KYCOM HOLDINGS CO., LTD.
9685・Standard Market・Information & Communication
Information Processing Business
Core business of the KYCOM Group. Sales expanded on DX/AI demand, but profit declined due to rising costs.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers, FY2026 (ending March 2026)) | ¥6,524 million | ¥6,104 million | ↑ |
| Total segment sales (including intersegment, FY2026 (ending March 2026)) | ¥6,583 million | ¥6,160 million | ↑ |
| Operating profit (FY2026 (ending March 2026)) | ¥410 million | ¥489 million | ↓ |
| Operating margin (FY2026 (ending March 2026)) | 6.2% | 7.9% | ↓ |
| Segment assets (FY2026 (ending March 2026)) | ¥3,726 million | ¥3,354 million | ↑ |
| Depreciation and amortization (FY2026 (ending March 2026)) | ¥25 million | ¥15 million | ↑ |
| Increase in tangible and intangible fixed assets (FY2026 (ending March 2026)) | ¥72 million | ¥11 million | ↑ |
| Goodwill amortization (FY2026 (ending March 2026)) | ¥4 million | ¥0 million | ↑ |
Business Details
This segment engages in information systems consulting, design, development and maintenance, help desk and computer operation services, outsourcing of accounting/HR-payroll and other administrative functions, data entry services, and the development and sale of fingerprint authentication systems. Key subsidiaries include Kyodo Computer Co., Ltd. (Tokyo and Fukui), Kyoei Systems Co., Ltd., Kyushu Kyoei Systems Co., Ltd., Kyoei Data Center Co., Ltd., GIS Consulting Co., Ltd., and KYCOM Next Co., Ltd. Hitachi Systems, Ltd., Hitachi, Ltd., and Hitachi Systems Engineering Services, Ltd. are major customers, together accounting for approximately 37% of consolidated net sales.
Recent Overview
Sales expanded 6.9% year on year to ¥6,524 million, but operating profit fell 16.1% to ¥410 million due to rising costs.
In the Information Processing Business for FY2026 (ending March 2026), sales to external customers expanded to ¥6,524 million (up 6.9% year on year), driven by demand for ERP construction, low-code/no-code development, and AI system development amid DX/AI-related trends. On the other hand, costs such as personnel expenses continued to rise due to office space expansion, expanded opportunities for new technology training, and improved employee compensation, causing operating profit to decline sharply to ¥410 million (down 16.1% year on year). Operating margin fell from 7.9% in the prior year to 6.2%. In addition, ¥4 million in goodwill amortization was newly recorded in connection with a subsidiary acquisition.
Key Products
Growth Drivers
- Expansion of DX/AI-related demand (ERP construction, low-code/no-code development, AI system development)
- Structural expansion of the IT market driven by the spread of generative AI, standardization of municipal government systems, and digitalization among energy-related operators
- Strengthened responsiveness through expanded new graduate and mid-career hiring and investment in engineer training
- Strengthened user-proximate development framework through collaboration among group companies
- Continued expansion of sales to the three major Hitachi group companies
- Improved service quality through strengthened proposal-based sales and expanded training opportunities
Risks
- Continued margin pressure from rising engineer personnel costs, training costs, and office expansion expenses (operating margin of 6.2% in FY2026 (ending March 2026), down 1.7 percentage points year on year)
- Difficulty securing personnel and rising recruitment costs amid tight supply-demand conditions for IT talent
- Risk of sales concentration in major customers (three Hitachi group companies), accounting for approximately 37% of consolidated net sales
- Risk of declining competitiveness due to delayed response to new technologies such as generative AI
- Structural cost pressure from continued wage increases and inflationary trends
- Risk of goodwill recognition and integration costs arising from strategic M&A
Last updated: June 26, 2026