ENVALITH
インターライフホールディングス株式会社 logo

INTERLIFE HOLDINGS CO.,LTD.

1418・Standard Market・Construction

Official website
インターライフホールディングス株式会社 logo
INTERLIFE HOLDINGS CO.,LTD.1418

Business

Interlife Holdings Co., Ltd. is a holding company (TSE Standard listed) built on an interior fit-out construction company founded in 1975. Operating with a six-company group structure, it upholds the management philosophy of "providing comfortable spaces filled with excitement and joy for all people." Its core interior construction business (Nissho Interlife Co., Ltd.) handles planning, design, and construction for restaurants, retail stores, hotels, offices, and other facilities, accounting for approximately 57% of sales. The audio/lighting equipment business (System Engineering Co., Ltd. and Sanken System Co., Ltd.) provides comprehensive services from planning to maintenance of facility production equipment and AVC devices, comprising approximately 37% of sales. Major customers include facility owners of commercial facilities, hotels, and public facilities, as well as major general contractors. The company is pursuing growth opportunities anticipating urban redevelopment and the Osaka IR (integrated resort) opening (2030).

Business Model

The interior construction business is organized around two pillars: the specialized construction division (subcontracted work such as substrate/framing construction) and the commercial environment construction division (prime contractor work). The sound and lighting equipment business provides integrated planning, design, construction, and maintenance services, and secures recurring revenue through maintenance services. Group financing centralizes surplus funds at the head office to improve capital efficiency. The business structure is asset-light, with minimal capital expenditure needs, and outsourcing cost and expense management are the key variables affecting profit margins.

Company Strengths

In FY2025 (ending February 2025), the interior construction business posted net sales of ¥9,728 million (up 53.6% year on year) and segment profit of ¥529 million (up 278.8% year on year). The audio and lighting equipment business posted net sales of ¥5,784 million (up 30.0% year on year) and segment profit of ¥494 million (up 83.7% year on year). The combined segment profit margin of the two businesses reached approximately 6.6%, driving the majority of group earnings.

In November 2023, the company acquired Sanken System Co., Ltd. through M&A to strengthen its audio and lighting equipment business. Its consolidated contribution began in earnest from FY2025 (ending February 2025), with steady progress in completing already-ordered projects and securing new orders. In addition, the company has completed the sequential divestment of unprofitable businesses (staffing services, real estate, etc.), completing its restructuring toward a revenue structure centered on construction companies.

In FY2025 (ending February 2025), net sales of ¥16,940 million and operating profit of ¥875 million significantly exceeded the targets of the medium-term management plan (net sales of ¥15,500 million and operating profit of ¥600 million). ROE improved sharply from 4.98% in FY2023 (ending February 2023) to 17.96% in FY2025 (ending February 2025), and PBR also recovered from 0.79x to 1.24x. These figures reflect the results of management conscious of the cost of capital.

ENVALITH's Perspective

Operating profit of ¥918 million in Q1 of FY2027 (ending February 2027) represented a 72.4% year-on-year increase, achieving 76.5% of the full-year forecast of ¥1,200 million within a single quarter. However, the sharp rise in profit from the interior fit-out construction business was attributable to the concentrated completion of large-scale projects that had been progressing since the previous fiscal period, and there is a possibility of profit leveling out over the remaining three quarters depending on project progress. The full-year forecast has been left unchanged, and it should be noted that the company has not revised its earnings guidance.

In the audio and lighting equipment business, net sales of ¥2,499 million (up 10.0% year on year) increased, but segment profit declined to ¥312 million (down 4.8% year on year). While the main cause is cited as delayed order intake at Sanken System Co., Ltd., there remains a risk that the impact of rising material prices and material shortages stemming from Middle East tensions—an external factor—could become more pronounced going forward. If the divergence continues between this and the steady completion progress at System Engineering Co., Ltd., the focus will be on assessing the stability of earnings within the segment.

The full-year forecast for FY2027 (ending February 2027) calls for net sales of ¥17,000 million (up 4.1% year on year), operating profit of ¥1,200 million (up 2.8% year on year), and net income of ¥800 million (down 3.4% year on year). The Q1 progress rate stood at 33.9% for sales and 76.5% for operating profit, indicating profit-led progress, but net income is forecast to decline year on year, reflecting an increased corporate tax burden. Amid uncertainties such as price increases and material shortages in the market environment, the digestion of the order backlog and the accumulation of new orders in the second half will be the key criteria for evaluating achievement of the full-year forecast.

Growth Strategy

Under the 5th Medium-Term Management Plan 'NEXT STAGE 2030', the company is advancing the construction of a growth foundation and profitability improvement in anticipation of the Osaka IR opening.

Continuing to expand the Osaka business base and secure large-scale construction projects related to urban redevelopment, in anticipation of the Osaka IR (Integrated Resort) opening scheduled for 2030. In Q1 of FY2027 (ending February 2027), a large-scale project in the interior construction business progressed ahead of plan, confirming an expanded order base.

Establishing an integrated order-taking system for the FM business through the absorption-type merger of Facility Management Co., Ltd. into the interior construction business, and expanding stock-type revenue such as cleaning contracts. In Q1 of FY2027 (ending February 2027), cleaning contract orders in the FM Business Division progressed steadily, and the segment profit margin of the interior construction business improved significantly (rising from approximately 8.8% to 19.9% year-on-year for the same quarter).

Promotion of ESG management as one of the key measures under the 5th Medium-Term Management Plan. A performance-linked stock compensation plan (trust-type) has already been introduced for directors and executive officers, designed to strengthen governance and provide incentives for medium- to long-term enhancement of corporate value.

Last updated: July 17, 2026