ENVALITH
株式会社システムインテグレータ logo

System Integrator Corp.

3826・Standard Market・Information & Communication

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株式会社システムインテグレータ logo
System Integrator Corp.3826

Business

System Integrator Corporation was founded in 1995 and is listed on the Standard Market of the Tokyo Stock Exchange. Under its mission of "continuing to create software that gives people time," the company operates three business segments centered on its in-house developed products: "Object Browser Business," "ERP Business," and "AI Business." Its main customers are BtoB enterprises in the IT industry, manufacturing, construction, wholesale, and other sectors. The company champions a prime vendor business model that does not involve on-site client staffing (haken), and operates four domestic locations—Saitama (head office), Osaka, Fukuoka, and Nagoya—in addition to its overseas subsidiary KEYSTONE SOLUTIONS COMPANY LIMITED in Da Nang, Vietnam. In March 2025, it made System Kaihatsu Kenkyusho Co., Ltd. a subsidiary, reinforcing its personnel and know-how for the manufacturing industry.

Business Model

The revenue structure consists broadly of four layers: (1) planning, development, and sales of proprietary packages (no procurement required, high profit margin), (2) implementation consulting, (3) customization development, and (4) recurring revenue from maintenance and operations. In the Object Browser Business, stock-type revenue driven by OBPM Neo's MRR (monthly recurring revenue) is expanding. In the ERP Business, in addition to implementation and customization for large-scale projects, repeat revenue from maintenance and operations forms a stable foundation. The AI Business is at the stage of cultivating new revenue sources, centered on appearance inspection AI for the manufacturing industry.

Company Strengths

In FY2026 (ending March 2026), the Object Browser Business achieved segment sales of ¥832 million against segment profit of ¥327 million, a profit margin of 42.2%. OBPM Neo's MRR expanded 10.7% compared to the end of the previous fiscal year, with the accumulation of recurring revenue supporting the high profit margin. Product competitiveness has also been strengthened through the implementation of generative AI functionality in SI Object Browser (Patent No. 7763432 already obtained).

The company has strategically differentiated its three products—GRANDIT, SAP S/4HANA Cloud Public Edition, and mcframe—to capture a broad customer base spanning manufacturing, construction, IT, wholesale, and other industries. In FY2025 (ended February 2025), orders received in the ERP Business totaled ¥3,446,899 thousand, with an order backlog of ¥968,865 thousand. In the SAP business, the company received the SAP AWARD OF EXCELLENCE 2025 "Emerging Partner Award" and has begun building a track record of acquiring global enterprise clients.

As of the end of FY2025 (ended February 2025), total assets stood at ¥4,981,991 thousand against net assets of ¥4,116,659 thousand (equity ratio of approximately 82.6%). Cash on hand (cash and deposits) amounted to ¥2,968,589 thousand, accounting for 59.6% of total assets, with zero interest-bearing debt. The company has substantial investment capacity funded by its own resources, giving it the financial strength to flexibly pursue new business development, M&A, and human capital investment.

ENVALITH's Perspective

In Q1 of FY2027 (ending February 2027), revenue was ¥1,584 million (up 23.9% year-on-year) and operating profit was ¥161 million (up 64.1% year-on-year), representing progress rates of 25.1% and 23.1%, respectively, against the full-year forecast (revenue of ¥6,300 million and operating profit of ¥700 million). In the ERP Business, orders exceeded the initial plan, and simultaneous adoption of surrounding infrastructure also grew. As an external factor, steady DX investment demand among domestic companies has been a tailwind, but the full-year forecast remains unchanged, so it will be necessary to monitor upcoming quarters to determine whether there is room for an upward revision.

In Q1 of FY2027 (ending February 2027), the Database Development Tools Business recorded revenue of ¥54 million (down 14.5% year-on-year) and segment profit of ¥40 million (down 11.8% year-on-year), reflecting a decline in both revenue and profit. The main cause is a timing gap in revenue recognition associated with the shift from a purchase-based model to a subscription-based model, which the company explains is not a structural decline in demand. Disclosure of subscription-related metrics such as MRR to quantitatively track the progress of this transition is limited, and investors face the challenge of assessing when the transition will be complete and what stable revenue level will be achieved.

In Q1 of FY2027 (ending February 2027), AI Business revenue expanded sharply to ¥16 million (up 467.1% year-on-year), and the segment loss narrowed to ¥6 million (compared with a loss of ¥12 million in the same quarter of the previous year), halving the loss. Inquiries have increased against the backdrop of external factors such as labor shortages and the need to reduce reliance on individual expertise in the manufacturing industry, but the business still accounts for only about 1% of total company revenue. While accelerated expansion through cross-selling with the ERP Business's customer base is expected, the specific timing and scale of profitability have not been disclosed, remaining a source of uncertainty for investment decisions.

Growth Strategy

Targeting sales of ¥12.0 billion in FY2033 (ending February 2033) through three themes: diversification of revenue base, evolution into an AI-native organization, and creation of new businesses

GRANDIT, SAP Cloud ERP, and mcframe are deployed according to customer characteristics to expand the new customer base. In Q1 FY2027 (ending March 2027), ERP Business sales grew +27.1% year-on-year, exceeding the order plan, indicating the strategy is functioning well.

Promoting a strategic shift from a one-time purchase model to a subscription model to build a stable recurring revenue base. In Q1 FY2027 (ending March 2027), while the subscription transition progressed, it could not offset the decline in the purchase-based model, resulting in lower revenue and profit. The company aims to build up high-margin recurring revenue once the transition is complete.

Promoting new customer acquisition and upselling to existing customers with OBPM Neo's MRR as the key KPI. MRR at the end of Q1 FY2027 (ending March 2027) was ¥42,219 thousand (+10.6% year-on-year). From Q3, in-person project management training will be held monthly at two venues, Tokyo and Osaka, aiming for synergy between increased brand recognition and product sales.

Began offering the MCP-compliant data access platform "SI AI Connect" from April 2026. It enables secure natural-language access to core ERP data, supporting customers' advanced FP&A initiatives while serving as a differentiating factor in cloud SaaS deployment.

Promoting sales growth of "KENZ," which enables AI-driven and more efficient drawing inspection work in manufacturing design departments. Sales in Q1 FY2027 (ending March 2027) surged to ¥16 million (+467.1% year-on-year), while the segment loss narrowed to -¥6 million, roughly half of the loss in the same quarter of the previous year. The company aims to accelerate expansion through cross-selling leveraging the ERP Business's manufacturing customer base.

Adopting a two-year rolling management plan to flexibly respond to changes in the business environment, such as the rise of generative AI. The plan, with FY2027 (ending March 2027) as its first year, sets three priority themes: "diversification of the revenue base and acceleration of growth through cross-selling," "evolution into an AI-native organization and maximization of human capital," and "creation of new AI-centered businesses and expansion of growth opportunities through alliances."

Last updated: July 17, 2026