ENVALITH
株式会社SHINKO logo

SHINKO Inc.

7120・Standard Market・Wholesale Trade

Official website
株式会社SHINKO logo
SHINKO Inc.7120

Business

SHINKO Co., Ltd. is an independent IT services company built on three business pillars—Maintenance Service Business, Solutions Business, and Staffing Service Business—delivering 24/7, 365-day service from over 60 locations nationwide. Its main customers span a wide range, including medical institutions such as hospitals, clinics, and dispensing pharmacies, government agencies and municipalities, and general corporations and retailers. The company holds approximately 36,000 maintenance contracts, and more than 750 engineers leverage both CE and SE skill sets to provide integrated support ranging from maintenance to installation design, deployment, and staffing. With a long history dating back to its founding in 1953, the company listed on the Tokyo Stock Exchange Standard Market in 2023.

Business Model

The core earnings pillars are the recurring-revenue contracts of the Maintenance Service Business (net sales of ¥5,140 million) and the Staffing Service Business (net sales of ¥2,269 million). The Solutions Business (net sales of ¥11,974 million) generates flow-type revenue from IT equipment sales and deployment, etc., but has a synergistic structure in which maintenance contracts follow on after construction work is completed. Centered on outsourced work from major partners such as Wiemecs, KDDI, and NEC Fielding, the company leverages its nationwide locations and engineering resources to bring projects in-house, aiming to improve profit margins.

Company Strengths

The company has concluded approximately 36,000 maintenance contracts with hospitals, clinics, and dispensing pharmacies. It covers major medical IT systems including Electronic Medical Record & Receipt Computer Maintenance (Wiemecs products) and PHC's electronic medication history systems, and as a manufacturer-independent player, undertakes maintenance on behalf of multiple vendors. Contract-based recurring revenue is less susceptible to economic fluctuations, and the company has maintained stable revenue even during the COVID-19 pandemic since 2020.

The company deploys over 750 engineers across more than 60 nationwide locations, providing on-site services 24 hours a day, 365 days a year. Engineers possess both CE and SE skill sets and work across the three businesses of maintenance, installation, and staffing. The Technical Center (Remote Monitoring, Call Center, Help Desk) handles dispatcher functions, remote monitoring, and technical support using smart glasses, enabling rapid and consistently high-quality service delivery.

The Maintenance Service Business continuously receives maintenance contracts from customers who introduced equipment through the Solutions Business, while the Staffing Service Business acquires solutions and maintenance projects from its staffing placement destinations, creating a synergistic structure. The LCM Service, launched in 2025, provides one-stop service from procurement to disposal, further strengthening inter-business collaboration. The company has also expanded its scope of operations by obtaining a secondhand dealer license and Medical Equipment Repair Service licenses (at 6 locations).

ENVALITH's Perspective

In FY2026 (ending March 2026), multiple large-scale projects overlapped, including long-term government projects, PC installations for medical institutions, and NEXT GIGA, resulting in a substantial increase in both revenue and profit: net sales of ¥19,383 million (up 14.7% year on year) and operating profit of ¥913 million (up 32.8% year on year). On the other hand, trade receivables increased by ¥1,799 million compared to the end of the previous fiscal year, and cash flow from operating activities turned negative at ¥435 million. The company newly raised ¥700 million in short-term borrowings to fund working capital, and the payment cycle for large-scale projects and cash flow management will be key points to watch going forward.

In FY2026 (ending March 2026), net sales by major customer were ¥2,855 million for Wiemecs Inc. and ¥3,285 million for KDDI CORPORATION, with the two companies together accounting for approximately 32% of net sales. Compared with the previous fiscal year (combined total of ¥3,817 million for both companies, 22.6% of net sales), sales to KDDI increased significantly, raising the degree of dependence on specific customers. A deterioration in relationships with either company or changes in transaction terms poses a risk of directly affecting business performance, and progress in customer diversification needs to be continuously monitored.

The earnings forecast for FY2027 (ending March 2026) calls for net sales of ¥21,558 million (up 11.2% year on year), operating profit of ¥1,031 million (up 12.9% year on year), and net income of ¥682 million (up 1.1% year on year). While continued demand related to the Government Cloud and long-term care information infrastructure will support growth, a rebound decline in PC demand is expected following the end of Windows 10 support in October 2025. In addition, the company itself has identified external risks affecting all business segments, including constraints on memory supply for PCs and servers due to increased demand for HBM for AI data centers, as well as rising logistics costs and raw material prices stemming from the deterioration of the situation in the Middle East.

Growth Strategy

Advancing a three-year medium-term plan to expand the business foundation by capturing demand from medical, government, and nursing care DX initiatives

The Digital Agency's FY2026 (Reiwa 8) budget plans to expand information system development and operation costs, and the company aims to secure continued orders by leveraging the framework and knowledge built up in FY2026 (ending March 2026). In FY2026 (ending March 2026), government network construction work increased significantly, contributing to a 22.0% increase in Solutions Business sales.

In preparation for the full-scale operation of the nursing care information infrastructure scheduled to begin in April 2028, the company has begun operating as an implementation support provider for card reader and other device installation, Web service account setup, and related tasks. Support activities at nursing care facilities and medical institutions have gradually begun since FY2026 (ending March 2026), and the company plans to expand implementation support to local governments and nursing care facilities over the next two years.

The company aims to improve overall corporate profit margins by growing the Maintenance Service Business, which has the highest profit margin of the three business segments. In addition to maintenance contract synergies following completion of Solutions Business projects, the company is working to expand LCM (Life Cycle Management) Service projects, which began full-scale operations in FY2026 (ending March 2026). Electronic whiteboard and medical equipment repair outsourcing at the Technical Center (Remote Monitoring, Call Center, Help Desk) are also being developed as new service areas.

In FY2026 (ending March 2026), the company hired 70 new graduates and increased bonuses from 3 months to 4 months. The turnover rate was maintained at 6.5%, below the industry average. Through continued investment in engineer recruitment, training, and promotion of certification acquisition, the company is building a talent base capable of responding to increased demand across all three business segments: Solutions, Maintenance Service, and Staffing Service.

To respond to the deepening of medical DX, the company implemented an organizational restructuring effective April 1, 2026. Aiming for further active entry into the healthcare field, the company is building a system to provide integrated IT implementation support, maintenance, and staffing services for medical institutions and nursing care facilities.

Last updated: July 19, 2026