ENVALITH
テックファームホールディングス株式会社 logo

Techfirm Holdings Inc.

3625・Growth Market・Information & Communication

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テックファームホールディングス株式会社 logo
Techfirm Holdings Inc.3625

Business

TechFirm Holdings Co., Ltd. is an independent IT group holding company (TSE Growth) founded in 1991 and listed in 2008. With six consolidated subsidiaries, its core ICT Solutions Business provides one-stop contract development, operation, and maintenance of business and core systems. Clients span major companies across diverse industries, including Surprise Crew (net sales of ¥1,532 million) and Mynavi (¥961 million). As a second pillar, the company operates the Cross-Border Distribution Platform Business, supporting the overseas export of Japanese agricultural products and foodstuffs through directly operated stores and EC sites in Singapore. It is also actively investing in research on advanced technologies such as AI, XR, and drones, aiming to expand its business into the industrial innovation domain.

Business Model

The ICT Solutions business, which accounts for approximately 92% of net sales, is a contract development model that secures stable earnings through high utilization rates of in-house engineers and continued receipt of large-scale orders. The segment profit margin reached 21.3% in FY2025 (ending June 2025). The Cross-Border Distribution Platform Business is currently in a strengthening phase, aiming to transform its revenue structure through a proprietary service model that combines physical stores, EC, and digital marketing based in Singapore. The company is pursuing business scale expansion and revenue diversification in parallel, positioning M&A and EBITDA as key management metrics.

Company Strengths

In FY2025 (ended June 2025), the ICT Solutions business posted net sales of ¥6,197 million (up 30.1% year on year) and segment profit of ¥1,320 million (up 67.3% year on year), both record highs. The order backlog at fiscal year-end stood at ¥3,021 million (148.8% of the same period the previous year), maintaining a high level and providing a stable order base expected to contribute to sales in subsequent periods.

Sales to major client Surprise Crew Co., Ltd. amounted to ¥1,532 million (22.8% of total sales), and sales to Mynavi Corporation amounted to ¥961 million (14.3% of total sales), with continued transactions with large clients driving performance. Orders received of ¥7,188 million (up 133.7% year on year) reflect the expansion of projects through the deepening of client relationships.

Since its founding in 1991, the company has accumulated ICT expertise across multiple industries as an independent software company. It holds information security certifications such as ISO/IEC27001 and Privacy Mark, ensuring reliability in the development of core systems that handle clients' confidential information. In FY2025 (ended June 2025), the operating margin improved significantly to 11.2% (from 4.7% in the same period the previous year).

ENVALITH's Perspective

Cumulative sales for the first nine months of FY2026 (ending June 2026) were ¥5,177 million (up 4.5% year-on-year), a solid result, but operating profit of ¥494 million (down 23.4% year-on-year) shows a notable decline on the profit side. The full-year forecast calls for sales of ¥7,200 million and operating profit of ¥600 million, putting progress toward the operating profit target at 82.3% as of the end of the third quarter. This implies that the fourth quarter alone must generate ¥106 million in operating profit, requiring a year-on-year profit recovery. Cost increases from the revision of engineer salary levels and investment in training are weighing on profit, and the focus is on when the effects of these investments will materialize.

Cumulative sales for the Cross-Border Distribution Platform Business in the first nine months were ¥304 million (down 12.9% year-on-year), with a segment loss of ¥33 million (versus a loss of ¥32 million in the same period last year), a slight widening of the loss. While the company explains this as a phase of strategic adjustment focused on rebuilding its customer portfolio with an emphasis on deal size and profitability, no specific timeline for returning to profitability has been provided. Although there is a favorable external tailwind from growing overseas demand for Japanese food, it will be necessary to continue monitoring the materialization of benefits from the business partnership with DMS Co., Ltd. and progress in multi-country expansion.

As of the end of the third quarter of FY2026 (ending June 2026), total assets stood at ¥4,980 million against net assets of ¥2,976 million, with an equity ratio of 59.8% (improved from 54.8% at the end of the previous fiscal year), indicating a solid financial base. While the company carries interest-bearing debt of ¥600 million in short-term borrowings and ¥500 million in corporate bonds, it holds ¥2,363 million in cash and deposits, keeping liquidity risk low. On the other hand, from an ROE perspective, the decline in profit levels is hindering improvement in capital efficiency, and whether the results of strategic investments are reflected in profit will be key to enhancing shareholder value. The annual dividend forecast remains unchanged at ¥8.00.

Growth Strategy

The group aims for growth by deepening AI utilization and expanding large-scale projects in the ICT business, together with achieving profitability and multi-country expansion in the Cross-Border Distribution Platform Business

The company continues its policy of acquiring large-scale projects, building up its order backlog across multiple industries including finance, government, and distribution. It maintains a high order backlog level of ¥3,021 million at the end of FY2025 (ending March 2025) [June 2025], and is pursuing deeper relationships with existing customers alongside new customer development.

The company is promoting the introduction of AI agents into the development process to shorten development periods, and standardizing and scaling the development platform on the premise of AI utilization. It is also continuing research and development and technical verification of generative AI and other technologies, aiming to expand proposals for AI utilization projects for customers.

The company is implementing systematic educational investment aimed at revising engineer salary levels and improving project management capabilities and specialized skills. While this will pressure profits in the short term, it aims to enhance mid- to long-term talent competitiveness and customer support capabilities.

The company is reconstructing its customer portfolio with an emphasis on project scale and profitability, shifting toward proposal-based projects in collaboration with local governments, regional trading companies, financial institutions, and others. Through a business alliance with DMS Co., Ltd., it is building high-value-added services that integrate logistics and promotion, and is also considering multi-country expansion beyond Singapore.

Last updated: July 17, 2026