I X Knowledge Incorporated

Business Details

IX Knowledge Corporation operates as a neutral, independent system integrator that is not dependent on any specific manufacturer or vendor, providing three categories of offerings—consulting and system integration services, system management services, and product sales—across five fields: industrial, social/public, information & telecommunications, financial/securities, and civil engineering/construction. Its major customers are primarily projects routed through large vendors such as NTT DATA (15.8% of net sales) and Hitachi, Ltd. (10.1%). Net sales for the full year ended March 2026 (FY2026) reached ¥24,351 million (up 6.7% year on year), achieving both revenue and profit growth.

Recent Overview

FY2026 (ended March 2026) saw growth in net sales and all profit items, updating past record highs

For the full year ended March 2026 (FY2026), the company achieved net sales of ¥24,351 million (up 6.7% year on year), operating income of ¥2,207 million (up 18.2%), ordinary income of ¥2,318 million (up 18.9%), and net income attributable to owners of parent of ¥1,714 million (up 29.3%), with growth achieved across all profit items. The substantial increase in net income was aided by tax credits from application of the wage increase promotion tax system. As a subsequent event, on April 16, 2026, the company resolved to acquire shares (acquisition price of ¥133,000 thousand, with total costs including advisory fees of ¥172,200 thousand) of Style Corporation (based in Iwaki City, Fukushima Prefecture), a company with strength in the social infrastructure field (railways, transportation, electric power, water and sewage, etc.), with plans to make it a wholly owned subsidiary. For FY2027 (ending March 2027), the company forecasts net sales of ¥25,102 million (up 3.1% year on year) and operating income of ¥2,326 million (up 5.4%).

Key Products

Growth Drivers

• Expansion of system development projects for financial institutions and telecommunications companies (Consulting and SI Services)
• Strong performance in infrastructure and environment construction projects for medical institutions and security companies (System Management Services)
• Strengthening of capability to handle DX projects through cultivation of cloud-native talent
• Response to diverse customer needs through strengthened sales structure and enhanced collaboration with partner companies
• Steady IT demand driven by companies' continued pursuit of DX initiatives
• Expansion into the social infrastructure field (railways, transportation, electric power, water and sewage, etc.) and reinforcement of the development base in the Ibaraki area through the subsidiarization of Style Corporation
• Continued strengthening of the medium- to long-term business foundation through business alliances and M&A

Risks

• Continued price inflation and its impact on corporate IT investment due to prolonged policy trends and geopolitical risks in Europe and the United States
• Risk of insufficient capability to respond to increasingly sophisticated and diversified customer needs driven by technological innovation such as cloud and AI
• Customer concentration risk related to NTT DATA (15.8% of net sales) and Hitachi, Ltd. (10.1%)
• Constraints on project execution capacity due to difficulty securing and developing IT personnel
• Impact on profit from changes in accounting estimates, such as revisions to estimated asset retirement obligations
• A projected year-on-year decline in net income for FY2027 (ending March 2027), forecast at ¥1,614 million (down 5.8% year on year), reflecting the fact that the wage increase promotion tax system is not assumed to apply
• Integration risk following the subsidiarization of Style Corporation, which reported a loss in its most recent fiscal period (fiscal year ended September 2025, ordinary loss of ¥14,467 thousand) and has not undergone an audit by an audit firm