ENVALITH
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AVANT GROUP CORPORATION

3836・Prime Market・Information & Communication

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株式会社アバントグループ logo
AVANT GROUP CORPORATION3836

Business

The Avant Group is a holding company-based software and services group supporting the management digital transformation (DX) of Japanese companies. It operates three business segments: Consolidated Financial Disclosure Business (DivaSystem), Data Utilization and DX Promotion (Business Intelligence and Cloud Data Platform), and Management Solutions Business (AVANT Cruise, TRINITY BOARD, etc.), with its main customers being large and mid-sized Japanese companies, primarily listed companies. Starting from the development of a consolidated accounting package in 1997, the group expanded its business domain following its transition to a holding company structure in 2013. In 2024, it established a joint venture, DivaCygnet Private Limited, in India, also beginning its global expansion.

Business Model

Built on license and maintenance revenue from in-house developed packaged software (DivaSystem, etc.), the company has a composite revenue structure combining Consolidated Financial Disclosure outsourcing (BPO), consulting and system development, and SaaS-based management solution tools (AVANT Cruise and TRINITY BOARD). While securing stable cash flow through an annual prepayment model for maintenance fees and outsourcing fees, the company pursues higher added value and improved profit margins through a software-driven strategy.

Company Strengths

Revenue grew for five consecutive periods, from ¥16,236 million in FY2021 to ¥28,228 million in FY2025 (ending March 2025). Operating profit in FY2025 was ¥4,604 million (up 12.3% year on year), and net income was ¥3,435 million (up 20.5% year on year). ROE stood at 23.8%, exceeding the medium-term management plan target of 20%, while the company maintains a solid financial base with an equity ratio of 63.9% and zero interest-bearing debt.

DivaSystem, a consolidated accounting package developed and sold continuously since 1997, reached 1,000 client companies by 2018. The Consolidated Financial Disclosure Business posted FY2025 revenue of ¥8,720 million (up 15.7% year on year) with a high operating margin of 24.8%, with a business model combining outsourcing and software serving as a key differentiator.

In FY2025, all three segments—Consolidated Financial Disclosure Business (+15.7%), Digital Transformation Promotion Business (+16.6%), and Management Solutions Business (+12.0%)—achieved double-digit revenue growth. In particular, the Management Solutions Business saw operating profit increase significantly by 24.1% year on year, driving profit growth for the group as a whole.

ENVALITH's Perspective

For the cumulative nine months of the current fiscal year, the operating margin of the Consolidated Financial Disclosure Business surged to 32.3% (an improvement of approximately 7 percentage points year-on-year), which appears to reflect the combined effects of reduced recruitment costs, productivity gains, and cloud migration benefits. However, some of this improvement includes structural factors such as a change in the distribution channel for maintenance services (transferred from the Management Solutions Business), and the sustainability of the profit margin level from next fiscal year onward needs to be assessed carefully. As an external factor, demand from Japanese companies for more sophisticated information disclosure is expected to remain solid over the medium to long term, and this tailwind is likely to continue.

The Management Solutions Business posted operating profit of ¥947 million for the cumulative nine months of the current fiscal year, down 28.1% year-on-year, marking a significant decline. In addition to limited sales growth resulting from the change in distribution channel, increases in personnel expenses, R&D expenses, marketing expenses, and outsourcing costs also weighed on profitability. Achieving the full-year operating profit forecast of ¥5,100 million (up 10.8% year-on-year) will require a recovery in the fourth quarter, making the pace of earnings recovery in this business a key factor. Operating profit for the third quarter alone was ¥1,326 million (operating margin of 17.4%), slightly down from the second quarter (¥1,404 million), and trends including seasonality warrant continued attention.

During the cumulative nine months of the current fiscal year, the company conducted share buybacks of ¥3,001 million (approximately 4.3 times the amount in the same period of the previous year) and retired 1,636,300 shares as of March 31, 2026. Quarterly net income per share rose 12.0% to ¥70.16 (compared with ¥62.24 in the same period of the previous year), demonstrating a clear commitment to shareholder returns. On the other hand, cash and cash equivalents decreased to ¥11,335 million (down ¥3,827 million from the end of the previous fiscal year), and investors are likely to focus on the balance between future strategic investments (including the ¥420 million already spent on M&A and acquisition of affiliate shares) and shareholder returns, as well as the concrete direction for the strategic use of surplus funds.

Growth Strategy

Promoting a software-driven strategy under "BE GLOBAL 2028," targeting net sales of ¥40.0-45.0 billion in FY2028 (ending June 2028)

Accelerating SaaS and cloud migration across all three businesses to raise the added value of the revenue structure. In the Consolidated Financial Disclosure Business, the push for cloud migration is directly linked to improved profit margins, and in the Management Solutions Business, the company continues to expand offerings such as AVANT Cruise and TRINITY BOARD. R&D expenses and marketing investments are being made upfront, with a plan for the effects to materialize over five years.

The Outsourcing Business, centered on the Consolidated Financial Disclosure Business, continues to maintain a high growth rate. While expanding a stable, prepayment-based revenue base, the company is improving profit margins through productivity gains, reduced recruitment costs, and reduced outsourced processing costs. An order backlog of ¥9,674 million (up ¥1,748 million year-on-year for the same quarter) is enhancing the visibility of future sales.

During the cumulative nine months of the current fiscal year, the company acquired ¥420 million in shares of affiliated companies (increasing the balance from zero at the previous fiscal year-end to ¥409 million). Surplus funds across the group are being concentrated at the holding company, and commitment lines totaling ¥3,500 million have been established with various transaction banks. The company has clearly stated a policy of utilizing surplus funds for strategic investments going forward, aiming to expand its business portfolio through M&A and capital investments.

The company has set a target of achieving a dividend on equity (DOE) ratio of 8% during the medium-term management plan period, and forecasts a dividend per share of ¥32 for FY2026 (ending June 2026), a 28% increase from ¥25 in the previous fiscal year. While adhering to the principle of stable dividends (not falling below the previous fiscal year's level), the company continues its policy of increasing dividends with a focus on maintaining a DOE ratio consistently above the average for all listed companies. During the cumulative nine months of the current fiscal year, the company has also already executed ¥3,001 million in share buybacks.

Last updated: July 17, 2026