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MEDLEY seen gaining momentum from full acquisition of RMC business
MEDLEY,INC. <4480>, which hit a year-to-date low of 1,715 yen on March 23, has since entered a recovery phase. Further upside is expected as the market weighs the growth potential from its full business succession of Recruit Medical Career (RMC).
According to the March 27 announcement, MEDLEY will acquire RMC’s doctor and pharmacist recruitment business on August 3. The unit generated sales of 2.658 billion yen and EBITDA of 361 million yen (adjusted for parent company royalties) in the fiscal year ended March 2025. However, as the August 3 closing misses the peak hiring season, the impact on the fiscal year ending December 2026 is estimated at a negative EBITDA of approximately 300 million yen.
Nevertheless, the RMC acquisition brings in over 60,000 doctors, 70,000 pharmacists, and 10,000 client establishments, creating significant synergies. The company aims to drive direct recruiting for healthcare professionals and launch DX-based BPO services for HR operations, which are expected to provide a substantial earnings boost.
MEDLEY forecasts operating profit of 2.95 billion yen (up 37.2% year-on-year) for the fiscal year ending December 2026. Some research institutions project operating profit exceeding 4 billion yen for the fiscal year ending December 2027, when the RMC integration is complete. The stock appears poised to price in this medium-term growth. First-quarter results are due May 13.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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