kaihan co.,Ltd.
3133・Growth Market・Retail Trade
Business
Kaiho Co., Ltd. was founded in 2003 in Nagoya City and is a TSE Growth-listed company whose corporate mission is the "creation of a happy food culture." In its core restaurant business, the company operates 42 directly-managed and franchised stores in total, centered on its "Shinjidai" format, with the Tokai region as its dominant base. Since 2022, the company has added a renewable energy business (solar and hydroelectric power generation) and, from 2024, a medical business centered on an MS (medical service) corporation for beauty clinics that became a subsidiary, transitioning to a three-segment structure. Consolidated net sales for FY2026 (ending March 2026) were ¥3,153 million (up 13.0% year on year). Major customers include general consumers who use izakaya (Japanese-style pubs), electricity purchasers (such as Amazon Data Services Japan LLC), and medical corporations Taibikai and Shueikai.
Business Model
In the food and beverage business, the company combines franchise-operated stores such as "Shinjidai" with directly managed outlets, pursuing profitability through management of ingredient costs and labor expenses. In the renewable energy business, the company aims for stable earnings centered on a long-term power sales agreement with Amazon (through 2045). In the medical business, based on a 10-year consulting services outsourcing agreement with Medical Corporation Daibikai (through 2034), the company provides comprehensive support including advertising, SNS, reservation management, and business management, generating monthly fee income under this structure.
Company Strengths
In May 2021, the company entered into a franchise agreement with Fazz Co., Ltd. to promote the conversion from its existing business format to "Shinjidai" (New Era). As of the end of March 2026, the number of stores had expanded to 20 across the group, and segment sales reached ¥2,461 million. Sales have been maintained even after the business format conversion, up 1.4% year on year, indicating an accumulation of conversion track record.
Under the long-term power purchase agreement (through March 2045) for a Non-FIT low-voltage solar power plant concluded in May 2023 between KR Energy No. 1 LLC and Amazon Data Services Japan LLC, long-term electricity sales revenue is contractually secured. Sales in the renewable energy business expanded 128.2% year on year to ¥194 million.
Based on the consulting service agreement concluded in August 2024 with Medical Corporation Taibikai (10-year term through July 2034), sales in the medical business increased 77.4% year on year to ¥498 million. With support also extended to Medical Corporation Shueikai, the customer base has expanded to multiple corporations.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales were ¥3,153 million (up 13.0% year on year), maintaining revenue growth, but operating loss widened significantly to ¥1,438 million (versus a loss of ¥462 million in the prior period), and ordinary loss expanded to ¥1,591 million (versus a loss of ¥504 million in the prior period). An impairment loss of ¥3,354 million related to the Nepal hydroelectric power business and other assets, recorded as an extraordinary loss, pushed the net loss up to ¥5,135 million. As external factors, surging energy prices, rising raw material costs, and the prolonged yen depreciation trend weighed on the profitability of the restaurant business. The equity ratio fell to 4.9%, and a breach of financial covenants was also disclosed, indicating a further increase in financial vulnerability.
Growth Strategy
Strengthening the earnings base through three pillars: expansion of the food & beverage franchise, buildup of renewable energy power sales, and expansion of medical business clients
The company will continue converting store formats to "Shinjidai" under the franchise agreement with Fads Inc., maintaining and expanding the group total to 20 stores (as of end-March 2026). It aims to improve the profit margin of existing stores through strengthening human capital, improving quality, service, and cleanliness, and thoroughly managing food cost and labor cost.
KR ENERGY JAPAN LLC and KR Energy No.1 LLC will continue constructing solar power generation facilities and selling electricity, aiming for a gradual contribution to earnings. The Nepal hydropower business (total planned generation capacity of 281.4MW) is currently suspended and under reassessment, and whether the project can be restarted holds the key to medium- to long-term earnings.
Through Kaihan Medical, the company will enhance the precision of advertising and management support provided to medical corporations Daibikai and Shueikai, strengthening support that directly contributes to expanding partners' sales and profits. It will also concurrently consider new revenue models to reduce the risk of dependence on specific business partners.
The company will continue to pursue a combination of fundraising methods, including third-party allotments of new shares, stock acquisition rights, and bond issuances, to secure liquidity on hand. Through regular discussions with financial institutions, it will address responses to financial covenant breaches, aiming to resolve the material uncertainty regarding the going concern assumption.
Last updated: July 19, 2026