S&J Corporation

Business Details

S&J Inc. operates under the single segment of Cybersecurity Business. The company combines Consulting Service—covering security advisory activities, incident response, and vulnerability assessments for large and mid-sized enterprises—with 24/7/365 monitoring and operation services (SOC Service) leveraging its proprietary SIEM "SOC Engine" and cloud-based EDR "KeepEye®." SOC Service accounts for approximately 75.8% of revenue, and the company has built a stable revenue base through a stock-type revenue model based primarily on annual contracts. The company is also expanding its sales channels through sales agents such as SIers.

Recent Overview

In FY2026 (ending March 2026), revenue increased 20.1% and operating profit increased 32.2%, achieving higher revenue and profit; the company also paid its first-ever dividend

In FY2026 (ending March 2026), the company achieved double-digit growth across all profit items, with revenue of ¥2,333 million (up 20.1% year on year), operating profit of ¥556 million (up 32.2% year on year), and net income of ¥405 million (up 31.1% year on year). SOC Service led growth with a 22.6% increase, driven by the acquisition of new business such as KeepEye®. Consulting Service also grew 13.0%, driven by the acquisition of phishing email training and incident response projects. While actively conducting share buybacks (¥354 million spent), the company implemented its first-ever year-end dividend of ¥15 per share (payout ratio of 20.6%). For FY2027 (ending March 2027), the company forecasts revenue of ¥2,740 million (up 17.4%) and operating profit of ¥620 million (up 11.5%).

Key Products

Growth Drivers

• An increasing trend in information security IT investment across companies of all sizes and industries, driven by the frequent occurrence of ransomware damage and the intensification of cyberattacks against major corporations
• Steady acquisition of new SOC Service business such as KeepEye®, combined with the maintenance of high retention rates through continued service provision to existing customers
• Accumulation of ARR through a stock-type revenue model based primarily on annual contracts (contract liabilities balance of ¥599 million)
• Expansion of sales channels through the growth of contracts with a diverse range of sales agents, including SIers
• Acquisition of phishing email training and security incident response projects in Consulting Service

Risks

• Difficulty securing talented personnel with advanced cybersecurity skills (intensifying competition for hiring)
• Risk of revenue concentration in a key customer (dependence on Macnica, Inc.: 27.5% of revenue in the previous fiscal year)
• Risk of service disruption due to failures in computer systems or communication networks, or security incidents
• Suppression of customers' IT investment due to downside economic risks stemming from unstable global conditions and U.S. trade policy, among other factors
• Impact on profitability from rising costs due to inflation and increasing personnel expenses (selling, general and administrative expenses: ¥631 million, up 20.2% year on year)