SYSTEMS DESIGN Co. , Ltd.
3766・Standard Market・Information & Communication
Systems Development Business
Core segment providing SI to large and mid-sized manufacturing, financial, healthcare, and other enterprises
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥5,615 million (FY2026, ending March 2026) | ¥5,256 million (FY2025, ended March 2025) | ↑ |
| Operating income | ¥455 million (FY2026, ending March 2026) | ¥332 million (FY2025, ended March 2025) | ↑ |
| Operating margin | 8.1% (FY2026, ending March 2026) | 6.3% (FY2025, ended March 2025) | ↑ |
| Segment assets | ¥1,813 million (end of FY2026, ending March 2026) | ¥1,898 million (end of FY2025, ended March 2025) | ↓ |
| Depreciation | ¥19 million (FY2026, ending March 2026) | ¥17 million (FY2025, ended March 2025) | ↑ |
Business Details
This segment centers on Systems Integration (SI Services), providing an integrated offering from system planning and analysis to development, infrastructure construction, maintenance, and operation for large and mid-sized companies across a wide range of industries including manufacturing, logistics, distribution, telecommunications, finance, medical care, and education. The company is expanding its Solution Services business utilizing low-code development tools, Salesforce, and cloud technologies, and is also promoting the joint development of AI Integration Solutions through a capital and business alliance with an IoT venture company. This is the flagship segment, accounting for approximately 56% of consolidated net sales.
Recent Overview
Continuation of large-scale projects and increase in contracted projects drove substantial gains in both sales and profit, with operating margin improving past 8%
In the Systems Development Business for FY2026 (ending March 2026), the continuation of large-scale projects received in the prior period, an increase in contracted projects from existing customers, and steady performance at subsidiaries contributed to results. In addition, a reduction in head office relocation expenses boosted profit, with net sales reaching ¥5,615 million (up 6.8% year on year) and operating income reaching ¥455 million (up 36.9% year on year), a substantial improvement. Operating margin improved from 6.3% to 8.1%. Sales to the major customer PCA Corporation increased to ¥1,111 million (from ¥1,052 million in the prior period), while sales to Honda Motor Co., Ltd. decreased to ¥734 million (from ¥842 million in the prior period).
Key Products
Growth Drivers
- A stable revenue base supported by the continuation of large-scale projects received in the prior period and an increase in contracted projects from existing customers
- New project orders driven by the expansion of the Solution Services business utilizing low-code tools, Salesforce, and cloud technologies
- Joint development of AI Integration Solutions and creation of new services through a capital and business alliance with an IoT venture company
- Service offerings combining the strengthening of industry-specific strategies under the 9th Medium-Term Management Plan with the data analysis technology of the IoT company
- Continued expansion of active DX investment and modernization demand centered on large enterprises
Risks
- Risk of declining project volume as system replacement projects at major customers wind down (sales to Honda Motor Co., Ltd. decreased year on year)
- Risk of lost order opportunities and rising costs due to IT talent shortages and difficulty securing highly skilled IT personnel
- Risk that progress in generative AI adoption accelerates in-house system development by user companies, suppressing SI demand
- Risk of revenue dependence on two major customers, PCA Corporation and Honda Motor Co., Ltd. (combined accounting for approximately 18% of consolidated net sales)
- Risk that a downturn in overseas economic conditions, including effects of US trade policy, spills over into customers' IT investment plans
Last updated: June 22, 2026