ENVALITH
株式会社パシフィックネット logo

Pacific Net Co.,Ltd.

3021・Standard Market・Services

Official website
株式会社パシフィックネット logo
Pacific Net Co.,Ltd.3021

Business

Pacific Net Co., Ltd. was established in 1988 and is listed on the TSE Standard Market as an IT asset management services company. The company operates three segments: the IT Subscription business (net sales of ¥5,849 million), which provides IT subscription (rental) services for PCs, servers, tablets, and other equipment, as well as BPO services such as IT operation management and cloud services, for corporate and government clients; the ITAD business (net sales of ¥2,064 million), which handles the collection, data erasure, and resale of used IT equipment; and the Communication Device business (net sales of ¥321 million), which boasts a domestic market share of over 90% for its Earphone Guide® products for the tourism industry. The company has a business structure that supports the entire lifecycle of IT equipment, from introduction through disposal and reuse.

Business Model

In the IT subscription business, the company accumulates monthly recurring revenue through long-term contracts, building a stable revenue base. In the ITAD business, it collects used PCs and other equipment, performs data erasure, and sells resale units, achieving a high segment profit margin of 35.9%. Through cross-selling between the two businesses—such as utilizing products that have completed their subscription period as high-quality resale items in the ITAD business—the company has built a circular business model that maximizes revenue across the entire IT equipment lifecycle.

Company Strengths

In FY2025 (ending May 2025), the company achieved net sales of ¥8,100 million (up 17.0% year on year) and operating profit of ¥842 million (up 28.0% year on year), realizing increases in both revenue and profit across all segments. Both net sales and operating profit reached record highs since the company's founding. From FY2021 to FY2025, net sales expanded from ¥5,224 million to ¥8,100 million, and operating profit expanded from ¥768 million to ¥842 million.

The ITAD Business achieved net sales of ¥2,064 million against a segment profit of ¥742 million (profit margin of 35.9%). Backed by demand from OS updates, the business secured highly profitable used PCs, revised its production system, and improved operational efficiency, resulting in a substantial 29.3% year-on-year increase in profit.

In the IT Subscription Business, sales from mid- to long-term subscriptions expanded steadily, with the company holding rental assets amounting to segment assets of ¥10,192 million. It also arranged a ¥2,000 million syndicated loan (unsecured, unguaranteed) with six banks participating, including Resona Bank and Sumitomo Mitsui Banking Corporation, thereby establishing a stable funding base for further asset expansion.

ENVALITH's Perspective

In FY2026 (ending May 2026), OS update demand contributed to increased inbound volume in the ITAD business and higher orders in the IT subscription business. The company forecasts continued revenue and profit growth for FY2027 (ending May 2027), projecting sales of ¥11,100 million (up 6.1% year on year) and operating profit of ¥1,450 million (up 4.2% year on year), but this assumes that the impact of OS update demand will gradually subside, and the growth rate is expected to decelerate. Whether the accumulation of long-term subscription stock and expansion of ITAD service revenue (data erasure, pickup and collection) can sustain growth after the special demand fades will be the core point of evaluation.

As of the end of FY2026 (ending May 2026), interest-bearing debt (current portion of long-term borrowings due within one year of ¥4,203 million plus long-term borrowings of ¥5,439 million) totaled ¥9,642 million, and the equity ratio declined from 27.3% in the previous fiscal year to 25.5%. Borrowing has continued to expand in line with the buildup of subscription assets (net rental assets of ¥11,405 million), and as a subsequent event, an additional ¥1,400 million in borrowing was carried out in June 2026. Interest expense doubled from ¥53 million in the previous fiscal year to ¥100 million, and attention should be paid to the risk of rising financial costs amid a rising interest rate environment.

The company has explicitly stated its intention to expand LCM (Life Cycle Management) services beyond the PC domain to AI infrastructure equipment such as AI servers, storage, and network equipment. While the expanding AI infrastructure investment represents a favorable external tailwind for the market environment, the company's inherent advantage lies in its ability to leverage the know-how, customer base, and infrastructure such as technical centers built up through its existing IT subscription and ITAD businesses. However, AI infrastructure equipment differs from the PC domain in both unit price and scale, and the state of readiness of procurement and processing systems, as well as the timing of monetization, will be important variables in investment decisions.

Growth Strategy

Aiming for sustainable growth through the accumulation of stock revenue, enhanced profitability in ITAD, and expansion of LCM services into AI infrastructure

Strengthening a stable revenue base through the accumulation of orders for long-term subscriptions (3-5 years). The company is capturing demand for leveling initial costs amid the spread of AIPCs and rising PC prices, and aims to expand demand for LCM subscriptions incorporating BPO functions. In FY2026 (ending May 2026), revenue increased 22.4% year on year, and utilization rates remained at a high level.

As part of the shift toward a revenue structure not dependent on reuse sales unit prices, the company is promoting the expansion of service revenue such as data erasure, collection, and proper disposal as a key initiative. New orders have increased against the backdrop of corporate needs for stronger IT governance and information security measures, and the segment profit margin reached 41.3% in FY2026 (ending May 2026).

In addition to the PC domain, the company has begun expanding LCM services to AI infrastructure equipment such as AI servers, storage, and network equipment. With an eye on the expansion of the AI infrastructure market, the company aims to expand the scope of equipment handled and its business operations. At present, this is only at the stage of policy announcement, and the specific timing of revenue contribution has not been disclosed.

The company continues to expand human capital investment—hiring, wage increases, reskilling—as well as infrastructure investment such as systems, security, facilities, and relocation of the Technical Center, and DX promotion through AI utilization, business automation, and use of no-code tools. In FY2026 (ending May 2026), the company achieved a significant increase in profit while absorbing higher upfront investment costs, confirming the effectiveness of these investments.

To address risks of rising PC prices and delivery delays, the company continues to build up subscription assets (rental assets) ahead of demand based on demand trends. The net rental assets at the end of FY2026 (ending May 2026) amounted to ¥11,405 million (up 27.8% year on year). As a subsequent event, an additional borrowing of ¥1,400 million was executed in June 2026.

Last updated: July 17, 2026