Densan System Holdings Co., Ltd.
4072・Prime Market・Information & Communication
Business
Densan System Holdings Co., Ltd. is an independent, comprehensive information processing services company based in Gifu Prefecture. It comprises two segments: the "Information Services Business," which handles SI & Software Development, BPO, and product sales, and the "Payment Collection Agency Services Business," which has a history dating back to 1973 when it became the first private company in Japan to launch account transfer-based payment collection agency services. With a group structure of 9 subsidiaries and 2 affiliated companies (12 companies in total), it provides services to a wide range of customers, including municipalities, educational institutions, the energy industry, and convenience stores. The company is listed on the Prime Market of the Tokyo Stock Exchange and the Premier Market of the Nagoya Stock Exchange.
Business Model
In the Information Services Business, the company generates project-based and recurring revenue through SI & Software Development (43.3% of sales), BPO, and product sales. In the Payment Collection Agency Services Business, the company employs a stock-type model that accumulates fee income linked to transaction volumes across convenience store payments, direct debit, online payments, and other channels. In FY2025, the operating margin of the Payment Collection Agency Services Business remained at a high level of 10.7%, supporting the profit base for the group as a whole.
Company Strengths
In 1973, the company became the first private enterprise in Japan to launch bank transfer-based payment collection agency services, and now holds diverse payment channels including convenience stores, online, and bank transfers. In FY2025 (ending March 2025), the Payment Collection Agency Services Business achieved net sales of ¥25,069 million and operating profit of ¥2,676 million (operating margin of 10.7%), accounting for 73.8% of group operating profit and serving as a stable source of earnings.
In FY2025 (ending March 2025), orders received in the Information Services Business reached ¥45,722 million (up 12.3% year on year), with an order backlog of ¥14,539 million (up 22.4% year on year). This has been driven by cloud services such as Google Workspace and Google Cloud Platform, as well as sales of Chromebooks for the GIGA School Program, and functions as a leading indicator for next-period performance.
As an independent company with both Information Services and Payment Collection Agency Services operations, the company offers proprietary services combining IT technology with payment infrastructure, including the payment platform "TREE PAYMENT", the electronic payment slip "PAYSLE", domestic remittance services (registered as a Type II Funds Transfer Service Provider under Tokai Local Finance Bureau Director Registration No. 00001), and electronic payment intermediary services (Tokai Local Finance Bureau Director (Electronic Payment) Registration No. 3).
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive fiscal years, from ¥50,356 million in FY2021 to ¥68,131 million in FY2025. Operating profit fell to ¥2,311 million in FY2024 before recovering sharply to ¥3,624 million in FY2025. Q1 of FY2026 (ending December 2026) was strong, with revenue of ¥17,223 million (up 10.8% year on year), operating profit of ¥1,227 million (up 13.2%), and quarterly net profit attributable to owners of the parent of ¥888 million (up 8.3%). The Information Services Business was the key driver, supported by strong performance in Google Cloud projects, Chromebook deliveries for the GIGA School Program, and SI & Software Development projects. In the Payment Collection Agency Services Business, profit pressure continued due to external factors such as rising interest rates and increased procurement unit costs, but cost management enabled results to remain above plan. Full-year net profit is forecast to decline 9.6% year on year to ¥2,620 million.
Growth Strategy
Multi-pronged advancement of DX, payments, and M&A toward achieving Challenge1000
Horizontal expansion of Google Workspace and Google Cloud Platform sales and implementation support across local governments, education, and the private sector. Creating new revenue opportunities through bundled offerings of generative AI license sales and utilization support. In the first quarter of FY2026 (ending December 2026), the Cloud & License field performed steadily, with high-level engineer utilization boosting profit.
Advancing service differentiation through functional expansion of "TREE PAYMENT" and "PAYSLE". Online Payment Service continued its high growth, up 21.0% year on year. Convenience store payment collection offline payments continued the sales growth trend that began in the latter half of the previous fiscal year into the first quarter of FY2026 (ending December 2026). Thorough cost management is being implemented in response to rising interest rates and rising procurement unit prices.
Document creation agency services centered on the Tono BPO Center remained roughly flat, maintaining performance despite the impact of a large customer's processing consolidation, supported by expansion of new and existing projects. Promoting cost reduction through operational efficiency improvement and optimized staffing allocation. Operations for catalog mail-order businesses continue to decline due to the impact of online retail, with the development of alternative projects being a challenge.
System projects for the auto auction industry performed well, and other SI projects also progressed steadily. The Chromebook project for the GIGA School Program was delivered as planned. Continuing to promote order expansion through horizontal expansion of cloud service implementation for local governments.
Last updated: July 17, 2026