Nihon Enterprise Co., Ltd.
4829・Standard Market・Information & Communication
Business
Nihon Enterprise Co., Ltd. was established in 1989 and is listed on the Standard Market of the Tokyo Stock Exchange as an independent IT services company. The group consists of 8 consolidated subsidiaries and 2 non-consolidated subsidiaries. Its business is broadly divided into two segments: the Creation Business, which leverages the company's own rights and assets to provide smartphone content (entertainment and lifestyle), corporate Business Support Services (kitting support, traffic information, and communication), and Renewable Energy; and the Solutions Business, which provides contracted system development, business support, and staffing services for corporate clients. Major customers include leading telecommunications carriers such as NTT DOCOMO (27.3% of net sales), as well as corporate clients advancing DX investment.
Business Model
In the Creation Business, the company secures stock-type revenue by providing self-owned content and rights to general users via telecom carriers on a monthly subscription, flat-rate basis. For corporate clients, it also offers services such as sales of kitting support tools and provision of traffic information. In the Solutions Business, the company provides contracted system development for corporations (apps, web, server construction, etc.) and upstream-process on-site support services staffed by highly skilled IT personnel, building up flow-type revenue. In FY2025 (ended May 2025), the revenue composition was 59.5% from the Solutions Business and 40.5% from the Creation Business.
Company Strengths
The company has continuously renewed multiple contracts signed with NTT DOCOMO in 2011 and 2013 on an annual automatic renewal basis. In FY2025 (ended May 2025), sales to NTT DOCOMO reached ¥1,214,587 thousand (27.3% of total sales), and KDDI group companies are also listed among the major clients. This long-standing track record of transactions has formed a stable revenue base.
As of the end of FY2025 (ended May 2025), financial soundness indicators were at extremely high levels, with an equity ratio of 84.7%, a current ratio of 774.3%, and a fixed ratio of 18.6%. Cash and cash equivalents were maintained at ¥3,824 million, while interest-bearing debt remained low at ¥694 million. This near debt-free financial structure ensures flexibility for business investment.
In FY2025 (ended May 2025), the Creation Business segment achieved a segment profit margin of 20.5% (net sales of ¥1,800 million, segment profit of ¥368 million). The service delivery model leveraging the company's own proprietary rights and assets has realized high profitability, with both Content Services and corporate-oriented Business Support Services supporting profits as twin pillars.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥4,696 million in FY2024 (ending May 2024), declined to ¥4,442 million in FY2025 (ending May 2025), and edged up slightly to ¥4,467 million in FY2026 (ending May 2026), a modest increase of +0.6%. Operating profit plunged from ¥265 million in FY2024 (ending May 2024) to ¥68 million in FY2025 (ending May 2025), then recovered to ¥82 million in FY2026 (ending May 2026). Profit attributable to owners of parent surged to ¥65 million (+203.5% year on year), a substantial increase, though this includes the contribution of extraordinary income (gains on sales of fixed assets and investment securities totaling ¥31 million). Reductions in SG&A expenses (from ¥1,570 million in the previous period to ¥1,463 million in the current period) contributed to the profit recovery, while an increase in cost of sales capped further upside. The company forecasts revenue of ¥4,820 million, operating profit of ¥105 million, and net income of ¥85 million for FY2027 (ending May 2027).
Growth Strategy
Centered on the transition to a holding company structure, the company aims to expand profitability through three pillars: kitting support, AI-driven development, and human resource strengthening
At the Board of Directors meeting on June 17, 2026, the company resolved to implement an incorporation-type company split and an absorption-type company split, and plans to transition to a pure holding company structure by around December 2026. The company aims to optimize the allocation of management resources and enable agile business operations, targeting improved profitability through group synergies and M&A.
In the Business Support Services segment of the Creation Business, the company is strengthening sales efforts and expanding the reach of its kitting support tools, building on its extensive track record of support. Against a backdrop of growing demand for measures against abnormal weather, the company aims to expand its business by enhancing proprietary traffic information services and creating new services. In FY2026 (ending May 2026), kitting support grew significantly, contributing to revenue growth.
In response to demand for generative AI adoption and legacy system renewal, the company is strengthening its IT consulting capabilities and promoting AI-driven development. It aims to promote the provision of total solution services by leveraging the know-how accumulated in the Creation Business. In FY2026 (ending May 2026), System Development Services saw a decline in revenue amid an ongoing recovery process, with full-scale recovery in FY2027 (ending May 2027) remaining a challenge.
Demand for on-site business support services, which match the ongoing labor shortage issue, continues to grow, but revenue declined in FY2026 (ending May 2026) due to insufficient personnel acquisition. The company's policy is to promote deeper customer engagement and new customer development, primarily in the development domain, by enhancing the added value of highly skilled IT personnel and building a flexible support structure.
For Content Services, which has continued to see declining revenue due to the shrinkage of telecom carriers' flat-rate content plans, the company aims to achieve a turnaround through service expansion and strengthened corporate alliances. In addition, the Renewable Energy business, mainly involving the sale and purchase of solar power generation, aims to expand its services against the backdrop of growing momentum in the promotion of GX (Green Transformation).
Last updated: July 17, 2026