ENVALITH
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CORE CORPORATION

2359・Prime Market・Information & Communication

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CORE CORPORATION2359

Business

Core Corporation is an independent IT solutions service company established in 1969. Since its founding, the company has maintained a stance of providing end-user-focused services without belonging to any major computer manufacturer's group. It operates three segments—Future Society Solutions (environment, public sector, healthcare, energy), Industrial Technology Solutions (specialized ICT technologies such as IoT, AI, and GNSS), and Customer Business Integration (total ICT services leveraging business knowledge and expertise)—deployed nationwide through a nine-company structure. The company serves a broad customer base including government agencies, local governments, medical institutions, manufacturers, transportation companies, and media, with consolidated net sales reaching ¥26,532 million in FY2026 (ending March 2026). Listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company provides ICT services that combine contracted development, system integration, and maintenance/operations, centered on in-house developed solutions and products (the electronic medical record system "i-MEDIC", the IT tenko (alcohol/health check) system "Cagou IT Tenko", the climate change risk analysis tool "FinMAP", etc.). While maintaining its customer base through region-focused sales conducted by nine companies, it is also pursuing geographic business expansion through M&A. Through continuous strengthening of its proprietary technology, backed by R&D expenditure of ¥327 million, the company aims to build a structure that increases the proportion of high-margin solution projects.

Company Strengths

The Industrial Technology Solutions Business, the company's largest segment, achieved net sales of ¥13,695 million, operating income of ¥2,312 million, and an operating margin of 16.9% in FY2026 (ending March 2026). Steady progress in the IoT (AI) field, including "Cagou IT Tenko", manufacturing-oriented solutions, and development projects for semiconductor-related equipment and acoustic devices, has established this segment as a core profit driver, accounting for 60.5% of the group's total operating income.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 73.5%, substantially exceeding the target of 50%, maintaining an improving trend for five consecutive fiscal years. Cash and cash equivalents totaled ¥8,187 million, and the interest-bearing debt ratio (cash flow to interest-bearing debt ratio) remained low at 0.8 years. This near debt-free financial structure supports the company's flexibility in strategic investments such as M&A and R&D.

The company possesses proprietary technologies extending GNSS capabilities into the space domain, including "MADOCA-PPP," a centimeter-level positioning augmentation service compatible with the Michibiki quasi-zenith satellite system. Quality and security certifications such as ISO9001, ISO27001, and ISO14001 have been deployed across all group companies, and the technological assets and intellectual property accumulated over more than 50 years since the company's founding in 1969 make short-term imitation by competitors difficult.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales were ¥26,532 million (up 7.9% year on year), operating profit was ¥3,819 million (up 20.3%), and profit attributable to owners of parent was ¥2,879 million (up 28.4%), with both the sales growth rate and profit growth rate accelerating significantly from the previous fiscal year (net sales up 2.5%, operating profit up 1.1%). While the broader information services industry benefited as a tailwind from continued DX investment and demand for operational efficiency improvements amid labor shortages, the main driver was the expansion of proprietary solutions within the Industrial Technology Solutions business, indicating high quality of earnings.

The Customer Business Integration business posted net sales of ¥7,751 million (down 3.0% year on year) and operating profit of ¥765 million (down 7.7%) in FY2026 (ending March 2026), the only segment to see both revenue and profit decline while the other two segments expanded. In addition to a contraction in development projects related to consumer credit and distribution clients, solution-related projects are increasingly shifting to other segments. The amortization burden of goodwill totaling ¥427 million (¥22 million annually) arising from newly consolidated subsidiaries (such as Soft Ryutsu Center) is also attributed to this segment, making the pace of future earnings recovery a key point of focus.

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥29,000 million (up 9.3% year on year), operating profit of ¥4,200 million (up 10.0%), and profit attributable to owners of parent of ¥3,000 million (up 4.2%). While sales and operating profit are projected to grow at levels close to double digits, the net profit growth rate is expected to slow markedly to 4.2%. This appears to reflect the drop-off of the gain on sale of investment securities (¥44 million) recorded in FY2026 (ending March 2026) and the normalization of corporate taxes. Concrete progress on the three pillars of the 15th Medium-Term Management Plan—stock business expansion, AI-first initiatives, and nationwide M&A—will be the key evaluation criteria going forward.

Growth Strategy

Under the 15th Medium-Term Management Plan 'Solution Platformer,' the company is advancing stock business, AI-first policy, and nationwide M&A

The first item of the basic policy under the 15th Medium-Term Management Plan (FY2027 (ending March 2027) to FY2029 (ending March 2029)). By expanding stock business rooted in solutions, the company aims to enhance revenue stability and predictability. For FY2027 (ending March 2027), the goal is set as "establishing a growth foundation that achieves double-digit revenue growth."

"AI-First," the utilization of AI across all corporate activities, is set as the third item of the basic policy under the 15th Medium-Term Management Plan. The company will promote nationwide rollout of an AI platform usable in closed environments, creation of new solutions through deeper exploration of market needs premised on AI utilization, and human resource development and recruitment DX through AI utilization.

As a financial strategy, the company has clearly stated its policy of expanding business scale through nationwide M&A. In FY2026 (ending March 2026), the company newly consolidated Soft Ryutsu Center Co., Ltd. and System Factory Kagoshima Co., Ltd., expanding into the South Kyushu area. Acquisition of affiliated company shares of ¥659 million has already been executed. Continued M&A investment is also planned under the 15th Medium-Term Management Plan.

The company is cultivating a foundation for creating high added value through the development of SX talent responsible for the upstream processes of the solutions business. It continues to strengthen recruitment of new graduates and experienced personnel, and to develop an environment mindful of "ease of working." Under the 15th Medium-Term Management Plan, the company aims to improve recruitment efficiency and recruitment capability through AI-utilized talent development and organizational development, as well as recruitment DX.

Last updated: July 19, 2026