DAIKOKU DENKI CO., LTD.
6430・Prime Market・Machinery
Business
Daikoku Denki Co., Ltd. is a comprehensive solutions provider for the pachinko industry, established in 1973. In its core Information Systems Business, the company provides hall computers, card units, information disclosure terminals, and data analysis services (DK-SIS) to pachinko hall operating companies. In the Amusement Business, DAXEL Corporation develops and sells smart pachislot machines, while Genki Co., Ltd. handles game software development. The Other segment covers operation of the Hakone Glass Forest Museum, real estate leasing, and food and beverage businesses, among others. The company consists of 10 consolidated subsidiaries (including 2 sub-subsidiaries) and is listed on both the Tokyo and Nagoya Stock Exchanges.
Business Model
In the Information Systems Business, the Company combines one-time revenue from hardware sales such as card units and information disclosure terminals with recurring stock-type revenue from monthly billing for the MIRAIGATE Service group (cloud chain-store management, trade area analysis, AI hall computers, etc.). In FY2026 (ending March 2026), service revenue grew steadily to ¥7,136 million (up 3.5% year on year). The Amusement Business is centered on sales revenue from smart pachislot machines and game software. The Company pursues improved capital efficiency, treating ROE as a key management indicator.
Company Strengths
DK-SIS, launched in 1990, is the industry's largest database aggregating operational data from pachinko halls nationwide. In April 2026, it was fully renewed and migrated to the cloud as "DK-SIS INFINITY." It provides industry-standard indicators such as installation ratio data for smart gaming machines (Smart Pachislot 61.1%, Smart Pachinko 28.5%), and possesses over 35 years of accumulated data assets that competitors would find difficult to replicate in a short period.
In FY2026 (ending March 2026), the Information Systems Business achieved a segment profit margin of 24.5% (net sales of ¥45,768 million, segment profit of ¥11,203 million). The accumulation of recurring revenue from the increasing number of member stores using MIRAIGATE Service has supported the profit margin, with service revenue growing steadily by 3.5% year on year to ¥7,136 million.
At the end of FY2026 (ending March 2026), the equity ratio stood at 83.8% (up 4.7 percentage points from the previous fiscal year-end), with net assets of ¥49,668 million. The company maintains a financial structure that does not rely on interest-bearing debt, with cash and cash equivalents of ¥18,591 million. This financial capacity to fund capital expenditures, M&A, and shareholder returns from internal funds serves as the foundation for executing its business expansion strategy.
ENVALITH's Perspective
Performance Trend
Revenue expanded rapidly from ¥24,390 million in FY2022 to ¥53,862 million in FY2024, but turned to its first-ever decline in FY2026 at ¥54,337 million (down 5.5% year on year). Operating profit peaked at ¥12,242 million in FY2025 before falling to ¥9,673 million in FY2026 (down 21.0% year on year), with operating margin declining from 21.3% to 17.8%. The main cause was a 12.2% decline in Information Systems Business revenue following the normalization of special demand from card unit reprinting compliance. Meanwhile, the Amusement Business performed strongly, driven by sales of its first smart pachislot model, with revenue up 44.2% and segment profit up 213.9%. For FY2027, the company forecasts a substantial profit decline, with revenue of ¥48,000 million (down 11.7%) and operating profit of ¥4,500 million (down 53.5%), mainly due to a moderation in capital expenditure demand related to smart gaming machines and increased new product development expenses. External factors such as tight semiconductor supply and rising crude oil prices also present cost-increase pressures.
Growth Strategy
Advancing DX services for smart gaming machines while diversifying the business portfolio through M&A
DK-SIS INFINITY, a renewal of the core service DK-SIS, is scheduled for launch in the next consolidated fiscal year (FY2027 (ending March 2026)). Through improved convenience via cloud migration and expanded data capabilities, the company aims to support decision-making by pachinko hall operators, deepening relationships with existing customers and acquiring new ones.
In collaboration with Tsuburaya Fields Holdings Co., Ltd., the company plans to launch a new service, FAN+AD (tentative name), aimed at efficient customer acquisition support, in the next consolidated fiscal year. This initiative seeks to create added value and diversify revenue sources within the Information Systems Business.
The company continues to promote adoption of the MIRAIGATE Service offerings, including ClarisLink, Market-SIS, and the Raku-raku Replacement Operation Option. In FY2026 (ending March 2026), service sales exceeded the same period of the previous year, and the number of member stores increased, with recurring-type revenue continuing to build up.
Building on Smart Pachislot "Youkoso Jitsuryoku Shijou Shugi no Kyoushitsu e," launched to market by DAXEL Corporation in May 2025, the company is advancing development of its next model to increase brand recognition and expand market share for its in-house pachislot machines. In parallel, the company is also pursuing revenue stabilization through contracted pachinko software development.
The Hakone Glass Forest Museum, whose operation began in October 2025, will strengthen customer acquisition through various programs and events to mark its 30th anniversary. Following the group participation of SHUNRI Co., Ltd., which operates the Japanese-style Crepe Specialty Store "Tabanenoshi," the company will promote store expansion and creation of synergies within the group. In FY2026 (ending March 2026), segment profit for Other was ¥13 million, indicating only a minor revenue contribution, and full-scale monetization remains a challenge.
Last updated: July 19, 2026