Sinanen Holdings (8132): FY2025 Results Summary — Record Profit for a Second Consecutive Year

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Sinanen Holdings Co., Ltd. (8132), an energy, maintenance, and mobility group, reported consolidated net sales of ¥298.75 billion for the fiscal year ended March 31, 2026 (FY2025), down ¥18.36 billion year on year, while ordinary profit rose ¥0.89 billion to a record ¥5.38 billion and profit attributable to owners of parent rose ¥1.28 billion to ¥4.43 billion, its first time reaching the ¥4.0 billion level. The profit increase was aided by a ¥1.5 billion gain on the sale of shares of subsidiaries, partly offset by ¥0.2 billion of integration-related expenses and ¥0.8 billion of extra retirement payments tied to an early retirement program. Sinanen raised its annual dividend to ¥120 per share from ¥90 and began purchasing treasury shares, and forecasts further growth in sales and profit for the fiscal year ending March 31, 2027 (FY2026), targeting an ROE of 8.4%.

Consolidated Results (Full-Year Actual)

Operating profit increased despite lower net sales. In the Energy Business, sales declined on lower kerosene, gas, and heavy oil volumes caused by warmer weather and softer propane CP prices; profit in the B to C operations (Three Melife companies) improved on cost reductions following the withdrawal from unprofitable businesses in the prior fiscal year, while profit in the B to B operations (Sinanen) declined on narrower margins in electricity sales through bilateral transactions. The Non-energy Business grew on expansion of apartment-building maintenance services, steady facility-operation work for funeral halls and hospitals, and higher usage and price revisions in the bicycle-sharing business.

Item	FY2025 (¥bn)	FY2024 (¥bn)	YoY (¥bn)
Net sales	298.75	317.11	(18.36)
Gross profit	39.13	39.17	(0.04)
Selling, general and administrative expenses	34.72	35.16	(0.43)
Operating profit	4.40	4.00	+0.39
Non-operating income, net	0.97	0.47	+0.50
Ordinary profit	5.38	4.48	+0.89
Extraordinary income (losses), net	0.30	(0.95)	+1.25
Profit before tax	5.68	3.52	+2.15
Profit attributable to owners of parent	4.43	3.15	+1.28

Segment Results

Net sales and operating profit by segment for FY2025, on the segment classification in effect for the year (B to C Business, B to B Business, and Non-energy Business):

Segment	Net Sales FY2025 (¥bn)	Net Sales FY2024 (¥bn)	Net Sales YoY (¥bn)
Energy Business – B to C (Three Melife companies)	71.22	75.33	(4.10)
Energy Business – B to B (Sinanen)	204.47	220.42	(15.95)
Non-energy Business	22.83	21.14	+1.69
Adjustment	0.20	0.21	(0.00)
Total	298.75	317.11	(18.36)

Segment	Operating Profit FY2025 (¥bn)	Operating Profit FY2024 (¥bn)	Operating Profit YoY (¥bn)
Energy Business – B to C (Three Melife companies)	1.33	1.01	+0.31
Energy Business – B to B (Sinanen)	1.56	2.07	(0.50)
Non-energy Business	1.06	0.67	+0.38
Adjustment	0.43	0.24	+0.19
Total	4.40	4.00	+0.39

FY2026 Forecast

For the fiscal year ending March 31, 2027 (FY2026), Sinanen forecasts higher sales and profit, with ROE reaching 8%. By business, the company expects the Energy Business to add ¥0.9 billion to operating profit growth through promoting retail services (customer base expansion) and cost control; the Maintenance Business to add ¥0.5 billion by expanding service areas for multi-family residential building maintenance and improving profit margins; and the Mobility Business to add ¥0.7 billion by enhancing operational quality and accelerating rollout in highly profitable areas. From FY2026, Sinanen will report under new segments — Energy Business, Maintenance Business, Mobility Business, and Other — replacing the previous B to C Business, B to B Business, and Non-energy Business classification.

Item	FY2026 Forecast (¥bn)	FY2025 (Actual, ¥bn)	YoY (¥bn)
Net sales	334.5	298.7	+35.7
Operating profit	6.4	4.4	+1.9
Ordinary profit	6.6	5.3	+1.2
Profit attributable to owners of parent	5.2	4.4	+0.7
ROE	8.4%	7.7%	+0.7%

Shareholder Returns

Sinanen increased its annual dividend to ¥120 per share for FY2025, up from ¥90 per share in FY2024, equivalent to a dividend payout ratio of 29% and, reflecting the start of treasury share purchases, a total return ratio of 33%; the FY2025 dividend was paid as a year-end dividend only. For FY2026, the company plans to maintain the annual dividend at ¥120 per share, introduce a progressive dividend policy, pay an interim dividend for the first time, continue purchasing treasury shares, and target a total return ratio of 40% or higher.

Item	FY2024 (Actual)	FY2025 (Actual)	FY2026 (Plan)
Annual dividend per share (yen)	90	120	120
Dividend payout ratio	31%	29%	—
Total return ratio	—	33%	40% or higher

Medium-Term Plan / Topics

Sinanen’s Third Medium-Term Management Plan, covering FYE March 31, 2024 to FYE March 31, 2028, targets ROE of at least 8% and ordinary profit of ¥10.0 billion by FYE March 31, 2028, ahead of the Group’s 100th founding anniversary in April 2027. During the plan, the company redeveloped its domestic business foundations through the integration of its four core energy companies (Sinanen and the three Melife companies) and the sale of certain non-energy businesses, including Sinanen Ecowork (completed) and Sinanen Facilities (to be reflected in the FYE March 31, 2027 results), and it began purchasing treasury shares. Management rated progress on transforming the business portfolio (evaluation: excellent) and on improving capital efficiency (evaluation: good) positively, while rating progress on increasing productivity through operational efficiency and standardization, and on further reform of corporate culture and work style, as needing improvement, noting that a new sales management system had begun streamlining sales administration but progress was delayed. Ahead of the 100th anniversary, Sinanen also renewed its mission, vision, and values — adopting the new mission “Create local communities we can proudly share with the world” — and will roll out a refreshed Group logo across Group companies beginning July 1, 2026.

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