SAKAI Holdings CO.,LTD
9446・Standard Market・Information & Communication
Renewable Energy Business
Core group business boasting stable earnings from 20-year fixed FIT rates
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Interim Period) | ¥981 million | ¥966 million | ↑ |
| Operating Profit (Interim Period) | ¥357 million | ¥355 million | ↑ |
| Operating Margin (Interim Period) | 36.4% | 36.8% | — |
| Revenue (Full Year, Prior Year Actual) | ¥2,387 million | — | — |
| Operating Profit (Full Year, Prior Year Actual) | ¥1,169 million | — | — |
| Impairment Loss (Interim Period) | ¥194 million | ¥0 million | ↓ |
Business Details
A business operating 15 solar power plants nationwide, with electricity sales revenue under the Feed-in Tariff (FIT) system as its main revenue source. The company reduces costs through in-house operation and maintenance (O&M) by its own engineers, while reducing climate and weather risk by dispersing plant locations across the country. This is a core segment under the group's management vision of "developing the Renewable Energy Business to contribute to the realization of carbon neutrality," and is a profit pillar boasting a high operating margin.
Recent Overview
Revenue and operating profit rose slightly, but a large-scale impairment loss was recorded in the Renewable Energy Business
For the interim period of FY2026 (ending March 2026)9, revenue was ¥981 million (up 1.5% year on year) and segment operating profit was ¥357 million (up 0.6% year on year), both showing slight increases. Meanwhile, the Renewable Energy Business segment recorded an impairment loss on fixed assets of ¥194 million during this interim period, which was the main reason behind the 18.3% year-on-year decrease in consolidated interim net income attributable to owners of the parent (¥248 million). The negative impact on power generation volume from an increasing number of curtailment instances and expansion of the areas subject to curtailment has continued, but stable operation has been maintained. In addition, construction in progress increased by ¥501 million, suggesting that investment in new power plants and other assets is underway.
Key Products
Growth Drivers
- The government's continued support for renewable energy adoption based on the 2050 carbon neutrality declaration and the Basic Energy Plan
- A stable earnings structure guaranteed by the 20-year fixed electricity sales rate under the FIT system
- Reduction of operating costs and improved profitability through in-house O&M by the company's own engineers
- Reduced climate risk and maintained stable operation through nationwide dispersion of plant locations
- Active capital investment in new power plants and other assets, as shown by the significant increase in construction in progress (up ¥501 million)
Risks
- Negative impact on power generation volume from an increasing number of curtailment instances and expansion of the areas subject to curtailment
- Risk of fluctuations in power generation volume and revenue due to variations in sunshine hours, unfavorable weather, and natural disasters
- A declining trend in the FIT purchase price (impact on the economics of new projects)
- Risk of impairment of fixed assets (an impairment loss of ¥194 million was recorded in the current interim period)
- Challenges in securing personnel for facility maintenance and expansion of power plants, and in managing procurement costs associated with large, long-term capital investment
- Continued amortization burden from goodwill balance of ¥802 million (as of the end of March 2026)
Last updated: December 18, 2025