ENVALITH
ALSOK株式会社 logo

SOHGO SECURITY SERVICES CO.,LTD.

2331・Prime Market・Services

Official website
ALSOK株式会社 logo
SOHGO SECURITY SERVICES CO.,LTD.2331

Business

ALSOK Corporation (formerly Sohgo Security Services) is a leading Japanese security services company founded in 1965. Centered on its Security Services segment (70.5% of net sales), which encompasses electronic security, on-site security, security transportation, and home security, the company operates four segments: FM Services and others (15.6%), covering building management, facility construction, and disaster prevention; Long-term Care Services (9.3%), providing home and facility-based care; and Overseas Business (4.7%), operating across seven Southeast Asian countries. With 92 consolidated subsidiaries and 12 equity-method affiliates, the company serves a broad customer base spanning corporations, individuals, and public institutions. In July 2025, the company changed its trade name to ALSOK Corporation, advancing corporate value enhancement through brand unification.

Business Model

The company's core services—Mechanical Security Service, home security, and guard transport, among others—are primarily based on monthly fee income under long-term continuing contracts (totaling 1,408 thousand contracts as of the end of March 2026), with a low cancellation rate and high revenue predictability. Leveraging this stable infrastructure, the company builds up value-added services such as IT Rescue, facility rescue, and user rescue, aiming to improve ARPU. In the FM Business, etc. and Nursing Care Business, the company adopts a strategy of improving profitability through scale expansion via M&A and operational efficiency improvements.

Company Strengths

As of the end of March 2026, the number of long-term contracts stood at 1,408 thousand (up 2.7% year on year). Continuing contracts spanning multiple services—600 thousand for mechanical security, 536 thousand for HOME ALSOK, 94 thousand for guarding and transportation, and others—steadily build up monthly recurring revenue. This contract base functions as an entry barrier that competitors find difficult to replicate in a short period.

For FY2026 (ending March 2026), net sales were ¥597,026 million (up 8.2% year on year), operating income was ¥46,919 million (up 16.7%), and profit attributable to owners of parent was ¥33,262 million (up 22.7%), with all metrics reaching record highs. Net sales have now increased for 16 consecutive fiscal periods, with record highs achieved for 15 consecutive periods.

The company has pursued active M&A, including taking over the facility management business of Fujitsu Home & Office Services in September 2025 and making Heiwa Kanzai Co., Ltd. a consolidated subsidiary (60% stake acquired) in March 2026. Net sales in the FM business and related segments reached ¥92,984 million (up 16.6% year on year), with operating income of ¥11,276 million (up 23.0%), achieving high growth and advancing revenue diversification away from dependence on the security business.

ENVALITH's Perspective

With the external environment—four consecutive years of increasing criminal offense recognition rates since 2022 and a spate of robbery incidents—pushing up demand for security services, the company has steadily implemented price revisions, improving its operating margin to 7.9% in FY2026 (ending March 2026) (up from 7.3% in the prior period). For FY2027 (ending March 2026), the company forecasts operating profit of ¥55,700 million (up 18.7% year on year), anticipating a further improvement in profitability. Whether the company can complete the entrenchment of price revisions and productivity gains while the external tailwind persists will determine its medium-term profitability level.

Overseas business revenue continued to grow, up 4.3% year on year to ¥27,983 million, but the operating loss widened from ¥547 million in the prior period to ¥1,110 million. Integration costs, such as those from the absorption-type merger of PT.ALSOK BASS Indonesia in Indonesia, may be weighing on results. While there is a tailwind from the expanding demand for safety and security in Southeast Asia, if losses continue to widen, the company will face pressure to explain the return on its investments.

At the end of FY2026 (ending March 2026), short-term borrowings increased by ¥24,751 million year on year to ¥37,227 million, and long-term borrowings increased by ¥11,078 million to ¥12,406 million, causing the ratio of cash flow to interest-bearing debt to rise sharply from 34.6% in the prior period to 98.7%. While the strengthening of the business foundation through M&A in the facility management (FM) business and other areas can be evaluated positively, it is necessary to continuously monitor the balance between the pace of increase in borrowings and operating cash flow (¥53,786 million), as well as compliance with the financial covenants attached to the loan agreement concluded in March 2026.

Growth Strategy

Centered on its security infrastructure, the company is evolving into a "resilient comprehensive safety and security services business" through M&A, DX, and overseas expansion

Through the transfer of facility management operations from Fujitsu Home & Office Services and others (September 2025) and the consolidation of Heiwa Kanzai as a subsidiary (March 2026), sales in the FM Business and related segments expanded to ¥92,984 million (up 16.6% year on year), with operating profit of ¥11,276 million (up 23.0% year on year). The company continues to pursue scale expansion through M&A and the enhancement of sustainability-related services such as EV charging equipment.

New services such as ALSOK User Rescue (launched December 2025) and physical penetration testing (launched September 2025) have been successively rolled out. By repurposing existing infrastructure, the company has expanded its service scope at low cost, growing sales in the mechanical security business to ¥184,087 million (up 6.0% year on year). Expansion of drone-based service offerings is also ongoing.

Through DX initiatives such as optimizing staff deployment and utilizing nursing care support robots, facility operation productivity improved, resulting in a significant increase in operating profit in the nursing care business to ¥2,238 million (up 49.4% year on year). Service expansion is being promoted under the unified brand "ALSOK no Kaigo" (ALSOK Nursing Care). In April 2026, ALSOK Kaigo entered into an agreement to acquire all shares of Daiwa House Life Support and Daiwa Living Care, aiming for scale expansion.

In Indonesia, the company absorbed PT.ALSOK BASS Indonesia Security Services through merger (April 2026), strengthening its ASEAN expansion. Sales grew to ¥27,983 million (up 4.3% year on year), but operating loss widened to ¥1,110 million. Leveraging know-how cultivated in Japan, the company aims to provide services optimized for each country and achieve early profitability.

The company is promoting a shift to a labor-saving operational model for stationed security, AI-driven visualization and standardization of operations in the mechanical security and FM businesses, and back-office BPR. Through security operations for the Osaka-Kansai Expo (held September 2025) and the World Athletics Championships Tokyo 2025, the company has accumulated know-how in large-scale event security. Preparations for the 20th Asian Games (Aichi-Nagoya) in September 2026 are also underway.

Last updated: July 19, 2026