Hutzper Inc.

Business Details

Under the mission of "Turning cutting-edge technology into reliable labor," the company addresses manufacturing industry challenges such as labor shortages and DX (digital transformation) needs by providing image-recognition AI services centered on automated visual inspection AI, data analysis AI services, workforce placement optimization, and local generative AI. It handles everything end-to-end from optical design to AI model construction and operational management, with a hybrid operation of edge AI and cloud management systems as its strength. In FY2025 (ending December 2025), the main industries served were manufacturing (food, chemical fiber, automotive, etc.) at 76.2%, and others (IT, logistics, construction, etc.) at 23.8%.

Recent Overview

Q1 net sales of ¥296 million and operating profit of ¥56 million recorded; order backlog surged to ¥531 million

In the first quarter of FY2026 (ending December 2026) (January to March 2026), the company recorded net sales of ¥296 million, operating profit of ¥56 million, ordinary profit of ¥60 million, and quarterly net profit of ¥41 million. The gross profit margin remained high at 69.8%. Recurring customer sales were ¥204 million, and license revenue was ¥29 million. The order backlog at the end of Q1 increased significantly to ¥531 million from ¥356 million at the end of the previous fiscal year, confirming the acquisition of large-scale orders. The company relocated its Kanto branch office, prepared to expand its domestic and overseas areas and strengthen follow-up support systems, participated in multiple exhibitions to strengthen lead generation, and conducted active recruitment activities. The full-year earnings forecast (net sales of ¥2,000 million, operating profit of ¥480 million) remains unchanged, with Q1 net sales corresponding to 14.8% of the full-year forecast. Note that since quarterly financial statements were not prepared for Q1 of FY2025 (ending December 2025), year-on-year comparison is not possible.

Key Products

Growth Drivers

• The order backlog expanded rapidly to ¥531 million (up 49.2% from the end of the previous fiscal year), with orders for large-scale projects driving business expansion
• A stable revenue base supported by maintaining a high proportion of recurring customer sales (¥204 million out of ¥296 million in Q1 net sales, approximately 68.7%)
• Robust AI investment demand driven by the expansion of the manufacturing DX market (the domestic manufacturing DX market is projected to grow to 239.8% of the 2023 level by 2030)
• Stable growth in license revenue supported by a low subscription contract cancellation rate (0.23%)
• Strengthening of the sales foundation through preparations for domestic and overseas area expansion and enhanced follow-up systems, along with the relocation of the Kanto branch office
• Strengthened sales activities backed by increased brand recognition and creditworthiness following the listing on the Tokyo Stock Exchange Growth Market (December 24, 2025)

Risks

• Risk of revenue dependence on specific customers (in the previous fiscal year, Mitsubishi Research Institute accounted for 12.9% of net sales, but this fiscal year has been diversified to below 10%)
• Risk that securing and developing talented engineers may constrain business expansion
• Risk of delayed response to increasingly sophisticated and diversified customer needs amid the rapid evolution of AI technology, including generative AI
• Risk of impact on business operations from changes in local political conditions, regulatory revisions, natural disasters, etc. when expanding overseas
• Risk of business fluctuation due to changes in the customer base, as the number of client companies at the end of Q1 decreased to 115 from 147 at the end of the previous fiscal year
• Risk that the Q1 operating margin declined to 18.9% from 31.6% in the previous full fiscal year, with upfront investment costs such as the Kanto branch relocation pressuring margins
• Risk of a second-half-weighted performance, as the Q1 progress rate stands at only 14.8% against the full-year net sales forecast of ¥2,000 million