JENOBA CO.,LTD.

Business Details

The company utilizes approximately 1,300 electronic reference points operated by the Geospatial Information Authority of Japan to deliver high-precision positioning information in real time, correcting meter-level errors inherent in GNSS positioning down to centimeter-level accuracy. It offers pay-as-you-go, flat-rate, and annual contract plans targeting six core fields including surveying, ICT civil engineering, IT agriculture, and drones. It is a non-consolidated, single-segment company specialized in the domestic market alone.

Recent Overview

Net sales and all profit items reached record highs in H1 cumulative FY2026 (ending September 2026)

For the six months ended March 2026 (October 2025 to March 2026), net sales were ¥715 million (up 4.8% year on year), operating income was ¥406 million (up 3.3%), and interim net income was ¥287 million (up 4.2%), with net sales and all profit items reaching record highs. Cost of sales increased due to server replacement, higher maintenance expenses, and a slight increase in CP Trans MJW procurement, while SG&A expenses were contained through reductions in disclosure document preparation costs, among other factors. Non-operating income of ¥8 million was recorded, reflecting rising market interest rates and interest income on investment securities. The full-year earnings forecast (net sales of ¥1,433 million, operating income of ¥779 million) remains unchanged. The annual dividend forecast is ¥7.00 per share (up ¥1.00 from the prior fiscal year).

Key Products

Growth Drivers

• Expansion of ICT construction machinery adoption and demand for 3D machine guidance/machine control driven by the Ministry of Land, Infrastructure, Transport and Tourism's promotion of "i-Construction/Infrastructure DX," supported by the expanding scope of mandatory 3D data utilization in public works
• Increasing demand for high-precision positioning in the IT agriculture field, driven by support for the adoption of auto-steering agricultural machinery and pesticide-spraying drones through the Smart Agriculture Promotion Headquarters and Agriculture DX Promotion Council
• Continued demand for public surveying, disaster recovery, and reconstruction work associated with national resilience policy (promotion of GNSS-based crustal deformation monitoring and infrastructure monitoring by the Disaster Prevention DX Promotion Working Group)
• Growing importance of high-precision positioning driven by progress in institutional development toward expanded implementation of Level 4 autonomous driving in drone surveying, logistics, and inspection fields
• Increased surveying demand in the land and building surveyor field due to the revised Real Property Registration Act (mandatory inheritance registration, effective April 2024)
• Growing demand for efficiency and labor savings in surveying operations through the increasingly common integration with UAV surveying, mobile mapping, and 3D scanners

Risks

• Concentration risk from operating a single segment in a single domestic market (directly affected by industry business conditions and policy changes)
• Risk of GNSS signal disruption due to space weather events such as solar flares (impact on service quality)
• Risk of expanded market entry by competitors (increase in new entrants into the positioning information services business)
• Risk of server and data center failures (ensuring stable 24/7/365 distribution is a prerequisite for business continuity)
• Indirect impact from prolonged elevated fuel and electricity costs due to rising crude oil prices amid heightened tensions in the Middle East, and effects on production and adoption trends among ICT civil engineering and agricultural machinery manufacturers
• Possibility that the rate of sales growth may fall below the rate of increase in the number of contracts (due to diversification of unit prices and pressure toward lower pricing)