SAKURAJIMA FUTO KAISHA,LTD.

Business Details

Based on the Port and Harbor Transportation Business Act and related laws, the segment provides an integrated transport system—cargo handling, marine transport, storage, and land transport—utilizing large-scale cargo handling machinery, dedicated warehouses, and open storage yards for raw fuel bulk cargo such as coal, coke, and salt. The main customer is J-POWER (Electric Power Development Co., Ltd.) (FY2026 (ending March 2026) revenue of ¥678 million). Revenue accounts for approximately 54% of the company's total, making it the largest segment, and in FY2026 (ending March 2026) the segment achieved a turnaround to profitability from an operating loss in the prior period. The company is proceeding with construction of a new bulk cargo warehouse, advancing the development of next-generation business infrastructure.

Recent Overview

Cargo handling operations saw substantial revenue growth on higher coal and ilmenite volumes, turning the segment profitable from an operating loss

In FY2026 (ending March 2026), Cargo Handling Operations revenue expanded to ¥735 million (+14.4% year on year) due to increased handling volumes of coal and ilmenite. On the other hand, Marine Transport Operations revenue decreased to ¥368 million (versus ¥450 million in the prior period) due to lower coastal shipping volumes. A decrease in depreciation compared with the prior period also contributed, and segment operating income turned to a profit of ¥39 million from an operating loss of △¥55 million in the prior period. Construction of a new bulk cargo warehouse has commenced, resulting in an increase in construction in progress. For FY2027 (ending March 2027), the company expects a decrease in handling volumes, mainly of fuel-related cargo, due to restrictions on cargo handling space caused by the new warehouse construction, leading to an anticipated decline in revenue.

Key Products

Growth Drivers

• Increased revenue in Cargo Handling Operations due to higher handling volumes of coal, ilmenite, and other materials (FY2026 (ending March 2026) revenue of ¥735 million, +14.4% year on year)
• Construction of a new, highly versatile bulk cargo warehouse (scheduled to begin operation in February 2027), expanding capacity to attract new cargo and enhance storage capabilities
• Continued stable operation of Storage Operations (FY2026 (ending March 2026) revenue of ¥488 million), maintaining a stable revenue base
• Effective utilization of open storage yard space and improvement of the business portfolio in anticipation of a future decline in demand for fuel-related bulk cargo
• Expansion of transactions with key customer J-POWER (Electric Power Development Co., Ltd.) (FY2026 (ending March 2026) revenue of ¥678 million, +2.7% year on year)

Risks

• Anticipated decrease in handling volumes, mainly of fuel-related cargo, and resulting revenue decline in FY2027 (ending March 2027) due to cargo handling space restrictions from new warehouse construction
• Risk of declining profitability in Marine Transport Operations due to decreased coastal shipping volumes (FY2026 (ending March 2026) revenue of ¥368 million, -18.2% year on year)
• Risk of profit pressure from increased depreciation and cargo handling-related expenses associated with capital expenditure and renewal work
• Need for business structure transformation in anticipation of a future decline in coal demand
• Risk of revenue concentration with key customer J-POWER (Electric Power Development Co., Ltd.) (approximately 15.9% of total company revenue)
• Risk of increased cargo handling-related expenses due to revisions of work fees with partner companies (expected cost increase in FY2027 (ending March 2027))