ENVALITH
株式会社オービーシステム logo

O.B.System Inc.

5576・Standard Market・Information & Communication

Official website
株式会社オービーシステム logo
O.B.System Inc.5576

Business

OB System Co., Ltd. is an independent system integrator founded in 1972, with over 40 years of business relationships with Hitachi, Ltd. and BIPROGY Inc. The company operates four service lines: the Financial Business (banking, insurance, securities, credit), the Industrial & Distribution Business (industrial distribution, microcomputers, medical), the Public & Social Infrastructure Business (electric power ICT, social infrastructure, public sector, education), and the IT Innovation Business (cloud, system infrastructure, financial solutions). With bases in Tokyo, Osaka, and Nagoya, the company focuses on contracted development, operation, and maintenance work commissioned by end users, domestic IT manufacturers, and prime contractor SIers. It listed on the TSE Standard Market in June 2023 and is pursuing expansion of its consolidated business through M&A.

Business Model

Continuous projects and operation/maintenance contracts from major prime contractor SIers such as Hitachi, Ltd. account for more than half of sales, forming a stable revenue base. The company secures upward flexibility in project scale through a development structure combining in-house engineers and partner companies (outsourcing contractors). It also handles the sales and maintenance of its own products (Clinical Laboratory System CLIP / Health Examination System MEX-Plus). The gross profit margin for FY2026 (ending March 2026) is approximately 19.4% (net sales of ¥8,656 million, gross profit of ¥1,676 million).

Company Strengths

The company has maintained continuous business relationships for over 40 years with Hitachi, Ltd. and BIPROGY Inc., and for over 30 years with Mitsubishi Electric Software Corporation. Sales to Hitachi, Ltd. in FY2026 (ending March 2026) amounted to ¥2,865,620 thousand (33.1% of net sales). The accumulation of business knowledge and technical expertise built up through years of development track record functions as a barrier to entry, with continuing projects and operation/maintenance projects supporting stable earnings.

The company has obtained three certifications: ISO 9001:2015 (Quality Management System), ISO/IEC 27001:2013 (Information Security), and the Privacy Mark. The Quality Management Department systematically conducts "quality assurance inspections" and continuously refines standard quality target values. This framework functions to support continued order intake in high quality-demand areas such as finance and public sector.

The company made Human & Technology Co., Ltd. a subsidiary in April 2024 and Green Cat Co., Ltd. a subsidiary in May 2025. The order backlog for FY2026 (ending March 2026) increased substantially to ¥1,837,718 thousand (up 123.1% year on year), with sales recognition expected in the following fiscal periods and beyond. Synergies from M&A in the form of customer diversification and shared personnel know-how are contributing to the strengthening of the business foundation.

ENVALITH's Perspective

The operating margin on net sales for FY2026 (ending March 2026) was 7.8% (improved from 7.3% in the prior period). Management has explicitly identified upfront personnel costs associated with aggressive hiring, increased goodwill amortization, and increased in-house AI education expenses as factors suppressing margins. The FY2027 (ending March 2027) forecast operating margin is projected to improve to 8.35% (¥835 million ÷ ¥10,000 million), but given the ongoing external environment of IT talent shortages, the risk of persistently high hiring costs remains. Whether the company can achieve margin improvement toward its medium-term plan targets continues to be a key point of focus.

Green Cat's consolidated contribution was limited to the 8-month period from May to December 2025, and FY2027 (ending March 2027) will see a full-year contribution. The focus is on whether synergies from strengthening financial-sector development and diversifying the customer base can be confirmed numerically. Meanwhile, the medium-term plan lists "further promotion through capital and business alliances (M&A)" as a growth action, and the scale, terms, and goodwill burden of the next M&A deal will be closely watched for their financial impact.

In terms of market environment, demand for legacy system renewal, cloud utilization, and generative AI utilization remains firm, and orders to the information services industry as a whole are on an expanding trend. On the other hand, as an external factor, the shortage of IT personnel such as systems engineers is a common challenge across the industry, with intensifying competition for hiring and continued increases in unit prices. The company is responding by continuing to hire 40-50 new graduates annually and raising salary levels, but the fact that management itself recognizes securing development personnel, including partner companies, as the most critical management issue warrants attention as a risk.

Growth Strategy

Aiming for consolidated net sales of ¥10,000 million (FY2027, ending March 2027) through a three-pronged approach combining human capital strengthening, expanded business alliances, and M&A

Continuing annual new graduate hiring of 40-50 people while actively pursuing experienced-hire recruitment, and raising compensation levels to secure and retain talent. Focus on education and development of DX talent, including generative AI specialists, to accelerate their contribution. Also continuing to promote acquisition of various qualifications to enhance technical capabilities.

Promoting expansion of application development projects utilizing Microsoft Azure, strengthening proposal activities leveraging generative AI, and expanding orders for bank system infrastructure construction and investment trust projects. The IT Innovation Business performed steadily, with net sales of ¥671 million (+11.7%) in FY2026 (ending March 2026).

In May 2025, made Green Cat Co., Ltd. a wholly owned subsidiary (acquisition cost ¥700 million, goodwill ¥494 million, amortized over 9 years). Aiming to maximize synergies through strengthening financial system development capabilities, diversifying the client base, and sharing personnel know-how. Full-year consolidated contribution is expected in FY2027 (ending March 2027), when the effects are expected to fully materialize.

The Board of Directors resolved a policy of reduction, and sales have been proceeding in a planned manner in light of market conditions since FY2025 (ended March 2025). In FY2026 (ending March 2026), gain on sale of investment securities of ¥118 million was recorded as extraordinary income. This contributes to improving capital efficiency and securing funds for shareholder returns.

Last updated: July 19, 2026