Tokai
Basic Information
- Stock Code
- 9729
- Industry
- Services
- Category Detail
- Lifestyle Services
- Prefecture
- Gifu Prefecture
- Establishment Year
- July 1955
- Listing Year
- December 1988
- Official Website
- https://www.tokai-corp.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Kyokuto, TOKAI, Medi Ikkō G, WASH House, Nepon, Futon Maki no Jiro, Hakuyosha
Overview
Tokai is a leading company in the daily life-related services industry founded in 1955, centering on linen supply and dispensing pharmacy businesses, and developing regionally rooted services and diversified management.
Current Situation
Tokai recorded consolidated net sales of approximately 55.8 billion yen, operating income of approximately 3.0 billion yen, and net income of approximately 5.2 billion yen in the fiscal year ended March 2024, maintaining steady growth. Its mainstay linen supply service holds a high market share centered on hospitals and nursing care facilities, establishing a stable revenue base. The medical-related business is also expanding through its wholly-owned subsidiary 'Tampopo Pharmacy,' contributing to community-based integrated care. By diversifying revenue sources through hygiene-related rentals and building maintenance, it differentiates itself from competitors. Recently, it has been actively investing in the nursing care business, aiming for a 14% increase in sales in the fiscal year ending March 2026, and focusing on strengthening growth drivers. It is also promoting sustainability initiatives, aiming for coexistence with local communities and reducing environmental impact. With main bases in the Chubu and Kanto regions, it has built a foundation for nationwide expansion, and aims to strengthen services and expand businesses alongside solid management going forward.
Trivia
Interesting Facts
- Changed to the current company name 'Tokai' in 1975.
- There are numerous Reeskin franchise affiliates nationwide.
- Dispensing pharmacy business is operated through 100% subsidiaries.
- President Toshiaki Asai is actively involved in regional contribution activities.
- Has experience sponsoring Kansai Television programs over many years.
- Has multiple production and management bases in Gifu Prefecture.
- Listed on the Tokyo Stock Exchange Prime Market in March 2010.
- Pioneer in nursing care equipment rental services.
- Reeskin brand is widely known for cleaning tool rentals as well.
- Building maintenance business is an important revenue department of the group.
- Highly evaluated as a company with a strong network in regional medical collaboration.
- Actively introducing environmentally considerate hygiene management products.
- Also conducts food supply business through subsidiaries.
- Number of employees in the fiscal year ended March 2024 is approximately 3,583 on a consolidated basis.
- Major shareholders are centered on prominent regional companies and banks.
Hidden Connections
- Reeskin franchise affiliates also collaborate with prominent regional companies.
- Dispensing pharmacy business is positioned as the core of regional medical collaboration promotion.
- Nursing care equipment rental is a business that anticipates the needs of the aging society.
- While competing with peers, it protects regional share through negotiations.
- Tokyo Stock Exchange Prime listing is proof of stable management and supported by investors.
- Environmental activities are positioned as an important management issue for coexistence with local communities.
- Efficiency improvements are advanced through know-how sharing among group companies.
- Building maintenance business has close ties with regional real estate management.
Future Outlook
Growth Drivers
- Increase in nursing care demand due to aging society
- Business expansion through deepening of medical-nursing care collaboration
- Strengthening of regionally rooted services
- Development and introduction of environmentally responsive technologies
- Active M&A and franchise expansion
- Efficiency improvement through digitalization and IT utilization
- Creation of new services and brand strengthening
- Stable market environment centered on domestic demand
- Diversification of needs due to medical system revisions
- Focus on sustainability management
- Service innovation toward improving customer satisfaction
- Optimization of logistics network and sales channels
Strategic Goals
- Double nursing care business sales compared to current
- Significant reduction in environmental impact of linen supply
- Nationwide service expansion and brand growth
- Establishment and promotion of digital management system
- Strengthening construction of regional medical-nursing care collaboration model
- Improvement of employee satisfaction and promotion of diversity
- Systematization of sustainable social contribution activities
- Continuous improvement of operating profit margin
- Active investment in new business areas
- Improvement of contribution to regional economy
Business Segments
Linen Supply Service
- Overview
- Provides linen supply and hygiene management services for hospitals and nursing care facilities.
- Competitiveness
- High-quality service backed by long track record and regional closeness
- Customers
-
- Hospitals/Medical Facilities
- Nursing Care Facilities
- Hotels/Inns
- Commercial Facilities
- Restaurants
- Factories/Manufacturing
- Products
-
- Clean Linen Lending Management
- Hygiene Management Supplies Rental
- High-Function Cleaning Service
Dispensing Pharmacy Business
- Overview
- Community-based dispensing pharmacy operations and medical collaboration services.
- Competitiveness
- Contribution to community-based integrated care system
- Customers
-
- Medical Institutions
- Patients
- Nursing Care Providers
- Products
-
- Prescription Dispensing
- Pharmaceutical Sales
- Home Medical Care Support
Nursing Care Equipment Rental
- Overview
- Rental of welfare equipment and sales of consumables.
- Competitiveness
- Abundant product lineup and prompt response
- Customers
-
- Elderly
- Nursing Care Facilities
- Welfare Equipment Sales Providers
- Products
-
- Wheelchair Rental
- Nursing Care Bed Lending
- Consumables Sales
Building Maintenance Service
- Overview
- Cleaning and equipment management services for commercial and public facilities.
- Competitiveness
- Consistent management system and regional network
- Customers
-
- Office Building Management Companies
- Commercial Facility Managers
- Public Facilities
- Products
-
- Regular Cleaning
- Equipment Management
- Hygiene Disinfection
Food Supply Business
- Overview
- Procures and provides cafeteria and business-use ingredients.
- Competitiveness
- Stable supply system rooted in the region
- Customers
-
- Hospital Cafeteria Departments
- School Lunches
- Restaurant Chains
- Products
-
- Ingredients Delivery
- Seasonings Provision
- Cafeteria Operation Contracting
Competitive Advantage
Strengths
- Regionally rooted linen supply business
- Diversified medical and nursing care businesses
- Stable financial base and capital strength
- Comprehensive sales and service network
- Long industry track record and trust
- Risk diversification through diversification
- High-quality products and hygiene management system
- Linkage between dispensing pharmacies and nursing care equipment rental
- Strong customer base
- Abundant brand deployment
- Employees' specialized skills and service capabilities
- Reliability as a Tokyo Stock Exchange Prime Market listed company
- Efficient logistics system
- Active investment in nursing care business
- Strengthened collaboration with regional medical care
Competitive Advantages
- Detailed services rooted in the region
- Comprehensive lifestyle support company with diverse segments
- High market share in specialized services for hospitals and nursing care facilities
- Nationwide Reeskin franchise network
- Diversification of stable income sources contributes to revenue stability
- Linkage with dispensing pharmacy business provides superiority in medical and nursing care fields
- Strong long-term trust relationships with clients
- Nursing care equipment rental corresponds to aging society
- Prompt response capability and flexible service design
- Adaptability to public medical insurance system
- Introduction of environmentally considerate hygiene management technologies
- Ease of customer acquisition through brand power
- Stable management by experienced executives
- Products and services tailored to regional needs
- Increased awareness through active advertising and PR
Threats
- Intensifying price competition from competitors
- Risks from revisions to medical and nursing care systems
- Service delays due to labor shortages
- Rising raw material and supply prices
- Market share pressure from new entrants
- Impact of natural disasters on logistics and production
- Business impact from infectious disease outbreaks
- Changes in customer needs due to progressing aging
- Increased operational costs from strengthened regulations
- Decline in competitiveness due to delays in digitalization
- Increasing risk of customer defection
- Increased equipment investment due to changes in hygiene standards
Innovations
2024: Expansion of Active Investment in Nursing Care Business
- Overview
- Strengthening investment aiming for 14% sales increase in nursing care equipment rental and related services.
- Impact
- Contributes to new customer acquisition and strengthening revenue base
2023: Promotion of Digitalization of Hygiene Management System
- Overview
- Introduced digital management of traceability and disinfection processes for rental products.
- Impact
- Achieves work efficiency improvement and quality control enhancement
2022: IT System Renewal at Dispensing Pharmacies
- Overview
- Updated prescription reception and inventory management systems to the latest, improving service efficiency.
- Impact
- Speeds up customer response and reduces operational costs
2021: Introduction of Environmentally Friendly Detergents
- Overview
- Adopted low environmental impact detergents for linen supply cleaning.
- Impact
- Improves environmental evaluation and customer satisfaction
2020: Introduction of Automated Logistics Equipment for Nursing Care Equipment Rental
- Overview
- Introduced automated sorting system in warehouses to improve delivery accuracy and speed.
- Impact
- Improves inventory management efficiency and reduces delivery delays
Sustainability
- Introduction and optimized operation of energy-saving equipment
- Improvement of waste recycling rate
- Promotion of regional environmental beautification volunteer activities
- Reduction of environmental impact of business-use detergents
- Improvement of CS (customer satisfaction) and strengthening employee safety and health
- Resource savings through promotion of paperless operations
- Expansion of renewable energy use
- Strengthening support for regional medical and nursing care welfare facilities
- Environmental and social responsibility audits of supply chain
- Strengthening safety management and quality assurance of hygiene products