Smartvalue Co.,Ltd.
9417・Standard Market・Information & Communication
Digital Government
Government digital transformation business providing the municipal cloud SUITE "Gabukura" for local governments (main portion transferred as a business in June 2025)
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue | ¥1,743 million | ¥1,711 million | ↑ |
| Segment Profit | ¥170 million | ¥245 million | ↓ |
| Segment Assets | ¥427 million | ¥518 million | ↓ |
| Depreciation and Amortization | ¥57 million | ¥89 million | ↓ |
| Increase in Tangible/Intangible Fixed Assets (Capital Expenditure) | ¥90 million | ¥48 million | ↑ |
Business Details
To promote the social implementation of transparency, participation, and collaboration in open government, the company provided "Gabukura," a CLOUD SUITE for local governments and public institutions. It consists of "SMART L-Gov," a CMS, and "GaaS," a resident participation platform, among others. As of June 30, 2025, the main portion of the Digital Government business was transferred to WingArc1st Inc., leaving only the lab development business operated by consolidated subsidiary North Detail Co., Ltd. This segment was abolished as of FY2025 (ended June 2025), and North Detail was relocated to the Smart Venue segment.
Recent Overview
The main portion of the business was transferred as of June 30, 2025, and the segment was abolished. A gain on business transfer of ¥2,154 million was recorded as extraordinary income
In FY2025 (ended June 2025), the segment experienced decreased revenue and profit due to a decline in order acceptance rates from intensified competition, double expense recognition associated with cloud environment migration, and heavy upfront investment in the healthcare business at Grand Green Osaka. Segment revenue was ¥1,743 million (up 1.9% year on year), and segment profit was ¥170 million (down 30.6% year on year). As of June 30, 2025, the main portion of the business was transferred to WingArc1st Inc., and a gain on business transfer of ¥2,155 million was recorded as extraordinary income. The segment was abolished as a reporting segment from the interim period of FY2026 (ending June 2026).
Key Products
Growth Drivers
- Acceleration of the shift to cloud services driven by government-led promotion of administrative digitalization (Government Cloud and Digital Marketplace initiatives)
- Securing recurring revenue through new project acquisition and deeper penetration of existing customers
- Development of new services such as "Rakuriza" through the alliance with WingArc1st
- Improvement of profitability through continuous cost reduction activities
Risks
- Decline in bid acceptance rates due to intensified competition (price competition and technology commoditization in public procurement)
- Nearly comprehensive completion of cloud-based CMS adoption among municipalities, limiting significant further growth potential
- Temporary cost increases such as double expenses associated with cloud environment migration
- The segment has already been abolished due to the business transfer effective June 30, 2025, and will make no future revenue contribution
- The lab development business (North Detail Co., Ltd.) remaining after the business transfer has been relocated to the Smart Venue segment
Last updated: September 25, 2025