ENVALITH
株式会社エム・エイチ・グループ logo

M.H.GROUP LTD.

9439・Standard Market・Services

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株式会社エム・エイチ・グループ logo
M.H.GROUP LTD.9439

Business

MHグループ (M.H.Group Co., Ltd.) is a listed corporate group in the beauty industry that, centered on its "Mod's Hair" brand, operates five businesses: Directly Managed Salon Operations, BS Salon Operations (Brand Share), Hair & Makeup Business, Beauty Salon Support Business, and Career Design Business. It has four consolidated subsidiaries (M.H.Plus Co., Ltd., Right Staff Co., Ltd., Arts Co., Ltd., and Only One Co., Ltd.) under its umbrella, and maintains a salon network both domestically and overseas (South Korea, Taiwan, and China). Under its second founding phase targeting FY2030 (ending June 2030), the group is promoting DX and GX initiatives as a leading company in the beauty industry. Its main customers span a wide range, including general consumers (salon users), BS Salon franchise owners, media and bridal-related companies, and beauty salon operators.

Business Model

The directly managed salons (net sales of ¥928 million) function as the flagship for the Mod's Hair brand, and by leveraging that brand strength and know-how across BS Salon (franchise royalties and PB product sales), Hair & Makeup (studio, bridal, and media orders), Beauty Salon Support (credit payment processing and POS systems), and Career Design (staffing and recruitment), the company secures multiple revenue sources. In particular, the Beauty Salon Support Business is highly profitable with a segment profit margin of 64.8%, representing a unique model that turns the Group's scale advantages into a service.

Company Strengths

As of the end of FY2025 (ended June 2025), the company held a BS Salon network of 55 stores in total: 38 domestic stores, 9 stores in Korea, 3 stores in Taiwan, and 5 stores in China. The 10 directly managed stores (in the greater Tokyo metropolitan area) function as flagships, and the hair & makeup team handles over 2,000 media assignments annually, including participation in Paris Collections and Tokyo Collections, giving it high recognition both domestically and internationally.

The Beauty Salon Support Business (Right Staff Co., Ltd.) achieved net sales of ¥121 million and segment profit of ¥78 million in FY2025 (ended June 2025), for a profit margin of 64.8%. The number of contracts for the Credit Payment Processing Service trended steadily, and cost reduction effects resulted in a 17.3% year-on-year increase in profit. This represents a unique, highly profitable model that converts the Group's scale advantages into a service.

The company has five segments—Directly Managed Salon Operations, BS Salon, Hair & Makeup, Beauty Salon Support, and Career Design—which function in a mutually complementary manner. In FY2025 (ended June 2025), for example, the Hair & Makeup Business achieved a significant improvement with a 3.6% year-on-year increase in net sales and an 809.2% year-on-year increase in segment profit. The company has built a business portfolio that avoids dependence on a single business.

ENVALITH's Perspective

Operating loss for the cumulative nine months of Q3 FY2026 (ending June 2026) was ¥26 million (versus operating profit of ¥3 million in the same period of the prior year). The full-year earnings forecast has been substantially revised downward to net sales of ¥1,840 million (down 0.2% year on year) and an operating loss of ¥120 million, with the loss expected to widen sharply from the ¥10 million operating loss recorded in FY2025. Both cost of sales and SG&A expenses increased (gross margin: 26.5% in the same period last year versus 26.1% in the current period; SG&A expenses: ¥375 million in the same period last year versus ¥386 million in the current period), reflecting a continuing structural squeeze on profitability from rising prices, higher personnel costs, and costs associated with new store openings.

During the cumulative nine months of the current third quarter, 4 BS Salon stores in Japan and 2 in South Korea closed, bringing the store count at period end to 47 (34 in Japan, 7 in South Korea, 4 in Taiwan, and 2 in China). Due to the decrease in the number of operating stores, net sales of BS Salon Operations fell 2.0% year on year. As an external factor, rising labor mobility across the beauty industry as a whole and a lengthening of visit cycles due to increased frugality among consumers are putting pressure on franchisee operations, and if the network continues to shrink, there is a risk that the brand's scale advantages themselves could be undermined.

Based on the business alliance concluded with ECLART Co., Ltd. in November 2025, the color specialty store "E:terne Omiya Store" was opened in February 2026. While this is expected to serve as a measure to strengthen recruitment and customer acquisition, the costs associated with the new store opening became a factor reducing profit in the Directly Managed Salon Operations segment for the current period (segment profit down 43.8% year on year), placing the business in a cost-front-loaded phase in the near term. The strong performance of the Media Division within the Hair & Makeup Business (segment profit up 52.1% year on year) is an encouraging sign, but it is too small in scale to reverse overall company-wide earnings, and fundamental profitability improvement will be needed to achieve full-year profitability.

Growth Strategy

Toward achieving the "Second Founding Period" in FY2030 (ending June 2030), the company is rebuilding its earnings base through the ECLART partnership, DX promotion, and creation of new businesses.

A business alliance agreement was concluded in November 2025, promoting collaboration that leverages the management resources and expertise of both companies. The new brand's color specialty store "E:terne Omiya Store" opened on February 28, 2026. The company aims to strengthen recruitment and enhance customer acquisition capabilities across both directly managed salons and BS Salons. While this is currently in a cost-preceding phase in the short term, it is positioned as a foothold for strengthening mid-term competitiveness.

As one of the few listed corporate groups in the beauty industry, the company is focusing on initiatives to promote DX (digital transformation) and GX (green transformation) as a leading company, contributing to the enhancement of the industry's overall presence. It aims to establish a position as industry infrastructure, with a view toward linkage with the Beauty Salon Support Business's POS system and Credit Payment Processing Service.

Based on the medium-term management plan (announced September 26, 2024), the company is focusing on creating new revenue-generating businesses in parallel with optimizing management efficiency in existing businesses. The policy is to capture growth opportunities in the beauty industry, premised on strengthening organizational foundations through enhanced human capital management. The Career Design Business is expanding into areas such as staffing concierge services for high-rise residential towers, but the current fiscal period has been challenging due to a labor shortage, with the number of staffing placements declining year on year (sales down 10.9% year on year).

In the BS Salon business, where the number of operating stores continues to decline, the company continues to open new stores in Taiwan and China while maintaining steady growth in PB Product sales. It aims to extend the benefits of the ECLART collaboration to BS Salons as well, strengthening the competitiveness of franchise stores. As of the end of the current fiscal period, there were a total of 47 stores: 34 in Japan, 7 in South Korea, 4 in Taiwan, and 2 in China.

Last updated: July 17, 2026