YAMASHITA HEALTH CARE HOLDINGS, INC.

Business Details

The core business that purchases medical equipment from manufacturers and sells it to hospitals and other medical institutions. Comprises five fields: General Equipment, General Consumables, Minimally Invasive Treatment, Specialty, and Information & Services. Based in Kyushu, the business supplies a wide range of products for operating rooms, examination rooms, ICUs, and other departments, and comprehensively supports the operation of medical institutions through SPD (in-hospital supply chain management outsourcing), medical IT systems such as electronic medical records, medical gas facility construction, and maintenance services.

Recent Overview

While the Consumables, Minimally Invasive Treatment, and Specialty fields remained solid, sluggish capital investment demand in the General Equipment field weighed on the overall results.

In the full year of FY2026 (ending May 2026), the General Consumables field (+2.9%), Minimally Invasive Treatment field (+1.1%), and Specialty field (+2.9%) all posted revenue growth, while the General Equipment field declined sharply by 16.5% year on year (down ¥1,553 million), resulting in overall segment sales of ¥63,868 million, down 0.4% year on year. Segment profit also declined slightly to ¥2,132 million (down 3.0% year on year). Additionally, all shares of E-Dilite Co., Ltd. were transferred in October 2025, and it has been excluded from the scope of consolidation from the second quarter onward.

Key Products

Growth Drivers

• Solid underlying demand for medical equipment consumables such as medical materials, supported by an increase in examination/surgery volumes and an increase in SPD contracted facilities
• Growth in minimally invasive treatment materials related to IVR and endoscopic surgery
• Expansion of the Specialty field driven by increased sales in the dialysis field (Toms Corporation)
• Capturing demand for medical DX promotion, ICT infrastructure development, and equipment renewal associated with the FY2026 medical fee schedule revision
• Expanded sales of high-value-added products such as surgical support robots and high-performance diagnostic imaging equipment
• Strengthened solution-based sales combining system proposals and maintenance services
• Establishment of a stable product supply system through logistics center renewal (introduction of automated warehousing, transport robots, and WMS)
• Enhancement of brand value and deepening of relationships with existing business partners on the occasion of Yamashita Ikaki Co., Ltd.'s 100th founding anniversary (August 2026)

Risks

• Risk that deterioration in the management of medical institutions due to rising personnel costs, utility costs, and medical material prices leads to more cautious capital investment and purchasing activity
• Continued weakness in capital investment demand for radiological equipment and diagnostic imaging equipment in the General Equipment field (down 16.5% year on year in FY2026, ending May 2026)
• Rising personnel-related costs due to wage increases and talent retention measures (salaries, allowances, and bonuses increased by ¥169 million year on year)
• Increased costs associated with logistics center renewal (a factor pressuring profit in FY2027, ending May 2027)
• Downward trend in sales in the Information & Services field (down 1.6% year on year in FY2026, ending May 2026)
• Impact of the reduced scope of consolidation following the transfer of all shares of E-Dilite Co., Ltd. (October 2025)
• Increase in SG&A expenses due to rising system-related costs for security systems and business DX initiatives
• Uncertainty over the economic outlook due to unstable international conditions, rising prices, and interest rate/exchange rate fluctuations