ENVALITH
株式会社KG情報 logo

KG Intelligence CO., LTD.

2408・Standard Market・Services

Official website
株式会社KG情報 logo
KG Intelligence CO., LTD.2408

Business

KG Joho Co., Ltd. is headquartered in Okayama Prefecture and traces its origins to a sole proprietorship founded in 1979, developing information services centered on job listings and housing information. Its core Information-related Business consists of two pillars: HR solution-related information, which includes its proprietary job listing site "ARPA," recruitment management system "Alpa Connect," and spot work app "ARPA LINK"; and life-related information, which includes the housing consultation and referral service "Iezukuri Gakko" (a network of 16 schools combining physical and online locations) and rental property search service "Chintai Style." The company maintains a wide network of locations across Okayama, Hiroshima, Kagawa, Ehime, Tokushima, Kochi, Yamaguchi, Fukuoka, Oita, Hokkaido, and other regions, serving both local businesses and consumers. Its subsidiaries include Appeal Com, which handles printing and website construction, Dee Walk Creation, and KG MYANMAR COMPANY LIMITED in Myanmar.

Business Model

Main revenue sources include recruitment advertising placement fees for corporate clients (paper and digital), recurring subscription fees for the recruitment management SaaS "Al-Pacon" (Alpaconnect), staffing and placement fees at "Shigoto Keikaku Gakko" (Job Planning School), referral commissions at "Iezukuri Gakko" (House-Building School) upon commencement of home construction work, and contract-linked revenue from "Chintai Style" (Rental Style). Advertising placement fees adopt a prepayment model in which the full amount is collected upfront at the time of application, recorded as deferred revenue, and recognized as revenue upon placement. Cash flow from operating activities has been generated stably, turning positive at ¥349 million in FY2025 (ending December 2025).

Company Strengths

The equity ratio as of the end of FY2025 (ending December 2025) stood at 87.4%, with net assets of ¥6,022 million. In addition to cash and deposits of ¥5,041 million (73.2% of total assets), the company separately holds ¥4,400 million in time deposits. With a debt-free management structure, financial risk is extremely low, and the company has secured ample funding for new business development and expansion into new areas.

Of the information-related business operating revenue of ¥2,239,771 thousand in FY2025 (ending December 2025), HR solutions-related information contributed ¥1,117,898 thousand (up 2.7% year on year) and lifestyle-related information contributed ¥1,121,873 thousand (up 11.9% year on year), with the two nearly evenly matched. Having two businesses with different economic cycles and seasonal fluctuations provides high revenue stability.

Under a 16-school system combining physical and online schools, the company provides detailed consultation and seminar services. In FY2025 (ending December 2025), the number of visitors trended above expectations, and operating revenue from lifestyle-related information reached ¥1,121,873 thousand, up 11.9% year on year. The Kagawa Prefecture area recorded particularly strong growth of 42.3% year on year.

ENVALITH's Perspective

For the interim period of FY2026 (ending December 2026) (cumulative), operating revenue was ¥1,453 million (+10.6% YoY), operating profit was ¥246 million (+49.9% YoY), and ordinary profit was ¥260 million (+52.0% YoY), representing a substantial profit increase. Progress against the full-year forecast (operating revenue of ¥2,887 million, operating profit of ¥501 million) reached 50.3% for operating revenue and 49.1% for operating profit at the interim stage, roughly at the halfway point, indicating a high probability of achieving the full-year forecast. Note that the full-year earnings forecast has already been revised from the most recently announced figures, and the possibility of a further upward revision remains in view.

The large increase in interim net income attributable to owners of the parent of ¥278 million (+138.3% YoY) was driven in part by a gain on sale of investment securities of ¥137 million (extraordinary income). The gap between the growth rate on an ordinary profit basis (+52.0%) and that on a net income basis (+138.3%) illustrates this. Investors should evaluate the company's underlying earnings power based on ordinary profit, taking care not to overestimate the high growth rate of net income.

During the interim period, the company acquired treasury shares worth ¥127 million (treasury shares outstanding at period-end rose to 227,971 shares, up from 77,971 shares at the previous fiscal year-end). Dividends were set at ¥18 for the interim period and a forecast of ¥19 for the year-end, totaling ¥37 per share for the year (up from ¥36 in the previous fiscal year), reinforcing shareholder returns. On the other hand, valuation difference on available-for-sale securities decreased by ¥60 million (falling to zero following the sale of investment securities), and combined with this, net assets declined by ¥39 million from the previous fiscal year-end to ¥5,982 million. While there is no concern regarding financial soundness, the factors behind the change in net assets warrant careful review.

Growth Strategy

Transitioning to a high-profitability structure by integrating digital capabilities with community-based operations, advancing the three-year medium-term management plan

Strengthening support for the operational adoption and utilization of recruitment management SaaS, driving a structural shift toward recurring subscription-based revenue. Aiming to improve customer unit prices while absorbing the impact of the digital shift of the conventional job-listing media platform, ARPA.

Continuing regional expansion of employment support locations, with the Fukuyama school opened during the current interim period. Pursuing in parallel the accumulation of success-fee-based income from new locations and an increase in the number of support personnel through expansion of target countries for foreign worker acceptance and the addition of post-arrival training locations.

Leveraging the low-cost online school model to expand the trade area, with two online schools opened in Onomichi and Saijo during the current interim period. Capturing demand for high-performance housing through insulation and energy-efficiency seminars and experiential tours, aiming to expand referral fee income.

Aiming to simultaneously improve customer unit prices and reduce operational costs by integrating the community-based sales network (an analog strength) with data utilization such as generative AI (a digital strength). Positioned as a core initiative of the medium-term management plan.

Last updated: July 17, 2026