System Location Co.,Ltd.
2480・Standard Market・Information & Communication
Business
System Location Corporation is a company that primarily serves automotive finance operators (auto lease companies, credit sales companies, etc.) and automobile dealers, providing systems for calculating the current and future value (residual value) of vehicles, as well as business support cloud services. Its flagship products consist of the residual value calculation system "RV Doctor," the current value calculation system "PV Doctor," the new car sales support system "CA Doctor," and the ASP for auto finance "Sys-Locket," among others. Since commencing operations in 1992, the company has leveraged its strength in accumulated data and proprietary algorithms specialized in the automotive finance domain, and is listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange. The group conducts business operations including three consolidated subsidiaries and one equity-method affiliate.
Business Model
The majority of revenue is subscription-based/recurring, forming a more stable revenue base compared to flow-type businesses. The company provides automotive-related businesses with a cloud service based on its proprietary vehicle valuation engine in an ASP/SaaS format, generating continuous usage fees by outsourcing (BPO) customers' business processes. The operating margin for FY2026 (ending March 2026) remains at a high level of 34.8%, with in-house development also supporting profitability through cost control.
Company Strengths
Since commencing operations in 1992, the company has continuously accumulated performance data on the auto lease and used-car markets, developing and evolving proprietary vehicle valuation systems such as "RV Doctor" and "PV Doctor" based on statistical analysis. The data assets built up over more than 25 years since the launch of residual value calculation system sales in 2000 form an entry barrier that competitors cannot easily replicate in a short period.
The majority of revenue is recurring subscription-based, and the company achieved an operating margin of 34.8% (operating profit of ¥604 million) in FY2026 (ending March 2026). Since FY2022 (ended March 2022), the operating margin has generally remained in the 30% range, indicating high revenue stability. The company also maintains a solid financial base with zero outstanding borrowings and net assets of ¥4,044 million, reflecting debt-free management.
In FY2026 (ending March 2026), through the in-house development and operation of systems and changes in business policy, the company held cost of sales to an 8.4% year-on-year decrease, contributing to an improvement in gross margin (gross profit of ¥1,383 million, up 7.7% year-on-year). In-housing has contributed not only to reducing outsourcing costs but also to accumulating technical know-how within the company.
ENVALITH's Perspective
Performance Trend
Revenue declined from a peak of ¥1,742 million in FY2024 to ¥1,667 million in FY2025, but turned upward in FY2026 to ¥1,733 million (up 4.0% year on year). Operating profit recovered to ¥604 million (up 12.7% year on year), with the operating margin improving to 34.9% (from 32.2% in the prior period). The margin improvement was supported by progress in in-house production of cost of sales and the elimination of the one-time amortization burden incurred in the prior period. On the other hand, due to the recognition of a ¥134 million valuation loss on investment securities, net income fell to ¥297 million (down 10.2% year on year), declining for the second consecutive period. Amid a stagnant external environment in which new passenger vehicle sales declined 2.2% year on year, services targeting the used car market (up 0.4% year on year) supported revenue.
Growth Strategy
Expansion of order intake in the automotive distribution and finance markets through AI-driven new products and collaboration with investee companies
Product competitiveness is being strengthened through the accumulation of multiple improvement elements, including broadening and enhancing the quality of proposals, integration with business support systems, support for developing new sales staff, and branding enhancement. In FY2026 (ending March 2026), favorable customer response has been obtained and signs of recovery have emerged, and the product will continue to support the earnings base as a core offering.
The company is advancing the sophistication of product functionality through AI utilization and the development of new products that contribute to the efficient operation and strengthening of the used car business. It aims to further deepen relationships with existing business partners and expand new business partners, positioning expanded transactions in its service group for the automotive distribution industry as a growth driver for the next fiscal period's earnings forecast (net sales of ¥1,770 million).
The company aims to expand order intake by developing new areas within its service group for automotive finance operators. Sales are trending upward against a backdrop of persistent demand from lease-related operators, and the company plans to accelerate expansion into new customer segments.
The company plans to collaborate with investee companies to conduct R&D investment and new business development in new fields, laying the groundwork to establish these as future core businesses. In FY2026 (ending March 2026), it invested ¥2,053 million in the acquisition of securities and investment securities, indicating that investment activities are now moving into full swing.
Last updated: July 19, 2026