occupancy rate of the 13 facilities newly opened in FY2026 (ended March 2026) is the key driver behind the projected EBITDA of ¥2,402 million (up 267.2% year on year) in FY2027 (ending March 2027).
In FY2027 (ending March 2027), the Company will temporarily suspend its new store opening plans, prioritizing the restraint of investment cash flow and the securing of cash on hand. The Company has already obtained a grace period on principal repayments (totaling ¥574 million) from April 30, 2026 to September 30, 2026 from all its financial institutions. It will continue close discussions with financial institutions in response to the breach of financial covenants.
Last updated: July 19, 2026