Seino: Sells HEX stake for ¥25.479bn, expects ¥12bn gain

Seino will transfer all of its shares in Hankyu Hanshin Express (HEX) to Hankyu Hanshin Holdings. After the sale, HEX will no longer be an equity-method affiliate of Seino.

• Background: Seino acquired its shares in April 2018 by subscribing to a third-party allotment of HEX shares.
• Buyer’s request: Hankyu Hanshin Holdings, HEX’s parent, asked to acquire Seino’s stake as it reviews the shareholder structure and consolidates ownership with an optimal owner to support growth.

Before the sale, Hankyu Hanshin Holdings owned 65.99% of HEX and Seino held 34.01%. The transaction will consolidate all HEX shares under Hankyu Hanshin Holdings. For Seino, it will end the equity-method investment and generate a gain on the sale, while ending its capital stake in HEX.

The capital and business alliance will end, but logistics services between the companies will continue. Seino Group provides HEX with domestic transportation and warehousing, among other services, and receives international transportation services from HEX.

• Continuing transactions: Logistics services provided and used under outsourcing agreements, among other arrangements.
• Relationship ending: The capital and business alliance among Seino, Hankyu Hanshin Holdings and HEX.

The sale will sever the capital relationship but leave logistics transactions in place. The disclosure says the companies plan to continue transactions after the transfer, so the change in ownership does not mean logistics services will immediately stop.

Seino expects to record a gain of about ¥12 billion on the sale of shares in an affiliate as extraordinary income in its consolidated results for the fiscal year ending March 2027. The amount could change depending on the timing of the transfer, and Seino is still assessing the specific impact on its full-year consolidated earnings forecast.

• Forecast outlook: Seino will assess the impact in light of its second-quarter results and disclose promptly if a matter requiring a forecast revision or other announcement arises.
• Nature of the gain: The gain is extraordinary income from the share sale, distinct from earnings generated by ordinary logistics operations.

The extraordinary gain will boost consolidated profit for the year, but should be viewed separately from any change in recurring earnings power. Investors will look for further disclosure on when the gain will be recognized and how it will be reflected in the forecast.

HEX's revenue increased in the fiscal year ended March 2026, while both operating profit and net income returned to positive territory. Its results over the past three fiscal years were:

HEX posted operating and net losses in the fiscal year ended March 2025, but turned to operating profit of ¥710 million and net income of ¥2.94 billion in the fiscal year ended March 2026. HEX's results have contributed to Seino's equity-method investment income or loss, and that contribution will no longer be reflected in consolidated results after the sale.