Hoshi Medical Oxygen

Basic Information

Stock Code
7634
Industry
Wholesale
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Tokyo
Establishment Year
April 1974
Listing Year
February 2000
Official Website
http://www.hosi.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kunimine, Lobtex, Dentas, Otake, ASO International

Overview

Hoshi Medical Oxygen is a leading company in the medical gas industry founded in 1974. It has established the top position in medical gases in the Kanto region and operates unique comprehensive medical services, including home healthcare and nursing care welfare businesses.

Current Situation

Hoshi Medical Oxygen recorded consolidated net sales of approximately ¥14.78 billion and ordinary income of approximately ¥2.04 billion for the fiscal year ended March 2024, maintaining a solid business foundation. Its core medical gas business holds a market share of over 30% in the Kanto region with a 24/7/365 stable supply system. As part of its diversification strategy, it also develops home medical care (rental of oxygen concentrators and CPAP devices) and nursing welfare businesses, while strengthening operations of nursing care fee-based homes and visiting nursing facilities. The equipment construction business handles medical gas piping installation and maintenance, as well as fire suppression and air conditioning equipment renovations, providing comprehensive medical environment services. Since 2023, it has expanded welfare equipment sales and rental through M&A, aiming to enhance community-based services. In management, it has obtained ISO 9001 certification for thorough quality control and is promoting efficiency by renewing home medical support systems using digital technology. Moving forward, it aims to focus on regional healthcare support, positioning stable medical gas supply and expansion of home and nursing care services as key growth drivers.

Trivia

Interesting Facts

  • Holds over 30% share in Kanto region's medical gas market.
  • Originally started with propane gas sales before shifting to medical oxygen.
  • Implemented corporate mascot 'Sutan' like a company song in 2023.
  • Owns 5 oxygen filling plants across Japan for stable supply system.
  • Achieved international standardization of quality management via ISO 9001 certification.
  • Founder's brothers serve as chairman and president.
  • Home medical support system Pallet's-R is an in-house developed product.
  • Conducted organizational restructuring by absorbing multiple subsidiaries since 2015.
  • Actively expanding into caregiving welfare to promote multifaceted growth.
  • Operates multiple visiting nursing stations in Tokyo.

Hidden Connections

  • Specialized in medical oxygen business succeeding amid decline of neighboring Saitama's casting industry.
  • Related company of Hikari Tsushin among shareholders, rumored capital ties.
  • Founder family supports management with strong family business color.
  • Diversified beyond medical gases into visiting caregiving, welfare equipment rental, and nursing school products.
  • Developing home medical support system, eyeing IT business expansion.
  • Sales office network centered in capital region differentiates from competitors via community focus.
  • Rare strength in industry with in-house high-pressure gas container inspection facility for medical oxygen production.

Future Outlook

Growth Drivers

  • Expansion of home medical and caregiving demand due to aging population
  • Stable growth in medical gas demand centered on Kanto region
  • Technological innovation and expansion of medical device rental business
  • Expansion of visiting nursing services and strengthened regional medical collaboration
  • Increasing demand for diversified equipment construction maintenance
  • Market expansion of caregiving welfare-related products and services
  • Promotion of service efficiency using digitalization
  • Strengthened customer base via community-based sales office system

Strategic Goals

  • Expand medical gas market share to over 40% in Kanto region
  • Increase home medical and caregiving business sales ratio to 50%
  • Further evolution and普及 of digital support systems
  • Build equipment and operations reducing environmental impact
  • Nationwide expansion of visiting nursing and rehab network to strengthen regional support
  • Diversification of caregiving welfare equipment and new product development
  • Strengthen quality and safety standards via ISO certifications
  • Expand business portfolio through new M&A and partnerships
  • Build model for regional medical collaboration and improve social evaluation
  • Enhance employee-friendly environment and talent development

Business Segments

Medical Gas Manufacturing & Sales

Overview
Supplies reliable medical gases to medical sites through advanced quality control.
Competitiveness
Over 30% share in Kanto region with stable supply system
Customers
  • Hospitals
  • Clinics
  • Dental Clinics
  • Medical Facilities
  • Research Institutions
Products
  • Medical Oxygen
  • Nitrous Oxide
  • Liquid Nitrogen
  • Carbon Dioxide Gas
  • Nitrous Oxide
  • Rare Gases

Home Medical-Related Services

Overview
Implements equipment rental and support services for home medical care to support patients' lives.
Competitiveness
Efficient service management with latest support system
Customers
  • Home Patients
  • Care Facilities
  • Visiting Nursing Stations
  • Medical Institutions
  • Municipalities
Products
  • Oxygen Concentrator Rental
  • CPAP Rental
  • Ventilator Rental
  • High-Flow Nasal Cannula
  • Home Medical Support System

Medical Equipment Construction & Maintenance

Overview
Provides medical equipment construction and related maintenance on a one-stop basis.
Competitiveness
Trusted track record with specialized technology and high-quality construction
Customers
  • Hospital Constructors
  • Medical Facility Operators
  • Public Facilities
  • Commercial Facility Managers
Products
  • Medical Gas Piping Construction
  • Fire Suppression Equipment Construction
  • Air Conditioning Equipment Construction
  • LED Lighting Installation
  • Maintenance Services

Nursing Care & Welfare Product Sales & Rental

Overview
Provides abundant welfare equipment sales and rental services for caregiving sites.
Competitiveness
Community-based support system and diverse product lineup
Customers
  • Care Facilities
  • Visiting Care Providers
  • Elderly
  • Municipal Welfare Departments
  • Medical Institutions
Products
  • Caregiving Beds
  • Wheelchairs
  • Canes
  • Rehabilitation Equipment
  • Welfare Equipment Rental

Fee-Based Nursing Homes & Daycare Operations

Overview
Operates multiple high-quality nursing homes and daycare caregiving facilities.
Competitiveness
Integrated medical and caregiving service provision
Customers
  • Elderly
  • Families
  • Care Insurance Users
Products
  • Fee-Based Nursing Homes
  • Day Services

Medical-Related Product Sales

Overview
Strengthens supply of products to a wide range of medical and educational institutions.
Competitiveness
High-specialty selection and follow-up system
Customers
  • Hospitals
  • Clinics
  • Nursing Schools
  • Pharmacies
Products
  • Stethoscopes
  • Thermometers
  • Pulse Oximeters
  • Medical Clothing
  • Medical Consumables

Visiting Nursing & Rehabilitation Business

Overview
Operates multiple visiting nursing offices in Tokyo, contributing to regional healthcare.
Competitiveness
Staff with high expertise and collaboration system
Customers
  • Visiting Nursing Users
  • Care Insurance Users
  • Patients
Products
  • Visiting Nursing Services
  • Rehabilitation

Nursing School-Related Product Handling

Overview
Plans and sells supplies for nursing education institutions.
Competitiveness
Product development reflecting nursing site needs
Customers
  • Nursing Students
  • Nursing Schools
Products
  • Textbook Stethoscopes
  • Nursing Clothing
  • School Supplies

Competitive Advantage

Strengths

  • Over 30% medical gas share in Kanto region
  • 24/7/365 stable supply system
  • Strong synergies from diversification with related businesses
  • ISO 9001 certification for quality management
  • Promotion of digitalization in home medical support systems
  • Comprehensive service provision across wide medical and caregiving businesses
  • Community-based sales office network
  • High-quality equipment construction by dedicated technical staff
  • Development capabilities for in-house product LIC Trainer
  • Expansion of visiting nursing network

Competitive Advantages

  • Maintains industry-leading customer base in medical oxygen supply
  • Comprehensive provision combining home medical care and caregiving services
  • One-stop service from medical gas equipment construction to maintenance
  • Multi-location filling plants with in-house manufacturing subsidiaries
  • Efficiency gains from introduction of advanced home medical support system Pallet's-R
  • Strong rental and sales capabilities for caregiving welfare equipment
  • Stable revenue base from facility caregiving businesses like fee-based nursing homes
  • Multi-variety product lines tailored to medical site needs
  • High expertise specialized in medical and caregiving fields
  • Expansion of medical welfare services through strengthened ties with local governments

Threats

  • Impact on earnings from medical and caregiving system legal revisions
  • Increasing price competition pressure from intensifying competition
  • Aging manufacturing equipment and rising renewal costs
  • Risk of fluctuations in medical demand due to pandemic outbreaks, etc.
  • Challenges in talent acquisition and training, rising labor costs
  • Market penetration of new alternative products and services
  • Vulnerability of supply chain during disasters
  • Increased operational burden from strengthened regulations
  • Management risks from regional demand disparities
  • Instability in raw material procurement prices due to exchange rate fluctuations

Innovations

2024: Renewal of Home Medical Support System "Pallet's-R"

Overview
Renewed support system achieving efficiency in visiting nursing and device management through digitalization.
Impact
25% improvement in operational efficiency, enhanced customer satisfaction

2023: Launch of New Welfare Equipment Sales & Rental Business

Overview
Started caregiving shop business through M&A, expanding welfare equipment operations.
Impact
Net sales increase of approx. ¥500 million

2022: New High-Pressure Gas Container Re-inspection Facility

Overview
Established re-inspection and testing center for high-pressure gas containers at Ibaraki plant.
Impact
Shortened inspection lead time, strengthened quality control

2021: In-House Development of LIC Trainer

Overview
Successfully developed and commercialized proprietary respiratory training rehabilitation device.
Impact
Opened new markets and improved customer satisfaction

2020: Expansion of Visiting Nursing Stations

Overview
Opened multiple new visiting nursing stations in Tokyo, strengthening regional collaboration.
Impact
20% increase in users

Sustainability

  • Promotion of energy-saving in medical gas filling
  • Efforts to improve waste recycling rate
  • Building disaster-time cooperation system with local community
  • Enhanced employee health and safety management programs
  • Introduction of environmentally considerate products in caregiving welfare field