ENVALITH
扶桑電通株式会社 logo

FUSO DENTSU CO., LTD.

7505・Standard Market・Wholesale Trade

Official website
扶桑電通株式会社 logo
FUSO DENTSU CO., LTD.7505

Business

FUSO DENTSU CO., LTD. was founded in 1948, starting out as an authorized dealer for Fujitsu Limited, and has developed into an independent ICT specialty trading company. It provides an integrated range of services including network equipment construction and installation, office equipment sales, systems consulting and software development, and operation and maintenance services. Its major customers span a wide range of industries, including local governments, healthcare, electric power, transportation, and private-sector demand (general corporations), and it operates a broad network of sales offices nationwide, from Hokkaido to Kyushu. In FY2025 (ending September 2025), net sales reached ¥54,684 million and the order backlog reached ¥29,637 million, with the business scale on an expanding trend. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Centered on the Fujitsu Group sales partner agreement, which has continued since 1964, the company has built multi-layered revenue across its four divisions—Network, Solutions, Office, and Service. By combining equipment sales and installation (flow revenue) with maintenance and cloud services (stock revenue), the company secures revenue stability. Service Division sales for FY2025 (ending September 2025) reached ¥11,938 million (up 10.5% year on year), continuing steady growth.

Company Strengths

Since concluding a telecommunications agency agreement in 1964, the company has maintained and expanded its business relationship with the Fujitsu Group for over 60 years. In July 2024, it newly concluded a Fujitsu Group sales partner agreement covering Fujitsu Limited, Fujitsu Japan Limited, and FS Technologies Corporation, and the resulting revitalization of new business negotiations through strengthened collaboration directly contributed to the revenue increase in FY2025 (ending September 2025).

Operating profit for FY2025 (ending September 2025) was ¥3,428 million (up 83.8% year on year), with the operating profit margin at 6.3% (up 2.3 percentage points year on year). In addition to the increase in revenue, improvements in gross profit margin in the Office Division and Solutions Division drove the profit expansion. Operating cash flow also improved significantly to ¥4,877 million, up from ¥1,310 million in the same period of the previous year.

Since its founding in 1948, the company has established sales offices nationwide, including in the Tohoku, Kansai, Chugoku, Chubu, Kyushu, Hokkaido, Shikoku, and Kanto regions. It serves a wide range of industries such as municipalities, healthcare, electric power, transportation, and private-sector demand, with customer diversification advanced to the point where no single customer accounts for more than 10% of sales. Orders received in FY2025 (ending September 2025) totaled ¥63,504 million (up 23.7% year on year), reflecting expanded orders across a broad range of industries.

ENVALITH's Perspective

Interim net sales of ¥35,264 million for the six months ended in the first half of FY2026 (ending September 2026) represent 59.5% of the full-year forecast of ¥59,300 million, while operating profit of ¥3,370 million represents 94.1% of the full-year forecast of ¥3,580 million. As the company exhibits seasonality with higher second-quarter sales due to the concentration of customers' fiscal year-ends in March, the sales progress rate is within expectations, but the extremely high progress rate for operating profit is noteworthy. Depending on the profit level in the second half, there is room for the full-year forecast to be revised upward.

Interim order intake of ¥26,856 million fell significantly short of net sales of ¥35,264 million. While the healthcare business performed well, a decline was observed in information terminal replacement projects for commercial customers. External factors such as trends in corporate capital expenditure and weak economic recovery amid Middle East tensions may be affecting order intake. Order trends in the second half need to be monitored closely as a leading indicator that will determine whether the full-year results target is achieved.

As interim consolidated financial statements were prepared for the first time from the interim period of FY2026 (ending September 2026), comparative analysis with the same interim period of the previous year is not possible. The rate of change from the previous period is also undisclosed for the full-year forecast, limiting the information available for investors to assess the substantive growth rate of performance. The extent of the performance contribution from the consolidated subsidiary Systemmake also remains unclear, and enhanced information disclosure going forward will be essential for improving the accuracy of corporate value assessment. Structural risks such as dependence on Fujitsu and concentration in specific industries also continue to remain.

Growth Strategy

Aiming for sustainable growth toward FY2027 (ending September 2027) through three pillars: industry-specific DX, M&A, and management foundation strengthening

Promoting DX utilizing AI, cloud, and next-generation communications, centered on six industries: government agencies/municipalities, manufacturing, distribution, financial/insurance, and healthcare. Enhancing hands-on consulting capabilities to provide integrated support from resolving customers' management issues to generating results. In the interim period, large-scale healthcare projects and municipal disaster prevention projects progressed favorably, confirming the strategy's effectiveness.

Expanding technological capabilities, human resources, and business domains through alliances with partner companies and strategic M&A, generating group synergies. In December 2025, System Make Co., Ltd. was made a consolidated subsidiary (acquisition date: December 22, 2025), transitioning the company to one that prepares consolidated financial statements. Further M&A possibilities are suggested going forward.

Promoting the development of DX human capital, revamping the personnel system, enhancing operations through the establishment of generative AI and AI infrastructure, and improving operational efficiency using BI and SFA. Established a human capital incentive system utilizing J-ESOP (Employee Stock Ownership Plan Trust), and in February 2026 disposed of 540,000 treasury shares through third-party allotment. Aims to build an organization resilient to change by enhancing productivity and proposal capabilities.

Expanding recurring revenue in the Service Division (interim net sales of ¥6,401 million), centered on maintenance and support services, to strengthen a stable revenue base less susceptible to economic fluctuations. Continuing to promote a shift in revenue structure from equipment sales to services and solutions.

Last updated: July 17, 2026