Japan Process Development Co.,Ltd.

Business Details

Develops control, monitoring, and simulator systems for energy-related applications (power grid monitoring and control) and transportation-related applications such as railways and roads (Shinkansen and conventional line operation management, Tokyo metropolitan area transport management systems). The main customer is Hitachi, Ltd. (combined sales of Control Systems and Specific Information Systems totaled ¥3,515,615 thousand in FY2026 (ending May 2026), accounting for 29.0% of total company sales). Positioned to contribute to the transformation toward secure and smart platforms as part of the focus on promoting DX in social infrastructure.

Recent Overview

Net sales up 14.0% driven by power grid expansion and continuation of the large-scale ATOS project; profit margin also improved

In the full year of FY2026 (ending May 2026), the power grid business progressed steadily due to expansion of development scale. The Tokyo metropolitan area transport management system (ATOS) performed well in both sales and profit due to a large-scale development project that began in the previous fiscal year. Conventional lines trended steadily due to orders for renewal projects, while the Shinkansen operation management system declined due to a gap between development projects. As a result, net sales reached ¥1,945 million (up 14.0% year on year) and segment profit reached ¥487 million (up 20.9% year on year), with profit margin also improving.

Key Products

Growth Drivers

• Continuous expansion of development scale for the power grid business
• Continuation of the large-scale Tokyo metropolitan area transport management system (ATOS) development project
• Stable development demand from orders for conventional line renewal projects
• Demand for transformation to secure and smart systems driven by the promotion of DX in social infrastructure
• Strengthening competitiveness in the industrial field through the capital and business alliance with SCSK Corporation

Risks

• Risk of sales fluctuation due to gaps between development projects such as Shinkansen and conventional lines
• Risk of sales concentration in the main customer (Hitachi, Ltd. group)
• Intensifying competition for orders in large-scale projects for energy and transportation infrastructure
• Risk of losing order opportunities due to a shortage of engineers
• Uncertainty in project timing due to the lengthening of social infrastructure renewal cycles