DAIKO XTECH, Ltd.
8023・Standard Market・Information & Communication
Business
DAIKO XTECH, Ltd. is a system integrator founded in 1953, with a history spanning over 70 years since its establishment. Based on a sales partnership agreement with the Fujitsu group, the company provides services across three segments: hardware sales (Product Solutions), software development and maintenance (Software Solutions), and network construction (Network Solutions). Its main customers are over 20,000 mid-sized enterprises, and it also develops in-house packaged products such as the production management systems "D-PaSS" and "rBOM" for manufacturers, the paperless solution "DD-CONNECT" (EdiGate DX-Pless / DD-CONNECT), and the security product "AppGuard®". Under a group structure consisting of the parent company and 10 subsidiaries, it provides one-stop services ranging from consulting to design, construction, operation, and maintenance.
Business Model
Of net sales of ¥42,500 million, Software Solutions accounted for ¥22,191 million (52.2%), with modernization projects and stock business (maintenance, cloud services, etc.) underpinning stable earnings. The repeat order rate from existing customers has been maintained above 90%. The revenue structure aims to maximize customer lifetime value (LTV) through cross-selling of proprietary packages while acquiring new business opportunities in collaboration with the Fujitsu Group.
Company Strengths
The company holds a direct customer base of over 20,000 companies built up over more than 70 years since its founding, with a repeat order rate from existing customers exceeding 90%. Improvement activities based on annual customer satisfaction surveys and a thorough support system underpin continuous trust relationships, forming the foundation for value creation through cross-selling.
The company has concluded a Fujitsu Group sales partner agreement encompassing Fujitsu Limited, Fujitsu Japan, and FS Technologies, leveraging their advanced technological base. In addition, it has built close relationships with over 2,800 solution partners, establishing a differentiated framework that can flexibly respond to the detailed operational requirements of mid-sized companies that major vendors find difficult to address.
The company owns in-house developed packages such as the manufacturing production management systems "D-PaSS" and "rBOM," the paperless solutions "DD-CONNECT" and "EdiGate DX-Pless," the security solution "AppGuard®," and the SaaS-based ERP "D-Ever flex." Sales of key solutions have grown steadily to ¥9,142 million (up 103.9% year on year), and the company continues to expand its solution lineup through M&A.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥43,378 million in FY2024 (ended March 2024) and has declined slightly for two consecutive periods (FY2026: ¥42,500 million, down 0.4% year on year). Operating profit fell 34.3% over two periods, from ¥2,897 million in FY2024 to ¥1,903 million in FY2026. The decline in profit was driven by higher SG&A expenses (R&D and human capital investment) and one-off project losses. On the positive side, leading indicators are favorable: the expansion of software solutions (52.2% of revenue mix), order intake of ¥43,167 million (up 2.1% year on year), and order backlog of ¥10,351 million (up 6.9% year on year). For FY2027 (ending March 2027), the company forecasts revenue of ¥43,500 million (up 2.4% year on year) and operating profit of ¥2,600 million (up 36.6% year on year). In terms of the external environment, corporate demand for DX investment and legacy system renewal remains at a high level, and market tailwinds are expected to continue.
Growth Strategy
Under CANVAS TWO, the company is advancing 'deepening and innovation,' pursuing higher value-added core businesses and the cultivation of priority solutions
Strengthening the promotion framework for the modernization business, reinforcing cross-selling in the manufacturing, distribution, insurance, and mutual aid industries, and enhancing the support business framework through the integration of two group companies. In FY2026 (ending March 2026), software solution sales reached ¥22,191 million (52.2% of total sales), and the shift is progressing steadily.
Strengthening the strategy of combining multiple proprietary products for specific industries, centered on in-house developed products such as paperless, industry, security, and business operation solutions. In FY2026 (ending March 2026), priority solution sales grew steadily to ¥9,142 million (up 3.9% year on year).
Britt Application Co., Ltd. was made a consolidated subsidiary in the second quarter, and the company is promoting the expansion of D-PaSS (integrated production management system) in collaboration with the Mobility Business Division. On the other hand, the full amount of goodwill related to Vertex Co., Ltd. has been impaired, and strengthening PMI (post-merger integration) remains a challenge.
Building a human capital foundation through strategic recruitment enhancement, next-generation leader development, and promotion of DE&I policies. In FY2026 (ending March 2026), the company continued to improve employee treatment and strengthen educational investment (a contributing factor to increased SG&A expenses). Productivity improvements through the review of business operations and systems are also being promoted.
The annual dividend for FY2026 (ending March 2026) is ¥36 per share (up ¥4 year on year), and the forecast for FY2027 (ending March 2027) is ¥38 per share (up ¥2 year on year), continuing dividend increases based on a 3% DOE. While maintaining a sound financial base with an equity ratio of 49.1%, the company is executing a capital allocation strategy that balances growth investment with shareholder returns.
Last updated: July 19, 2026