On 14 January 2025, INTERLIFE HOLDINGS, running operations of interior finish work as well as design and construction of sound & lighting facilities, released its Q1 to Q3 (March to November) FY02/2025 results. It has been revealed that the Company saw earnings higher than assumed in its full-year Company forecasts. The Company suggests that it has seen progress made earlier than planned for its work process of large scale projects, having accordingly posted sales and gross profit earlier than planned to a corresponding extent, which is mentioned as the main reason for the said performance. Full-year Company forecasts have remained unchanged, but we have an impression that the forecasts are to be consequently exceeded. In fact, the Company is currently in the process of examining recent trading since the beginning of Q4 (December to February). For FY02/2026, the impact stemming from concentration of sales associated with large scale projects will inevitably run its course, while it appears that the Company is trying to secure an ongoing increase in earnings by means of focusing on projects carrying high gross profit margin. We are to have an interview with the management to obtain further details in order to update our Company Report and release afresh.

SENSHU ELECTRIC, which focuses on developments of its business as electric wires general trading company, is calling for sustainable increases in sales and earnings from a long-term perspective, immediately after four consecutive years of the increases. For FY10/2024, the Company saw a stagnation in demand from some part of semiconductor production equipment and machine tools, belonging to the private capex realm, but it was more than compensated for by an increase in demand from automotive production lines, also belonging to the private capex realm, in addition to that of power cables and so on, belonging to the construction realm. The Company is exposed to a wide range of applications related to both of the private capex realm and the construction realm with the highest level of competitiveness in the market, which appears to realize so-called decoupling for the Company’s performance in a sense. That is to say, the Company’s performance and stagnation in some part of the applications to which it is exposed are not necessarily coupled. Furthermore, the Company has benefited from higher selling prices of electric wires for FY10/2024, driven by an increase in the Copper Prices and tighten supply-demand situations, which realized a substantial renewal of record-high sales and earnings. Meanwhile, the Company’s midterm management plan (FY10/2025 to FY10/2027) suggests CAGR of 5.5% for sales and 6.5% for recuring profit during the relevant period, which is based on conservative assumptions, including probabilities of any risk more than a certain extent, as far as we are concerned, while the Company reveals its intention to strive to achieve all the goals at an earlier stage than the last year of the plan.

Shinwa, which mainly manufactures, sells and constructs scaffolding equipment, used in the fields of construction work, is on track to continue achieving steady growth in both revenue and earnings. The midterm management plan (FY03/2025 to FY03/2029) suggests CAGR of 9.5% for revenue and 27.9% for operating profit. At the beginning of FY03/2025, the Company acquired YAGUMI Group (the largest operator to construct scaffolding equipment in the Tokai region and one of the foremost in Japan) as subsidiary, which made a major addon since the initial stage, having driven an improvement in the Company’s earnings for Q1 to Q2, which is to be followed by creation of synergy to gradually expand for H2 and thereafter, according to the Company. During the period of the above-mentioned midterm management plan, the Company states that it will achieve steady growth with a view to long-term growth by building a foundation for achieving further growth in the future. The Company is to pursue its strengths as a manufacturer of scaffolding equipment, while trying to create a fusion of this and the strengths as an operator to construct scaffolding equipment, newly acquired this time, which is expected to structure a solid value chain “from manufacturing to constructing” with respect to scaffolding equipment. In conclusion, this will make it possible to promote expansion in the business domains, according to the Company.