IC CO., LTD.

Business Details

The Group consists of two business divisions: the IT Solutions business (software development and system operations) and the IT Services business (development and sale of proprietary services). Major customers span a wide range of industries, including the Hitachi Group as well as information/telecommunications/media, finance/securities/insurance, manufacturing, and government/municipal sectors. Against a backdrop of DX promotion and core system renewal needs, the order environment is favorable, with a strength in providing integrated support from upstream consulting through development and operations. From October 2025, the company launched its new medium-term management plan, "Growing Beyond 2028," and is pursuing improved profitability through deepening existing businesses and enhancing the added value of IT Services.

Recent Overview

In the interim period, sales and operating income increased year on year, but net income fell 20.1% year on year due to the drop-off of a special gain.

In the interim period of FY2026 (ending March 2026) (October 2025 to March 2026), sales were ¥5,305 million (up 7.3% year on year), operating income was ¥543 million (up 18.5%), and ordinary income was ¥574 million (up 18.3%), reflecting a solid core business. On the other hand, interim net income attributable to owners of the parent was ¥357 million (down 20.1% year on year), a decline. This was due to the reversal of a ¥190 million special gain recorded in the same period of the prior year in connection with a switch in the retirement benefit system, in addition to the recognition of a ¥54 million impairment loss in the current interim period. By revenue breakdown, software development led growth at ¥2,764 million (up 13.5%), while system operations was also solid at ¥2,469 million (up 2.6%). The full-year earnings forecast remains unchanged from the figures announced on November 7, 2025.

Key Products

Growth Drivers

• Continued expansion of IT investment demand against the backdrop of a declining working-age population and labor shortages
• Growing needs for corporate system renewal and cloud migration driven by DX promotion and the spread of generative AI
• Increase in software development projects for government/municipal, information/telecommunications/media, and finance/securities/insurance clients
• Expansion of orders for upstream consulting (proposal-based solutions) and buildup of the order backlog
• Expansion of new businesses and the IT Services business through utilization of external resources, including M&A, under the new medium-term management plan "Growing Beyond 2028"
• Promotion of the commercialization of next-generation IT services, including an experiential self-service beer tap system

Risks

• Sales in the IT Services business fell sharply by 29.0% year on year (to ¥72 million), making the cultivation of a high-margin proprietary service business an urgent priority
• High dependence on sales to the Hitachi Group (approximately 49.9% of sales), posing a risk of customer concentration
• Risk of rising personnel costs and difficulty securing talent due to a shortage of IT engineers
• Risk of reduced client IT investment due to deterioration in the external environment, including US trade policy, concerns over the Chinese economic outlook, and geopolitical risks
• Risk that extraordinary losses, such as the impairment loss (¥54 million in the current interim period), will continue to pressure net income
• Risk of impact on net assets from fluctuations in the fair value of investment securities (valuation difference on available-for-sale securities decreased by ¥38 million)