INTELLIGENT WAVE INC.
4847・Prime Market・Information & Communication
Business
Intelligent Wave Inc. is a financial IT specialist company established in 1984. Its primary customers are financial institutions such as credit card companies, banks, and securities firms, and it provides systems based on in-house developed packaged software, including payment network connection and authentication systems, card fraud detection systems, and merchant management systems. Its business domains have been reorganized into three areas—"Payments," "Security," and "Data Communication & Analytics Platform"—supporting both on-premises and cloud environments. In 2010, it became a subsidiary of Dai Nippon Printing Co., Ltd., and it is currently listed on the Prime Market of the Tokyo Stock Exchange. Net sales for FY2025 (ended June 2025) were ¥15,596 million.
Business Model
The company provides in-house developed payment and security packaged software to financial institutions, building up stock-type revenue from maintenance/operation services and cloud services in addition to initial system development revenue. In FY2025 (ended June 2025), cloud service sales in the payment domain grew strongly to ¥3,479 million (up 138.9% year on year). The order backlog reached ¥20,311 million (up 22.5% year on year), providing high visibility into future revenue. The company is also working to expand its customer base and business domains through collaboration with the DNP Group.
Company Strengths
The order backlog at the end of FY2025 (ended June 2025) reached ¥20,311 million (up 22.5% year on year), with multiple system renewal demands from major card companies expected from the next fiscal year onward. The increase in stock-type projects (cloud services, infrastructure operation services, etc.) is driving the expansion of the backlog, underpinning medium-term revenue stability.
Against the backdrop of increasing card fraud damage, demand for the Fraud Detection Cloud Service has expanded rapidly. In FY2025 (ended June 2025), cloud service sales in the payments domain reached ¥3,479 million, up 138.9% year on year. The company is also working to launch new industry-wide fraud prevention solutions, promoting enhanced value provision within the industry.
While maintaining zero interest-bearing debt (debt repayment period of 0.0 years), operating cash flow in FY2025 (ended June 2025) was at a high level of ¥4,263 million (up 11.7% year on year). Cash and cash equivalents stood at ¥6,422 million. With an equity ratio of 50.7%, the company combines financial stability with capacity for investment.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal periods, from ¥11,188 million in FY2021 (ending June 2021) to ¥15,596 million in FY2025 (ending June 2025), representing a CAGR of approximately 8.7%. Operating profit peaked at ¥2,031 million in FY2024 (ending June 2024) before declining to ¥1,848 million in FY2025 (ending June 2025), down 9.0% year on year. Factors such as quality enhancement measures for certain projects, changes in the product mix within the security domain, and lump-sum depreciation of Proprietary Products weighed on the gross margin. ROE declined to 14.4% from 15.8% in the prior period. Operating cash flow remained solid at ¥4,263 million, indicating that cash-generating capacity remains more robust than the profit figures on the income statement would suggest.
Growth Strategy
Aiming for net sales of ¥19,000 million and an operating margin of 15.0% in FY2027 (ending June 2027) through transformation in the three business domains of "Payment, Security, and Data Communication"
Capturing demand for modernization and open architecture of core systems driven by the expansion of cashless payments, expanding beyond FEP and fraud detection into Acquiring Business Solutions. Also working to launch a cross-industry fraud countermeasure solution. The target for net sales in the payment domain for FY2027 (ending June 2027) is ¥14,600 million.
Promoting the value enhancement and sales strengthening of highly profitable proprietary products (such as CWAT). Focusing on expansion into overseas markets, primarily in Southeast Asia. Expanding the customer base through participation in the DNP Group's all-in-one security service. The target for net sales in the security domain for FY2027 (ending June 2027) is ¥2,800 million.
Expanding core technologies of high-speed, high-volume data communication and analysis/processing into industries beyond finance. Challenging to capture new markets, leveraging track record in system development for securities firms as a foothold. The target for net sales in this domain for FY2027 (ending June 2027) is ¥1,600 million (approximately double the ¥817 million recorded in FY2025 (ended June 2025)).
Deepening collaboration with the parent company, Dai Nippon Printing Co., Ltd. Group, further than before, aiming to strengthen business competitiveness by leveraging each other's customer bases. Net sales to Dai Nippon Printing in FY2025 (ended June 2025) were ¥1,731 million (11.1% of total), an increase of 28.3% year on year.
Promoting strategic personnel allocation through visualization of skills and experience, along with continuous learning support and reskilling. Aiming to improve team performance through the development of management-level staff and visualization of organizational conditions. Net sales per employee reached ¥30.1 million in FY2025 (ended June 2025), increasing for five consecutive fiscal years.
Last updated: April 27, 2026