Peers Co.,Ltd.

Business Details

The sole reportable segment of Piers Inc. It consists of three services: sales promotion for telecommunications carriers and retailers, provision and operation of online customer service/sales systems, and AI-driven human resource development support (AI Boarding). PMI and infrastructure development of group companies through M&A has progressed smoothly, with profit contribution becoming apparent. The company is also expanding into the Digital Content Business and compliance/internal control support services utilizing generative AI.

Recent Overview

Net sales, operating profit, and ordinary profit increased, but net income declined due to normalization of tax burden

For the cumulative second quarter (interim period) of FY2026 (ending September 2026), net sales were ¥3,668 million (up 17.7% year-on-year), operating profit was ¥356 million (up 13.4%), and ordinary profit was ¥397 million (up 33.3%), representing increased revenue and profit. On the other hand, due to the resolution of prior-year tax loss carryforwards, the tax burden normalized (total income taxes of ¥159 million, versus ¥47 million in the same period of the prior year), resulting in interim net income attributable to owners of parent of ¥237 million (down 5.3% year-on-year). During the interim period, AIO Partners Co., Ltd. was newly established and Forkwell, Inc. was made a subsidiary (two companies added to the scope of consolidation). Goodwill increased by ¥226 million due to M&A, reaching ¥895 million. The full-year earnings forecast has been revised to net sales of ¥7,800 million (up 27.8% year-on-year) and operating profit of ¥445 million (down 20.3%).

Key Products

Growth Drivers

• Profit contribution becoming apparent through progress in PMI and infrastructure development of group companies (bellFace, AIO Partners, Forkwell, etc.) joined through M&A
• Realization of monetization in the Digital Content Business and transition to a profit contribution phase
• Expansion of compliance support and internal control operations support services utilizing generative AI targeting listed companies and financial institutions
• Acquisition of a customer base in the financial industry (banking and securities) through the bellFace business and expansion of the online sales business
• Continued increase in operating profit and ordinary profit through ongoing company-wide cost control
• Capturing consulting demand for the telecommunications industry, centered on sales to the NTT DOCOMO group

Risks

• Risk of sales concentration in the NTT DOCOMO group (accounting for 63.6% of net sales in FY2025 (ended September 2025))
• Risk of demand decline due to changes in the telecommunications industry market environment (carrier shop consolidation and sales channel restructuring)
• Pressure on net income due to normalization of corporate tax burden following resolution of prior-year tax loss carryforwards (full-year net income forecast for FY2026 (ending September 2026) is ¥270 million, down 33.3% year-on-year)
• Impairment risk related to the goodwill balance of ¥895 million (as of end of March 2026)
• Risk of PMI delays and increased integration costs related to M&A (AIO Partners, Forkwell, etc.)
• Risk of declining profit levels due to upfront investment and cost increases, as indicated by the full-year operating profit forecast of ¥445 million (down 20.3% year-on-year)
• Risk of increased borrowing costs due to the transition to a rising interest rate environment (long-term borrowings balance of ¥617 million)