■Future outlook
2. Medium-term management plan
(1) Outline of the medium-term management plan
Mia Health Holdings ＜7129＞ has announced a new medium-term management plan (for the fiscal year ending 2025/3 to the fiscal year ending 2027/3) with the theme of “challenging the issues of a declining birthrate and aging society and making local communities bright and energetic.” Social security benefits (pension, medical care, childcare, etc.) related to the three businesses developed by the company are expected to expand 1.5 times from 121 trillion yen in 2018 to 188 trillion yen in 2040, and not only will it be a growth opportunity for the company, but we also anticipate that stable profit growth that can withstand environmental changes over the medium to long term can be expected by developing these 3 businesses.
The company has stated that it will expand “child-rearing support” and “support for the elderly,” which are the country's two major welfare policies, to the region, as value provided by the group, and will work on “accelerating growth strategies” and “strengthening the management base” as basic policies of the medium-term management plan. “Accelerating growth strategies” is an idea that will be realized by creating synergy effects through dominant development and collaboration between business divisions. By developing dominance, it is possible to improve the efficiency of human resources, and it can also be expected that customer acquisition costs will be reduced by improving regional brand power.
The Minato area of Tokyo can be cited as an example of dominant development. In the same area, they operate a total of 28 facilities: 6 child-rearing support facilities and school children's clubs, 7 nursery schools, 4 nursing care establishments, and 5 dispensing pharmacies. In addition to Taito Ward, Koto Ward, and Katsushika Ward in Tokyo, areas along the Tobu Tojo Line where nursing care establishments are scattered can be cited as candidate areas that will develop dominants in the future.
Also, as a “strengthening management base” measure, in addition to proceeding with the organization and integration of unprofitable establishments, including approval of certified daycare centers, etc., we are working to improve work efficiency, such as optimizing personnel allocation in indirect departments by utilizing ICT and DX, and aim to strengthen profitability and build a stable management foundation for sustainable growth.
As performance targets, we set 23,800 million yen in sales, 830 million yen in operating income, 830 million yen in ordinary income, and 520 million yen in net income attributable to parent company shareholders for the fiscal year ending 2027/3. The three-year average annual growth rate is 1.6% in sales and 28.1% in operating profit, and the plan focuses on improving profitability. Operating profit will approximately double in 3 years, and the operating profit margin is planned to be raised from 1.7% for the fiscal year ending 2024/3 to 3.5%. Note that ROE will rise from 0.2% in the 2024/3 fiscal year to 11.4%, and the capital adequacy ratio will rise from 23.9% to 35.0%, respectively.
(Author: FISCO Visiting Analyst Joe Sato)