ASJ INC.
2351・Standard Market・Information & Communication
Net Service Business (Single Segment)
A pure-play net service company operating on two axes: cloud integration and EC
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year) | ¥2,661 million | ¥2,741 million | ↓ |
| Operating profit (full year) | ¥126 million | ¥161 million | ↓ |
| Operating margin on revenue (full year) | 4.8% | 5.9% | ↓ |
| Profit for the period attributable to owners of parent (full year) | ¥88 million | ¥246 million | ↓ |
| Subscription revenue | ¥1,224 million | ¥1,102 million | ↑ |
| Recurring revenue ratio within Cloud Integration Service | 66.8% | 61.7% | ↑ |
| Total segment assets | ¥4,828 million | ¥4,874 million | ↓ |
| Depreciation and amortization (full year) | ¥279 million | ¥263 million | ↑ |
| Free cash flow (full year) | ¥242 million | △¥306 million | ↑ |
| Interest-bearing debt | ¥660 million | ¥693 million | ↓ |
| D/E ratio | 0.23x | 0.24x | ↓ |
| Equity attributable to owners of parent ratio | 60.5% | 59.4% | ↑ |
Business Details
The Group consists of a single segment, the Net Service Business. It operates two businesses: the Cloud Integration Service (HRTech services, payment agency services, groupware, etc.), based on the company's own data center, and the sale of pet care and wellness products (EC Service) through mall-type EC platforms such as Rakuten Ichiba and Amazon. Leveraging the "Himeji Lab & Server Center," completed in October 2024, the company is advancing new service development and generative AI-related investment, building the foundation for expanding subscription-based revenue.
Recent Overview
FCF turned positive following the investment phase, and subscriptions achieved double-digit growth
In FY2026 (ending March 2026), revenue and profit both declined due to upfront investment in new service development and generative AI talent development following the completion of the "Himeji Lab & Server Center," but operating profit of ¥126 million and profit attributable to owners of parent of ¥88 million both exceeded the initial earnings forecasts (¥110 million and ¥70 million, respectively). Subscription revenue achieved double-digit growth, rising 11.0% year on year to ¥1,224 million. Free cash flow turned positive at ¥242 million, from a negative ¥306 million in the prior period. In addition, on February 6, 2026, the company completed a change in market segment to the Tokyo Stock Exchange Standard Market and a new listing on the Nagoya Stock Exchange Main Market. The large decline in profit for the period (down 64.0% year on year) was mainly due to the burden of income tax adjustments resulting from the rebound of deferred tax assets recorded in the prior period. For FY2027 (ending March 2027), the company forecasts increased revenue and profit, with revenue of ¥2,900 million (up 9.0% year on year), operating profit of ¥150 million (up 19.0%), and profit attributable to owners of parent of ¥100 million (up 13.6%).
Key Products
Growth Drivers
- Continued expansion of subscription-based revenue centered on HRTech services (ProSTAFF Cloud, etc.) (up 11.0% year on year in FY2026 (ending March 2026), with a recurring revenue ratio of 66.8%)
- Sequential release of new services from FY2027 (ending March 2027) onward and planned hiring of infrastructure engineers aimed at improving the utilization rate of the "Himeji Lab & Server Center"
- Development of new services and provision of generative-AI-enabled services against a backdrop of expansion in the HRTech services market (driven by increased corporate investment in human capital management and human capital disclosure)
- Establishment of a business foundation in mid-to-long-term growth markets through the provision of generative AI, AI security, and supply chain security-related services (including support for SCS assessment scheme compliance, etc.)
- Continued growth of the cloud services market driven by expanding corporate DX promotion and demand for implementing generative AI agents
- Improvement of the Group's overall revenue structure through a shift in the EC Service's sales strategy toward prioritizing profitability and capital efficiency
Risks
- Risk of delayed recovery of upfront investment if the utilization rate of the "Himeji Lab & Server Center" and new service releases do not proceed as planned
- Risk of increased expenses and profit pressure from continued upfront investment in generative AI talent development and new service development
- Risk of difficulty securing profitability due to growing consumer thrift consciousness in the EC market and intensifying competition among merchants on mall-type platforms
- Volatility in Integration service revenue (instability of flow-type revenue) due to the rebound from the large-scale contracted development project in the prior period
- Cost increase pressure from a weaker yen and persistently high energy and raw material prices
- Increased costs to respond to demands for strengthened corporate governance associated with the listing on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Main Market
Last updated: June 23, 2026