JALCO Holdings Inc.
6625・Standard Market・Real Estate
Business
JALCO Holdings is a holding company (listed on the TSE Standard Market) that operates a real estate business, money lending business, and M&A Consulting Business specializing in the amusement industry, primarily pachinko halls. Its main subsidiary, JALCO Co., Ltd., serves as the core of the business, providing an integrated offering that includes the acquisition, leasing, and sale of amusement facilities, short-term loans to industry operators (including social lending), and M&A brokerage related to business succession, off-balance-sheet arrangements, and goodwill transfers. Its primary customers are pachinko hall operators, and the company has built a unique business model that captures industry-specific regulatory compliance and business restructuring needs. For FY2026 (ending March 2026), net sales are projected to reach ¥16,996 million, with total assets of ¥91,699 million.
Business Model
In the Real Estate Business (approximately 87% of net sales), the company acquires amusement facilities using long-term borrowings, builds up rental income, and also captures gains on sale depending on market conditions. In the Money Lending Business, the company extends short-term loans to industry operators under screening that emphasizes collateral and profitability, earning interest income. In the M&A Consulting Business, success fees earned upon deal completion serve as the revenue source, and the segment profit margin is expected to reach 85.2% in FY2026 (ending March 2026). A distinguishing feature is the vertically integrated revenue structure in which the three businesses mutually supply deals to one another.
Company Strengths
Amid a limited number of companies handling real estate transactions for amusement facilities such as pachinko halls, the Group has continuously acquired and operated properties. In FY2026 (ending March 2026) alone, it acquired 4 amusement facility properties, with expenditure on acquisition of tangible fixed assets reaching ¥17,229 million. This accumulated track record is the source of the Group's credibility and deal-sourcing capability within the industry.
The M&A Consulting Business recorded net sales of ¥2,010 million and segment profit of ¥1,712 million (profit margin of 85.2%) in FY2026 (ending March 2026). Collaboration with the real estate acquisition and money lending functions has enhanced deal origination capability, and the success-fee-based model that captures business succession and off-balance-sheet needs in the amusement industry underpins the high-profitability structure.
The Group regards EBITDA return on beginning-of-period equity capital as its most important indicator, with a target of 15% or higher. In FY2026 (ending March 2026), EBITDA was ¥6,096 million, and against beginning-of-period equity capital of ¥19,003 million, the return achieved was 32.1%. The target has been exceeded in each of the past four fiscal years (FY2023 to FY2026 (ending March 2026)), demonstrating a track record of high capital efficiency.
ENVALITH's Perspective
Performance Trend
Revenue trend: ¥2,783 million (FY2022) → ¥4,964 million (FY2023) → ¥12,739 million (FY2024) → ¥6,859 million (FY2025) → ¥16,995 million (FY2026), a structure with large swings. In FY2026 (ending March 2026), Sale of Real Estate for Sale of ¥9,966 million and M&A success fees of ¥2,010 million drove a sharp recovery, with operating profit of ¥4,875 million and net income attributable to owners of parent of ¥1,800 million. However, the forecast for FY2027 (ending March 2027) anticipates a significant slowdown, with revenue of ¥11,956 million, operating profit of ¥3,532 million, and ordinary profit of ¥388 million. EBITDA came to ¥6,096 million (up 69.4% year on year), reflecting the expansion of the leasing base. The equity ratio has fallen to 20.6%, and with changes in the interest rate environment as an external factor, the company is at a stage where this directly affects financial costs.
Growth Strategy
Expansion of the amusement-focused real estate portfolio serves as the core axis, alongside new domain expansion into grid-scale storage batteries and data centers
Selectively acquiring high-profitability amusement facilities in regional cities and highly liquid properties in urban centers to expand stable rental income. In FY2026 (ending March 2026), 4 properties were acquired, expanding tangible fixed assets to ¥60,327 million. For FY2027 (ending March 2026), rental income from properties scheduled for new acquisition has already been reflected in earnings forecasts.
Addressing business succession, store restructuring, and off-balance-sheet needs in the amusement industry, structuring and brokering M&A deals leveraging real estate acquisition and financial functions. In FY2026 (ending March 2026), the business recorded its first large-scale success fee, posting revenue of ¥2,010 million with a profit margin exceeding 85%. The framework was strengthened through the consolidation of JALCO Asset Management.
Against the backdrop of growing power supply-demand adjustment needs accompanying the expansion of renewable energy adoption, advancing the selection of storage facility sites, construction of business schemes, and collaboration with external partners. A portion of revenue has already been incorporated into the FY2027 (ending March 2026) earnings forecast, but there is risk of fluctuation depending on progress with permits/licenses and grid connection.
As part of expanding the potential utilization of owned and prospective real estate, the feasibility of commercializing a data center business is under review. The business scheme, investment scale, power supply, site conditions, and collaboration with external partners are still under consideration, and no revenue has been incorporated into the FY2027 (ending March 2026) earnings forecast.
Last updated: July 19, 2026