SYS Holdings Co., Ltd.
3988・Standard Market・Information & Communication
Business
SYS Holdings Corporation is a comprehensive information services group comprising the pure holding company and a total of 20 companies: 17 domestic consolidated subsidiaries and 2 overseas consolidated subsidiaries. Centered on SY System Co., Ltd., founded in 1991, the group's business domain is "Comprehensive Information Services," providing an integrated offering that spans the creation and development of IT personnel, proposals and consulting, information infrastructure construction, system development, maintenance and operation, and product sales. Its main customers are manufacturing industries (automobiles, heavy industry, machine tools, etc.) and social infrastructure-related companies such as those in finance, energy, and government sectors. The company operates its business under three segments—Global Manufacturing Solutions, Social Information Infrastructure Solutions, and Mobile Solutions—and is listed on the TSE Standard Market.
Business Model
The company hires individuals without industry experience and creates IT talent at low cost through proprietary training that combines Off-JT and OJT, enabling early practical deployment. It secures stable repeat orders through two models: the "bidirectional take-home model," which begins with dispatching staff to client sites and transitions to process-based contracting once a team structure is established, and the "fixed-quantity order model," under which clients place regular monthly orders for improvements, operation, and maintenance of existing systems. The company also utilizes subsidiary expansion through M&A as a means of broadening its revenue base.
Company Strengths
Since June 2005, the company has continuously produced IT talent from inexperienced hires through vocational training programs commissioned by local governments (S&Y IT College, etc.). Some subsidiaries hire only inexperienced candidates for technical positions, establishing a proprietary recruitment channel independent of job-hunting websites. Under a target of 40% female hiring ratio, the company has achieved diverse talent acquisition, including obtaining Eruboshi certification (Stage 3).
The company has pursued active M&A since establishing its holding company in 2013. It made four companies subsidiaries simultaneously in November 2022, acquired two additional companies in August 2024, and continued further acquisitions in May and August 2025. As of the end of FY2025 (ending July 2025), the group comprised 20 companies in total—17 domestic and 2 overseas—with M&A serving as the primary driver of revenue growth.
According to the Ministry of Internal Affairs and Communications' Survey on Selected Service Industries, sales in the information services industry rose 8.4% year on year in June 2025, marking 39 consecutive months of growth. In Social Information Infrastructure Solutions, orders from financial sector clients and others remained firm, with segment sales reaching ¥8,575 million in FY2025 (ending July 2025), up 12.8% year on year. The order backlog also expanded to ¥2,365 million, up 36.4% year on year.
ENVALITH's Perspective
Performance Trend
For the nine months ended April 2026 (August 2025-April 2026) of FY2026 (ending July 2026), net sales were ¥11,656 million (up 13.6% year on year), operating profit was ¥534 million (up 4.7%), ordinary profit was ¥594 million (up 14.8%), and quarterly net profit attributable to owners of the parent was ¥320 million (up 14.5%). Net sales reached a record high, but growth in operating profit was constrained by factors such as loss-making projects, reduced utilization due to increased retirements, higher personnel expenses, and increased M&A-related costs. Ordinary profit secured a growth rate exceeding that of operating profit, supported by an expansion in non-operating income, including foreign exchange gains (¥23 million) and increased subsidy income. Net sales over the past five fiscal years (from ¥6,297 million in FY2021 to ¥14,051 million in FY2025) show a consistent upward trend, while the operating profit margin has been on a declining trend, from 5.5% in FY2024 to 5.0% in FY2025, and remained at only 4.6% for the nine months ended in FY2026. As an external factor, the information services market has continued to expand for 48 consecutive months, and the demand environment remains favorable.
Growth Strategy
Aiming for sales of ¥22,000 million in FY2028 (ending July 2028) through three pillars: comprehensive support for core systems, hiring of inexperienced personnel, and M&A
In the previous and current consolidated fiscal years, the company incorporated newly consolidated subsidiaries through M&A, contributing to sales expansion. Cumulative sales of ¥11,656 million for the third quarter of FY2026 (ending July 2026) mark a new record high, with M&A functioning as a key pillar of growth.
The company maintains a system of developing and securing engineers in-house through hiring of inexperienced personnel and proprietary training programs. There have been phases where turnover exceeded expectations, leading to a decline in engineer utilization, making improvement in hiring and retention rates key to enhancing profitability.
The company is focusing on proposing and securing repeat orders by building trust with customers. Orders remain solid in Social Information Infrastructure Solutions (financial sector, etc.) and Global Manufacturing Solutions (conveyance equipment, steel, etc.), and the strengthening of a stable revenue base is progressing.
Last updated: July 17, 2026

