MIT Holdings CO.,LTD.

Business Details

Under the holding company MIT Holdings, the group comprises four subsidiaries: System IO Co., Ltd., APS Co., Ltd., B-Gal Co., Ltd., and Netwinks Co., Ltd. The core business is system integration services for the public, financial, telecommunications, energy, and transport/logistics sectors, complemented by DX solution services (digital marketing, drawing DX, and cloud systems) centered on the in-house products Wisebook and DynaCAD. The major customer is Hitachi Social Information Services, Ltd. (approximately 15% of revenue).

Recent Overview

Both revenue and profit declined year on year in H1, but the full-year forecast remains unchanged

In the first half of FY2026 (ending November 2026) (December 2025 to May 2026), revenue was ¥2,472 million (down 5.5% year on year), operating profit was ¥109 million (down 15.3%), and net income attributable to owners of parent for the first half was ¥60 million (down 26.1%). SI services were affected by a decline following the completion of large-scale projects and engineer shortages, while DX solutions were affected by delayed order intake in the first quarter. On the other hand, revenue continued to increase on a quarter-on-quarter basis, and orders in the energy and public sectors remained solid. Rising personnel costs weighed on profit. The full-year earnings forecast (revenue of ¥5,700 million and operating profit of ¥285 million) remains unchanged. The annual dividend forecast of ¥30 (ordinary dividend only) is maintained.

Key Products

Growth Drivers

• Steady expansion of DX investment demand: Against the backdrop of a declining working population and the spread of AI, corporate IT investment appetite remains consistently high
• Expansion of prime contractor projects and higher engineer unit prices: Profit margin improvement through increased orders for upstream processes and skill enhancement
• Accumulation of stock-type business: Expansion of the stable revenue base from Wisebook and DynaCAD maintenance contracts, etc.
• Upselling to existing customers and acquisition of new projects (including in the Ed-Tech field) driven by the release of Wisebook Ver.8.1
• Recovery in Cloud System Solution: Revenue expansion from the third quarter onward driven by increased new inquiries for "The Meal" and sequential acquisition of GIGA School fiscal 2026 bidding projects
• Expansion of orders in the energy and public sectors: Infrastructure and foundation construction projects continue to expand

Risks

• Lost opportunities due to engineer shortages: Recruitment difficulties, particularly at APS Co., Ltd., constrain revenue growth
• Risk of decline following completion of large-scale projects: High dependence on specific customers and projects leads to significant revenue fluctuation when projects end
• Major customer concentration risk: Revenue dependence on Hitachi Social Information Services, Ltd. remains high at approximately 15%
• Profit pressure from rising personnel costs: Increased personnel costs from investment in hiring, training, and improved compensation are weighing down profit at each level
• Delayed monetization of DX solutions: Revenue recognition is being pushed back due to delays in new version releases and lengthening project lead times
• Financial covenant: The Chiba Bank commitment line agreement includes covenants requiring maintenance of net assets and prohibiting two consecutive periods of operating losses
• Uncertainty over achievement of full-year forecast: Progress rates for H1 stood at only 43.4% for revenue and 38.1% for operating profit, indicating a strong weighting toward the second half