COMPUTER ENGINEERING & CONSULTING LTD.
9692・Prime Market・Information & Communication
Integration Segment
The Company's largest segment (67.7% of net sales), providing one-stop ICT services
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (external customers) - Q1 cumulative | ¥11,378 million | ¥9,199 million | ↑ |
| Segment operating profit - Q1 cumulative | ¥2,673 million | ¥2,119 million | ↑ |
| Net sales YoY change | +23.7% | — | ↑ |
| Segment operating profit YoY change | +26.1% | — | ↑ |
| Orders received - Q1 cumulative | ¥15,726 million | — | ↑ |
| Order backlog - end of Q1 | ¥19,064 million | ¥14,716 million (end of prior fiscal year) | ↑ |
| Orders received YoY change | +12.2% | — | ↑ |
| Order backlog YoY change | +42.5% | — | ↑ |
Business Details
This is the Company's largest segment, providing one-stop ICT services spanning information system planning, infrastructure design and construction, and operations. Principal group companies include CEC Co., Ltd. itself, Foresight System Co., Ltd., CEC Cross Media Co., Ltd., Oita CEC Co., Ltd., Com Staff Co., Ltd., CEC (Shanghai) Information Systems Co., Ltd., and Information System Service Co., Ltd. The segment's main customers are the automotive industry, government agencies, and private enterprises, with migration, Microsoft services (Azure), and system/infrastructure construction as its core services.
Recent Overview
Achieved 23.7% growth in net sales driven by large-scale government projects and double-digit growth in migration
In the first quarter of FY2027 (ending January 2027) (February to April 2026), the Integration segment recorded net sales of ¥11,378 million (up ¥2,179 million, or +23.7% YoY) and segment operating profit of ¥2,673 million (up ¥553 million, or +26.1% YoY), achieving substantial growth in both revenue and profit. Migration services grew at a double-digit rate amid DX promotion, while large-scale government projects drove infrastructure construction. Order backlog rose significantly to ¥19,064 million (+42.5% YoY), and future earnings contributions are expected.
Key Products
Growth Drivers
- Expansion of cloud migration and system renewal demand driven by continued corporate DX investment
- Growth in Azure projects amid rising AI-related demand
- Steady progress in core system development for the automotive industry
- Acquisition of large-scale infrastructure projects for government agencies, including network equipment
- Significant buildup of order backlog to ¥19,064 million (142.5% YoY), contributing to earnings in the following period
- Continued materialization of results from initiatives in legacy migration projects
Risks
- Intensifying competition in migration services amid market maturation
- Order variability risk due to dependence on specific large-scale projects (for government agencies)
- Demand fluctuation risk linked to capital expenditure trends in the automotive industry
- Impact on profit margins from rising costs of securing and developing personnel (increase in SG&A expenses)
Last updated: April 21, 2026