Applied Co.,Ltd
3020・Standard Market・Retail Trade
Business
Applied Corporation is a direct-sales manufacturer whose core business is the manufacturing, sales, and support of personal computers and workstations, operating 27 stores across the Kyushu, Chugoku-Shikoku, Kansai, Hokuriku, and Tohoku regions. The company maintains diverse sales channels, including SI sales of HPC products for universities, government agencies, and research institutions, wide-area sales of industrial computers, and mail-order sales. Its subsidiary Houzu Co., Ltd. operates the cosmetics and general merchandise specialty store "Houzu" at 5 locations in the Kyushu and Tokai regions, while City Joho Fukuoka Co., Ltd. runs a town information magazine publishing, digital promotion, and advertising agency business in the Kyushu region. Consolidated group net sales totaled ¥48,010 million (FY2026), with the PC and gaming business accounting for approximately 78% of sales.
Business Model
In the PC/gaming business, the company manufactures original PC and HPC (high-performance computing) products at its own factories in Fukuoka and Nagoya, and sells them directly through five channels—retail stores, SI (system integration), specialized equipment, mail order, and wide-area sales—thereby eliminating intermediary margins and securing gross profit. The cosmetics and sundries business seeks to increase spending per customer through in-store sales, membership programs, and events, while the publishing and advertising business earns advertising revenue by combining digital promotion with print media.
Company Strengths
With a two-site production structure comprising the Fukuoka Plant (floor space expanded from Reiwa 1 onward) and the Nagoya Production Plant (operational from October Reiwa 7), the company has expanded its production capacity for high-function, high-unit-price original PC products. Through its direct sales model, the gross profit margin for FY2026 (ending March 2026) improved by 2.0 percentage points year on year, and gross profit reached ¥11,159 million (up 10.9% year on year).
Five sales divisions—store sales, SI sales, special equipment, wide-area systems, and mail order—operate a total of 27 stores and over 25 locations spanning from Kyushu to Tohoku. The opening of the Sendai store in February Reiwa 8 marked the company's first entry into the Tohoku region, securing access to a diverse customer base including orders for HPC from universities, government agencies, and research institutions. This region-focused, multi-channel structure, which is difficult for competitors to replicate in a short period, underpins the company's earnings base.
In October Reiwa 5, the company obtained four certifications: ISO9001 (quality), ISO14001 (environment), ISO/IEC27001 (information security), and ISO/IEC27017 (cloud security). These certifications serve as proof of reliability for orders from government agencies, universities, and research institutions, functioning as a competitive advantage that supports the expansion of orders for HPC and specialized equipment.
ENVALITH's Perspective
Performance Trend
For FY2026 (ending March 2026), net sales were ¥48,010 million (up 1.5% YoY), operating profit was ¥3,431 million (up 28.6%), ordinary profit was ¥3,470 million (up 29.0%), and profit attributable to owners of parent was ¥2,268 million (up 28.3%), marking the second consecutive fiscal year of record-high consolidated results in net sales, ordinary profit, and net profit. As an external tailwind, replacement demand emerged due to the end of Windows 10 support (October 2025). The main driver of profit growth was an improvement in gross margin (21.3% → 23.2%) resulting from a decrease in cost of sales (¥37,223 million → ¥36,850 million). Meanwhile, the cosmetics and sundries business posted a segment loss due to a significant decline in net sales stemming from lower wholesale sales. The company forecasts net sales of ¥48,100 million and operating profit of ¥3,250 million for FY2027 (ending March 2027), representing a slight increase in revenue but a decline in profit.
Growth Strategy
Capturing AI/HPC demand and strengthening direct-sales manufacturer capabilities, while expanding nationwide trading areas including the Tohoku region
The Nagoya production plant began operations in October 2025 (Reiwa 7), expanding original PC production capacity through a two-plant system combined with the Fukuoka plant. The company strengthened development and sales of high-performance products in response to rising AI investment demand, and promoted expansion of sales channels to universities, government agencies, and private-sector R&D departments. In FY2026 (ending March 2026), sales of the PC & Game Business increased 8.2% year on year.
In February 2026 (Reiwa 8), the company opened the Applied Sendai store, its first store in the Tohoku region, establishing a nationwide network of 27 stores. The company aims to raise brand awareness and expand its brand presence in the new trading area, targeting individual and corporate customers in the Tohoku region in addition to its existing Kyushu and Chubu regions. No disclosure has been made regarding further store opening plans for FY2027 (ending March 2027) and beyond.
In response to rising investment appetite in the AI field aimed at improving operational efficiency and labor savings, the company is strengthening its high-performance product lineup. Leveraging specialized sales channels to universities, government agencies, and private-sector R&D departments, the company is rolling out high-value-added package sales combining AI solutions with hardware. The policy is to continue this initiative in FY2027 (ending March 2027) as well.
The company is promoting differentiation from competitors through use of its own farm "Hina Farm," original merchandise featuring the official character "Munyamu," sales of exclusive benefits for HOWS Premium Members, and strengthened in-store events and school businesses. In FY2026 (ending March 2026), the segment posted a loss of ¥36 million, falling into the red, making profitability improvement an urgent priority.
Last updated: July 19, 2026