SAN HOLDINGS,INC.
9628・Prime Market・Services
Business
San Holdings traces its origins to Kōeki-sha Co., Ltd., founded in 1932, and transitioned to a holding company structure in 2004. It currently comprises five segments: Kōeki-sha Group (Kansai and Greater Tokyo), Sōsen Group (Tottori and Shimane), Tarui Group (Hyogo and Akashi), Kizuna Group (specializing in family funerals, nationwide), and the Holding Company Group. Following the September 2024 tender offer for Kizuna Holdings Co., Ltd., the number of proprietary halls expanded to 267 (as of end-March 2025), and annual funeral handling volume reached approximately 33,000 cases. In February 2026, Kokoro Net Co., Ltd. became a consolidated subsidiary through a share exchange, expanding the company's operating area to 21 prefectures and establishing a nationwide business foundation as Japan's largest listed funeral services company. Its primary customers are the senior generation and their families, and beyond funeral execution, it also operates life-ending support businesses including return gift sales, Buddhist altar sales, real estate brokerage, and nursing care services.
Business Model
While each group company earns funeral execution revenue based at its own funeral halls (267 halls), it also builds up ancillary revenue from return gift and Buddhist altar/altar fittings sales, meal sales, real estate brokerage fees, memorial services, and other sources. The Holding Company Group collects real estate leasing, management outsourcing, and management guidance fees from subsidiaries, creating a structure that secures stable profit for the group as a whole. Hall sites are principally leased (fixed-term land leases for business use), allowing the group to accelerate new store openings while maintaining asset efficiency.
Company Strengths
The September 2024 tender offer for Kizuna Holdings Co., Ltd. brought the group's owned hall count to 267 and annual funeral handling volume to approximately 33,000 cases. The 2031 target of 210 halls set out in the "10-Year Vision" was achieved seven years ahead of schedule, prompting an upward revision of the new target to 550 halls. The expanded scale is strengthening the company's advantages in purchasing negotiation power, brand recognition, and recruiting capability.
The group has diversified across regions and business formats — Kansai/Greater Tokyo (Kōeki-sha), San'in (Sōsen), Hyogo (Tarui), and nationwide family funerals (Kizuna) — reducing exposure to demand fluctuations in any single region. In FY2025 (ended March 2025), all segments achieved increases in both revenue and profit, with consolidated group net sales of ¥31,984 million (up 42.5% year on year) and operating profit of ¥4,521 million (up 19.3% year on year).
San Holdings owns and leases the real estate used for funeral halls and related facilities operated by its subsidiaries, generating stable rental income. The Holding Company Group segment profit remained at a high level, reaching ¥2,300 million for full-year FY2025 (ended March 2025) and ¥2,822 million on a cumulative basis through the third quarter of FY2026 (ending August 2026). The company has entered into multiple long-term lease agreements (20 to 40 years), providing high visibility into future earnings.
ENVALITH's Perspective
Performance Trend
Operating revenue for the cumulative Q4 of FY2026 (ending August 2026) (April 2025 to March 2026, 12 months) was ¥37,865 million. This significantly exceeded the prior full-year figure (¥31,984 million) due to Kizuna Group's full-year contribution (¥14,280 million). On the other hand, operating profit was ¥3,124 million, falling short of the prior full-year figure (¥4,521 million), with the operating margin declining to 8.2% (from 14.1% in the prior year). The main causes were goodwill amortization of ¥737 million, increased store-opening related costs and recruitment expenses, and higher interest payments associated with the Kizuna tender offer (TOB). Net income of ¥4,500 million was significantly boosted by a temporary effect including a gain on negative goodwill of ¥2,810 million (provisional) arising from the consolidation of Kokoro Net. On the financial front, total assets stood at ¥76,015 million (up ¥12,962 million from the end of the prior fiscal year), and the equity ratio was maintained at 59.2%.
Growth Strategy
Accelerating nationwide expansion with two pillars: a 550-hall network structure by FY2031 and expansion of the Life Ending Support business
Through consolidation of Kizuna HD (September 2024) and Kokoro Net Co., Ltd. (February 2026) as subsidiaries, the operating area has expanded to 23 prefectures. The Group will continue to promote hall network expansion combining organic new openings and M&A, targeting a 550-hall network for the Group by FY2031.
Continuing aggressive openings in the Greater Tokyo and Kinki areas, centered on the Ending Haus brand. The Group aims to grow the number of funeral services conducted across the Group by capturing structural growth in demand for family funerals (potential demand is expected to increase through 2040 amid a rising population aged 65 and over). Upfront investment in opening-related costs and recruitment expenses is currently weighing on profit in the short term.
In line with the increase in the number of funeral services conducted, the Group is expanding related services such as return gift sales, Buddhist altar and altar fittings sales, real estate brokerage, rehabilitation-focused day care services, and home-visit medical massage. Post-funeral procedure fee income is also trending steadily, and the Group aims to diversify revenue while reducing dependence on funeral execution service income.
The Group is advancing integration with Kokoro Net Co., Ltd. (funeral, stone monument, wedding, flower, and mutual aid association businesses), which became a wholly owned subsidiary via share exchange in February 2026. The aim is to achieve mutual complementarity across operating regions and create synergies in funeral-related businesses. For the current period, only the balance sheet was consolidated due to the deemed acquisition date of March 31, 2026 (mutual aid association advances received of ¥8,596 million were recorded). Full profit-and-loss consolidation will begin from April 2026 onward.
Last updated: July 17, 2026