Altech Corporation
4641・Prime Market・Services
Business
Alps Giken Co., Ltd. is a technology-focused outsourcing company founded in 1968. Its core business is the Outsourcing Services Business (approximately 91% of group sales), centered on Engineer Staffing (Design & Development) in fields such as mechanical, electrical, and information processing design, together with Technical Project Contracting. It also operates the Global Business (approximately 9% of group sales), providing overseas engineering and HR services through local subsidiaries in Shanghai, Taiwan, and Myanmar. Its major customers are leading manufacturers in sectors such as automobiles, semiconductors, and electrical equipment. The group, comprising 9 subsidiaries and 2 affiliated companies, has also expanded into agriculture, nursing care, and manufacturing businesses, and is working to create new businesses aimed at solving social issues. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The business is based on permanent-employment engineer staffing, generating revenue through a consistent value chain of recruitment → technical training → dispatch/contracting to clients. The structure expands sales by raising both the number of staff placed and the contract unit price (per-hour rate). Unit price increases are achieved through high-value-added sales initiatives such as team staffing and project contracting. Investments are basically funded internally, and the company continues shareholder returns through dividends and share buybacks in its financing activities.
Company Strengths
Revenue increased for five consecutive fiscal periods, from ¥39,262 million in FY2021 to ¥52,650 million in FY2025. Operating profit also expanded over the same period, from ¥3,876 million to ¥5,397 million. ROE remained at a high level of 20.4% in FY2025, and the equity ratio of 69.5% indicates strong financial soundness. Cash and cash equivalents stood at ¥13,225 million, securing sufficient liquidity.
Through the combination of enhanced technical education in advanced technology fields (space, AI, environment) and team-dispatch sales initiatives, both the total number of active personnel and contract unit prices rose again in FY2025. Diverse recruitment measures—including referral hiring, alumni hiring, and hiring of recent graduates—together with a review of the salary system, have achieved stable growth in the number of employees, contributing to the maintenance of a high utilization rate.
The Global Business expanded rapidly in FY2025, with revenue of ¥4,614 million (up 14.9% year on year) and operating profit of ¥533 million (up 55.6% year on year). The operating margin of 11.5% exceeded that of the Outsourcing Services Business (10.3%). With a three-location structure spanning Shanghai, Taiwan, and Myanmar, the company is capturing capital investment and maintenance demand from manufacturing industries across Asia.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal periods, from ¥39,262 million in FY2021 to ¥52,650 million in FY2025. In the first quarter of FY2026 (ending December 2026), revenue also maintained its growth trend, reaching ¥13,304 million (up 6.5% year on year). On the other hand, operating profit came to ¥1,305 million (down 7.1% year on year), ordinary profit was ¥1,310 million (down 10.2% year on year), and quarterly net income attributable to owners of the parent was ¥900 million (down 7.5% year on year), all falling below the same period of the previous year. The main causes were the reversal effect from the acceptance and completion of large-scale domestic and overseas projects in the previous first quarter, as well as an increase in selling, general and administrative expenses. As an external factor, the impact of Trump tariffs has partially materialized, mainly in the automotive industry, but leading manufacturers are maintaining upfront investment in research and development, and demand for staffing services continues to trend firmly. The full-year earnings forecast (revenue of ¥55,500 million, operating profit of ¥5,700 million) remains unchanged.
Growth Strategy
Increasing the value-added of technical outsourcing while establishing agriculture, nursing care, and the Global Business as a second earnings pillar
In fiscal 2026, the company newly established the Contracted Business Promotion Office to promote the expansion of contracted (ukeoi) work built on the technical services cultivated in the staffing business. It aims to shift toward a results-driven business model based on specialized technology and knowledge, targeting improvements in contract unit prices and profit margins.
Through the Space Business Promotion Office established in the previous fiscal year, the company is promoting the acquisition of new customers and strengthening technical training in the aerospace field. In the first quarter of the fiscal year ending December 2026, new customer development in the aerospace field continued to progress, contributing to maintaining a high utilization rate.
The company is expanding its engineering and HR services for Japanese manufacturers in Asia by leveraging its local subsidiaries in Shanghai, Taiwan, and Myanmar. In the first quarter of the fiscal year ending December 2026, Global Business sales were ¥1,072 million (up 4.0% year on year), reflecting solid order intake. However, operating profit fell sharply to ¥87 million (down 39.8% year on year), and restoring profitability remains a challenge.
Based on the medium-term management plan, the company is cultivating the agriculture and nursing care businesses as new earnings pillars. It is also promoting regional revitalization and new business initiatives in collaboration with Alps Regional Partners Co., Ltd. (established in May 2025). Currently, the Serviced Housing for the Elderly business remains at the stage of operating losses (¥-10 million in the first quarter of the fiscal year ending December 2026), and achieving profitability remains a medium- to long-term challenge.
The company will implement a stock split at a ratio of three shares for every one share of common stock, effective July 1, 2026 (resolved by the Board of Directors on May 14, 2026). By lowering the amount per investment unit, the company aims to create an environment that makes it easier for a wider range of investors to invest, thereby improving share liquidity and expanding its investor base.
Last updated: July 17, 2026