ENVALITH
株式会社イーエムシステムズ logo

EM SYSTEMS CO.,LTD.

4820・Prime Market・Information & Communication

Official website
株式会社イーエムシステムズ logo
EM SYSTEMS CO.,LTD.4820

Business

EM Systems Co., Ltd. was founded in 1980 and is a Tokyo Stock Exchange Prime Market-listed healthcare IT solutions company. Centered on its Pharmacy Dispensing System Business (for pharmacies), the company is organized into four segments: Medical System Business (for clinics), Long-Term Care/Welfare System Business, and Other (pharmacy management, cashless payments, staffing). It has 9 consolidated subsidiaries and 2 non-consolidated subsidiaries, and in addition to selling and maintaining its in-house developed software, it builds up recurring revenue through its Network System (ASP). Under the PURPOSE of "a company that supports Japan's medical and long-term care sites through digital technology," the company is expanding its business on the back of government-led promotion of medical DX (Online Eligibility Verification, Electronic Prescription System, etc.).

Business Model

The company delivers proprietary software combined with hardware to customers and records initial sales. After installation, it continuously accumulates recurring revenue through maintenance service contracts and monthly-billed ASP (Network System). Billing revenue for the Pharmacy Dispensing System Business reached ¥7,128 million (up ¥185 million year on year), underpinning revenue stability. Sales are conducted both directly and through agents. The head office building's tenant business (non-operating income of ¥1,106 million) also supports ordinary profit.

Company Strengths

In FY2025 (ending December 2025), the Pharmacy Dispensing System Business achieved net sales of ¥19,236 million, operating income of ¥3,967 million, and an operating margin of 20.6%. Billing revenue (ASP and recurring revenue) reached ¥7,128 million, accounting for approximately 30% of consolidated net sales, forming a stable revenue base. Despite the impact of the one-time surge in demand for electronic prescriptions having run its course, the company maintained a high level of profitability.

Since its founding in 1980, the company has continuously provided medical office systems for over 40 years, building a customer base deeply rooted among pharmacies, clinics, and long-term care providers. As a company listed on the Tokyo Stock Exchange Prime Market, it also enjoys high creditworthiness, and secures market coverage through a multi-channel approach combining a network of sales agents with a direct sales system.

At the end of FY2025 (ending December 2025), the equity ratio stood at 73.9% (improved from 64.8% at the end of the previous fiscal year), with net assets of ¥20,432 million. Total liabilities were reduced to ¥7,074 million, reflecting a high degree of financial soundness. The company owns its head office building (Shin-Osaka Brick Building), and tenant rental income of ¥1,048 million contributes to stable cash generation.

ENVALITH's Perspective

For the first quarter of FY2026 (ending December 2026), net sales came to ¥5,039 million (down 24.9% year on year) and operating profit was ¥216 million (down 85.9% year on year), a substantial decline. The main cause was the normalization of demand for Electronic Prescription System and Online Eligibility Verification System implementations (initial sales), which had been concentrated in the same period of the previous year; as an external factor, the falloff in demand tied to regulatory-response requirements directly hit performance. The cumulative forecast for the second quarter also remains subdued, with net sales of ¥10,273 million (down 15.4% year on year) and operating profit of ¥447 million (down 78.5% year on year), making the pace of earnings recovery in the first half a key focus.

The full-year consolidated earnings forecast for FY2026 (ending December 2026) remains unchanged at net sales of ¥22,762 million (down 3.8% year on year) and operating profit of ¥3,316 million (down 9.8% year on year). The first-quarter operating profit result of ¥216 million represents only about 6.5% of the full-year forecast of ¥3,316 million, meaning over ¥3,100 million in operating profit must be generated over the remaining three quarters. The keys to achieving the full-year target will be the buildup of recurring billing revenue toward the second half, the materialization of demand related to fee schedule revisions, and progress in acquiring new customers. Early improvement of the Medical System Business's operating loss of ¥170 million (versus a profit of ¥123 million in the same period of the previous year) is also a challenge.

The Long-Term Care/Welfare System Business posted an operating loss of ¥76 million in the first quarter of FY2026 (ending December 2026) (versus a loss of ¥97 million in the same period of the previous year), continuing to be in the red. This reflects a decline in maintenance revenue during the transition period to the replacement product "MAPs for NURSING CARE"; although billing revenue of ¥83 million is on an increasing trend, it will take time to reach the break-even point. In addition, an impairment loss totaling ¥97 million was recorded in the Medical and Long-Term Care segments during the quarter, and this extraordinary loss weighed on pre-tax profit. It should also be noted that the amortization burden of goodwill of ¥341 million (provisional figure) arising from the acquisition of Conduct Co., Ltd. will affect future earnings.

Growth Strategy

In the Medium-Term Management Plan for FY2025–FY2027, the company aims for an ROE of 17%, strengthening of the revenue base in each business, and profitability in the Long-Term Care/Welfare System Business.

In the first quarter of FY2026 (ending December 2026), a company system was introduced across segments to build a structure that responds promptly to customer needs. A strategic shift is underway to allocate sales resources preferentially toward new customer acquisition through strengthened inside sales and digital marketing utilization.

Recurring revenue is being expanded across the Pharmacy Dispensing System, Medical System, and Long-Term Care/Welfare System segments to build a stable revenue base that is not dependent on regulatory-driven demand. Company-wide recurring revenue in the first quarter of FY2026 (ending December 2026) reached ¥2,142 million, maintaining an increase year on year, and the strategy is progressing steadily.

The company is promoting the introduction of AI tools into call centers, efficient online-based system operation training, and the use of AI in internal operations. It aims to strengthen its revenue structure through improved service quality and operational efficiency. Development of new services in combination with responses to various fee schedule revisions is also continuing.

The company aims to achieve profitability by promoting replacement with "MAPs for NURSING CARE" and accumulating recurring revenue through a revised pricing structure. In the first quarter of FY2026 (ending December 2026), Conduct Co., Ltd. was made a consolidated subsidiary (generating goodwill of ¥341 million), expanding the business foundation. Operating loss narrowed from ¥97 million in the same period of the previous year to ¥76 million, but profitability has not yet been achieved.

The sales strategy has shifted from promoting replacement among existing customers to acquiring new customers from competitors. Efforts to capture potential opportunities using digital marketing have been strengthened, and the number of paying customers for "MAPs for CLINIC" is steadily increasing. However, in the first quarter of FY2026 (ending December 2026), the operating loss widened to ¥170 million, and the investment phase continues.

Last updated: July 17, 2026