No.1 Co.,Ltd
3562・Standard Market・Wholesale Trade
No.1 Co., Ltd. (Single Segment)
Deploys total solutions for small and medium-sized enterprises centered on information security equipment
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (first quarter cumulative) | ¥4,743 million | ¥3,769 million | ↑ |
| Operating profit (first quarter cumulative) | ¥177 million | ¥148 million | ↑ |
| Ordinary profit (first quarter cumulative) | ¥147 million | ¥220 million | ↓ |
| Quarterly profit attributable to owners of parent (first quarter cumulative) | ¥26 million | ¥42 million | ↓ |
| Operating margin (first quarter cumulative) | 3.7% | 3.9% | ↓ |
| Quarterly net income per share | ¥3.96 | ¥6.24 | ↓ |
| Total assets | ¥13,644 million | ¥14,041 million | ↓ |
| Net assets | ¥4,175 million | ¥4,407 million | ↓ |
| Equity ratio | 30.2% | 31.2% | ↓ |
| Full-year net sales forecast | ¥21,200 million | ¥17,529 million | ↑ |
| Full-year operating profit forecast | ¥1,650 million | ¥1,330 million | ↑ |
Business Details
With planning, development, manufacturing, and sales of information security equipment (UTM, security switches, NAS servers, etc.) at its core, the company operates OA-related products sales, information and communication terminal sales, WEB solutions, business support (No.1 Business Support), system support, government and educational institution bidding, sales agency, and SES business. Its main customers are small and medium-sized enterprises, and it has built a vertically integrated business model spanning planning through sales and maintenance through a unified group structure with its manufacturing subsidiary Alexon Co., Ltd. Under the medium-term management plan Evolution2027 (final year: FY2027 (ending February 2027)), the company is promoting M&A synergy creation, expansion of recurring revenue, and DX promotion.
Recent Overview
Net sales rose 25.8% year on year, but ordinary profit fell 33.3% due to increased non-operating expenses
Net sales for the first quarter of FY2027 (ending February 2027) (March to May 2026) reached ¥4,743 million (up 25.8% year on year), achieving substantial revenue growth. Sales of information security equipment continued to perform well, and synergies with Alexon Co., Ltd. were also realized. On the other hand, non-operating expenses surged from ¥10 million in the same period of the previous year to ¥39 million (including ¥21 million in interest expense and ¥13 million in losses on investments in anonymous partnerships, among others), and this was compounded by the disappearance of the ¥75 million insurance cancellation refund recorded in the same period of the previous year. As a result, ordinary profit fell sharply to ¥147 million (down 33.3% year on year), and profit attributable to owners of parent fell to ¥26 million (down 38.6%). The scope of consolidation was changed by removing No.1 Digital Solutions Co., Ltd. through an absorption-type merger (March 1, 2026) and newly consolidating Gloria Co., Ltd. There is no change to the full-year earnings forecast (net sales of ¥21,200 million and operating profit of ¥1,650 million).
Key Products
Growth Drivers
- Expanding demand for information security equipment: Increasingly sophisticated cyberattacks such as ransomware are accelerating information security investment among small and medium-sized enterprises
- Expansion of consolidation scope and business domains through M&A: Accelerating synergy creation among group companies and expanding into untapped areas such as Tohoku, Shiga, and local government-related fields
- Continuous introduction of new products: Continuing to expand the product lineup with items such as Alexon Co., Ltd.'s remote access system "CA1000" (sales launched March 2026) and the EnerCraft series
- Expansion of recurring revenue from No.1 Business Support: Strengthening the stable revenue base through increased average customer spend from basic fee revisions and expanded options, and growth in the number of contracts held
- Realization of group synergies: Expanded sales of products jointly developed with Alexon Co., Ltd., cross-selling to regional customer bases, and promotion of in-house development through technical exchange among system development companies
Risks
- Concentration of sales on specific customers: Sales to Credit Saison Co., Ltd. accounted for a high dependency of approximately 21.6% of net sales (previous fiscal year results)
- Rising financial leverage due to active M&A: Equity ratio declined to 30.2%, long-term borrowings increased to ¥3,345 million, and the ratio of cash flow to interest-bearing debt worsened
- Continued high level of goodwill balance: The goodwill balance of ¥3,046 million (¥3,167 million at the end of the previous fiscal year) remains at a high level, presenting a risk of future impairment
- Structural increase in non-operating expenses: Increased interest expense (¥21 million in the first quarter under review) accompanying the expansion of interest-bearing debt is pressuring ordinary profit
- Structural contraction of the OA equipment market: Growth in the founding business market is slowing due to the spread of paperless operations and hybrid work
- Rising labor and logistics costs: Risk that cost increases stemming from worsening labor shortages will pressure profit margins
Last updated: May 25, 2026