ECOMIC.,CO LTD

Business Details

A BPaaS Business that handles outsourced HR- and payroll-related back-office operations for client companies, including payroll (bonus) calculation, year-end tax adjustment, resident tax collection amount updates, and My Number collection. The company provides high-value-added services through a BPaaS (Business Process as a Service) model that combines its proprietary HR tech cloud service "Kantan Nencho" with BPO know-how. The business operates as a "back-office solution provider" that helps client companies' administrative departments reduce routine workload and improve productivity. From FY2026 (ending March 2026), the business was reorganized into a single segment, "BPaaS Business" (integrating the former "BPO Business" and the related portion of the "Software & Hardware Development Business").

Recent Overview

Net sales up 10.6% and operating profit up 271%, marking a substantial earnings increase; treasury share buyback of ¥543 million conducted

In FY2026 (ending March 2026), net sales reached ¥2,345 million (up 10.6% year on year) and operating profit reached ¥173 million (up 271.0% year on year). Contributing factors included an increase in the number of processed cases and higher average processing unit prices in the year-end tax adjustment BPaaS business, higher average processing unit prices in the payroll calculation BPaaS business, and the consolidation of the Chinese subsidiary in Shanghai (Ecomic Future Information Technology (Shanghai) Co., Ltd.). Gross profit margin improved by 4.7 percentage points to 32.5% (from 27.8% in the prior period). On the other hand, the company conducted a treasury share buyback of ¥573 million (with total expenditure including acquisition costs of ¥634 million), causing the equity ratio to decline to 83.7% (from 91.4% in the prior period). For FY2027 (ending March 2027), the company forecasts net sales of ¥2,400 million (up 2.3%), operating profit of ¥180 million (up 3.7%), and net profit of ¥141 million (up 29.1%).

Key Products

Growth Drivers

• Sales expansion driven by an increase in the number of processed cases and a rise in the average processing unit price in the year-end tax adjustment BPaaS business
• Improved profitability driven by a rise in the average processing unit price in the payroll calculation BPaaS business
• Expansion of the offshore structure and revenue recognition through the consolidation of the Chinese subsidiary in Shanghai (Ecomic Future Information Technology (Shanghai) Co., Ltd.)
• Reduction in cost of sales ratio and improvement in gross profit margin (32.5%) through continuous operational efficiency initiatives
• Continued expansion of corporate outsourcing needs amid labor shortages and a rising-wage environment
• Enhanced added value through the transition to the BPaaS (BPO x cloud) model
• New customer acquisition through web marketing initiatives and strengthened inside sales functions

Risks

• Impact on order unit prices and volumes from intensifying competitive pressure due to the development of cloud services and AI, leading to increased competition
• Upward pressure on cost of sales and SG&A expenses from rising labor securing costs (pay increases for full-time and part-time employees)
• Profit pressure from increased selling, general and administrative expenses (pay raises, bonuses, commissions paid related to sales measures, etc.)
• Risk of client companies becoming more cautious about capital investment and outsourcing adoption decisions due to the impact of US trade policy and continued price increases
• Risk of business process substitution due to advances in generative AI and other digital technologies, and increased costs for DX response
• Risk of information leaks involving personal information and My Number data, and the cost of maintaining security management systems
• Risk of delayed monthly revenue recognition due to the existence of clients requiring a startup period before operations commence
• Foreign exchange risk (fluctuation in the foreign currency translation adjustment account due to the consolidation of the Shanghai subsidiary: increased by ¥55 million in the current period)