ENVALITH
株式会社KSK logo

KSK CO.,LTD

9687・Standard Market・Information & Communication

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株式会社KSK logo
KSK CO.,LTD9687

Business

KSK Co., Ltd. was founded in 1974 and is listed on the Standard Market of the Tokyo Stock Exchange as a comprehensive IT services company. It comprises three segments: the "System Core Business," which handles semiconductor design (LSI, FPGA, etc.) and embedded software development; the "IT Solutions Business," which handles packaged software, mobile testing, and contracted development; and the "Network Services Business," which provides one-stop network construction, operation and maintenance, and security services. Its major customers include major IT companies, telecommunications carriers, government agencies, and private-sector companies, and the company has a trading base with major clients, including a master agreement with NEC and its affiliated companies. It has one consolidated subsidiary, KSK Techno Support Co., Ltd.

Business Model

The company deploys engineers trained at its proprietary educational institution, "KSK College," across its various businesses, providing one-stop design, development, construction, operation, and maintenance services to meet clients' IT needs. The network services business, which accounts for approximately 58% of sales, is the core profit driver, maintaining and improving margins through continuous review of contract unit prices and a shift toward growth areas. By minimizing reliance on external partners and handling work with in-house personnel, the company achieves both the accumulation of technical know-how and the reduction of information security risks.

Company Strengths

The company has set a target operating margin of 10% as a management goal, achieving 10.6% in FY2026 (ending March 2026). Operating profit increased for five consecutive periods, from ¥2,069 million in FY2022 (ended March 2022) to ¥2,740 million in FY2026 (ending March 2026), with profitability continuing to improve through contract unit price revisions and a shift toward growth areas.

Since its 2014 "Health Management Declaration," the company has been certified for 10 consecutive years by the Ministry of Economy, Trade and Industry as an "Excellent Health Management Corporation (White 500)." It has also been selected as a "Health Management Stock" for seven consecutive years. The company has established a talent development system combining technical and human skills training through its own educational institution, "KSK College," strategically promoting the in-house development of IT personnel.

The order backlog for FY2026 (ending March 2026) totaled ¥8,031 million (129.3% year on year). By segment, the System Core business grew 145.5% and the Network Service business grew 131.6%, showing high growth. Order intake also totaled ¥27,587 million (112.0% year on year), accumulating at a level exceeding net sales.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue grew +9.1%, operating profit +13.2%, and net income +17.3%, with the profit growth rate exceeding the revenue growth rate. The rebound from the absence of the 50th anniversary commemorative bonus paid in the previous period also contributed to the profit increase, so it will be necessary to continue monitoring whether the FY2027 (ending March 2027) forecast (operating profit of ¥3,100 million, +13.1%) reflects structural profit growth. ROE of 12.5% (up from 11.5% in the previous period) has already achieved the medium-term plan target of 12%, and the progress in improving capital efficiency is commendable.

The annual dividend for FY2026 (ending March 2026) is ¥181 (up ¥57 from ¥124 in the previous period), with a payout ratio of 50.3%, achieving the medium-term plan target of 50%. The forecast dividend for FY2027 (ending March 2027) is ¥190 (forecast payout ratio of 50.1%), clearly indicating a policy of continued dividend increases. Operating cash flow reached ¥3,417 million (a significant increase from ¥1,825 million in the previous period), and with improved cash generation capability, the sustainability of shareholder returns is high. On the other hand, the balance of investment securities increased to ¥7,195 million (from ¥6,002 million in the previous period), and the policy on the utilization of cross-shareholdings could become a point of discussion going forward.

Wage levels have been raised for three consecutive periods, and upward pressure on personnel costs is expected to continue structurally. Amid tight supply and demand for IT talent across the industry as an external factor driving up costs, revenue improvement through the revision of contract unit prices is a prerequisite for maintaining profit margins. In FY2026 (ending March 2026), the bonus provision increased by ¥1,030 million (compared to an increase of ¥289 million in the previous period), causing a sharp rise in personnel-related costs, but the significant improvement in operating cash flow (+¥1,592 million) shows that the effects of improved treatment are translating into revenue expansion. The sustainability of unit price improvements will be the focus going forward.

Growth Strategy

Strengthening business resilience through human capital investment to capture demand in DX, AI, and security

The company has revised compensation levels for three consecutive fiscal periods and is actively promoting new graduate recruitment. Amid tight supply-demand conditions for IT talent, it aims to secure and retain excellent personnel and enhance its capacity to respond to orders. In FY2026 (ending March 2026), the bonus provision increased by ¥1,030 million year on year, reflecting the full-scale implementation of improved treatment for employees.

The medium-term management plan set targets of ROE 12% and a payout ratio of 50% for FY2027 (ending March 2027). In FY2026 (ending March 2026), the company achieved an ROE of 12.5% and a payout ratio of 50.3%, realizing the targets ahead of schedule. The company plans to maintain a payout ratio of 50.1% (forecast) in FY2027 (ending March 2027) as well.

The company has positioned three areas—semiconductors such as image sensors, support for the operational implementation of generative AI, and enhanced cybersecurity measures—as key growth fields. Alongside revisions to contract unit prices, it is promoting a shift toward higher value-added projects. In FY2026 (ending March 2026), revenue increased across all segments.

As one of the key priorities of the medium-term management plan "Blue Wind Chapter II," the company is promoting the enhancement of sustainability in its business activities. It has been certified for 10 consecutive years as an Excellent Enterprise of Health Management (White 500), continuing initiatives that both improve employee health and boost productivity.

Last updated: July 19, 2026