ENVALITH
株式会社コシダカホールディングス logo

KOSHIDAKA HOLDINGS Co.,LTD.

2157・Prime Market・Services

Official website
株式会社コシダカホールディングス logo
KOSHIDAKA HOLDINGS Co.,LTD.2157

Business

Koshidaka Holdings Co., Ltd. entered the karaoke business in 1990 and is a holding company operating directly-managed stores domestically and overseas under the "Karaoke Manekineko" and single-person karaoke specialty brand "Uta Hiroba" (One Kara) brands. As of the end of FY2024 (ending August 2024), the company operated 664 stores domestically and 22 stores across four countries—South Korea, Malaysia, Thailand, and Indonesia. The karaoke business accounts for approximately 97% of net sales, complemented by a real estate management business (properties owned by the company in Gunma, Kanagawa, etc.) and other businesses (bathing facilities and dining). Under the mid-term management vision "Making Entertainment Infrastructure (EIP)," the company has set a target of ¥100.0 billion in net sales for FY2027 (ending August 2027). Its main customers are karaoke users domestically and overseas, and it also captures inbound demand. Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The core revenue source is time-based billing for karaoke room usage, with store operations combining food, beverage, and merchandise sales to secure spending per customer. By primarily using "inokibi" store openings (taking over existing retail spaces), the company suppresses initial investment and practices capital-efficient management with an emphasis on ROA. Capital expenditure for FY2024 (ending August 2024) was ¥8,609 million (of which ¥7,564 million was for the karaoke business), continuing aggressive new store openings. While maintaining an increasing trend in existing-store customer numbers through agile pricing strategies, the company is also cultivating revenue sources beyond karaoke through DX initiatives such as the entertainment box "E-bo".

Company Strengths

In FY2021 (ending August 2021), the company recorded net sales of ¥20,791 million and an operating loss of ¥7,629 million, a substantial deficit, but turned profitable in FY2022 (ending August 2022) and recovered to net sales of ¥63,264 million and operating profit of ¥10,164 million (operating margin of 16.1%) by FY2024 (ending August 2024). The Karaoke segment alone achieved a profit margin of 18.8%, demonstrating high profitability.

As of the end of FY2024 (ending August 2024), the company operated 664 directly managed stores domestically. It opened 51 new stores during the fiscal year, accelerating expansion into areas with significant store opening potential such as the Kinki and Chukyo regions. Furthermore, through an absorption-type company split from Standard Co., Ltd., it took over 73 stores (recording goodwill of ¥2,982 million), and opened an additional 20 stores in the interim period of FY2026 (ending August 2026), continuing to expand its store network.

Cash flow from operating activities in FY2024 (ending August 2024) was ¥12,581 million. In addition to profit before income taxes of ¥9,025 million, depreciation expense of ¥4,427 million accumulates steadily, forming a stable structure. The company possesses sufficient cash-generating capacity to cover ¥10,413 million in investing activity expenditures while also funding financing activities (loan repayments, dividends, and share buybacks).

ENVALITH's Perspective

Cumulative sales for the first three quarters of FY2026 (ending August 2026) grew steadily to ¥59,354 million (up 15.6% year on year), while operating profit fell sharply to ¥7,571 million (down 9.8% year on year) and ordinary profit fell to ¥7,755 million (down 9.8% year on year). The main causes were rising personnel and utility costs, combined with expenses for introducing the new POS system and E-bo, renewal investment in existing stores, and increased rent review costs. A structure has emerged in which sales growth does not translate directly into profit growth, and the effectiveness of cost control will be the focus going forward.

The full-year forecast for FY2026 (ending August 2026) remains unchanged from the second-quarter forecast, with sales of ¥82,046 million (up 18.2% year on year) and operating profit of ¥11,831 million (up 3.8% year on year). Meanwhile, profit attributable to owners of parent is maintained within a wide range of ¥6,451 million to ¥8,444 million, reflecting uncertainty in extraordinary gains and losses (including the already-recorded gain on sale of the Atsugi Vista Hotel and the liquidation of KOSHIDAKA INTERNATIONAL, among others). The progress rate for the cumulative first three quarters was 72.3% for sales and 64.0% for operating profit, showing a significant weighting of profit toward the second half; achieving the full-year target will require a recovery in the fourth quarter.

To reach the final target of the EIP Final Stage (sales of ¥100 billion in FY2027, ending August 2027), an additional approximately ¥18,000 million must be added on top of the FY2026 (ending August 2026) full-year forecast of ¥82,046 million. This assumes continued aggressive store openings and continued use of corporate split (absorption-type) arrangements, but with existing-store sales remaining flat year on year, a rebound decline in collaboration-related sales has also been observed, raising the risk of slowing existing-store growth. Overseas expansion (a total of 29 stores across Malaysia, Thailand, Indonesia, and South Korea) is still at an early stage, and its contribution to profit remains limited. As an external factor, continued yen depreciation could boost inbound demand, providing a tailwind for karaoke demand, but rising energy and food costs will continue to squeeze profit margins.

Growth Strategy

Under the vision of "making entertainment infrastructure," the company aims to achieve net sales of ¥100 billion in FY2027 (ending August 2027) through store expansion, DX, and overseas expansion.

26 new stores were opened cumulatively in the third quarter of FY2026 (ending August 2026), expanding the number of domestic stores to 786. This includes the takeover of 73 Standard stores through a company split, achieving an increase of 83 stores compared to the end of the previous consolidated fiscal year. The company intends to maintain its store opening pace toward the ¥100 billion net sales target for FY2027 (ending August 2027).

In November 2025, the company took over the JOYSOUND-branded karaoke store business (73 stores) from Standard for ¥3,500 million. This strengthens the business foundation by integrating the JOYSOUND brand's customer base and know-how with Maneki Neko's operational efficiency. Goodwill of ¥2,982 million (provisional figure) will be amortized equally over 13 years.

The company has completed the rollout of "E-bo," a new entertainment platform, across all stores. This simultaneously promotes monetization of non-karaoke entertainment offerings and operational efficiency improvements through DX. While the associated introduction costs are weighing on profits in the current period, this is positioned as a step toward mid- to long-term revenue diversification.

The company operates 29 stores across four countries: Malaysia, Thailand, Indonesia, and South Korea. In the cumulative third quarter of the current fiscal year, 4 new stores were opened in Malaysia and 1 in Indonesia, and KOSHIDAKA MALAYSIA SDN.BHD. was added to the scope of consolidation. Preparations for store openings in the United States and the Philippines are also underway. Revenue contribution remains limited at this stage.

The company is rolling out a new POS system and various operational efficiency DX initiatives. While introduction costs are weighing on profits ahead of benefits in the current period, the aim is to improve the cost structure over the mid- to long-term as a response to rising labor costs. This is also being utilized for detailed store-by-store pricing management.

Last updated: July 17, 2026