SUNCORPORATION
6736・Standard Market・Electric Appliances
Business
Sun Corporation is a Tokyo Stock Exchange Standard Market-listed company founded in 1971. It operates four segments: digital intelligence solutions for criminal investigation agencies (Global Data Intelligence Business), gaming machine parts and game content (Entertainment-related Business), M2M/IoT communication equipment and B2B business support systems (IT-related Business), and digital health including sleep tech (Wellness Business). Its main customers span a wide range including law enforcement agencies, pachinko halls, telecom carriers, and industrial users, forming a group comprising 6 domestic and overseas subsidiaries and 15 equity-method affiliates. Its equity investment in Cellebrite DI Ltd. (listed on NASDAQ), an equity-method affiliate, occupies an important position financially.
Business Model
In the Entertainment-related Business, flow-type revenue from contract development, manufacturing, and sales of gaming machine control boards is the core business. In the IT-related Business, in addition to IoT communication device sales, subscription-type revenue such as the device management service "SunDMS" is being expanded. In the Global Data Intelligence Business, the company is accumulating stock-type revenue through subscription sales of Cellebrite products. Cellebrite's equity-method investment gains and gains from changes in equity contribute significantly to consolidated net income, forming the underlying structure.
Company Strengths
Acquired shares in Cellebrite in 2007 and continued to hold the company as an equity-method affiliate even after its NASDAQ listing in August 2021. In FY2026 (ending March 2026), the company recorded equity in earnings of affiliates of ¥4,969 million and gain on changes in equity of ¥4,727 million, which together account for the majority of consolidated net income of ¥9,664 million. This gives the company a financial structure capable of securing a high level of net income even when operating income is in deficit.
The company has built an integrated system covering planning, design, video production, programming, and control board manufacturing for pachinko and pachislot machines. It entered into a capital and business alliance with Fuji Shoji Co., Ltd. in 2013, and sales to Fuji Shoji in FY2026 (ending March 2026) reached ¥4,593,772 thousand (46.4% of total sales). The accumulation of expressive and technical capabilities through industry specialization underpins the company's strong product competitiveness.
The company holds patents related to 3G-to-LTE (4G) migration, maintaining a technological competitive advantage. Its Rooster Series (Industrial Network Equipment) achieves differentiation through dual-SIM redundancy functionality and integration with SunDMS, resulting in strong sales. It has a cumulative installation track record of over 500,000 units for beverage vending machines, forming a solid base for replacement demand.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) was ¥9,907 million (down 8.6% year on year), marking a second consecutive period of declining revenue. The main causes were a decrease in shipment volume of gaming machine parts in the Entertainment-related Business, and, in the IT-related Business, the tapering of LTE migration demand following the 3G service shutdown combined with delays in the rollout of new 5G/edge AI products. An operating loss of ¥15 million was recorded, indicating that the core business fell into the red. On the other hand, equity-method investment income from Cellebrite of ¥4,969 million (up ¥4,464 million year on year) drove a sharp expansion in ordinary income to ¥5,133 million (up 623.1%). Net income decreased to ¥9,664 million (down 43.9%), as equity change gains fell to ¥4,728 million, down ¥12,832 million year on year. Net income over the past five fiscal years has shown large swings driven by one-off gains and losses related to Cellebrite: ¥2,819 million in FY2022, ¥6,878 million in FY2023, -¥3,778 million in FY2024, ¥17,229 million in FY2025, and ¥9,664 million in FY2026, and this structure of significant volatility continues.
Growth Strategy
Promoting a performance recovery plan targeting net sales of ¥19,222 million and operating profit of ¥2,131 million in FY2027 (ending March 2027)
In the IT-related Business, the company is promoting the rollout of new products such as the 5G-compatible device "DRX5510" and the Edge AI-equipped Edge Computer "LBX8110" to capture replacement demand following the shutdown of 3G services. In FY2026 (ending March 2026), delays in development and market launch were a factor in the revenue decline, but the plan positions this as the core driver of a significant revenue recovery in the FY2027 (ending March 2027) forecast.
The company is expanding subscription-based orders for forensic and intelligence solutions, primarily centered on Cellebrite products. In FY2026 (ending March 2026), contributions from a contracted project with the Ministry of Internal Affairs and Communications also helped achieve net sales of ¥1,293 million (up 8.2% year on year), but segment profit declined to ¥140 million (down 14.6%) due to deteriorating order conditions.
Through its consolidated subsidiary Sun Digital Health Co., Ltd., the company is preparing for the domestic launch of MyWaves Technologies Limited Products (Sleep Tech). In FY2026 (ending March 2026), the business remained at the stage of zero net sales and an operating loss of ¥30 million, with commercialization and the start of sales serving as the next key milestone.
In FY2026 (ending March 2026), the company conducted a share buyback of ¥7,360 million, raising net assets per share to ¥2,236.91 (up ¥101.67 year on year). By launching a BBT for executives and a J-ESOP for employees from August 2025, the company has strengthened its commitment to enhancing corporate value over the medium to long term by establishing a stock price- and performance-linked compensation system.
Last updated: July 19, 2026