YE DIGITAL Corporation
2354・Standard Market・Information & Communication
Business
YE DIGITAL Corporation is an information services company established in 1978 through the spin-off of the information processing function of Yaskawa Electric Manufacturing. It possesses a DNA of applying manufacturing "monozukuri" engineering technology to software development, and operates two businesses: the Business Solutions business (ERP/core system construction, systems for mobile communications and health insurance providers, etc.) and the IoT Solutions business (logistics DX, livestock DX, smart cities, AI/big data analysis, etc.). Its main customers are the Yaskawa Electric Group (45.2% of net sales) and the Fujitsu Group (10.8% of net sales), and it operates primarily in Tokyo and Kyushu, headquartered in Kitakyushu City. Listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
Building on system integration and custom development (flow revenue) as its foundation, the company is advancing a shift toward operation/maintenance, outsourcing, and SaaS-type services (stock revenue). It has established a service model leveraging its logistics DX service center "Smart Service AQUA", and is progressing toward a hands-on partnership business model that continuously supports customers' DX initiatives. For FY2026 (ending March 2026), revenue is projected at ¥20,263 million with an operating margin of 8.0%.
Company Strengths
Through prime contractor experience on the DX project (YDX) promoted by Yaskawa Electric, the company has accumulated know-how for driving DX in the manufacturing industry. Sales to the Yaskawa Electric group in FY2026 (ending March 2026) reached ¥9,013 million (45.2% of total sales), demonstrating the ability to execute and manage large-scale projects.
The warehouse execution system "MMLogiStation" is capturing robust demand for logistics automation, with the number of supported material handling equipment models expanded to 12 through plug-in functionality enhancements. The livestock DX product "Milfee" achieved adoption at over 1,000 farms within two years of launch, demonstrating the product competitiveness of the IoT solutions business.
The equity ratio at the end of FY2025 (ending February 2025) stood at 51.3% (up 4.5 percentage points year on year). Interest-bearing debt is zero, and the cash flow to interest-bearing debt ratio is at a level requiring no measurement. Free cash flow improved significantly to ¥1,047 million from ¥41 million in the previous period, giving the company a financial base capable of funding growth investment and shareholder returns from its own resources.
ENVALITH's Perspective
Performance Trend
Revenue grew strongly from ¥13,726 million in FY2022 to ¥20,263 million in FY2026, a 47.6% increase over five fiscal periods, but turned to a decline in Q1 FY2027 (ending February 2027), falling to ¥4,788 million (down 2.7% year on year). Operating profit improved to ¥331 million (up 4.9% year on year), but ordinary profit fell to ¥313 million (down 11.2% year on year) and net profit attributable to owners of the parent dropped sharply to ¥163 million (down 25.1% year on year). The main cause was the completion of a large-scale ERP project in the Business Solutions segment. On the external environment, investment related to generative AI and DX has remained solid, and the IoT Solutions segment performed well with revenue up 19.5%. The full-year forecast remains unchanged, maintaining revenue of ¥22,000 million and operating profit of ¥2,200 million.
Growth Strategy
Under the Medium-Term Management Plan (2025-2027), the company targets net sales of ¥25,000 million and an operating margin of 12%.
Maximize utilization of channels with newly acquired key customers and expand orders through cross-business proposals. Business with mobile telecom operators and automobile manufacturers has been trending steadily, with deepening of the customer base progressing.
Accelerate the launch of two new services in the data utilization and business DX domains, aiming for early commercialization and monetization. As of the first quarter, these are still in the launch stage, with profit contribution remaining a future challenge.
Deploy generative AI company-wide across development processes and business operations to improve productivity and profitability. The gross profit margin for the first quarter improved to 29.9% (27.9% in the same period of the previous fiscal year), with effects of cost structure improvement partially materializing.
The logistics DX business continues to see active demand, though contract closing takes time. Internet and security-related products, livestock DX, and smart city offerings are expanding steadily, increasing year on year.
Maximize human capital value and strengthen organizational capability. The number of shares issued at the end of the first quarter increased to 18,519,100 shares (from 18,326,300 shares at the end of the previous fiscal year), with continued talent acquisition and incentive measures utilizing stock options and other tools.
Last updated: July 17, 2026