NCD Co., Ltd.
4783・Standard Market・Information & Communication
Business
NCD Corporation (formerly Japan Computer Dynamics) is an independent SIer founded in 1967. It comprises three segments: the System Development Business (¥12,729 million in sales), which primarily develops systems for the insurance, finance, and construction industries; the Support & Service Business (¥9,961 million), which handles infrastructure construction/operation and business support; and the Parking System Business (¥8,128 million), which undertakes bicycle parking lot setup, operation, and management outsourcing. Major customers include insurance and financial institutions such as MetLife Insurance, as well as companies in the construction and retail industries. The company has six domestic subsidiaries and a local subsidiary in China, with consolidated group sales reaching ¥30,867 million.
Business Model
In the IT-related business, the company accumulates recurring orders such as application maintenance and infrastructure operation, forming a stable revenue base. In the Parking System Business, the company combines usage fee income from self-operated bicycle parking lots (stock-type) with equipment sales and management outsourcing (flow-type), aiming to improve profitability through fee revisions. Since the two businesses have different revenue structures, the company has built a composite business model that is resilient to economic fluctuations.
Company Strengths
MetLife Insurance K.K. alone accounts for 17.7% of net sales (¥5,463 million), and the expansion of application maintenance for insurance companies continues. The order backlog for the System Development Business reached ¥2,867 million, up 39.4% year on year, with long-term continuing relationships with existing customers underpinning the revenue base.
The Parking System Business, an industry distinct from IT, accounts for approximately 41% of net sales, creating a structure that diversifies the risk of fluctuations in the IT investment cycle. Revenue from bicycle parking usage fees is stock-type and stable, and in FY2026 (ending March 2026) it also trended solidly due to the effect of fee revisions. The combination of IT and non-IT businesses is a unique characteristic not found among competing system integrators.
In March 2024, the company obtained Information Security Management System (ISMS) certification across the entire company. Previously, certification had been limited to the IT Service Division alone, but the expansion to the entire group has now been completed. Given the business characteristic of having insurance companies and financial institutions as major customers, having a robust security framework functions as a competitive advantage in retaining existing customers and acquiring new ones.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥20,550 million in FY2022 (ended March 2022) to ¥30,867 million in FY2026 (ending March 2026), but the growth rate slowed sharply from 18.1% in FY2025 (ended March 2025) to 2.5% in FY2026 (ending March 2026). Operating profit turned to a decline of 6.1% year-on-year, reaching ¥2,638 million in FY2026 (ending March 2026), with the operating margin falling from 9.3% to 8.5%. The main causes were the completion of highly profitable large-scale projects, increased personnel costs including wage hikes, rising outsourcing costs, and one-off expenses such as communication line change costs in the Parking System Business. In terms of the external environment, IT investment has remained solid and demand for generative AI utilization is expanding, but intensifying competition in the mid-career hiring market and rising costs for external personnel are pushing up the cost structure across the industry as a whole. For FY2027 (ending March 2027), the company forecasts revenue of ¥32,000 million (up 3.7% year-on-year) and operating profit of ¥2,750 million (up 4.2% year-on-year), anticipating a gradual recovery.
Growth Strategy
Under Vision2029, the company is advancing IT full outsourcing expansion, bicycle parking lot DX, and new business creation
The company aims to expand the scope of business with existing clients and acquire new clients by promoting IT full outsourcing that comprehensively supports clients' IT lifecycles. It seeks to expand orders for upstream-process projects by enhancing consulting capabilities through the active use of generative AI and other advanced IT technologies. In FY2026 (ending March 2026), the Support & Service Business demonstrated results, with revenue up 5.9% and operating profit up 7.9% year on year.
The company will continue to improve the profitability of its self-operated bicycle parking lots through expanded sales of the Monthly Bicycle Parking Management System "ECOPOOL," establishment of a proprietary pricing model, and optimization of management and operations using IT. It is advancing development of a next-generation bicycle parking system to accommodate diverse mobility options such as electric kick scooters and to capture new demand. In FY2026 (ending March 2026), profit declined due to one-time costs such as changes to communication lines, but usage fee revenue remained steady.
The company is focusing on actively promoting human capital management, including wage increases, developing advanced IT talent, and securing mid-career hires who can contribute immediately. Continuous investment was made even in the final year of Vision2026, and human capital investment is also planned as a strategic investment under Vision2029. While this will be a cost-increasing factor in the short term, it will serve as the foundation for strengthening competitiveness over the medium to long term.
The company will continue to invest in creating new businesses through the "Other" segment, aiming to generate synergies with its three main segments. On May 15, 2026, the Board of Directors resolved to introduce an employee incentive plan (ESOP) and dispose of treasury shares, aiming to build a foundation for sustainable growth by enhancing employee engagement and retention.
Last updated: July 19, 2026