Tsuji Hongo IT Consulting Co., Ltd.

Business Details

Comprises Tsuji Hongo IT Consulting Co., Ltd. and its consolidated subsidiaries. The company provides end-to-end services across three domains: the Consulting Domain (business process visualization and improvement), the Technology Domain (System Implementation Support, EC Construction, SaaS), and the Operations Domain (BPO for accounting, payroll calculation, etc.). Building on a network of professional service firms centered on Tsuji Hongo Tax Corporation and a capital and business alliance with ITOCHU Corporation, the company supports corporate clients in DX promotion, back-office efficiency improvement, and cybersecurity measures.

Recent Overview

Net sales rose a solid 14.2% year on year to ¥1,164 million, but listing-related costs and human capital investment caused operating profit to fall 25.0%

In H1 FY2026 (ending March 2026) (October 2025 to March 2026), net sales expanded to ¥1,164 million (up 14.2% year on year), driven by increased security consulting orders, expanded orders from large and mid-sized enterprises through synergies with ITOCHU Corporation, and an increase in the number of software sales cases. On the other hand, SG&A expenses swelled to ¥472 million (up 18.9% year on year) due to listing-related costs associated with the listing on the TSE Standard Market (December 19, 2025) and active investment in human capital, resulting in a sharp decline in operating profit to ¥114 million (down 25.0% year on year). On the financial front, the company secured ¥588 million in proceeds from share issuance through a public offering of new shares (260,000 shares) and a third-party allotment (85,500 shares) at the time of the IPO, improving the equity ratio to 76.0% (from 60.4% at the end of the previous fiscal year). There is no change to the full-year earnings forecast (net sales of ¥2,913 million, operating profit of ¥428 million), and the company expects profit to recover in the second half.

Key Products

Growth Drivers

• Expanding corporate demand for DX driven by legal developments such as the mandatory Electronic Books Preservation Act and the introduction of the invoice system
• Steady demand for highly specialized consulting and BPO services against a backdrop of corporate labor shortages and increasing operational complexity
• Expanding demand for security consulting and support in building information security frameworks amid rising cyberattack risks
• Expansion of orders from large and mid-sized enterprises through synergies with ITOCHU Corporation
• Expansion of customer touchpoints through the network of professional service firms centered on Tsuji Hongo Tax Corporation
• Strengthened fundraising ability, brand recognition, and recruitment capability following the listing on the TSE Standard Market (December 2025)

Risks

• Risk of sales dependence on a specific customer (Tsuji Hongo Tax Corporation)
• Risk of short-term margin decline due to expanding listing-related costs and human capital investment (operating margin fell to 9.9% in the current interim period)
• Risk of intensifying competition with competitors in the IT/DX market
• Risk of difficulty securing specialized personnel and rising labor costs
• Information security incident risk, as indicated by the ¥71 million provision for losses related to unauthorized access (continuing to be recorded as of the end of H1 FY2026 (ending March 2026))
• Impairment risk on goodwill (¥250 million at the end of H1 FY2026 (ending March 2026)) arising from the acquisition of shares in companies such as Colony Interactive Co., Ltd.
• Uncertainty in the business environment due to policy developments, exchange rate fluctuations, and geopolitical risks overseas, particularly in the United States