BASE CO., LTD.
4481・Prime Market・Information & Communication
Business
Base Co., Ltd. is an independent software contract development company established in 1997. Its principal client base spans the financial (securities, banking, credit cards), distribution, and manufacturing sectors, and it provides full-lifecycle development from requirements definition through Operations & Maintenance. Its service lines consist of two pillars, System Development (Open Systems) and Solutions (SAP/ERP), with the latter covering the three areas of ERP, CRM, and BASIS centered on SAP SE. The company counts major SIers and financial institutions such as Fujitsu, NTT Data, Nomura Research Institute, and Mizuho Securities among its principal clients, and is listed on the Prime Market of the Tokyo Stock Exchange. It is characterized by a collaborative structure between Japanese and Chinese engineers, and its strength lies in securing personnel through two recruitment channels, domestic and Chinese.
Business Model
The majority of revenue consists of contract development and Operations & Maintenance projects from major SIers and financial institutions. The core business model, which also includes client-site Employee Support (Staffing/Dispatch), is labor-intensive, with fees generated based on engineers' working hours. On top of this, revenue from high-value-added solutions such as Solutions (SAP/ERP) implementation consulting and migration services is added. The operating margin for FY2025 (ending December 2025) remained high at 26.4%, and the business structure has strong cash generation capability, with extremely minimal capital expenditure (¥3 million).
Company Strengths
From FY2021 (ending March 2021) to FY2025 (ending March 2025), revenue grew from ¥13,294 million to ¥21,787 million (+63.9%), and operating profit grew from ¥3,002 million to ¥5,749 million (+91.5%), achieving 5 consecutive fiscal years of revenue and profit growth. The operating profit margin in FY2025 (ending March 2025) stood at 26.4%, an exceptionally high level of profitability for a company in the Software Contract Development Business.
The company obtained Core Partner certification from Fujitsu in 2003 and has maintained a business relationship for over 20 years. It obtained Associate Partner certification from NTT DATA in 2019, and was upgraded to Business Partner certification in October 2025. In FY2025 (ending March 2025), the top three clients (Fujitsu, Nomura Research Institute, and Mizuho Securities) combined accounted for approximately 35.6% of revenue, forming a stable customer base.
The company conducts recruitment through four channels—new graduates in Japan, mid-career hires in Japan, new graduates in China, and mid-career hires in China—continuing to secure talent even amid an industry environment where the shortage of systems engineers is becoming more severe. It has built a Japan-China collaborative structure combining Japanese engineers' specification comprehension and quality control capabilities with Chinese engineers' technical skills and eagerness to learn. The Multi-Talent Development Plan, under which Open Systems SEs acquire SAP skills, is also progressing smoothly.
ENVALITH's Perspective
Performance Trend
From FY2021 to FY2025, the company achieved five consecutive years of revenue and profit growth, with revenue rising from ¥13,294 million to ¥21,787 million and operating profit rising from ¥3,002 million to ¥5,750 million. However, in Q1 of FY2026 (ending December 2026), the company posted its first decline in both revenue and profit, with revenue of ¥5,472 million (down 1.6% year on year) and operating profit of ¥1,437 million (down 8.4% year on year). The main causes were a temporary slowdown in order-taking activity due to the major organizational restructuring under "BASE2030" and temporary costs incurred at the Chinese subsidiary. As an external factor, the tailwind for the information and communications industry, which has seen 47 consecutive months of growth, continues, and the full-year forecast (revenue of ¥24,099 million, up 10.6% year on year) has been left unchanged. SG&A expenses increased from ¥253 million in the same period of the previous year to ¥300 million, and upfront investments such as the establishment of the AI Promotion Office also weighed on profit.
Growth Strategy
Transition to AI-driven, knowledge-intensive IT services under BASE2030, with early achievement of ¥10 billion in operating profit
Since FY2026 (ending December 2026), the company has adopted "BASE2030," implementing significant optimization of its organizational structure, execution processes, and division of roles. It aims to transform into a knowledge-intensive, high-value-added IT services company. In the first quarter, order intake temporarily slowed as time was needed for adjustments in the initial phase of transition, but the company intends to achieve an early recovery in orders.
In response to the rapidly growing field of generative AI, the company established a new AI Promotion Office to enable agile decision-making and strategic advancement. It is building a framework to capture demand for generative AI implementation support across various industries, while managing the risk of AI substitution and providing high-value-added services leveraging distinctly human proposal capabilities.
Demand for migration due to the expiration of SAP/ERP maintenance support periods continues to remain firm. Through the acquisition of SAP skills by System Development (Open Systems) engineers (multi-talent development plan), the company is expanding its coverage area, achieving both higher unit prices and maintained utilization rates. It is noted that migration demand also remained firm in the first quarter of FY2026 (ending December 2026).
Amid the slowdown in the Chinese economy, the company continues efforts to secure business deals from both local and Japanese-affiliated companies. In the first quarter of FY2026 (ending December 2026), performance was weak due to the occurrence of temporary costs and other factors. While maintaining recruitment capability through a dual hiring system in Japan and China, the company aims to improve profitability at its China base.
Last updated: July 17, 2026