Smartvalue Co.,Ltd.
9417・Standard Market・Information & Communication
Business
SmartValue Inc. is a cloud solutions company based in Osaka, founded in 1928 and listed in 2019, under the mission "Creating a Social System That Will Go Down in History Through Smart & Technology!" The company currently comprises three segments: Mobility Service (connected car services "CiEMS Series" and "Kuruma Base"), Smart Venue (a smart city initiative centered on GLION ARENA KOBE), and Digital Government (the cloud SUITE for municipalities "Gabukura (CLOUD SUITE)", the main portion of which was transferred in June 2025). Its main customers are corporations, municipalities, and public institutions. Revenue for FY2025 (ended June 2025) was ¥4,362 million. Under its mid- to long-term vision "Moonshot Vision 2028," the company aims to expand nationwide a smart city model in which private companies function as the main drivers of community development.
Business Model
In the Mobility Service segment, monthly recurring revenue (MRR) accounts for 57% of net sales, securing stable revenue through the accumulation of 28,663 CiEMS Series contracts and 878 Kuruma Base contracts. In the Smart Venue segment, revenue sources include GLION ARENA KOBE venue rental revenue, corporate sponsorships (partnership agreements), and proprietary event ticket revenue. In Digital Government, the main business was transferred in June 2025, and a gain on business transfer of ¥2,155 million was recorded. Going forward, the company plans to transition to a two-segment structure, aiming to establish a revenue base through MRR expansion and stabilization of arena revenue.
Company Strengths
The MRR ratio to sales in the Mobility Service segment stood at 57%. The number of CiEMS Series contracts reached 28,663 units in FY2025 (ended June 2025), while Kuruma Base contracts expanded roughly 3.9x from 224 units in FY2023 (ended June 2023) to 878 units in FY2025 (ended June 2025). Profitability also improved significantly following the transfer of a loss-making business (merchandise sales for leased vehicles), securing segment profit of ¥177 million.
GLION ARENA KOBE, a large-scale multi-purpose arena that opened in April 2025, is a rare asset pioneering a new market of privately built and operated (min-setsu min-ei) venues. The company has invested segment assets of ¥22,138 million and has already received numerous venue rental bookings through 2027. The policy environment is favorable, as the government has positioned stadium and arena reform as a growth industry.
The company transferred its car solution business (merchandise sales for leased vehicles) in July 2024, and in June 2025 transferred the core portion of its Digital Government business to WingArc1st Inc., recording a gain on business transfer of ¥2,155 million. The company has continued to divest unprofitable businesses and concentrate management resources, with the business portfolio realignment that began in 2019 steadily progressing.
ENVALITH's Perspective
Performance Trend
Cumulative revenue for the first nine months of FY2026 (ending March 2026, Q3 cumulative) rose substantially to ¥4,220 million (up 45.0% year on year). This was driven by the Smart Venue segment's revenue of ¥3,327 million (up 219.5% year on year), fueled by the opening of GLION ARENA KOBE (April 2025). Operating loss improved significantly to ¥51 million (versus a loss of ¥253 million in the same period last year). However, the recognition of ¥679 million in interest expense due to the application of lease accounting standards resulted in an ordinary loss of ¥716 million. In addition, an impairment loss of ¥69 million on fixed assets at the Osaka head office and a reversal of deferred tax assets of ¥164 million were recorded, expanding net loss attributable to owners of the parent to ¥858 million (versus ¥323 million in the same period last year). While revenue growth and operating profit/loss improvement are progressing in terms of financial figures, the structure in which financial expenses stemming from lease liabilities significantly pressure earnings has become clear.
Growth Strategy
The company aims to achieve operating profitability by pursuing two pillars: stabilizing Smart Venue revenue and expanding Mobility Service MRR
Following its opening in April 2025, cumulative segment losses through the third quarter were compressed to nearly zero through new venue rental and partnership contracts as well as ticket revenue from self-promoted events. Numerous reservations have been received through 2027, and efforts are underway to stabilize revenue by improving the utilization rate.
MRR has been built up through an increase in the number of Kuruma Base contracts, leveraging special demand for in-vehicle device replacements associated with the discontinuation of 3G services. Through operational efficiency improvements and cost reductions, the segment achieved cumulative third-quarter segment profit of ¥186 million (up 43.4% year on year), functioning as a stable revenue source.
The company has decided to relocate its offices and has already recorded an impairment loss of ¥69 million on fixed assets related to the Osaka head office. Once the relocation is complete, fixed cost reduction effects are expected, contributing to an improvement in operating income (loss).
By combining the Community Development ICT Platform (North Detail) with the arena operation expertise gained from GLION ARENA KOBE, the company aims for nationwide expansion of the Smart Venue concept. The medium-term management plan sets a target of ¥1,144 million in operating profit for 2028.
Last updated: July 17, 2026