San Holdings

Basic Information

Stock Code
9628
Industry
Services
Category Detail
Lifestyle Services
Prefecture
Osaka Prefecture
Establishment Year
October 1944
Listing Year
December 2000
Official Website
https://www.san-hd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Yurtec, Heian Ray Service, Tia, Kokoro Net, San Life H, Doshisha, Nichiryoku, Hasegawa

Overview

San Holdings is a holding company of a major funeral services provider founded in 1932, diversifying its business primarily in funeral-related services, and possesses stable performance domestically with strengths in community-based operations.

Current Situation

San Holdings recorded consolidated net sales of approximately ¥21.3 billion and ordinary income of approximately ¥3 billion in the fiscal year ended March 2020, establishing a stable revenue base. Its core funeral-related services are strengthened through a community-based approach, and as a member of the Sanwa Group, it excels in credibility and customer attraction. It operates multiple domestic subsidiaries, diversifying into transportation and dining beyond funeral operations. Following the 2015 body mix-up incident, it strengthened quality management systems and promoted compliance awareness. Moving forward, it will leverage its dual-headquarters system in urban areas to focus on enhancing customer services and efficiency. It also prioritizes collaboration with local communities and sustainable management to recover trust and achieve stable business growth. To counter intensifying competition in the funeral industry and challenges from declining birthrates and aging population, it is advancing IT utilization and management efficiency initiatives. The management team is pursuing a strategy balancing solid business foundation maintenance with new business creation.

Trivia

Interesting Facts

  • Long history originating from Koyusha, founded in 1932.
  • One of the first companies in the funeral industry to list on the stock exchange.
  • Strong regional ties as a member of Midori-kai and the Sanwa Group.
  • The 2015 body mix-up incident influenced industry-wide compliance strengthening.
  • Enhancing competitiveness in Osaka and Tokyo through dual-headquarters system.
  • Pursuing one of the most diversified operations in the funeral industry.
  • Operates multiple subsidiaries like Sosen and Tarui, emphasizing local focus.
  • Manages specialized subsidiary for funeral-related transportation.
  • Self-provides funeral supplies and memorial cuisine.
  • Enriched services tailored to urban funeral market needs.
  • Strong cooperative relationships with local communities and governments.
  • Executives led by the president with extensive industry experience supporting stable operations.
  • In March 2024, a similarly named company in Shiga and Kyoto became a minority shareholder.
  • Capable of one-stop provision of extensive funeral-related services.
  • Exploring synergies through collaboration with Kizuna Holdings.

Hidden Connections

  • As part of the Sanwa Group, advancing joint ventures with major industry players.
  • Collaborations with capital and business partners like Sosen and Tarui support local focus and service diversification.
  • Tokyo head office location in Minami-Aoyama, Minato-ku, Tokyo, strengthens access to Greater Tokyo customers.
  • Utilizing non-funeral transportation business to build efficient logistics network.
  • Koyusha participates in regional welfare activities as a key Midori-kai member.
  • Improving accuracy of customer management through IT utilization in contract information.
  • Pioneered industry-wide service standardization following the 2015 incident.
  • Building close ties with local governments and medical institutions for regional projects.

Future Outlook

Growth Drivers

  • Increasing funeral demand from advancing aging society
  • Strengthening community-based services and trust
  • Operational efficiency and customer satisfaction improvement via IT systems
  • Flexible response to diversifying funeral needs
  • Compliance with regulations and governance strengthening

Strategic Goals

  • Achieve digital transformation of funeral services
  • Expand market for environmentally friendly eco-funeral plans
  • Expand customer base and improve repeat rate
  • Enhance social contribution activities through strengthened regional ties
  • Establish sustainable management base and stabilize performance

Business Segments

Funeral-related Business

Overview
Provides comprehensive funeral support to a wide range of customers through funeral-related services.
Competitiveness
Local community ties and reliable service framework
Customers
  • General customers
  • Wedding and funeral mutual aid associations
  • Local governments
  • Medical institutions
  • Nursing facilities
Products
  • Funeral plan provision
  • Hearse operations
  • Altar setup
  • Memorial services
  • Cemetery management

Transportation Services Business

Overview
Provides specialized body and funeral-related transportation services.
Competitiveness
High-quality transportation network specialized in funeral services
Customers
  • Funeral homes
  • Medical institutions
  • Hospitals
  • Hospital transportation providers
Products
  • Body transportation
  • Funeral supplies transportation
  • Hearse services

Dining Services Business

Overview
Operates dining services in funeral-related facilities and in the restaurant industry.
Competitiveness
Ability to meet customer needs through collaboration with funeral services
Customers
  • Funeral attendees
  • Local residents
  • Wedding and funeral facilities
  • Event management companies
Products
  • Memorial cuisine
  • Catering services
  • Cafe operations

Competitive Advantage

Strengths

  • Long-cultivated customer base through local community focus
  • Diversified business portfolio
  • Credibility from being part of the Sanwa Group
  • Stable financial base and capital strength
  • Extensive know-how in funeral-related services
  • Management efficiency from dual-headquarters system
  • Synergy effects among related companies
  • Employees' specialized knowledge and service quality
  • Meticulous customer service and high satisfaction
  • Deep commitment to local communities
  • Compliance with laws and strengthened governance
  • Stable revenue structure
  • Capability to meet growing elderly demand
  • Broad distribution channels
  • Initiatives for sustainable management

Competitive Advantages

  • One of the leading market shares in the domestic funeral industry
  • Consistent service provision through group subsidiaries
  • High repeat rate from community-based sales strategy
  • High-quality funeral plans and flexible proposals
  • Efficient management under holding company structure
  • One of the leading companies in industry compliance
  • Wide-area services through multiple bases including major urban areas
  • Expanding customer segments with diverse price ranges and services
  • IT adoption to improve customer satisfaction
  • Strong brand recognition and high credibility
  • Enhanced integration of funerals with peripheral services
  • Management stability from experienced executives
  • Thorough compliance with laws and social ethics
  • Maintaining service quality through employee training
  • Business tailored to local needs

Threats

  • Decline in funeral demand due to aging population and low birthrates
  • Intensifying competition from new entrants
  • Risk of credibility loss from incidents like body mix-ups
  • Impact of economic fluctuations on personal consumption
  • Demand disparities by region
  • Potential for stricter regulations or administrative guidance
  • Diversification of funeral styles due to changing social values
  • Changes in funeral formats due to COVID-19
  • Delays in responding to new services like online funerals
  • Decline in service quality due to labor shortages

Innovations

2024: IT System Introduction for Operational Efficiency

Overview
Introduced IT systems for reservation and customer management in funeral-related operations to achieve efficient operations.
Impact
Shortened customer response times and improved operational speed.

2023: Development of Environmentally Friendly Funeral Plans

Overview
Launched eco-funeral service plans aimed at reducing environmental impact.
Impact
Successfully attracted environmentally conscious customers.

2022: Expansion of Remote Funeral Services

Overview
Enhanced online funeral services to enable participation from remote locations.
Impact
Contributed to maintaining customer base during the pandemic.

2021: Optimization of Transportation Network

Overview
Reviewed logistics network for body and altar transportation to reduce costs and speed up services.
Impact
10% reduction in transportation costs and improved service quality.

Sustainability

  • Donations and welfare support for local communities
  • Enhanced quality and safety in body handling and processing
  • Comprehensive employee compliance training
  • Paperless promotion to reduce environmental impact
  • Promotion of eco-funeral plans
  • Recycling of funeral supplies
  • Community contributions through local events
  • Continuous improvement of safety and health environment
  • Creating a workplace that respects diversity
  • Participation in local cultural preservation activities
  • Consideration of renewable energy adoption
  • Thorough measures against emerging infectious diseases