Kin-Ei Corp.
9636・Standard Market・Services
Business
Kinei Co., Ltd. was founded in 1937 and is a Tokyo Stock Exchange Standard Market-listed company under Kintetsu Group Holdings. Based in Abeno-ku, Osaka City, the company operates two business segments: the Cinema & Amusement Business, which runs Abeno Apollo Cinema (9 screens) and two game centers, and the Real Estate Business, which handles leasing and operational management of the Kin-Ei Apollo Building and Abeno Lucias. As the only cinema complex in the Abeno-Tennoji area, the company provides community-based entertainment and commercial infrastructure, with its main customers being visitors to and residents of the area as well as commercial tenants. In 1998, the company opened Osaka City's first cinema complex and simultaneously began leasing and operational management services for Abeno Lucias.
Business Model
Of net sales of ¥3,771 million (FY2026), the Real Estate Business accounts for ¥2,059 million (approximately 55%) and the Cinema & Amusement Business for ¥1,712 million (approximately 45%). The Real Estate Business generates stable cash flow from leasing income, parking income, and common area maintenance fees at an occupancy rate of 95.75%, complementing the high volatility risk inherent in film exhibition. The Cinema Business strengthens customer traffic through tie-ups with large surrounding commercial facilities (Abeno Harukas, Abeno Q's Mall, etc.) and locks in repeat customers through the membership program "Apollo Cinema Members".
Company Strengths
"Abeno Apollo Cinema" is the only cinema complex (9 screens) in the Abeno/Tennoji area, establishing a regional monopoly position with no competitors. In FY2026 (ending March 2026), theater attendance reached 1,028 thousand people (up 13.4% year on year), and theater revenue increased 15.8% year on year, demonstrating strong customer-drawing power combined with the effect of concentrated screenings of major hit films.
The leasing occupancy rate in the Real Estate Business remained at a high level, totaling 95.75% (Abeno Lucias at 97.87%, Apollo Building at 91.17%). In FY2026 (ending March 2026), the Real Estate Business posted net sales of ¥2,059 million and operating profit of ¥446 million, functioning as a stable revenue source that complements the volatility risk of film exhibition. Parking revenue also showed an increasing trend, up 6.8% year on year.
The company belongs to the corporate group of its parent company, Kintetsu Group Holdings, and leverages group synergies such as depositing surplus funds into the group's cash management system. Regarding Abeno Lucias (leasable area of 28,600㎡), the company has been entrusted with leasing and management operations on a long-term, stable basis based on the "Reserved Floor Space Bulk Lease Agreement" (concluded in 1998, automatically renewed every three years) with the City of Osaka.
ENVALITH's Perspective
Performance Trend
From FY2022 to FY2026, the company achieved five consecutive years of revenue and profit growth, with revenue rising from ¥3,001 million to ¥3,771 million and operating profit rising from ¥135 million to ¥302 million. However, in Q1 of FY2027 (ending January 2027), revenue fell sharply to ¥862 million (down 1.8% year on year) and operating profit fell to ¥42 million (down 44.4% year on year). The main causes were the departure of a major tenant from the Kin-Ei Apollo Building and increased maintenance costs, including air conditioning equipment upgrades. The full-year forecast calls for revenue of ¥3,640 million (down 3.5% year on year), operating profit of ¥230 million (down 23.7% year on year), and net income of ¥150 million (down 25.1% year on year), marking a clear shift into a phase of declining revenue and profit amid an external environment compounded by rising prices, interest rate fluctuations, and increasing international instability.
Growth Strategy
Aiming for an early recovery from the earnings decline phase through successor tenant attraction and enhanced cinema attendance
Focus on attracting successor tenants to the vacant space following the departure of a large tenant, as well as revising rents upon lease renewal. Recovery of the Real Estate Business segment profit is the most critical issue for improving overall company performance. As of the first quarter, the impact of the tenant's departure continues, and the timing of completion of successor tenant attraction will be a factor for upside or downside in full-year performance.
Expanding theater revenue through proactive programming of talked-about and major popular titles. Theater revenue for the first quarter of FY2027 (ending January 2027) reached ¥334 million (up 3.2% year on year), achieving revenue growth, and the Cinema Business segment profit also performed well, up 19.0% year on year. The company aims to maintain and strengthen its customer-drawing power as the region's only cineplex.
Continuing to revise rents for existing tenants upon lease renewal at Abeno Lucias and to attract new tenants to vacant space. By maintaining a stable revenue base in the Real Estate Business, the company aims to uphold a revenue structure that hedges against the volatility risk of the cinema exhibition business.
Continuing diligent efforts to curb expenses across the board. In the first quarter, general and administrative expenses increased 6.4% year on year, making it a challenge to strengthen expense management in order to absorb rising maintenance costs. Depreciation expense declined slightly to ¥68 million (compared with ¥71 million in the same period of the previous year), reflecting progress in improving the efficiency of capital expenditure.
Last updated: July 17, 2026