ENVALITH
あいホールディングス株式会社 logo

Ai Holdings Corporation

3076・Prime Market・Wholesale Trade

Official website
あいホールディングス株式会社 logo
Ai Holdings Corporation3076

Business

ai Holdings Corporation is a pure holding company with 36 consolidated subsidiaries, operating diversified businesses centered on six reportable segments: security equipment, card equipment and other office equipment, information equipment, measuring instruments, information and communications, and design business. Its main customers span a broad range including condominiums and rental apartments, hospitals and financial institutions, government agencies and general contractors, and overseas consumer markets. Following the full subsidiarization of Iwatsu Electric Co., Ltd. through a share exchange in September 2024 and the subsidiarization of NAKAYO, Inc. through a tender offer in April 2025, the company newly established the information and communications and measuring instruments segments, expanding consolidated net sales to ¥66,197 million (up 32.9% year on year) in FY2025 (ended June 2025).

Business Model

The core Security Equipment business is primarily lease-based, with a cyclical revenue structure that reliably captures renewal demand upon lease expiration for condominium units. Niche businesses such as Card Equipment and Measuring Instruments secure high profit margins through specialized expertise for hospital, financial, and industrial applications. Meanwhile, as a holding company, the group actively pursues M&A to expand its group scale while building up management guidance fee income. Working capital is funded internally, and the company maintains a debt-free management policy while building up retained earnings.

Company Strengths

The Security Equipment segment achieved net sales of ¥15,201 million (up 6.9% year on year) and segment profit of ¥6,150 million (profit margin of 40.5%) in FY2025 (ended June 2025), marking a fifth consecutive year of record-high operating profit. In addition to stable demand for lease renewals for condominiums, the company is also capturing large-scale corporate orders from financial institutions, factories, and other sources.

The company maintains a debt-free management policy with zero interest-bearing debt, and cash and deposits reached ¥51,227 million at the end of FY2025 (ended June 2025). The equity ratio remained at a high level of 77.7%, and the interest coverage ratio recorded 189.4x in FY2025 (ended June 2025). The company has a financial base that allows it to flexibly fund M&A activities from internal reserves.

Since its establishment in 2007, the company has repeatedly pursued active M&A, making Iwatsu Electric Co., Ltd. a subsidiary through a share exchange in September 2024 and NAKAYO, Inc. a subsidiary through a tender offer in April 2025. This led to the establishment of two new segments, Information & Communication and Measuring Instruments, expanding consolidated net sales by 32.9% from ¥49,812 million in FY2024 (ended June 2024) to ¥66,197 million in FY2025 (ended June 2025).

ENVALITH's Perspective

Cumulative operating profit for the first three quarters of FY2026 (ending June 2026) of ¥8,719 million (up 17.9% year-on-year) and ordinary profit of ¥9,914 million (up 35.0%) demonstrate steady growth in the core business. On the other hand, special factors recorded in the same period of the previous year—including a gain on negative goodwill of ¥14,296 million and a loss on step acquisition of ¥5,164 million—did not recur, causing profit attributable to owners of parent to decline 42.7% year-on-year to ¥9,643 million. It is appropriate for investors to evaluate performance based on ordinary profit excluding extraordinary gains/losses, and on that basis the growth trend of the core business can be judged favorable.

Following the consolidation of Nakayo, sales in the Information & Communication segment expanded sharply to ¥21,162 million (up 137.1% year-on-year), but segment profit margin remained low at 4.6%. The group's overall operating profit margin has been on a declining trend, at 13.5% (versus 14.6% in the same period of the previous year), and improving the profitability of the Information & Communication segment is directly linked to improving the overall group margin. Progress in realizing integration synergies between Iwatsu Communications and Nakayo, and in containing SG&A expenses, will be key evaluation criteria over the medium term.

The full-year forecast remains unchanged, with sales of ¥90,000 million (up 36.0% year-on-year), operating profit of ¥10,700 million (up 20.4%), and net profit of ¥10,300 million (up 51.6%). Progress against the full-year forecast through the first three quarters stood at 71.9% for sales, 81.5% for operating profit, and 93.6% for net profit, with net profit having already reached a level nearly achieving the full-year forecast. While this could be read as suggesting limited room for upside in the fourth quarter, it should be noted that the purchase price allocation for Nakayo has not yet been finalized (provisional accounting treatment is ongoing), and the accounting treatment upon finalization could affect reported results.

Growth Strategy

The company sets maximization of EPS through continued M&A and the realization of group integration synergies as a medium- to long-term goal.

With the consolidation of Nakayo in April 2025, cumulative nine-month sales in the Information & Communication segment expanded sharply to ¥21,162 million (up 137.1% year on year). While capturing stable replacement demand in the business phone market, the company aims to improve profitability through integration synergies with Iwatsu Electric.

The Design business's segment profit surged 246.5% year on year to ¥1,575 million, driven by the acquisition of large-scale seismic diagnosis orders. The specialization in structural design and the accumulation of order backlog are enhancing the visibility of future earnings, and the company will continue expanding into both government and private-sector markets.

In the Security Equipment segment, the company won an order for a next-generation security system utilizing AI image analysis technology for government clients. In addition to existing lease renewal demand from condominiums, the company aims to diversify its earnings base by winning high-value-added orders from corporate and public-sector clients.

In the second quarter, Graphtec Iwatsu Keisoku Co., Ltd. was newly added to the scope of consolidation through its establishment. The company aims to pursue synergies from the integration of Graphtec's and Iwatsu Electric's measurement businesses, and to expand sales of power electronics products to Europe, the US, and Asia.

The annual dividend forecast for FY2026 (ending June 2026) is ¥125 per share (an increase of ¥25 from ¥100 in the previous fiscal year). While maintaining a robust financial base with an equity ratio of 79.2% and cash and deposits of ¥48,787 million, the company will continue its policy of both expanding shareholder returns and securing funds for M&A.

Last updated: July 17, 2026