ENVALITH
株式会社エイチ・アイ・エス logo

H.I.S. Co., Ltd.

9603・Prime Market・Services

Official website
株式会社エイチ・アイ・エス logo
H.I.S. Co., Ltd.9603

Business

H.I.S. Co., Ltd. is a comprehensive travel and tourism group founded in 1980. The company is composed of the parent company along with 153 subsidiaries and 10 affiliated companies. Its core operation is the Travel Business (approximately 83% of net sales), covering Overseas Travel (Outbound), Domestic Travel, and Inbound Travel to Japan. The group also operates the Hotel Business, which includes the Henn na Hotel brand, the Kumamoto-based Kyushu Sanko Group (bus and real estate operations), and the Theme Park Business (Laguna Tenbosu), as well as non-life insurance, IT systems, and infrastructure businesses. With 149 domestic locations and a global network of 141 locations across 110 cities in 58 countries overseas, the group provides services to a diverse customer base including individuals, corporations, inbound travelers, and outbound travelers.

Business Model

The Travel Business is fundamentally a margin-based model in which the company, as an IATA-accredited agency, procures air tickets, accommodations, and tours, and sells them through domestic and overseas stores and online channels. The Hotel Business generates room revenue through directly operated and management-contracted properties under the Henn na Hotel brand, the Kyushu Sanko Group earns bus fare and real estate rental income, and Others is comprised of theme park admission fees, insurance premiums, system usage fees, and the like. A notable structural feature is that advance payments received from customers for travel (customer prepayments) function as working capital.

Company Strengths

The company holds 149 domestic locations and 141 locations in 110 cities across 58 countries overseas (as of end-October 2025). Leveraging this network, it has achieved a competitive advantage in capturing both inbound and outbound demand, including a record-high number of inbound travelers from the North American market.

In the fiscal year ended October 2025, the company achieved revenue and profit growth across all segments—Travel, Hotel, Kyushu Sanko, and Others. Net sales were ¥373,106 million (108.7% of the previous period), and operating profit was ¥11,627 million (107.1% of the previous period), marking a full return to profitability from the significant losses during the COVID-19 pandemic (operating loss of ¥64,048 million in the fiscal year 2021).

Henn na Hotel was certified by Guinness World Records™ for "Most Collaboration Room Designs in a Hotel" (44 types, September 2025). The company is actively rolling out a multi-brand strategy including Henn na Hotel PREMIER, and its Seoul and New York locations recorded record-high sales and profits. EBITDA for the Hotel Business reached ¥7,817 million.

ENVALITH's Perspective

For the first half of FY2026 (ending October 2026), revenue was ¥193,132 million (up 6.5% year on year), securing revenue growth, but profitability declined at every stage year on year: operating profit was ¥6,448 million (down 4.1%), ordinary profit was ¥6,197 million (down 9.9%), and net income attributable to owners of the parent for the interim period was ¥3,000 million (down 21.0%). The full-year forecast anticipates a swing to a loss, with net income attributable to owners of the parent projected at -¥1,000 million. This is mainly attributable to a lease cancellation loss (approximately ¥6,000 million) scheduled to be recorded in the third quarter, and although it is a one-off factor, its impact on investor sentiment cannot be ignored.

External factors—escalating tensions in the Middle East leading to the cancellation of tours using connecting flights through the Middle East and a slowdown in new bookings, the continuing yen depreciation trend combined with rising overseas prices pushing up overseas travel costs, and surging fuel surcharges—have become factors weighing on the profitability of the Travel Business. Operating profit for the Travel Business in the first half of FY2026 (ending October 2026) came to only ¥4,747 million, or 84.7% of the year-earlier level, with the decline in profit far outpacing the growth in revenue (+6.5%). Unless these external conditions improve, it may take time for the profitability of the Travel Business to recover.

As a subsequent event, the company resolved to transfer its head office building, Tokyo World Gate Kamiyacho Trust Tower, to Mori Trust Co., Ltd. for ¥32,500 million (delivery scheduled for September 2026). Against a book value of ¥32,001 million, a gain on sale of approximately ¥500 million is expected. The purpose is stated as the effective utilization of management resources and strengthening of the financial structure through the repayment of interest-bearing debt, and attention is focused on whether this will contribute to improving the borrowing structure, given that short-term borrowings surged from ¥8,698 million at the end of the previous fiscal year to ¥49,553 million. The equity ratio remains at a low 14.8%, and progress in improving financial soundness will be a key variable in the market's valuation of the stock.

Growth Strategy

Sustainable growth through the fusion of AI/DX and human capital, global market expansion, and strengthened financial position

The company is expanding its lineup of high value-added products in Inbound Travel to Japan, achieving a record high monthly sales figure in March 2026. The strategic shift toward Taiwan and Southeast Asian markets has borne fruit, with online sales and day-trip bus tours performing well across various regions in Japan. The strategic partnership with Korea's HANATOUR SERVICE INC. is strengthening the growth foundation.

The second casual brand location of Henn na Hotel (Domestic) (Osaka Namba) newly opened in February 2026. Active promotion of cross-industry collaboration rooms is boosting average room rates, and operating profit in the Hotel Business for the first half of FY2026 (ending October 2026) achieved high growth of 129.6% year on year. Overseas hotels in Taiwan, Turkey, and elsewhere are also seeing improved performance.

In the corporate business, the company is promoting operational efficiency through AX initiatives while pursuing new acquisitions of major corporate clients in the BTM (business travel management) area. It aims to improve productivity through digitalization across the group and expand customer touchpoints, while also working to diversify revenue sources in non-travel areas (export business, sports business, etc.).

The head office building at Tokyo World Gate Kamiyacho Trust Tower will be transferred to Mori Trust Co., Ltd. for ¥32,500 million (transfer scheduled for September 2026). The purpose is to strengthen the financial position through effective use of management resources and repayment of interest-bearing debt, securing investment funds for sustainable growth. An improvement in the equity ratio to 14.8% is expected.

The new consolidation of South Wing Co., Ltd. (operator of five souvenir shops on Okinawa's International Street) is creating group synergies, achieving revenue growth through measures such as distributing coupons to tour participants. The company is building a future revenue base by strengthening non-travel areas, including the export business (matcha and rice) and events such as "JAPAN DAY" held in partnership with Tottenham Hotspur FC.

Last updated: July 17, 2026