ENVALITH
株式会社シイエム・シイ logo

CMC CORPORATION

2185・Standard Market・Services

Official website
株式会社シイエム・シイ logo
CMC CORPORATION2185

Business

CMC Corporation is an information services company founded in 1962. Its mission is to deeply understand client companies' product and operational information and deliver it "at the right time, to those who need it, in the most optimal way." The business is organized into three categories: Manuals (information systematization), Knowledge (UX maximization), and Other (software licensing). The company has 9 consolidated subsidiaries domestically and overseas, supporting DX initiatives primarily for clients in the automotive and manufacturing industries. It is listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange.

Business Model

The company operates two core businesses: the Manuals business, which structures customer companies' product and technical information into data that is both "human-friendly and machine-friendly," and the Knowledge business, which leverages advanced technologies such as generative AI to enhance user experience value. The Knowledge business accounts for approximately 60% of net sales, and sales to the domestic market expanded to ¥10,520 million (+14.7% year on year). Funding is principally sourced internally, and the company maintains debt-free management.

Company Strengths

For FY2025 (ending September 2025), the operating margin was 14.8% and the ordinary profit margin was 17.6%. The company held total net assets of ¥21,919 million and cash and cash equivalents of ¥13,062 million, against total liabilities of ¥5,218 million, resulting in an equity ratio of approximately 80.7%. The company has the financial strength to fund capital expenditures and M&A primarily through internal funds.

Knowledge segment sales expanded to ¥10,987 million (+7.1% YoY), with its share of total sales rising from 52.5% to 60.2%. Sales to the domestic market also increased +14.7%, from ¥9,173 million to ¥10,520 million, reflecting a simultaneous decline in overseas dependence and a shift toward higher value-added domestic offerings.

Since 1977, the company has been commissioned by Toyota Motor Corporation to prepare repair manual manuscripts, and sales to Toyota in FY2025 (ending September 2025) totaled ¥4,883 million (26.7% of net sales). Approximately 50 years of accumulated in-depth understanding of Toyota's products and technology serve as a barrier to entry.

ENVALITH's Perspective

For the H1 of FY2026 (ending September 2026), net sales of ¥10,235 million reached 51.2% of the full-year forecast of ¥20,000 million, and operating profit of ¥1,824 million reached 60.8% of the full-year forecast of ¥3,000 million, indicating a high probability of achieving the full-year forecast (which remains unrevised). On the other hand, actual H1 results significantly exceeded the H1 forecast, with net sales up 2.4% and operating profit up 30.4%, warranting closer scrutiny of the H2 performance level and the conservativeness of the full-year forecast.

The sharp expansion in the Manuals business, up 52.6% year-on-year, explicitly cites the impact of the product model cycle, suggesting the possibility of temporary demand concentration. As an external factor, the deterioration in global market conditions, particularly in China, has affected the Knowledge business (down 2.2% year-on-year), and overseas market economic trends could be a source of volatility in H2 performance. Foreign exchange gains (¥188 million) contributed significantly to ordinary profit and net profit, so attention should also be paid to foreign exchange fluctuation risk.

In terms of market environment, client companies' investment in autonomous AI utilization and productivity improvement is accelerating against the backdrop of a declining working-age population, and structural expansion in demand for information systematization and utilization support is expected. The company is advancing the business application of generative AI and organizational restructuring (a dual-axis structure of QCD functions and innovation functions), and by combining this market environment with its own unique customer base and specialized knowledge, there is room for medium- to long-term growth. However, the earnings contribution from the transition to a "data platform type" model is at a stage where quantitative assessment is difficult.

Growth Strategy

Transition to a two-pillar structure of QCD and innovation, aimed at "expanding the information utilization platform" with an eye toward 2030

In the Manuals and Knowledge businesses, the company has organizationally established a function to thoroughly refine QCD (Quality, Cost, Delivery). It achieved an operating margin of 17.8% (versus 13.1% in the same period of the prior year) in the first half of FY2026 (ending September 2026), with the effects of profitability improvement becoming evident.

The company is providing opportunities to practically learn about business applications of generative AI and on-site verification, promoting the development of talent who can think and act independently amid changing times. It has already restructured its organization around QCD functions for existing businesses and innovation functions as its two pillars.

Tongari LABO has been renewed as "a place to continually create delight for customers." Based on discoveries made through hands-on experience with cutting-edge digital technologies, the company is working closely with client companies to co-create business designs.

Sales for overseas markets grew rapidly to ¥4,663 million (up 34.0% year-on-year) in the first half of FY2026 (ending September 2026), with the sales composition ratio rising to 45.6%. The overseas expansion of the Manuals business, capturing product model cycles, has been the driving factor.

The year-end dividend forecast for FY2026 (ending September 2026) has been set at ¥30 in total, comprising an ordinary dividend of ¥28 and a commemorative dividend of ¥2 (bringing the full-year dividend, combined with the interim dividend of ¥27, to ¥57). This maintains the policy of increasing dividends from ¥52 per year in the previous fiscal year, reflecting a stance of shareholder returns underpinned by a solid financial foundation.

Last updated: July 17, 2026