ENVALITH
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SAKAI Holdings CO.,LTD

9446・Standard Market・Information & Communication

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SAKAI Holdings CO.,LTD9446

Business

Sakai Holdings Co., Ltd. is a holding company (transitioned in October 2017) headquartered in Nagoya City, Aichi Prefecture, that operates six businesses together with four consolidated subsidiaries. Its core business is the Renewable Energy Business, which operates 15 solar power plants nationwide, with the 20-year fixed electricity sales price under the FIT scheme supporting stable earnings. The largest sales segment is the Mobile Communication Device Sales Business, which operates SoftBank-affiliated mobile phone shops (sales of ¥12,110 million). The company also operates the Insurance Agency Business, the Funeral Services Business with eight halls in Aichi Prefecture, the Real Estate Leasing & Management Business, and the Business Solutions Business providing DX consulting for corporate clients, functioning as a comprehensive provider of regional living infrastructure. Consolidated net sales for FY2025 (ending September 2025) were ¥17,017 million.

Business Model

There are two pillars of revenue. First, in the Renewable Energy Business, the company earns stable electricity sales income (operating margin of 49.0%) based on 20-year fixed-price power purchase agreements signed with Chubu Electric Power, Tokyo Electric Power EP, Kansai Electric Power, and others. Second, in the Mobile Communication Device Sales Business and the Business Solutions Business, the company collects terminal sales revenue and line contract agency commissions as a first-tier agent of SoftBank Corp. The Insurance Agency Business generates commissions from insurance companies, the Funeral Services Business generates execution fees and memorial service contract fees, and the Real Estate Leasing & Management Business generates monthly rental income.

Company Strengths

The Renewable Energy Business achieved net sales of ¥2,387 million, operating profit of ¥1,169 million, and an operating margin of 49.0% in FY2025 (ended September 2025). Climate risk is mitigated through geographic diversification across 15 power plants nationwide. In-house O&M by the company's own engineers has reduced costs, and FIT contracts continue for up to 20 years, with the longest running through 2039.

Since acquiring primary agency status with J-Phone Tokai (now SoftBank) in April 2000, the company has maintained a continuous business relationship for over 25 years. Sales to SoftBank in FY2025 (ended September 2025) amounted to ¥4,876,114 thousand (28.7% of total net sales). The company is deepening its relationship with the carrier through the combined efforts of the Mobile Communication Device Sales Business and the Business Solutions Business.

The Business Solutions Business, centered on corporate DX consulting, expanded rapidly in FY2025 (ended September 2025), with net sales of ¥752 million (up 23.6% year on year) and operating profit of ¥91 million (up 178.3% year on year). Recurring revenue is being built up through the Subscription-based Paid Support Service "SKI Mobile Support," and organizational expansion is progressing, including the opening of the Shizuoka Sales Office in May 2025.

ENVALITH's Perspective

In the first half of FY2026 (ending March 2026), net sales came in at ¥9,173 million (up 11.4% year on year) and operating profit at ¥623 million (up 17.3% year on year), showing steady expansion at the higher-level profit lines. However, the recording of a ¥193 million impairment loss in the Renewable Energy Business segment held profit before income taxes for the interim period to just ¥384 million, and net income attributable to owners of the parent fell sharply to ¥248 million (down 18.3% year on year). The risk that the frequency and scale of impairment losses could undermine the stability of net income warrants continued monitoring.

In the Renewable Energy Business, the negative impact on power generation volume continues due to an increase in the frequency of output curtailment and an expansion of the areas subject to it. In addition, a fixed asset impairment loss of ¥193 million was recorded in the interim period, a substantial increase from the same period of the previous year (¥26 million in the Mobile Communication Device Sales Business). While the stability of FIT-based revenue supports the group's earnings base, policy-driven expansion of output curtailment and impairment risk associated with equipment aging are external factors that could become sources of medium- to long-term earnings volatility.

The full-year earnings forecast for FY2026 (ending March 2026) remains unchanged, with net sales of ¥17,083 million (up 0.4% year on year), operating profit of ¥1,537 million (up 4.9% year on year), and net income of ¥918 million (up 6.9% year on year). The interim net sales progress rate stands at a generally favorable 53.7%, but against interim net income of ¥248 million, the full-year forecast of ¥918 million implies that ¥670 million in net income must be generated in the second half, highlighting a pronounced second-half-weighted structure. Structural risks also remain, including the risk of changes to commission terms in the Mobile Communication Device Sales Business and heavy dependence on SoftBank, and the likelihood of achieving the full-year forecast should be assessed carefully.

Growth Strategy

Revenue diversification through renewable energy expansion, corporate DX adoption, multi-channel expansion, and higher value-added funeral services

Construction in progress increased by ¥501 million from the previous fiscal year-end to ¥1,051 million, reflecting ongoing aggressive investment in new power plants and other facilities. The company aims to expand power generation capacity while maintaining profitability and stability through in-house O&M by its own engineers and nationwide dispersed site placement.

The company is promoting aggressive sales activities at commercial facilities and other locations by increasing staff and strengthening its dedicated external sales division. Through ecosystem-type lifestyle consulting combining fiber-optic lines, credit cards, points, and payment services, it aims to raise average revenue per customer and improve ARPU. Results have become evident in the interim period of FY2026 (ending September 2026), with unit sales of 36,412 units, revenue of ¥6,900 million, and operating profit of ¥326 million (up 39.4% year on year).

The number of subscribers to the paid after-follow-up service "SKI Mobile Support" reached 1,600 companies as of the end of March 2026 (approximately double the previous year), driving rapid growth in recurring revenue. The company is promoting the establishment of a sustained revenue base by combining this with enhanced cross-selling of DX consulting for corporate clients.

Sales activities at new locations have gotten into full swing, with revenue in the interim period of FY2026 (ending September 2026) expanding to ¥329 million (up 18.9% year on year). The business, which recorded an operating loss of ¥19 million in the same period of the previous year, turned to an operating profit of ¥7 million, indicating steady improvement in profitability. The number of policies for third-sector products such as medical insurance has remained solid.

The company is promoting higher value-added services by strengthening its support system for Tree Burial & Perpetual Memorial Grave sales, inheritance procedure assistance, and estate organizing services. However, the interim period of FY2026 (ending September 2026) was challenging, with revenue of ¥514 million (down 5.9% year on year) and operating profit of ¥89 million (down 21.2%), reflecting the need to address the shrinking scale of funerals amid the growing prevalence of family-only funerals.

Last updated: July 17, 2026