ENVALITH
セグエグループ株式会社 logo

Segue Group Co., Ltd.

3968・Prime Market・Information & Communication

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セグエグループ株式会社 logo
Segue Group Co., Ltd.3968

Business

Segue Group Co., Ltd. is a pure holding company (established in 2014) centered on J's Communication Co., Ltd., founded in 1995. Through seven domestic consolidated subsidiaries, the group provides integrated IT solutions ranging from the import and sale of security and IT infrastructure products to design, implementation, maintenance, and operational monitoring. Its main customers are government agencies such as central government ministries, local governments, and medical institutions, as well as private companies. The group also offers its in-house developed zero-trust security product series "RevoWorks" and the authentication solution series "WisePoint." It is also expanding its overseas business based in the Kingdom of Thailand. The company is listed on the Prime Market of the Tokyo Stock Exchange.

Business Model

The company generates revenue through two pillars: the Solution Product business (import distribution and sales of overseas manufacturers' products) and the Solution Service business (design, construction, maintenance, help desk, security services, and IT support). Maintenance, help desk, operation monitoring, engineer services, and similar offerings form a stock-type business structure that accumulates stable recurring revenue. In FY2025, Product business net sales were ¥16,633 million (up 51.2% year on year), and Service business net sales were ¥8,441 million (up 9.4% year on year).

Company Strengths

In FY2025, the company received multiple ultra-large GSS (Government Solution Service) orders. Orders received expanded to ¥32,367 million (164.3% year-on-year), and the order backlog expanded to ¥15,730 million (183.0% year-on-year). The business structure, characterized by a high proportion of sales to ministries, agencies, and local governments, is a strength, benefiting from the tailwind of digital government policy.

The in-house developed zero-trust security product group "RevoWorks Series" (SCVX, Browser, Desktop, Cloud, ZONE) and stock-type services such as Managed Security Service (MSS) form a stable revenue base. In 2025, the company began sales of the next-generation zero-trust browser "RevoWorks ZONE," expanding its product lineup.

The company made ISS Resolution Limited in Thailand a subsidiary in 2022, and continued M&A activity by making First One Systems Co., Ltd. (Thailand) a subsidiary in May 2024 and Techno Creation Co., Ltd. a subsidiary in June of the same year, expanding the group both in ASEAN and domestically. The company is also pursuing the acquisition of projects related to Thailand's public transportation infrastructure and developing business targeting local Japanese companies.

ENVALITH's Perspective

Q1 FY2026 (ending December 2026) revenue of ¥9,184 million represents 30.6% of the full-year forecast of ¥30,000 million, while operating profit of ¥1,449 million has already achieved 63.0% of the full-year forecast of ¥2,300 million. Year-on-year, the company recorded extremely high growth rates of +91.8% in revenue and +541.2% in operating profit. The company has left its full-year forecast unchanged, and even accounting for the Q1-weighted seasonality, the probability of achieving the full-year plan is judged to be high.

The rapid growth in Q1 was mainly attributable to revenue recognition of the final phase of the GSS mega-project ordered in the previous period, and attention is focused on the revenue level from Q2 onward once the contribution from this project fades. The overseas subsidiary ISS Resolution Co., Ltd. has seen sluggish services due to the impact of AI, and it will be necessary to continue to confirm the company's ability to respond to changes in the external environment. On the other hand, both companies have already secured projects expected to contribute to revenue recognition from Q2 onward, and the depth of the pipeline will be key.

As a result of the public offering of new shares (4,600,000 shares) in February 2026, capital stock and capital surplus each increased by ¥1,137 million, and the equity ratio improved from 22.1% at the end of FY2025 (ended December 2025) to 30.8% at the end of Q1 FY2026 (ending December 2026). Short-term borrowings were also significantly reduced from ¥2,267 million to ¥95 million, substantially easing the concerns about financial soundness that had been pointed out in the previous period. However, advances received remain at a high level of ¥8,472 million, so continued attention to project progress management remains important.

Growth Strategy

Advancing the Segue300 mid-term plan along four axes: government DX, overseas expansion, M&A, and proprietary product development

Further strengthening the sales and technical organization for ministries and agencies, critical infrastructure operators, and local governments to continue winning large-scale orders. Recognized the final-phase portion of a super-large GSS project in 1Q FY2026 (ending December 2026), while the project pipeline for subsequent periods continues to build up.

Continuing to expand recurring revenue from RevoWorks cloud and MSS (Managed Security Service). Launched "RevoWorks Plus EDR" in March 2026 and announced the launch of the AI security document diagnostic service "RiskLoom." Also achieved multiple deliveries of proprietary products for large-scale projects with ministries and agencies.

First One Systems Co., Ltd. steadily captured IT infrastructure projects for universities and public institutions in Thailand, increasing revenue. ISS Resolution Co., Ltd. was sluggish due to the impact of AI, but has already secured projects expected to generate revenue from 2Q onward.

The public offering (4,600,000 shares) in February 2026 increased common stock and capital surplus by ¥1,137 million each. This improved the equity ratio to 30.8% and significantly reduced short-term borrowings, securing financial capacity for M&A and business investment.

Last updated: July 17, 2026