HOUSEI Inc.
5035・Growth Market・Information & Communication
Business
HOUSEI Co., Ltd. is a domestic and overseas IT services company that started with system development for print media businesses such as newspaper and publishing companies, and has since expanded its customer base into finance, manufacturing, retail, healthcare, and other sectors. Domestically, it operates contract system development (prime contractor, one-stop model), proprietary products, and cloud services, while overseas it runs an offshore development base in Wuhan, China, IT services for China's domestic financial industry, and IT Services for Hong Kong Media. The company listed on the Tokyo Stock Exchange Growth Market in July 2022. Of its net sales of ¥4,779 million (FY2025, ending December 2025), the Domestic IT Business accounts for approximately 88%.
Business Model
The company's main revenue sources are contract system development for domestic media and general corporate clients (providing everything from consulting to operation and maintenance) and a low-cost, high-quality development framework leveraging Offshore Development (Wuhan) in China. In addition, it is pursuing a structural transformation aimed at improving gross profit margin by increasing the sales ratio of proprietary products and cloud services, such as the generative AI platform "imprai", Unmanned Store Solutions, and cloud-based typesetting services. The company places the highest priority on gross profit margin as a key management indicator, and consolidated gross profit margin for FY2025 (ending December 2025) reached a record high of 31.7%.
Company Strengths
In the newspaper and publishing industry systems market, where major competitors are withdrawing, the company provides an integrated total solution spanning typesetting systems, advertising management, and content management. It has long-standing business relationships with major media companies such as Seikyo Shimbun (14.3% of revenue) and The Yomiuri Shimbun Tokyo Head Office (7.5% of revenue), securing stable maintenance and operation revenue.
Centered on the Wuhan R&D base (Puhua International Technology (Wuhan) Co., Ltd.) established in 2000, the company has offshored the design and development processes of its Domestic IT Business. Internal sales of the Overseas IT Business reached ¥1,613,976 thousand (FY2025, ending December 2025), forming the foundation supporting the group's development cost competitiveness. Of the R&D expenses of ¥193,209 thousand, the Overseas IT Business accounted for ¥143,269 thousand.
Consolidated gross profit margin improved from 26.5% in FY2023 (ending December 2023) to 31.1% in FY2024 (ending December 2024) and 31.7% in FY2025 (ending December 2025), renewing its record high level. This improvement is driven by an increased proportion of cloud services and products as well as strengthened profitability management of contract development, confirming steady progress on the KPI management prioritizes most.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥4,254 million in FY2022 to ¥4,640 million in FY2023 and ¥4,919 million in FY2024, before declining to ¥4,779 million in FY2025. In Q1 of FY2026 (ending December 2026), revenue was ¥1,214 million (down 6.5% year on year), continuing the downward trend. On the profit side, after sharply deteriorating in FY2025 to operating profit of ¥37 million and a net loss attributable to owners of the parent of ¥195 million, Q1 of FY2026 (ending December 2026) saw a sharp recovery, with operating profit of ¥46 million (up 50.3% year on year) and net profit attributable to owners of the parent of ¥36 million (up 151.4% year on year). The improvement in profitability was driven by a simultaneous decline in the cost of sales ratio (from 68.5% in the same period of the previous year to 65.9% in the current period) and reductions in selling, general and administrative expenses. The full-year forecast remains unchanged at revenue of ¥5,200 million and operating profit of ¥240 million (up 556.6% year on year).
Growth Strategy
Three pillars: advancing AI and productization, expanding into medical and logistics DX, and achieving profitability in the Overseas IT Business
Utilizing the proprietary generative AI low-code development platform "imprai", the company is conducting technical research in the medical field with Juntendo University (automated drafting of medical opinion statements for disability support benefits). The company aims to expand document-preparation support services into the medical and administrative fields.
The "Unmanned Store Solutions" service, which supports labor-saving store operations using AI and IT, has been deployed at a total of 94 stores, including 33 Sanyodo bookstore locations. The accumulation of maintenance and operation revenue is contributing to strengthening a stock-type revenue base.
Sales of "LOGIFLUX WMS", a warehouse management system (WMS) solution deployed in more than 25 countries worldwide, began in the Japanese market in Q1 FY2026 (ending March 2026). As a packaged product that integrates warehouse operations from receiving, shipping, and inventory management to KPI visualization, it aims to capture DX demand among logistics companies.
The company is pursuing, as a medium- to long-term strategy, the maintenance of an offshore development structure utilizing its Wuhan and Suzhou bases in China, along with the expansion of IT services for the domestic Chinese financial industry. However, in Q1 FY2026 (ending March 2026), the operating loss widened to ¥36 million, and profitability remains a work in progress.
Last updated: July 17, 2026