TOKAI Corp.
9729・Prime Market・Services
Health and Living Services
The largest rental-driven segment supporting medical and nursing care settings
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥81,799 million | ¥76,935 million | ↑ |
| Operating income | ¥8,546 million | ¥7,130 million | ↑ |
| Segment assets | ¥53,765 million | ¥55,373 million | ↓ |
| Depreciation and amortization | ¥3,371 million | ¥3,417 million | ↓ |
| Goodwill amortization | ¥294 million | ¥168 million | ↑ |
| Impairment loss | ¥12 million | ¥914 million | ↓ |
| Increase in tangible and intangible fixed assets | ¥3,080 million | ¥3,040 million | ↑ |
Business Details
Comprises the hospital-related business (linen supply and in-hospital logistics outsourcing), the silver business (nursing care equipment rental and rehabilitation day services), the bedding/linen supply business (for hotels), the food service business, the cleaning equipment manufacturing business, and the Aquaclara business. Serving medical institutions, nursing care facilities, and lodging facilities as its main customers, the segment supports the maintenance of clean and hygienic environments through a rental-based business model. It is the core segment, accounting for approximately 51% of consolidated group revenue.
Recent Overview
Revenue and profit both increased, reaching a record-high profit level on full-year M&A contribution and strength in the silver and linen businesses
In FY2026 (ending March 2026), the segment achieved revenue of ¥81,799 million (up ¥4,863 million, or 6.3%, year on year) and operating income of ¥8,546 million (up ¥1,415 million, or 19.9%, year on year). Full-year contributions from mik japan Co., Ltd. and Kaigo Center Hanaoka Co., Ltd., which became consolidated subsidiaries during the prior fiscal year, along with growth in nursing care equipment rental revenue in the silver business and the bedding/linen supply business, drove results. On the profit side, improved rental asset turnover in the silver business, profitability improvement in the food service business, and appropriate pricing all contributed, while a large impairment loss recorded in the prior year (¥914 million) shrank sharply to ¥12 million, further boosting profit.
Key Products
Growth Drivers
- Strong growth in nursing care equipment rental revenue within the silver business (improved profitability through higher rental asset turnover)
- Expansion of regional market share in the silver business via low-cost, rapid store openings leveraging existing Tampopo Yakkyoku locations
- Revenue and profit contribution from the consolidation of Kaigo Center Hanaoka Co., Ltd. and mik japan Co., Ltd. (full-year contribution from the start of the fiscal year)
- Revenue growth and appropriate pricing in the bedding/linen supply business amid expanding hotel linen demand
- Business succession and network expansion through active M&A in the Kyushu area (acquisition of Eva Co., Ltd. shares in December 2025)
- Structural expansion of demand for medical and nursing care services amid a progressing super-aged society
Risks
- Profit pressure from M&A-related costs (goodwill amortization and acquisition-related expenses): goodwill amortization for FY2026 (ending March 2026) was ¥294 million, up ¥126 million year on year
- Rising labor costs, logistics costs, and other structural cost increases stemming from labor shortages
- Risk from nursing care insurance system revisions amid a super-aged society (changes to benefit scope and reimbursement rates)
- Integration and goodwill impairment risks associated with ongoing M&A activity, particularly in the silver business
- Increased fuel costs at laundry plants due to soaring energy costs (pressuring profitability in the bedding/linen supply business)
- Segment assets decreased by ¥1,608 million year on year; while this reflects improved asset efficiency, changes in investment capacity warrant attention
Last updated: June 22, 2026