ENVALITH
キーウェアソリューションズ株式会社 logo

Keyware Solutions Inc.

3799・Standard Market・Information & Communication

Official website
キーウェアソリューションズ株式会社 logo
Keyware Solutions Inc.3799

Business

Keyware Solutions Inc., founded in 1965, is an independent IT services company comprising the Company, 7 subsidiaries, and 1 affiliate. Its core "System Development Business" undertakes contract development of revenue and billing management systems, monitoring and control systems, and similar systems for social infrastructure, telecommunications carriers, and major railway transportation companies, and also holds the Medical Solution Package (MEDLAS Series, etc.). The "SI Business" provides core system renewal utilizing ERP packages such as SAP, Biz∫, and IFS. The "Other Businesses" segment develops new areas including Support Service, consulting, and Agricultural ICT. Through capital and business alliances with JR East Information Systems, Kanematsu Electronics, and Canon Marketing Japan, as well as a partnership with the Bank of Iwate, the company maintains a nationwide customer base.

Business Model

Of total net sales of ¥22,724 million, the System Development Business accounts for ¥13,439 million (59%) and the SI Business for ¥6,815 million (30%). Revenue from contract software development is recognized based on the percentage-of-completion method, while Support Service revenue is recognized on a straight-line basis over the contract period, securing stable earnings. The company aims to enhance added value through customized sales of its proprietary packages (Medical Solutions (MEDLAS Series) / Medlas-BR, Biz∫ Template, etc.), and to capture higher-value-added projects by offering integrated solution proposals that include infrastructure and security.

Company Strengths

Over its 60-year history since founding, the company has built a track record of developing revenue and billing management systems for telecommunications carriers and major railway transport companies, as well as nationwide social infrastructure monitoring and control systems. It also holds proprietary products such as the Medical Solution Package (MEDLAS Series / NAPROS), and its expertise in systematizing complex, client-specific operations constitutes an entry barrier that competitors find difficult to replicate in a short period.

In 2021, the company concluded capital and business alliances with JR East Information Systems, Kanematsu Electronics, and Canon Marketing Japan, and has been promoting collaboration with them. In September 2025, it also formed an alliance with the Bank of Iwate, strengthening its sales base in the Tohoku region. Collaboration with these partners has enabled access to projects that would be difficult to secure independently and has expanded technology and sales channels, contributing to the maintenance and growth of order intake of ¥21,846 million.

As of the end of FY2026 (ending March 2026), against a maximum limit of ¥3,300 million under commitment line and overdraft agreements, the outstanding loan balance was zero, maintaining a virtually debt-free management structure. Net assets stood at ¥8,004 million (up ¥434 million year on year), and operating cash flow increased by ¥1,987 million, indicating a solid financial base. This financial strength, which enables business operations to be funded internally, supports stable business continuity even amid economic fluctuations.

ENVALITH's Perspective

FY2026 (ending March 2025) net sales of ¥22,724 million (up 7.7% year on year) and operating profit of ¥1,130 million (up 22.8% year on year) mark the fifth consecutive year of higher revenue and profit, which is commendable. On the other hand, profit attributable to owners of parent fell sharply to ¥801 million (down 22.3% year on year). The main cause was the drop-off of one-time gains recorded in the previous fiscal year—a gain of ¥237 million on the sale of shares in an affiliated company and equity-method investment gain of ¥263 million—and it is necessary to distinguish this from the fact that the earning power of the core business is steadily improving.

The order backlog at the end of FY2026 (ending March 2025) stood at ¥5,636 million (down 13.5% year on year). Both the System Development Business (down 18.1% year on year) and SI Business (down 8.1% year on year) declined, reflecting a reaction to large-scale orders received in the previous fiscal year from public-sector and government clients. While corporate DX investment appetite remains firm as an external environment factor, the decline in order backlog needs to be monitored as a downside risk to the revenue growth rate for FY2027 (ending March 2026).

The consolidated earnings forecast for FY2027 (ending March 2026) calls for net sales of ¥24,000 million (up 5.6% year on year), operating profit of ¥1,200 million (up 6.1% year on year), and net income of ¥810 million (up 1.0% year on year). This is a conservative plan that incorporates temporary cost increases associated with the head office relocation, human capital investment, and investment to strengthen the information security framework. While the trajectory of higher revenue and profit is maintained, the fact that net income growth is limited to 1.0% indicates the magnitude of cost-increase pressure, and it will be important to confirm the company's track record of cost control.

Growth Strategy

Aiming for net sales of ¥24,000 million in FY2027 (ending March 2027) through the three Vision2026 policies (qualitative transformation of core businesses, expansion of prime business, and challenges in new domains)

Promoting expanded use of products and cloud services, expansion of contract projects, and suppression of unprofitable projects. Strengthening project acquisition capabilities through enhanced collaboration with the three capital and business alliance partners, and reinforcing cost competitiveness through improved operational efficiency and productivity. In FY2026 (ending March 2026), an operating margin of 5.0% was achieved, and the improving trend continues.

Promoting proposals for core system renewal utilizing ERP packages such as SAP, Biz∫, and IFS, as well as integrated solution proposals including infrastructure and security. Began offering the Hotel Operations Efficiency Solution, and is currently developing a new version of the in-house developed Biz∫ Template. Expanding the sales base in the Tohoku region through the capital and business alliance with Iwate Bank (concluded in September 2025).

Established Keyware Medical Inc. in January 2026, realizing the creation of a specialized subsidiary in the medical and healthcare domain (business commencement in April 2026). Promoting Agricultural ICT (participation in next-generation cucumber production business through investment in Keitsugu LLC) and proposals for the introduction of the blockchain-based Cyber Resilience Service "Digital Shelter."

Last updated: July 19, 2026