ENVALITH
株式会社両毛システムズ logo

RYOMO SYSTEMS CO.,LTD.

9691・Standard Market・Information & Communication

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株式会社両毛システムズ logo
RYOMO SYSTEMS CO.,LTD.9691

Business

Ryomo Systems Co., Ltd. was founded in 1970 and is headquartered in Kiryu City, Gunma Prefecture. It is an IT services company operating information processing-related business as a single segment. The company develops two customer-market-based segments: "Public Sector Business" (local governments, police, schools, etc.) and "Social & Industrial Business" (energy, manufacturing, healthcare, mobility, etc.). As a group including three consolidated subsidiaries (Ryomo Business Support, Ryomo Vietnam Solutions, and Ryomo Philippines Information), it provides one-stop services encompassing software development, system sales, IT equipment sales, cloud services, and outsourcing. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The main revenue source is project-based SI revenue from software development, system sales, and IT equipment sales. In addition, the company has been expanding recurring subscription-type revenue from cloud services and outsourcing services utilizing the Ryomo Systems Data Center (RSDC), newly established in April 2024. The business is organized around two pillars: the Public Sector segment (net sales of ¥14,759 million) and the Social & Industrial Sector segment (net sales of ¥10,976 million), with consolidated operating profit positioned as the most important management indicator.

Company Strengths

The company has over 50 years of business track record serving public-sector markets such as local governments, police, and schools, and continues to win orders for projects related to the standardization/unification of local government core business systems and legal amendment responses such as family registry systems. In FY2026 (ending March 2026), the public services segment posted sales of ¥14,759 million (up 18.5% year on year) and segment profit of ¥3,070 million (up 47.1% year on year), demonstrating high profitability.

The company holds certifications including ISO9001 (obtained 1998), ISO/IEC27001 (obtained 2003), ISO14001 (obtained 2004), ISO/IEC27017 (obtained for multiple services), and the Privacy Mark. It has institutionalized continuous improvement of its quality management system, forming a barrier to entry for competitors seeking to serve customers with high reliability requirements, such as those in the public, medical, and energy sectors.

In April 2024, the company newly established the Ryomo Systems Data Center (RSDC), building a one-stop provision framework for cloud services and outsourcing services. In FY2026 (ending March 2026), cash flows from operating activities increased substantially to ¥4,149 million (from ¥2,209 million in the prior period), with the accumulation of recurring-revenue-type earnings contributing to the improvement of the financial structure.

ENVALITH's Perspective

Effective May 14, 2026, the company announced its support for the tender offer by controlling shareholders Mitsuba and Chubu Electric Power, and following a series of procedures, delisting is planned. The consolidated earnings forecast for FY2027 (ending March 2027) has not been disclosed. After going private, the voting rights ratio is expected to be Mitsuba 80% / Chubu Electric Power 20%. For investors, the loss of liquidity accompanying the delisting is the most important consideration, and the focus will be on evaluating the appropriateness of the tender offer price.

The Public Works segment's performance has been driven by special demand-type factors such as the standardization of local government systems and NEXT GIGA, but these are external factors of a temporary nature. Meanwhile, the Social & Industrial Business segment recorded segment profit of ¥2,047 million (down 1.9% year on year), making it the only segment to post a profit decline. This was affected by the suspension and postponement of business negotiations in the mobility business due to US tariff measures, and continued attention is needed regarding this segment's sensitivity to changes in the external environment. The depreciation burden from RSDC also remains a factor pressuring profits.

In FY2026 (ending March 2026), a new product warranty provision of ¥420 million was recorded (zero in the previous period). This is one factor behind the increase in current liabilities and indicates the emergence of future cost risk related to specific products/services. Meanwhile, the equity ratio improved from 55.1% to 58.7%, and cash and cash equivalents increased substantially from ¥4,114 million to ¥6,632 million. Free cash flow was ¥3,439 million (versus ¥1,441 million in the previous period), and the financial base remains solid. It is important to understand the details of the product warranty provision and the risk of additional provisions going forward.

Growth Strategy

Under the 10th Medium-Term Management Plan (FY2023–FY2027), the company is pursuing sustainable growth around three pillars: "strengthening and expansion," "transformation and growth," and "structural reform."

Continuously capture projects related to unification and standardization of core local government business systems, response to legal amendments, and NEXT GIGA-related projects. In FY2026 (ending March 2026), the Public Business segment achieved net sales of ¥14,759 million and profit of ¥3,070 million (up 47.1% year on year), confirming the effectiveness of these measures.

Building on RSDC, which began operations in April 2024, the company will expand cloud services and outsourcing services to raise the proportion of recurring (stock-type) revenue and stabilize earnings. The company has clearly stated its policy of effectively utilizing retained earnings to strengthen the data center business.

Continue to expand system sales of the company's proprietary product GIOS® and pursue large-scale SI projects for energy operators, while capturing demand for IT investment from private companies advancing DX. In FY2026 (ending March 2026), some Mobility business projects were cancelled or postponed due to the impact of U.S. tariff measures, but the energy-related business remained solid.

Promote proactive investment to strengthen responsiveness to rapid technological innovation (including AI) and to secure and develop highly skilled engineers. The company has clearly stated its policy of allocating retained earnings to expanding the breadth of ICT services, responding to AI, and improving product and service quality. Even after delisting, strengthening of the business foundation is expected through the capital and business alliance with Chubu Electric Power.

Last updated: July 19, 2026