Fuva Brain Limited
3927・Standard Market・Information & Communication
Business
Hoover Brain Co., Ltd. is an IT security specialist company founded in 2001. It currently operates three segments: the "IT Tools Business," which provides security tools and work-style reform tools; the "IT Services Business," which covers Maintenance & Service Provision, Contract Development & SES, and Recruitment Support & Staffing; and the "Investment Business," which invests in emerging companies. Its main customers range widely from small and medium-sized enterprises to major telecommunications carriers, and it also functions as the domestic distributor for global products such as Cato SASE Cloud. Revenue for FY2026 (ending March 2026) reached ¥5,641 million, marking a record high for the 10th consecutive fiscal period, and the company achieved a market segment transfer to the Standard Market of the Tokyo Stock Exchange. Its vision is to become an "AI Guardian originating from Japan," and it is currently promoting a medium-term management plan targeting adjusted revenue of ¥15.0 billion and adjusted operating profit of ¥1.5 billion for FY2030 (ending March 2030).
Business Model
In the IT Tools Business, the company combines agency sales of security products (high margin) with SaaS-based subscription billing such as Cato SASE Cloud, etc., building a stable revenue base through the accumulation of advance receipts and long-term advance receipts. In the IT Services Business, it operates Maintenance & Service Provision, Contract Development & SES, and Recruitment Support & Staffing, expanding scale through the addition of subsidiaries via M&A. In the Investment Business, capital gains from the listing and sale of investees held by Hoover Investment serve as a third revenue source. The company's distinguishing feature is a composite growth model combining three growth factors: organic growth, M&A, and investment growth.
Company Strengths
Concluded a distributor agreement with Cato Networks Pte. Ltd. in April 2020, leading the domestic rollout. In FY2026 (ending March 2026), Security & Network aaS Products (Cato SASE Cloud, etc.) continued to grow strongly, up approximately 53% year on year. Collaboration with FXT, which became a consolidated subsidiary in September 2025, is expanding the reseller network and accelerating end-user acquisition.
Since 2021, the company has consecutively made GH Integration, Ad Top, CONVICTION, Asemble, Ichiaru, FXT, Youth Planet, and ProofX into subsidiaries. In FY2026 (ending March 2026), IT Services Business revenue reached ¥2,421 million (up 22.3% year on year), with M&A-driven growth steadily contributing to results.
Digital Grid Corporation, held by investment subsidiary Hoover Investment, listed on the TSE Growth Market in April 2025, resulting in a gain on sale of investment securities of ¥385 million recorded as extraordinary income. This investment growth helped profit attributable to owners of parent for FY2026 (ending March 2026) reach a record high of ¥308 million.
ENVALITH's Perspective
Performance Trend
Consolidated revenue for FY2026 (ending March 2026) was ¥5,641 million (up 29.0% year on year), operating profit was ¥204 million (up 8.7%), ordinary profit was ¥206 million (up 23.9%), and profit attributable to owners of parent was ¥309 million (up 181.9%). The large increase in net income was mainly driven by a gain on sale of investment securities of ¥386 million (extraordinary income), while the improvement in underlying earnings power on an ordinary profit basis remained modest. Adjusted operating profit expanded significantly to ¥734 million (up 152.7% year on year). A decline in gross margin due to changes in sales mix and one-time costs related to subsidiary acquisition weighed on the operating profit margin (3.6%). The company has staged a rapid recovery over four periods from an operating loss of ¥58 million in FY2022 (ended March 2022), with the combined effects of M&A-driven growth and organic growth becoming apparent. For FY2027 (ending March 2027), the company forecasts revenue of ¥7,915 million (up 40.3% year on year) and operating profit of ¥449 million (up 120.4%).
Growth Strategy
Aiming for adjusted net sales of ¥15,000 million in FY2030 (ending March 2030) through three growth drivers: organic growth, M&A growth, and investment growth
aaS products centered on Cato SASE Cloud achieved high growth of approximately 53% year-on-year in FY2026 (ending March 2026). The consolidation of FXT as a subsidiary strengthened the Cato SASE Cloud sales structure. SaaS-based Work Style Reform Products also expanded, growing approximately 20% year-on-year, and the company will continue to promote qualitative improvement in earnings through a rising aaS/SaaS ratio.
In FY2026 (ending March 2026), the company made Youth Planet, ProofX, and FXT into subsidiaries, strengthening Recruitment Support & Staffing, AI utilization consulting, and security sales. As a subsequent event, the consolidation of Field Tech Co., Ltd. as a subsidiary (expected to be completed in May 2026) is also underway. The medium-term plan calls for continuing to acquire two companies per year from FY2027 (ending March 2027) onward, and progress is currently ahead of schedule.
Investment subsidiary Hoover Investment invests in promising startups and realizes capital gains through listings and sales. In FY2026 (ending March 2026), the company recorded a gain on sale of ¥386 million following Digital Grid's listing on the TSE Growth Market. The FY2027 (ending March 2027) forecast also incorporates investment growth from the additional sale of shares in the same company.
On March 25, 2026, the company made ProofX (research and implementation of advanced AI technology) a subsidiary, and on April 1, 2026, appointed ProofX Representative Director and CEO Ryota Natsume as Chief AI Officer (CAIO). Generative AI Business Reform Consulting (ProofX) will be incorporated into the IT Services Business to differentiate the company in the AI domain. The company targets adjusted net sales of ¥15,000 million and adjusted operating profit of ¥1,500 million (profit margin of 10%) in FY2030 (ending March 2030).
The company began paying dividends from FY2026 (ending March 2026), implementing a year-end dividend of ¥15 (annual dividend of ¥15, payout ratio of 26.0%). For FY2027 (ending March 2027), an annual dividend of ¥16 (interim ¥8, year-end ¥8) is forecast. The medium-term management plan explicitly sets a target payout ratio of 30% or more for FY2030 (ending March 2030), and the company aims to continue expanding shareholder returns.
Last updated: July 19, 2026