Zenken Corporation
7371・Growth Market・Services
Business
Zenken Corporation was founded in 1975 and changed to its current company name in 2023. With the purpose of "Creating Futures That Don't Yet Exist," the company positions the resolution of the social challenge of Japan's declining working-age population due to falling birthrates and an aging society at the core of its business. In its main Marketing Segment, the company operates a Niche Specialized Media Production & Operation web marketing business, with a cumulative track record of over 8,000 specialized media production projects. In the Overseas Human Resources Segment, centered on its base in Bengaluru, India, the company provides overseas human resources recruitment in the IT, nursing care, and hospitality fields, as well as language education. In the Real Estate Segment, the company operates leasing businesses for its self-owned properties, "Zenken Plaza" and "Zenken Plaza II." Its main customers are a group of BtoB companies centered on domestic small and medium-sized enterprises, and the company listed on the Tokyo Stock Exchange Mothers market (now Growth Market) in 2021.
Business Model
The Marketing Segment generates stable recurring revenue from production fees and ongoing operation fees (average contract duration of 43.6 months) for specialized media targeting niche markets. The segment profit margin for FY2025 (ended June 2025) was 25.6%. The Overseas Human Resources Segment monetizes through recruitment fees for IT and nursing care personnel, as well as tuition fees for Corporate Language Training & Japanese Education Service. The Real Estate Segment provides stable cash flow through rental income from company-owned properties (profit margin of approximately 69.8%), underpinning growth investments in a supportive structure.
Company Strengths
Cumulative production of over 8,000 specialized media focused on customer acquisition for niche products and services. Centered on BtoB industries such as electronics and machinery, 978 media were in operation during FY2025 (ended June 2025) (average continuation period of 43.6 months). Through the accumulation of advanced production and operation know-how, the company assesses itself as being in a state where it can focus on business expansion without being conscious of strong competitors elsewhere.
Established a local subsidiary, ZENKEN INDIA LLP, in Bengaluru, a city in southern India known for producing IT talent, and through a Japan Career Center operated in partnership with local universities, has accumulated a cumulative total of over 20,000 candidates seeking employment in Japan. In FY2025 (ended June 2025), the number of IT talent hires reached 99 (an increase of 22 from the previous period), and recruitment events also expanded to 48 (an increase of 11 from the previous period), indicating an ongoing growth trend.
By leasing self-owned real estate properties, "Zenken Plaza" and "Zenken Plaza II," the company achieved net sales of ¥467 million and segment profit of ¥326 million in FY2025 (ended June 2025), with a profit margin of approximately 69.8%. Maintaining high occupancy, the stability of the tenant base—reflected in long-term security deposits received of ¥308 million—serves as a source of cash generation that supports growth investments.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for the nine months (cumulative Q3) of FY2026 (ending March 2026) came to ¥4,298 million (+1.9% year on year), a modest increase, while operating profit rose to ¥498 million (+54.9%), ordinary profit to ¥541 million (+60.8%), and quarterly net profit to ¥373 million (+26.4%), representing substantial profit growth. The disappearance of one-time office relocation costs incurred in the same period of the previous year contributed to the profit increase. The gross profit margin improved from 55.6% in the same period of the previous year to 60.8%, reflecting a notable reduction in cost of sales. In terms of financial position, total assets stood at ¥15,340 million with an equity ratio of 82.5%, indicating a high degree of financial soundness. Looking at the sales trend over the past five fiscal years (from ¥7,706 million in 2022 to ¥5,537 million in 2025), a full-scale recovery in net sales will require further expansion of the Overseas Human Resources Segment as well as a recovery in new orders in the Marketing Segment.
Growth Strategy
Aiming for consolidated net sales of ¥13.0 billion and a Tokyo Stock Exchange Prime Market listing by FY2030 (ending June 2030), centered on the Overseas Human Resources business, through M&A and improved capital efficiency
Expanding the recruitment field for Specified Skilled Worker foreign nationals targeting engineering, nursing care, and hospitality roles, leveraging the partnership network with government-affiliated organizations and sending organizations in India and Indonesia. Aiming to improve retention rates by expanding recruitment events and providing Japanese language education programs to those who receive job offers. In the cumulative nine months of FY2026 (ending March 2026) [Note: figure appears to be for fiscal year ending June], the human resources business recorded net sales of ¥682 million (up 41.0% year on year), continuing its high growth trajectory.
Promoting a strategic shift toward BtoB niche markets (electrical equipment, machinery, etc.), expanding Overseas Customer Acquisition Media, and entering the Human Capital Marketing field. Aiming to improve production and operation productivity through company-wide utilization of generative AI. However, the decline in new orders that began in the second half of the previous consolidated fiscal year has continued, making recovery an urgent priority.
Under the medium-term management plan 'Road to 250,' M&A strategy is positioned as a pillar for strengthening the management foundation. Investment securities increased by ¥470 million from the previous fiscal year-end (to ¥1,484 million) due to investments in new investee companies, among other factors. As part of enhanced shareholder returns, the annual dividend forecast has been set at ¥26 per share (doubling from ¥13 in the previous fiscal year).
Last updated: July 17, 2026