HITO-TO-HITO Holdings Co.,Ltd.

Business Details

Our group operates as a single segment in the human resources services business, developing three businesses: Event Management (operation and security for professional sports events), Building Management (security and cleaning for commercial facilities and office buildings), and Human Resources Support (staffing and sales promotion). We are involved with the home stadiums of 8 professional baseball teams, 8 J.League teams, and 8 B.League teams, and our source of competitive advantage is our flexible staffing capability based on a talent pool of over 12,000 people. Revenue was ¥20,094 million and operating profit was ¥1,036 million (FY2026, ending March 2026).

Recent Overview

Revenue and operating profit increased substantially due to work related to Expo 2025 Osaka, Kansai and other factors

In the 7th fiscal year (FY2026, ending March 2026), the Building Management Business recorded ¥1,452 million in revenue related to Expo 2025 Osaka, Kansai work, and also saw expanded full-year contribution from large-scale commercial facility operations and new orders. In the Event Management Business, increased orders from the B.League and regular business orders from large multi-purpose stadiums contributed, while in the Human Resources Support Business, expanded store operation work contributed. As a result, revenue increased 19.6% year on year to ¥20,094 million, and operating profit increased 47.0% year on year to ¥1,036 million. Although one-time expenses were incurred in connection with the listing on the TSE Standard Market, profitability improved due to the suppression of other expenses. On the financial front, reduction of interest-bearing debt progressed, and total equity increased 29.1% year on year to ¥2,871 million.

Key Products

Growth Drivers

• Temporary boost to revenue from work related to Expo 2025 Osaka, Kansai (¥1,452 million recorded in the Building Management Business)
• Expansion of the Building Management Business through new orders for large-scale commercial facilities and full-year contribution from orders received in the prior period
• Expansion of the Event Management Business due to the recovery and increase in attendance at professional sports events such as the B.League and J.League
• Flexible and low-cost staffing system utilizing a talent pool of over 12,000 people (part-time workers)
• Medium- to long-term expansion of the sports market driven by nationwide stadium and arena construction plans (36 stadiums and 40 arenas)
• Growth of the Human Resources Support Business through expansion of the staffing market (from approximately ¥5 trillion in FY2016 to approximately ¥10 trillion in FY2024) and expansion of store operation work

Risks

• Increased labor costs and difficulty passing on price increases due to the continued rise in minimum wage (national weighted average of ¥1,118 for FY2025, up 6.0% year on year)
• Intensifying competition for human resources due to the decline in the working-age population associated with the declining birthrate and aging population
• Impairment risk related to goodwill of ¥5,951 million (55.0% of total assets) (impairment could occur with a 6.9% increase in the pre-tax discount rate or a 41.5% decrease in future cash flows)
• Financial risk from a leveraged balance sheet carrying ¥4,338 million in borrowings
• Reversal of revenue and profit in subsequent periods due to the drop-off of temporary revenue such as from Expo 2025 Osaka, Kansai
• Risk of substitution from human security to mechanical security due to advances in IT and AI technology (expected to coexist in the medium term)
• Impact on customers' capital expenditure and event holding due to rising energy prices and economic downturn associated with the prolonged conflict in the Middle East