KYCOM HOLDINGS CO., LTD.
9685・Standard Market・Information & Communication
Business
KYCOM Holdings Corporation is an IT-focused holding company established in 1968 through joint investment by leading companies in Fukui Prefecture. With 11 subsidiaries and 2 affiliated companies, it operates four segments centered on the information processing business (software development, computer-related services, data entry, etc.), along with the real estate business (solar power generation, rental apartments), the rental car business (Hokuriku area), and the wireless solutions business (wireless equipment construction and maintenance). Its principal customers are three companies of the Hitachi group—Hitachi Systems, Hitachi, Ltd., and Hitachi Systems Engineering Services—which together account for approximately 38% of total sales composition in FY2026 (ending March 2026). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In the information processing business, which accounts for approximately 91% of net sales, the company secures continuous revenue through contract-based businesses such as system development, operation and maintenance, and outsourcing. In the real estate business, solar power sale revenue and rental income from residential apartments generate stable cash flow, while the wireless solutions business builds up revenue through installation work and maintenance contracts. The holding company consolidates revenue from each business, forming a structure aimed at improving capital efficiency across the group as a whole.
Company Strengths
In FY2026 (ending March 2026), sales to Hitachi Systems reached ¥1,065 million (14.8% of total), sales to Hitachi, Ltd. reached ¥864 million (12.0%), and sales to Hitachi Systems Engineering Services reached ¥814 million (11.3%), with the three Hitachi group companies together accounting for approximately 38% of total sales. Sales to Hitachi Systems also grew 21.5% year-on-year, reflecting the continuation of long-term business relationships.
Sales in the Information Processing business increased for five consecutive fiscal years from FY2022 (ending March 2022) through FY2026 (ending March 2026), with orders received of ¥6,608 million (up 6.6% year-on-year) and production value of ¥6,580 million (up 6.8% year-on-year) in FY2026. The company has captured diverse demand including ERP construction, low-code/no-code development, and AI system development, building a user-proximity development framework through collaboration among group companies.
In FY2026 (ending March 2026), operating profit in the Real Estate business reached ¥93 million (up 54.3% year-on-year), while the Wireless Solutions business turned profitable, moving from an operating loss to operating profit of ¥26 million. These businesses function as stable revenue sources that complement fluctuations in IT business profits, and the expansion of the real estate revenue base is progressing through new acquisitions of rental properties (capital expenditure of ¥181 million).
ENVALITH's Perspective
Performance Trend
FY2026 (ending March 2026) results: net sales of ¥7,225 million (up 6.7% year on year), operating profit of ¥598 million (up 1.3%), and net income of ¥533 million (up 13.7%). The increase in net income was driven by the recognition of extraordinary income, including ¥67 million in insurance proceeds received for snow damage to a solar power plant, while growth in core operating profit remained limited to 1.3%. Selling, general and administrative expenses rose ¥84 million year on year to ¥933 million, with increases in personnel costs and investment in training weighing on profit margins. For FY2027 (ending March 2027), the company expects net sales of ¥7,590 million (up 5.1% year on year), while net income is projected to decline sharply to ¥450 million (down 15.5%). The main drivers are continued increases in wages, hiring of IT personnel, and investment in training, with rising prices and inflation in personnel costs affecting the earnings structure as external factors.
Growth Strategy
Prioritizing investment in IT human capital and capturing DX/AI demand, while aiming to improve capital efficiency through real estate and M&A
The company continues to expand new graduate and mid-career hiring and invest in engineer training, aiming to strengthen capabilities in advanced technologies including generative AI and improve communication skills. In FY2026 (ended March 2026), office expansion and increased training opportunities were implemented, but rising costs are pressuring profits, making the materialization of investment returns a key focus going forward.
The company views growing demand for ERP construction, low-code/no-code development, and AI system development as a growth opportunity, strengthening a user-proximate development structure through collaboration among group companies. External customer revenue in the Information Processing business reached ¥6,525 million in FY2026 (ended March 2026), up 6.9% year on year.
Through the acquisition and operation of one-room apartments in major metropolitan areas and other properties, the company secures stable income while reinforcing recruiting appeal and employee benefits. In FY2026 (ended March 2026), it newly acquired a rental property that also serves as a group employee dormitory, expanding operating profit in the Real Estate business to ¥93 million (up 54.3% year on year). Ongoing operation of solar power generation also continues.
The company continues to consider strategic M&A aimed at expanding its business domains and improving capital efficiency. In FY2026 (ended March 2026), it acquired shares in a subsidiary involving a change in the scope of consolidation (expenditure of ¥17 million). Goodwill balance increased to ¥27 million, indicating that, while still small in scale, the company has entered an execution phase.
Against the backdrop of recovering inbound demand, the company aims to build an efficient operating structure and maintain stable profitability. In FY2026 (ended March 2026), the business fell into an operating loss of ¥16 million due to the fading effect of the Hokuriku Shinkansen extension to Tsuruga and competition from car sharing, making profit improvement an urgent priority.
Last updated: July 19, 2026