ENVALITH
IPSホールディングス株式会社 logo

IPS HOLDINGS CO.,LTD.

4335・Standard Market・Information & Communication

Official website
IPSホールディングス株式会社 logo
IPS HOLDINGS CO.,LTD.4335

Business

IPS Holdings Co., Ltd. is a specialized IT consulting group founded in 1997, focused primarily on SAP ERP Implementation Business (SAP Implementation Support) and maintenance. Targeting mid-tier and quasi-major companies with annual revenues of ¥10 billion to ¥200 billion, the company leverages its proprietary EasyOne Template, built on over 20 years of track record, and stands as one of approximately 20 surviving domestic partners as an SAP Platinum Partner. The company's business consists of two pillars: the ERP Implementation Business (revenue of ¥2,922 million) and the Maintenance & Other Business (¥811 million), and it transitioned to a holding company structure in July 2025. It also participates in Global Support (UnitedVARs), an alliance with SAP vendors spanning approximately 70 countries worldwide, establishing a framework to support customers' global business operations.

Business Model

Revenue consists of the ERP Implementation Business (78% of sales composition) and the Maintenance & Other Business (22% of sales composition). The implementation business functions as one-time revenue from the receipt and execution of large-scale projects, while the maintenance business functions as continuous stock revenue from existing customers. By combining the proprietary EasyOne Template with the utilization of outsourcing (outsourcing performance of ¥1,480 million, up 38.3% year on year), the company provides high-value-added consulting services while managing quality, cost, and delivery times.

Company Strengths

As one of roughly 20 domestic companies that have survived 20 years of competition as SAP implementation prime contractors, the company has been certified by SAP as a top-tier Platinum Partner. This certification functions as a barrier to competitive entry and directly contributes to gaining customer trust.

The company possesses the EasyOne Template, which systematizes over 20 years of SAP implementation know-how, business expertise, implementation methodology, and proprietary Addon programs. It continues to evolve by incorporating new SAP S/4HANA features, serving as a source of added value that technically enables high-quality, short-lead-time implementations.

The company specializes in serving mid-sized and quasi-major companies with annual revenues of ¥10 billion to ¥200 billion, and in particular has a track record of jointly developing the market together with SAP for companies with annual revenues of ¥10 billion to ¥100 billion. Its expertise as a specialized vendor focused on this customer segment serves as a differentiating factor from major SIers.

ENVALITH's Perspective

The operating margin for the cumulative nine months through Q3 stood at 11.0% (versus 9.5% in the same period of the prior year), a notable improvement reflecting the results of project efficiency initiatives. On the other hand, the full-year earnings forecast calls for profit attributable to owners of parent of ¥252 million (down 7.3% year on year), a decline in profit. It should be noted that increased income taxes and other levies (from ¥79 million in the same period of the prior year to ¥118 million in the current period) are a factor weighing on profit.

In terms of the market environment, the advancement of DX promotion, sustainability management, and AI technologies including generative AI is driving up ERP demand across the industry as a whole, serving as a tailwind for the company. On the other hand, the high dependence on SAP products and partner contracts remains a structural risk, and the potential for policy changes by SAP or intensified competition from rival partners to directly affect performance remains unchanged.

As of the end of Q3, construction in progress for software doubled from ¥139 million to ¥297 million, while tangible fixed assets also increased from ¥81 million to ¥164 million. These are considered to be forward-looking investments made in anticipation of future revenue generation, but disclosure of the details of the investments and expected recovery timing is limited, making it difficult to verify investment efficiency. Future trends in capitalization and depreciation warrant close attention.

Growth Strategy

Accelerating growth through three pillars: deepening cloud ERP, AI/smart factory initiatives, and strengthening consulting capabilities

Promoting low-cost, rapid cloud ERP implementation for mid-tier and growth manufacturing companies. Achieved ERP Implementation Business revenue of ¥2,116 million for the cumulative third quarter (up 4.0% year on year), continuing to function as the core growth engine.

Actively promoting mid-career hiring of personnel experienced in system planning and execution plan support, strengthening upstream consulting functions that go beyond mere ERP implementation. Operating margin improved to 11.0% through project efficiency gains, reflecting results from enhanced value-added services.

Continuing to broaden the customer base by deploying the Smart Factory Support Service, which reviews and improves overall factory operations and management using AI/IoT technology. Also implementing cybersecurity measures in response to the increase in cyberattacks, diversifying the range of services offered.

Made IPS Co., Ltd. (formerly IPS Spin-off Preparation Company, renamed) a consolidated subsidiary effective July 1, 2025, establishing a group-wide business execution structure. Expanding the scope of consolidation to strengthen the business foundation.

Last updated: July 17, 2026