SAIBU GAS HOLDINGS CO., LTD.
9536・Prime Market・Electric Power & Gas
Business
Saibu Gas Holdings Co., Ltd. traces its origins to Saibu Gas Co., founded in 1930, and transitioned to a holding company structure in 2021, forming one of Kyushu's largest comprehensive energy corporate groups. With 45 consolidated subsidiaries and 5 equity-method affiliates, the group centers on city gas manufacturing, supply, and sales, while also engaging in diversified businesses including LPG Sales, electricity sales and renewable energy power generation, real estate sales and leasing, and food-related and information processing operations. Its main supply areas cover major metropolitan regions in Kyushu including Fukuoka, Kitakyushu, Kumamoto, Nagasaki, and Sasebo, with the number of gas meters installed at fiscal year-end reaching 1,147 thousand units and gas retail customers reaching 874 thousand. The group also places emphasis on its International Energy Business (LNG Reshipping, etc.) utilizing the Hibiki LNG Terminal.
Business Model
The Gas segment accounts for approximately 54% of net sales, supported by a stable earnings structure that leverages pipeline infrastructure and the feedstock cost adjustment system. The Real Estate segment (accounting for approximately 17% of net sales composition) functions as a second pillar of earnings, supplementing profits through condominium sales, leasing, and logistics facility development, among others. The Electricity & Other Energy segment is growing rapidly, driven by expanded electricity sales volume and the international LNG reshipping business. While enhancing capital efficiency through an intragroup CMS (Cash Management Service), the company relies on long-term borrowings and corporate bonds to fund capital expenditures, characterizing it as a capital-intensive business model.
Company Strengths
Depreciation expenses at the Hibiki LNG Terminal, which began operations in 2014, decreased from ¥12,678 million in the previous fiscal year to ¥10,035 million in the current fiscal year, expanding Gas segment profit by 39.3% year on year to ¥7,914 million. The terminal has also decided on capacity expansion through the addition of LNG tanks, serving as the physical foundation for expanding global business such as LNG reshipping and gas-up/cool-down services.
The company operates a pipeline network across the major metropolitan areas of Fukuoka, Kitakyushu, Kumamoto, Nagasaki, and Sasebo in Kyushu, maintaining a customer base of 1,147 thousand gas meters installed at fiscal year-end (up 0.5% year on year) and 874 thousand gas retail customers. The supply infrastructure built over more than 90 years since its founding in 1930, along with its deeply rooted local customer relationships, forms a barrier to entry that competitors find difficult to replicate in a short period.
The Real Estate segment, centered on Estrust Co., Ltd. and other companies, recorded net sales of ¥47,700 million (up 15.4% year on year), capturing the rising trend in condominium sales prices. The company is also entering large-scale logistics facility development for lease and expanding overseas through its Thai subsidiary SG ENRICH CO.,LTD., possessing a diversified earnings base that pursues synergies with the Gas and Energy business.
ENVALITH's Perspective
Performance Trend
Revenue was ¥261,823 million (up 2.9% year on year), marking the first increase in two periods. This was mainly due to higher sales volumes in Electricity Sales and the International Energy Business. Although the Gas segment saw revenue decline due to a downward adjustment in gas unit prices from feedstock cost adjustments and lower sales volumes, segment profit improved significantly owing to reduced depreciation expenses at the Hibiki LNG Terminal. Operating profit was ¥12,463 million (up 18.4%), ordinary profit was ¥12,583 million (up 18.6%), and profit attributable to owners of parent was ¥7,147 million (up 12.3%), with improvement at every profit level. As an external factor, crude oil prices fell from $84.02 in the previous period to $75.77, contributing to lower gas feedstock costs. Comprehensive income increased substantially to ¥16,375 million (up 83.9% year on year), and an increase in valuation difference on available-for-sale securities (from ¥12,037 million to ¥19,798 million) boosted net assets. On the other hand, operating cash flow decreased significantly to ¥25,329 million from ¥38,557 million in the previous period, and free cash flow was negative at ¥8,483 million, remaining negative for the second consecutive period.
Growth Strategy
Under ACT2027, the company is advancing three pillars: capturing energy transition demand, expanding the real estate business, and pursuing capital-cost-conscious management.
Promoting sales volume expansion in the electricity sales business and the International Energy Business (LNG Reshipping, etc.). Segment sales for the current period grew sharply, up +35.0% year on year to ¥31,419 million, while segment profit surged +441.8% to ¥1,235 million. The policy is to continue utilizing surplus capacity at the Hibiki LNG Terminal, advance PPA business initiatives, and expand the volume of renewable energy power handled.
While leveraging the structural cost reduction effect from declining depreciation expenses at the Hibiki LNG Terminal, capturing natural gas transition demand is positioned as the top priority issue. The company is also promoting decarbonization initiatives such as expanding the adoption of carbon-offset city gas and conducting methanation demonstration projects. Synergies are also being pursued following the transfer of the Renovation Business to the Gas segment.
The policy is to secure stable earnings through condominium sales, leasing, residential land development, and other activities. Sales for the current period were strong, up +15.4% year on year to ¥47,700 million, but segment profit declined -20.1% to ¥3,329 million due to increased cost of sales in the overseas business (Thai subsidiary). Improving cost management in the overseas real estate business is a challenge for the next period.
ACT2027 explicitly sets out "capital-cost-conscious management" as a policy, and the company has implemented a review of segment classifications (including the transfer of the Renovation Business to the Gas segment). It executed share buybacks of ¥2,000 million, raising net assets per share from ¥2,803.49 to ¥3,201.99. The dividend was maintained at ¥70 per share (payout ratio of 35.7%), and the policy of maintaining ¥70 as the floor dividend continues throughout the ACT2027 period.
Last updated: July 19, 2026