MIROKU JYOHO SERVICE CO.,LTD.

Business Details

The company provides a one-stop offering of business application software development and sales, hardware sales, maintenance services, and management information services to small and medium-sized enterprises, centered on accounting firms (tax accountant and certified public accountant offices) and their advisory clients. Its strength lies in a direct sales network spanning 33 locations nationwide, and it is currently driving a business model transformation toward subscription-based cloud services. Net sales for FY2026 (ending March 2026) reached ¥48,926 million, with the service revenue ratio expanding to 43.3%.

Recent Overview

Software usage fee revenue surged 33.8%, driving a substantial 23.4% year-on-year increase in net profit

In FY2026 (ending March 2026), the company achieved net sales of ¥48,926 million (up 6.0% year on year), operating profit of ¥6,677 million (up 6.2% year on year), and profit attributable to owners of parent of ¥5,406 million (up 23.4% year on year). Software usage fee revenue surged 33.8% year on year to ¥10,100 million on accelerated migration to subscription-based models, expanding total service revenue to ¥21,164 million (up 14.7% year on year). Meanwhile, software sales continued to be affected by the transition period, declining 5.1% year on year to ¥10,794 million. The company consolidated Singapore-based cloud ERP company Synergix Technologies Pte Ltd. as a subsidiary from the third quarter, establishing a business foundation in the ASEAN market. For FY2027 (ending March 2027), the company forecasts net sales of ¥53,800 million (up 10.0% year on year) and operating profit of ¥7,230 million (up 8.3% year on year).

Key Products

Growth Drivers

• High growth in software usage fee revenue driven by accelerated migration to subscription-based cloud services (FY2026, ending March 2026: up 33.8% year on year to ¥10,100 million)
• Rising IT investment demand among small and medium-sized enterprises, driven by continuation of digitalization and AI adoption subsidies (formerly IT introduction subsidies), labor shortages, and work-style reform initiatives
• Maintaining existing customers and acquiring new customers through community-based sales and support leveraging the direct sales network of 33 locations nationwide
• Capturing new demand and advancing the full-scale SaaS business through the launch of the new SaaS-based cloud ERP product "LucaTech GX Lite" (November 2025)
• Establishment of a business foundation in the Singapore and ASEAN markets and strengthening of global management capabilities through the consolidation of Synergix Technologies Pte Ltd. as a subsidiary
• Promotion of the DX support business through the full-scale launch of "MJS DX Consulting"
• Maximizing customer lifetime value through upselling and cross-selling driven by the establishment of a customer success framework

Risks

• Continued decline in software sales due to a decrease in one-time (outright sale-type) revenue during the transition to subscription-based models (FY2026, ending March 2026: down 5.1% year on year to ¥10,794 million)
• Significant increase in personnel expenses due to aggressive new graduate hiring, base pay increases, and salary raises under the human capital management strategy (salaries and allowances: up 5.6% year on year to ¥9,362 million), pressuring profits
• Uncertainty over the domestic economic outlook due to the impact of U.S. trade policy, price inflation, and fluctuations in financial and capital markets
• Risk of market contraction in the accounting firm industry due to the rise of large tax accountant corporations, lower advisory fees, and the aging of independent tax accountants
• Ongoing investment burden for next-generation product development and acquisition of intangible fixed assets (FY2026, ending March 2026 investing cash flow: outflow of ¥5,641 million, including ¥3,649 million for acquisition of intangible fixed assets and ¥2,330 million for acquisition of shares in subsidiaries)
• Risk of impairment of goodwill (¥2,726 million) arising from the consolidation of Synergix Technologies Pte Ltd. as a subsidiary, and geopolitical and foreign exchange risks associated with expansion into the ASEAN market
• Risk of subsidiary management issues, including the recording of a loss on valuation of shares in affiliated companies (¥751 million in FY2026, ending March 2026) in the non-consolidated financial results