IMAGE MAGIC Inc.
7793・Growth Market・Other Products
Business
Image Magic Inc. was founded in 1995 and listed on the Tokyo Stock Exchange Growth Market in 2022, operating as a manufacturing DX company. Its core business, "Original Print.jp" (supporting approximately 1,900 item types), provides on-demand printing for apparel and general merchandise via the internet, with operations spanning two channels: direct sales and sales through partner companies. In addition, the company is cultivating an ODPS (Solution Service (ODPS)) business, providing in-house developed production management systems and hardware such as DTF printers to apparel manufacturers and printing companies. Its customer base ranges widely from general consumers to major apparel companies and content holders, and it has built a highly automated system capable of processing orders from receipt to packaging and shipment in as little as 5 minutes.
Business Model
Of total revenue of ¥9,402 million, On-Demand Print Service accounted for ¥8,540 million (91%) and ODPS Solution Service accounted for ¥862 million (9%). The print service business consists of two pillars: direct sales via the company's own website and back-office outsourcing for partner companies. The solutions business is a composite model comprising SaaS-type software, hardware sales, consumables sales, and contracted system development, characterized by recurring revenue from consumables sales after installation. Gross profit margin was 40.4%.
Company Strengths
The company operates multiple production sites including the Kawagoe Plant and the GPC Plant, and has internally developed and operates a cloud-based production management system capable of packaging and shipping processing in as little as 5 minutes from order receipt. In FY2025, production results on a manufacturing cost basis reached ¥5,128 million (up 15.6% year on year), and the company continues to make ongoing automation investments, including the start-up of automatic screen printing machines and automatic name-matching (meiyose) equipment.
According to the Annual Securities Report, while competitors exist in each of the printing company, system development company, and hardware manufacturer domains individually, no competitor comprehensively operates a business integrating all of these areas. Through capital and business alliances with TOPPAN Inc., GMO Pepabo, Inc., and Transaction Co., Ltd., the company is expanding its customer base and production network.
In FY2025, the gross profit margin was 40.4%, and cash flow from operating activities was ¥820 million (up 38.6% from ¥591 million in the previous year). Despite repaying long-term borrowings, paying dividends, and acquiring treasury stock, the cash balance increased to ¥1,168 million. Overdraft agreements totaling ¥530 million (unused) with two partner banks also function as a liquidity buffer.
ENVALITH's Perspective
Performance Trend
Over the past four fiscal periods, performance has continued on an expansionary trajectory: revenue grew from ¥4,897 million (FY2022) to ¥5,292 million (FY2023), ¥7,767 million (FY2024), and ¥9,402 million (FY2025). Operating income fell to ¥69 million in FY2023 before recovering and expanding to ¥440 million in FY2024 and ¥556 million in FY2025. For the full FY2026 (ending December 2026), the company forecasts revenue of ¥10,700 million (up 13.8% year on year) and operating income of ¥650 million (up 16.9% year on year), representing continued growth in both revenue and profit. However, in Q1 FY2026 (ending December 2026), while revenue maintained high growth at ¥2,283 million (up 22.9% year on year), the increase in selling, general and administrative expenses outpaced gross profit growth, resulting in an operating loss of ¥41 million (compared with a loss of ¥3 million in the same period of the prior year), indicating deteriorating profitability. As external factors, expanding demand related to "oshi-katsu" (fan-support activities) and the growing generative AI-related market are tailwinds, but the current challenge lies in the cost-front-loaded structure, which presumes profit recovery in the second half of the fiscal year.
Growth Strategy
Capturing multi-layered growth in the on-demand print market through AI, automation, and solution deployment
Against the backdrop of rising demand for 'oshikatsu' (fan-support activities) and personalization, the company continues to expand items compatible with on-demand production. On-demand print service sales in Q1 of FY2026 (ending December 2026) rose 19.9% year-on-year, and the strengthening of new product handling is contributing to customer acquisition.
The company provides hardware and software such as DTF-method printers to external companies, building up recurring revenue through consumables sales. Solution Service sales in Q1 of FY2026 (ending December 2026) accelerated to a 57.1% year-on-year increase, with hardware consumables sales remaining strong.
The company is accelerating development of design support functions utilizing generative AI and an autonomous control system for inspection and production processes using AI cameras. It is advancing manufacturing flow DX toward realizing a 'factory that never stops' to address labor shortages, strengthening its competitive advantage in multi-variety, ultra-small-lot production. Investment in machinery and equipment continues (up ¥94 million from the previous fiscal year-end), with facility expansion in progress.
The full-year earnings forecast for FY2026 (ending December 2026) is sales of ¥10,700 million (up 13.8% year-on-year), operating profit of ¥650 million (up 16.9%), and net income of ¥440 million (up 33.4%). The company explains that Q1 results were generally in line with plan, and the forecast remains unchanged. However, an accumulation of ¥691 million in operating profit is needed over the remaining three quarters, reflecting a structure weighted toward the second half.
Last updated: July 17, 2026