Human Creation Holdings, Inc.

Business Details

Through consolidated subsidiaries under a pure holding company, the group provides an integrated suite of services centered on Engineer Dispatch (SES), spanning Consulting & Contract Development, Maintenance & Operations, and M&A intermediation. Major clients include major system integrators and manufacturers. The business serves a wide range of industries including finance, manufacturing, energy, public sector, and telecommunications. Revenue for the second quarter (interim period) of FY2026 (ending September 2026) was ¥4,158 million, with segment profit of ¥164 million. Note that from this interim period, the Management Consulting Service business was separated, moving to a two-segment structure.

Recent Overview

Revenue increased, but profit declined sharply due to a surge in SG&A expenses; segment restructuring also implemented

Revenue for the System Solution Service Business in H1 FY2026 (ending September 2026) was ¥4,158 million, with segment profit of ¥164 million. While revenue grew steadily, profit was significantly squeezed by increased expenses associated with business expansion. Additionally, following the consolidation of HC Financial Advisor as a subsidiary in April 2025, the 'Management Consulting Service' business was separated and made independent from this interim period, moving to a two-segment structure. The Management Consulting Service business posted revenue of ¥318 million against a segment loss of ¥148 million, reflecting its current phase of upfront investment.

Key Products

Growth Drivers

• Continued expansion of demand for IT talent and DX talent from major SIers and manufacturers, driven by DX demand
• Shift toward higher value-added services and improved dispatch unit prices through active investment in Consulting & Contract Development (strategic area) (average contract unit price of ¥667 thousand/month, up 3.4% YoY)
• Inorganic growth through M&A: consolidated TARA as a subsidiary in February 2024 and HC Financial Advisor in April 2025, expanding business domains
• Promotion of human capital management: securing and retaining excellent talent through raised average salaries, and strengthening technical capabilities through proprietary e-learning and study groups
• Continued pursuit of strategic-area M&A based on the new medium- to long-term management policy through FY2030 (ending September 2030)

Risks

• Risk of rising talent acquisition costs and slowing recruitment due to intensifying competition for engineer hiring (headcount declined to 773 in FY2025 (ended September 2025) from 788 in the prior period)
• Risk that a sharp increase in SG&A expenses accompanying business expansion significantly compresses profit margins (SG&A expenses in H1 FY2026 (ending September 2026) were ¥1,057 million, up 32.3% from ¥799 million in the same period of the prior year)
• Risk that the segment loss (¥148 million in the interim period) from the upfront investment phase of the Management Consulting Service business weighs on overall group profitability
• Impact of AI proliferation on engineer demand and utilization rates
• Risk of increased goodwill balance (¥1,193 million as of end of March 2026) and impairment risk, along with PMI cost burdens associated with M&A execution
• Operating cash flow was an outflow of ¥190 million in the interim period, affecting cash flow management