ENVALITH
協立情報通信株式会社 logo

Kyoritsu Computer & Communication Co.,Ltd.

3670・Standard Market・Information & Communication

Official website
協立情報通信株式会社 logo
Kyoritsu Computer & Communication Co.,Ltd.3670

Business

Kyoritsu Denshi Corporation is an ICT specialist company founded in 1964, listed on the Tokyo Stock Exchange Standard Market and the Nagoya Stock Exchange Main Market. In its Solutions Business, the company provides mid-sized and small-to-medium enterprises as well as government agencies with a one-stop service integrating three fields: IT Infrastructure Solutions, Information Content Solutions, and Information Utilization Solutions. In its Mobile Business, the company operates 5 Docomo Shop outlets in Tokyo and Saitama as a secondary agency of NTT Docomo, while also developing ICT solution proposals for corporate clients. Using the "Kyoritsu Information Community" facility established in Hacchobori, Chuo-ku, Tokyo as its core sales base, the company conducts customer development and ongoing operational support through seminars, consultations, and solution experience events.

Business Model

In the Solutions Business, the company accumulates subscription-type stock revenue from maintenance, operational support, rental, and cloud services, while also capturing flow revenue from system construction and equipment sales. In the Mobile Business, in addition to agency commissions and support fees from NTT Docomo, the company earns recurring revenue from proposed products such as handset support services and d CARD. By cross-integrating partner products from five key companies—NEC, OBC, Microsoft, Cybozu, and NTT Docomo—the company achieves a high customer retention rate and revenue stability by comprehensively resolving customers' management challenges.

Company Strengths

In FY2026 (ending March 2026), the Solutions Business achieved an extremely high operating margin of 29.4% (net sales of ¥2,071 million, segment profit of ¥608 million). Recurring revenue from maintenance, operational support, rental, and other stock-type services formed a stable base, and by capturing demand for cloud migration, the segment achieved a 24.5% increase in revenue and a 26.0% increase in profit year on year.

Since its founding in 1964, the company has maintained long-term sales partnership agreements with NEC (sales began in 1969), OBC (sales began in 1986), NTT Docomo (became a secondary distributor in 1999), Microsoft (began in 1996), and Cybozu (began in 2021). Its proposal capability to integrate products from multiple manufacturers across the board serves as a key differentiating factor from competitors.

The company operates the "Kyoritsu Information Community" (協立情報コミュニティー) facility in Hatchobori, Chuo-ku, Tokyo, on a permanent basis, offering solution experiences, seminars, consultations, and a Solution School. Through events and individual consultations themed around AI, mobile, and security, the company integrally generates new business opportunities while providing continuous operational support to existing customers, giving it a unique customer touchpoint infrastructure that is difficult for other companies to replicate in a short period.

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales reached ¥5,140 million (up 14.8% year on year), operating income reached ¥475 million (up 59.0%), and net income attributable to owners of parent reached ¥316 million (up 84.0%), representing significant improvement across all metrics. Replacement demand associated with the end of support for Windows 10 and Bugyo software, as well as the termination of FOMA services, served as a tailwind. As an external factor, it will be necessary to assess the sustainability of growth from FY2027 (ending March 2027) onward, after this temporary replacement demand has run its course. The company's forecast (net sales of ¥5,300 million, operating income of ¥480 million) anticipates continued increases in both revenue and profit, but the growth rate is expected to slow significantly.

Net sales to the major customer T-Gaia increased from ¥1,900 million in the previous period to ¥2,082 million in the current period, reaching approximately 40.5% of total net sales. Dependence on this company remains high, and the risk of changes to or termination of the agency agreement remains a key risk. On the other hand, corporate-related net sales within the Solutions Business expanded to ¥2,033 million (up 25.5% year on year), and revenue diversification away from mobile dependence is steadily progressing.

In the previous period (FY2025, ended March 2025), an impairment loss of ¥55 million related to the Yashio City, Saitama Prefecture store was recorded as an extraordinary loss, but this was zero in the current period. In addition, the gain on sale of investment securities of ¥3 million recorded in the previous period also disappeared in the current period. Excluding these one-time factors, the improvement in net income attributable to owners of parent on an underlying basis is smaller than the headline increase of 84.0%. However, the 59.0% increase at the operating income level reflects genuine underlying improvement, and the improvement in gross profit margin (from 40.2% to 41.4%) together with efficient management of selling, general and administrative expenses demonstrates the actual state of improved profitability.

Growth Strategy

Strengthening one-stop solutions to capture DX, cloud, and AI demand, and deepening cross-selling between both businesses

Advancing implementation support in the AI and cloud fields, and providing solutions that integrate partner companies' products and services across the board. Expanding services that support customers' overall information systems in an integrated and continuous manner, while systematizing support menus and expanding linked solutions. In FY2026 (ending March 2026), Solutions Business revenue achieved substantial growth of +24.5% year on year.

In addition to device sales and contracts, strengthening the continuous provision of services related to mobile operation and utilization support. Promoting the accumulation of recurring income through sales of proposal products such as dCard and mobile security, and enhancing the added value of corporate ICT solution proposals through strengthened collaboration with the Solutions Business. In FY2026 (ending March 2026), Mobile Business operating profit improved substantially, up +34.3% year on year.

Based on the basic strategy of "expanding recurring revenue" under the "Medium-Term Management Plan 2025," increasing the proportion of recurring-type revenue from cloud services, maintenance support, device support services, and other offerings. As a result of focusing on acquiring incentive revenue and recurring revenue, profit levels improved in both businesses in FY2026 (ending March 2026).

Positioning the securing and development of self-directed talent as a key management issue, and promoting diverse recruitment and the development of an environment for talent development. Continuing business generation activities through events, hands-on seminars, and consultation sessions within the Kyoritsu Information Community, aiming to develop new customers and deepen relationships with existing customers.

Last updated: July 19, 2026