Power Solutions, Ltd.

Business Details

Comprised of three services: DX Promotion & DX Consulting Services for financial institutions including asset management companies, RPA license sales and implementation support for corporate clients, and Infrastructure Engineering such as server and network construction. The company has a high proportion of prime projects transacted directly with end users, and defines its business domain as "optimization of the last mile." Nomura Asset Management and Sumitomo Mitsui Trust Asset Management are major customers. The group has been expanding through the M&A of With Tech Corporation and Hakko Systems Corporation.

Recent Overview

Revenue rose 11.7% year-on-year to ¥2,287 million, but profit declined significantly as planned due to office relocation costs and other factors

In Q1 of FY2026 (ending December 2026) (January–March 2026), revenue reached ¥2,287 million (up 11.7% year-on-year), securing revenue growth on the back of the newly consolidated contributions from With Tech and Hakko Systems along with stable demand in existing businesses. On the other hand, due to the recording of office relocation-related expenses (extraordinary loss of ¥3,939 thousand) and an increase in selling, general and administrative expenses (from ¥462 million to ¥584 million), operating profit fell significantly to ¥192 million (down 20.2% year-on-year), and net profit attributable to owners of parent fell to ¥82 million (down 27.4% year-on-year). There has been no change to the full-year earnings forecast (revenue of ¥10,000 million, operating profit of ¥516 million), and the profit decline is explained as being within plan.

Key Products

Growth Drivers

• Continued expansion of demand for business solutions in the asset management industry, driven by the expansion of NISA and iDeCo (including the planned establishment of Children's NISA from January 2027)
• Group expansion and contribution from newly consolidated entities through the M&A of With Tech Corporation and Hakko Systems Corporation (expected to contribute approximately ¥1.9 billion in incremental revenue for the full year of FY2026 ending December 2026)
• Higher unit prices through reskilling of RPA personnel and robust growth in project volume at OLDE
• The shift from "creating" to "utilizing" under the medium-term management plan, and expansion into upstream consulting domains
• Promotion of four key initiatives: expanding transactions with existing customers, acquiring new customers, strengthening personnel, and expanding into consulting domains
• High customer stickiness underpinned by a 95.2% prime project ratio and an 89.1% transaction continuation rate

Risks

• For FY2026 (ending December 2026), a significant decline in profit is forecast, with operating profit of ¥516 million (down 27.6% year-on-year) and net profit of ¥217 million (down 43.9% year-on-year), due to M&A-related costs, increased goodwill amortization, and office relocation expenses, among other factors
• Selling, general and administrative expenses have expanded sharply, up 26.3% year-on-year (from ¥462 million to ¥584 million), making cost control a challenge
• Customer concentration risk with Nomura Asset Management (12.8% of revenue) and Sumitomo Mitsui Trust Asset Management (12.5% of revenue)
• Rising costs of securing and developing talented personnel amid a shortage of IT human resources
• Risk of reduced IT investment by client companies due to an uncertain economic outlook, including continued price increases and escalating tensions in the Middle East
• Burden of establishing group governance and internal control systems in connection with the promotion of M&A