ENVALITH
株式会社ユビテック logo

Ubiteq, INC.

6662・Standard Market・Electric Appliances

Official website
株式会社ユビテック logo
Ubiteq, INC.6662

Business

Ubitech Inc. is a company listed on the TSE Standard Market, with ORIX Corporation (holding 57.6% of voting rights) as its parent company. Under its corporate philosophy of "Safety and comfort for people and society," the company operates three segments: the IoT Business, centered on the safe-driving support SaaS "D-Drive" and the safety-monitoring SaaS "Work Mate"; the Contract Manufacturing Business, which includes items such as the Circuit Board for Bite Force Measurement Device used in dental treatment; and the Contract Development Business, comprising Embedded Software Contract Development and Staffing Services for System Development. Major customers include large corporations such as Sekisui House (sales of ¥281 million), Sumitomo Riko (¥198 million), and ORIX Auto Corporation (¥153 million). Tailwinds from the revised Road Traffic Act and the revised Ordinance on Industrial Safety and Health are driving the company's transition into an expansion phase for its SaaS services.

Business Model

In the IoT Business, recurring subscription revenue from the SaaS services "D-Drive" and "Work Mate" forms the core, combined with hardware sales such as sensor-equipped communication devices. Indirect sales channels via partner companies including ORIX Auto Corporation are also utilized. In the Contract Manufacturing Business, stable revenue is secured through made-to-order production of items such as the Circuit Board for Bite Force Measurement Device. In the Contract Development Business, the consolidated subsidiary Ubitech Solutions supplements revenue through embedded software development and staffing services.

Company Strengths

"D-Drive," which features an alcohol interlock function compliant with the revised Road Traffic Act, saw IoT Business order intake surge 57.7% year on year, with the order backlog expanding 408.1% year on year. Inquiries for "Work Mate" have also steadily increased following the revised Industrial Safety and Health Regulations that took effect in June 2025, with both services functioning as powerful demand-generating devices backed by regulatory requirements.

Through sales collaboration with ORIX Auto Corporation, a group company of parent company ORIX Corporation (which holds 57.6% of voting rights), the company has established a system to provide the "D-Drive" alcohol interlock function nationwide across Japan. In addition, sales channels have been diversified through partnerships with Suzuyo Shinwart's "Asa Repo" and PIRL Co., Ltd.'s "Alkiller NEX," among others.

In the fiscal year ended June 2025, the IoT Business segment achieved a turnaround to a segment profit of ¥57 million (versus a segment loss of ¥38 million in the previous period). The Contract Manufacturing Business also expanded significantly, with net sales of ¥199 million (up 251.1% year on year) and segment profit of ¥50 million (up 402.9% year on year). As a result, the company-wide operating loss narrowed to ¥167 million from ¥245 million in the previous period.

ENVALITH's Perspective

The company recorded operating profit of ¥9 million for the cumulative nine months of FY2026 (ending June 2026), marking a clear turnaround from the situation in which it had posted operating losses for five consecutive fiscal years through the previous consolidated fiscal year. However, the full-year earnings forecast remains undetermined, as the company states it is "currently difficult to calculate a reasonable estimate," and attention should be paid to the fact that whether full-year profitability can be secured remains uncertain depending on fourth-quarter trends. Sales in the Contract Manufacturing Business fell sharply, down 67.5% year-on-year to ¥62 million, and the focus is on whether the growth in the IoT Business will continue to offset this decline.

The rapid expansion of sales in the IoT Business (up 24.7% year-on-year) is heavily dependent on external factors such as the revised Road Traffic Act and the revised Industrial Safety and Health Regulations. Medium- to long-term challenges include the sustainability of growth after the enforcement and diffusion of these regulations have run their course, as well as the risk of intensified price competition from the entry of competitors. On the other hand, if the accumulation of recurring SaaS-type revenue progresses, stable revenue can be expected even after the regulatory tailwind subsides, making disclosure of KPI information such as the number of client companies adopting the service and churn rate important for future evaluation.

The pace of cumulative nine-month sales of ¥924 million for FY2026 (ending June 2026) can hardly be called steady progress toward the FY2028 (ending June 2028) target of ¥1,657 million, and a substantial acceleration of growth is required over the remaining two fiscal years. The Contract Development Business continues to struggle, with sales of ¥123 million (down 11.2% year-on-year) and a segment loss of ¥9 million, making its contribution to overall company earnings limited. Whether a recovery in demand for the Contract Manufacturing Business and a turnaround in the Contract Development Business can be achieved in a way that complements the growth of the IoT Business will be key to achieving the plan.

Growth Strategy

Aiming for FY2028 (ending June 2028) net sales of ¥1,657 million and operating profit of ¥220 million, centered on expanded SaaS sales of D-Drive and Work Mate

By strengthening collaboration with partner companies including Orix Auto Corporation, the company aims to capture demand arising from the revised Road Traffic Act. In the cumulative nine months of FY2026 (ending June 2026), IoT Business net sales reached ¥738 million with segment profit of ¥188 million, indicating progress toward establishing it as a core business.

The June 2025 revision of the Industrial Safety and Health Regulations made heat illness countermeasures mandatory for all business operators, leading to an increase in the number of installations and inquiries. This is contributing to the growth of the IoT Business overall, and the company continues to expand its stable customer base, buoyed by regulatory tailwinds.

The development of new revenue sources utilizing data accumulated through the operation of D-Drive and Work Mate is set forth as a basic policy of the new three-year plan. At present, no specific business plans have been disclosed, and this is positioned as a mid-to-long-term initiative.

Selling, general and administrative expenses were reduced from ¥382 million in the same quarter of the previous year to ¥350 million, while the gross profit margin improved significantly from 26.3% to 39.0%. Through the simultaneous optimization of the cost structure and expansion of sales, the company achieved an operating profit surplus.

Last updated: July 17, 2026