Systems Engineering Consultants Co.,LTD.

Business Details

SEC Co., Ltd. is a real-time technology specialist company guided by the philosophy of "For the Safety and Development of Society." It operates four Business Fields (BFs) — Social Infrastructure Systems BF, Space Advanced Systems BF, Mobile Network BF, and Internet BF — providing technical services to mobile telecommunications operators, electronics manufacturers, automobile manufacturers, heavy industry manufacturers, government agencies, and research institutions. Its strength lies in real-time technology centered on interrupt processing, priority processing, and parallel processing, with a primary focus on developing sensor-based systems and measurement/control systems.

Recent Overview

In FY2026 (ending March 2026), the company achieved increased revenue and profit, with the order backlog expanding significantly by 44.8% year on year

In FY2026 (ending March 2026), the company recorded net sales of ¥11,220 million (up 9.0% year on year), operating profit of ¥1,879 million (up 4.8%), and net income of ¥1,509 million (up 12.3%), achieving increased revenue and profit. Social Infrastructure Systems BF led the growth with a substantial increase in development for medical, environmental, and government sectors, while Internet BF also expanded rapidly, up 33.5%, driven by contactless IC and DX-related work. The period-end order backlog expanded significantly to ¥9,065 million (144.8% of the prior year), improving sales visibility for the following fiscal year and beyond. Subsidy income within non-operating income surged to ¥109 million (from ¥39 million in the prior year), boosting ordinary profit. A stock split (1 share to 2 shares) was implemented in October 2025. For FY2027 (ending March 2027), the company forecasts net sales of ¥11,800 million, operating profit of ¥1,980 million, and net income of ¥1,575 million.

Key Products

Growth Drivers

• Continued strong performance in government-related development in the medical, environmental, and judicial fields within Social Infrastructure Systems BF (order backlog at 149.9% of the prior year)
• Expansion of contactless IC-related development and DX-related development for private companies in Internet BF (sales up 33.5% year on year)
• Steady progress in autonomous vehicle driving R&D projects within Space Advanced Systems BF, along with increased development in the space astronomy field and for national research institutions
• Significant improvement in sales visibility for the following fiscal year and beyond, supported by a period-end order backlog of ¥9,065 million (up 144.8% year on year)
• Increase in subsidy income from commissioned research by national research institutions (¥109 million in FY2026, ending March 2026, with further increases expected in the next fiscal year)
• Enhancement of advanced technical education and promotion of joint research with universities, national institutions, and corporate research institutes, under the key theme of "pursuing advanced technology and aiming for business growth through open innovation"
• Expansion of operating profit through productivity improvements that absorbed increases in personnel costs and R&D investment

Risks

• Continuation of the declining trend in Mobile Network BF (sales down 19.7% year on year in FY2026, ending March 2026) and an expected overall decline in the next fiscal year as well
• Rise in cost of sales due to increased outsourcing costs (outsourcing costs of ¥4,116 million in FY2026, ending March 2026, up 9.2% year on year, accounting for 50.4% of cost structure)
• Cost increase pressure from continued investment in human capital (regular pay raises, substantial base salary increases, expanded advanced technical education), R&D investment, and workplace environment investment
• Risk of unprofitable projects occurring and the need to maintain project management capabilities (there is a track record of recording provisions for losses on orders received)
• Growing difficulty in securing talented personnel (intensifying competition for talent across the software industry as a whole)
• Possible deterioration in the demand environment due to geopolitical risk or a global economic slowdown and inflation
• Impact on net income in the next fiscal year from the expiration of the wage increase promotion tax system, causing the effective tax rate to return to the statutory effective tax rate level