ENVALITH
株式会社ソフトテックス logo

SOFTTEX CO., LTD

550A----

株式会社ソフトテックス logo
SOFTTEX CO., LTD550A

Business

SOFTTEX CO., LTD. is an independent system development company founded in 1984. Leveraging its neutral position, unaffiliated with any specific capital group, the company provides system development services to customers across a wide range of industries and sectors, both public and private. Its business consists of two pillars: Software Development Services (73.0% of sales composition) and Medical IT Services (27.0% of sales composition). Software Development Services is broadly divided into Contract Development, covering modernization, disaster prevention, logistics, media, and other fields, and Engineer Staffing Support, covering SIer support and direct customer support. In Medical IT Services, the company operates nationwide as a JMA IT-certified support office, providing installation and maintenance support for the Japan Medical Association's standard receipt software "ORCA" (a medical billing/claims software). The company is headquartered in Nagoya City, Aichi Prefecture, and has offices in Tokyo, Sapporo, and Okinawa. It listed on the Standard Market of the Tokyo Stock Exchange and the Main Market of the Nagoya Stock Exchange in April 2026.

Business Model

Revenue is composed of three service forms: Contract Development (28.7% of sales), Engineer Staffing Support (44.3%), and Medical IT Services (27.0%). Engineer Staffing Support is characterized by stable utilization-based income from dispatch and quasi-delegation contracts, while Medical IT Services is characterized by recurring stock-type revenue from maintenance and operation services following ORCA implementation. Contract Development combines direct orders (47.4% of Software Development Services sales), which contribute to higher added value and profitability, with orders received via SIers (52.6%), forming a structure that balances project continuity with profitability.

Company Strengths

Obtained certification as a Japan Medical Association IT-certified support office in November 2002, and has provided ORCA implementation and maintenance support for over 20 years since. As one of approximately 130 certified offices nationwide, the company holds certification at three locations—its head office, Tokyo, and Hokkaido—and has established order-taking channels through collaboration with electronic medical record and medical device manufacturers. Orders received for Medical IT Services continue to expand, up 113.6% year on year.

As an independent IT company not affiliated with any particular capital group, the company has built a customer base that is not limited to any specific industry or sector. By avoiding excessive dependence on specific clients, it has achieved long-term continuous transactions with both public organizations and private companies. As of the end of FY2026 (ending March 2026), the order backlog stood at ¥846,908 thousand (127.0% year on year), providing high visibility into revenue for the next period.

As of the end of FY2026 (ending March 2026), the company achieved zero interest-bearing debt and an equity ratio of 69.3% (improved from 63.1% in the previous fiscal year). Its external debt dependency ratio of 0.0% significantly exceeds the medium-term management plan target (10% or less), maintaining strong financial soundness. The company has established a framework enabling growth investment funded primarily by its own capital, while also retaining borrowing capacity should the need arise.

ENVALITH's Perspective

In FY2026 (ending March 2026), while Software Development Services grew only 0.8% year on year, Medical IT Services led growth with a 5.9% year-on-year increase, driving overall sales growth of 2.1%. The external factor of demand for online insurance eligibility verification introduction, driven by the extension of government subsidies, is functioning as a tailwind, and close attention is needed to how subsidy policy trends will affect the sustainability of Medical IT growth going forward.

Engineer Staffing Support, which accounts for 44.3% of sales, is a stable revenue source, but its structure, which depends on man-month unit pricing, makes it difficult for productivity gains to be reflected in earnings. The company has explicitly identified "expansion of stock-type businesses" and "creation of subscription-type services" as strategic challenges, but concrete progress at this point remains limited, and the speed at which the business model transition is realized will be a key point of evaluation.

In FY2026 (ending March 2026), the SG&A-to-sales ratio stood at 19.1%, 4.1 percentage points above the FY2029 (ending March 2029) target of 15%. Against a sales target of ¥4.5 billion, current sales stand at ¥3.6 billion, leaving room for scale expansion, and improvement is expected as sales growth allows fixed costs to be absorbed. However, continued investment in IT talent recruitment and development is a structural pressure pushing up SG&A expenses, and achieving the target will require balancing scale expansion with cost management.

Growth Strategy

Aiming for net sales of ¥4.5 billion in FY2029 (ending March 2029) centered on strengthening Medical IT, expanding Modernization Services, and creating stock-type businesses

Promoting increased orders related to ORCA through expanded collaboration with electronic medical record makers and medical device makers. Enhancing the lineup of integration software with peripheral medical systems in preparation for the cloud migration of receipt computers, and already released QOPrint (a medical and long-term care fee combined billing issuance service). Aiming to expand sales channels and revenue by building proprietary solutions.

In modernization solutions that capture demand for migration from legacy systems to modern systems, orders and progress on large-scale contract projects have been steady. Currently verifying and trialing productivity improvements by incorporating generative AI into conversion design, program code conversion, and code review. Leveraging strength in broad language support (COBOL, PL/I, etc.) to expand customer DX support.

Explicitly identifying the shift away from person-month-based business as a strategic issue, aiming to transition to a recurring revenue model through SaaS and maintenance/operation services. Promoting skill acquisition, revising marketing strategy, and reforming business mindset, but concrete service rollout remains at the consideration and preparation stage.

As a mid- to long-term strategy, the company has set a policy of creating new businesses, strengthening core businesses, and enhancing production capacity through M&A investment. It has a track record including the 2001 Kimura Unity, the 2015 business and capital alliance with MIROC Information Service, and the 2020 absorption-type merger with Interface Co., Ltd. No specific deals have been announced at this time.

In response to chronic IT talent shortages, promoting the recruitment and development of young talent, utilizing diverse recruitment methods, and improving external resource procurement capabilities. Against the backdrop of no-code development and AI advancement, positioning the shift to upstream processes such as requirements definition and design, and the strengthening of IT consulting functions, as key issues, while working to enhance engineers' skill sets and customer communication capabilities.

Last updated: July 19, 2026