As Partners ＜160A＞ is involved in senior business (provision of nursing homes, day services, and short stay services) and real estate business (real estate development for nursing homes, etc., restoration of aging real estate, rental of condominiums, etc.).

The company's “nursing homes” have strengths in improving work efficiency and productivity through the IoT/ICT platform “EGAO Link,” which was jointly developed by the company and the vendor. The number of nursing care service business locations is currently 27 nursing home offices, 16 day service offices, and 4 short stay offices, and they have adopted a dominant strategy for nursing care services mainly in the Tokyo metropolitan area. Going forward, the policy is to establish about 2 to 4 offices with nursing homes and day services in each business year, and 1 to 2 of these offices will be developed in-house by acquiring real estate in-house. Specifically, it is planned to open 2 nursing home offices (1 of which includes a day service) in the 2025/3 fiscal year. The occupancy rate of nursing homes immediately after new construction is low, and they aim to achieve an occupancy rate of 95% over 1 and a half to 2 years.

Cumulative sales for the first half of the fiscal year ending 25/3 reached 10587 million yen, and operating profit landed at 1303 million yen. In the senior business, sales and profits increased due to an increase in the occupancy rate of the 3 nursing home offices newly established in the previous fiscal year, and it seems that high operation of 94% or more continued in existing nursing homes. As planned, sales of large-scale senior development projects contributed to the real estate business. Full-year sales are expected to be 17842 million yen, up 4.0% from the previous fiscal year, and operating profit is expected to increase 58.9% to 1280 million yen. Sales for the mid-term period have exceeded expectations for both seniors and real estate compared to previous forecasts, and the second half of the fiscal year is expected to show differences in 3Q and 4Q progress compared to conventional forecasts due to the 4Q transition of 3Q real estate projects. Regarding operating income, the plan has already been exceeded, but operating profit is negative (deficit forecast) due to an increase in temporary expenses related to the 20th anniversary of a new establishment in the 3rd quarter, and operating profit is expected to be positive in the 4th quarter due to an increase in operation and temporary expenses for seniors as a whole.

The population aged 85 and over, which is the target of the company's senior business, and the estimated amount of nursing home services by the government are expected to increase consistently until 2040. Under such circumstances, it seems that they are aiming to accelerate sales growth and improve profit margins through centralized deployment and construction of new large homes in highly convenient regions, and awareness will be raised by continuing the dominant strategy in the metropolitan area, and the establishment of new large homes with a scale of 70 to 90 rooms will be promoted. With “EGAO Link” and nursing care based on data, it is possible to make homes larger, and it is assumed that profit margins will improve as personnel efficiency increases due to larger sizes. Also, in addition to nursing care rewards determined by the government being raised due to the 2024 nursing care reward revisions, price increases in monthly usage fees borne by customers have also been implemented, and improvements in customer unit prices will be a factor boosting earnings. Furthermore, we will capture the vigorous business expansion needs of the senior industry as a whole, expand senior development businesses that are highly profitable and can make use of their strengths, and aim for 2 to 3 projects/year of development. In the future, we are also looking ahead to sales of nursing care systems and applications, and development of nursing care DX consulting. Furthermore, we are aiming for a dividend payout ratio of 20% or more by planning shareholder returns through stable dividends, and dividend yields are in the 2% range. There is also room for breaking away from low PER related to nursing care and real estate, such as successfully improving the quality of nursing care with DX, and it seems that attention will be drawn as one of the most recent IPO brands.