ENVALITH
株式会社エヌジェイホールディングス logo

NJ Holdings Inc.

9421・Standard Market・Information & Communication

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株式会社エヌジェイホールディングス logo
NJ Holdings Inc.9421

Business

NJ Holdings Co., Ltd. is a holding company (listed on TSE Standard) with two core segments: Game Business and Mobile Business. In the Game Business, five companies including Game Studio Co., Ltd. and tri-Ace Inc. handle contract development and contract operations for mobile and console games, with major clients including large game makers such as Bandai Namco Entertainment and SNK. In the Mobile Business, Nepro Create Co., Ltd. operates Carrier Shops (au Shop, etc.) as well as the multi-carrier retail chain "PiPoPark". Consolidated net sales for FY2025 (ended June 2025) were ¥9,108 million, with the Game Business accounting for approximately 72% and the Mobile Business approximately 28%. The company was founded in 1991 and listed in 2006.

Business Model

The Game Business is centered on contract development and operations outsourcing from game makers, and adopts revenue recognition based on progress (similar to the percentage-of-completion method). It also conducts overseas-related operations such as translation and social listening. The Mobile Business, as a sales agent for telecommunications carriers, generates revenue from handset sales commissions and service subscription commissions, and expands its sales scale by increasing the number of stores through new store openings. In the Other segment, the holding company operates the Credit Payment Business.

Company Strengths

In FY2025 (ended June 2025) sales performance, the company recorded sales of ¥2,131 million to BANDAI NAMCO Entertainment Inc. (23.4% of sales) and ¥910 million to SNK Corporation (10.0% of sales), maintaining continuous contract relationships with major game manufacturers. Order backlog remained at a high level of ¥7,953 million (94.8% year-on-year).

The company continues research and development activities for its game engine at tri-Ace, Inc., with R&D expenses of ¥101 million in FY2025 (ended June 2025). By maintaining a proprietary technology platform, the company has built a system that achieves technical differentiation in contract development and supports automation to improve quality.

The Mobile Business achieved sales of ¥2,511 million (up 21.7% year-on-year) and segment profit of ¥102 million (up 122.5% year-on-year) in FY2025 (ended June 2025). The combination of revenue contribution from newly opened stores and growth in unit sales at existing stores enabled the company to achieve its segment profit target of ¥100 million in the first year of its medium-term management plan.

ENVALITH's Perspective

For the cumulative nine months of FY2026 (ending June 2026), operating profit was ¥123 million (up 520.9% year on year) and ordinary profit improved substantially to ¥102 million. However, with corporate income taxes of ¥99 million recorded, quarterly net profit was limited to just ¥3 million, and after deducting profit attributable to non-controlling interests of ¥11 million, net loss attributable to owners of parent came to ¥8 million, meaning the company remained in the red on a cumulative nine-month basis. The structurally heavy tax burden is impeding profit distribution to parent company shareholders, and it should be noted that a substantial profit build-up in the fourth quarter will be required to achieve the full-year forecast (net profit of ¥110 million).

In the Game Business, cost increases have occurred due to a mismatch between the planned and actual timing of outsourcing expenses in development projects. While normalization is said to be progressing in the second half, the company has explicitly stated that full-year segment sales and profit are expected to come in slightly below plan. Meanwhile, the Mobile Business is expected to exceed its full-year plan, driven by strong performance at newly opened stores and steady trends at existing stores, making it clear that the Mobile Business is playing the role of underpinning overall company performance. As an external factor, rising handset prices have contributed to boosting sales, but there are also indications that the pace of the replacement cycle is leveling off, warranting continued attention to sustainability.

The full-year earnings forecast (net sales of ¥9,910 million, operating profit of ¥150 million, ordinary profit of ¥130 million, and net profit of ¥110 million) remains unchanged from the announcement made on August 8, 2025. The progress rate for cumulative nine-month net sales stood at 76.5%, generally on track, but the progress rate for operating profit was high at 82.2%, raising the possibility that the fourth-quarter profit level could decline year on year. Furthermore, against the full-year net profit forecast of ¥110 million, the cumulative nine-month figure showed a net loss attributable to owners of parent of ¥8 million, meaning that the fourth quarter alone would need to record net profit exceeding ¥118 million—a high hurdle to achieve. The dividend forecast remains undecided, leaving the outlook for shareholder returns also unclear.

Growth Strategy

Promoting diversification of the earnings base through expansion of overseas-related operations in the Game Business and expansion of mobile stores

Expanding orders in the game operational support field, centered on overseas-related operations such as translation and social listening. Cumulative Game Business sales for the first three quarters of FY2026 (ending June 2026) increased 10.7% year-on-year, and continued contribution to performance is expected.

The company explained that normalization is progressing in the second half regarding development projects whose profitability had declined due to timing discrepancies in the incurrence of outsourcing costs versus plan. New development projects have also begun in the early development phase, albeit with a small-scale team.

Newly opened stores continue to contribute profit exceeding plan, with Mobile Business segment profit for the cumulative first three quarters of FY2026 (ending June 2026) rising 60.5% year-on-year to ¥123 million. The company has clearly stated that full-year sales and profit are expected to exceed plan.

Aiming to achieve the medium-term management plan target of ¥400 million in operating profit by combining strengthened proposal-based planning and AI-driven efficiency improvements in the Game Business with store expansion in the Mobile Business. The full-year forecast for FY2026 (ending June 2026) is ¥150 million, and the gap versus the target remains substantial.

Last updated: July 17, 2026