(3562) Stock Price

Market cap
¥11.5B
P/E ratio
10.8x
No.1 provides comprehensive IT solutions including cybersecurity equipment, office automation products, and business support services to companies and government institutions.

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Business Overview

No.1 plans, develops, manufactures, and sells information security equipment. By making Alexon Corporation a subsidiary, the company has established itself as a manufacturing wholesaler. Through UTMs, security switches, and servers manufactured by Alexon, No.1 provides multi-layered information security solutions. This strengthens security measures at both entry and exit points of corporate networks, protecting against cyberattacks.

No.1 also sells office automation (OA) products. The company sources multifunction printers (MFPs) and business phones from major suppliers such as Nippon Telegraph and Telephone Company and Sharp Marketing Japan Corporation, and provides these to customers. These devices remain essential for businesses even as paperless operations advance. Additionally, the company offers lease agreements to make equipment adoption more accessible for customers.

No.1 sells information communication terminals, including business mobile Wi-Fi routers, tablet PCs, smartphones, and SIM cards. The company also sells emergency disaster communication equipment called "Hazard Talk," addressing a wide range of customer needs. This supports corporate communication environments and improves operational efficiency.

As a web solutions business, No.1 develops websites and provides SEO consulting services. The company offers customized production plans based on industry type to support corporate sales activities and helps companies leverage their strengths in website management. This strengthens corporate online presence and improves customer acquisition.

Through the "No.1 Business Support" service, the business support division solves management and IT-related challenges. Dedicated business consultants work closely with customers to support sales growth and operational improvements. The company also offers comprehensive professional services in taxation, labor management, and legal affairs.

The systems support division installs, maintains, and services MFPs, information security equipment, and security cameras. Technical concierges handle equipment configuration and troubleshooting, providing services tailored to customer needs. This ensures smooth business operations for customers.

No.1 participates in public bidding for government agencies and educational institutions, including bids for MFPs, ticketing machines, security cameras, and business Wi-Fi systems. This allows the company to meet the needs of public and educational institutions while providing reliable products.

Through the sales agency business, No.1 expands its sales network via partner retailers under partnership agreements, selling information security and OA equipment through various contract models including wholesale agencies, franchise partners, and consignment sales agents.

Finally, in the SES (System Engineering Services) business, OZ MODE Corporation dispatches engineers to high-demand IT development areas to develop, maintain, and operate systems and software. This addresses customers' technical needs and supports operational efficiency.

Management Policy

No.1 aims to serve as a total business partner and a driving force of the Japanese economy. The company supports corporate growth through security and solutions, working to enhance enterprise value. Particularly in the information security equipment market, demand is rising to counter increasingly sophisticated cyberattacks, and the company is accelerating growth in this sector.

No.1 announced its medium-term management plan "Evolution2027" in April 2024. The plan targets revenue of 16,800 million yen and operating profit of 1,830 million yen for the fiscal year ending February 2027. Key strategies include reinforcing management and business foundations, making aggressive investments to expand business domains, stabilizing revenue structure, and advancing sustainability management. Through these initiatives, the company aims for sustained growth and enhanced enterprise value.

The company is expanding its business domains through M&A and alliances. It is particularly pursuing synergies with IT-related hardware and software development companies, as well as DX and IT firms. In 2024, the company welcomed multiple enterprises into its group and is pursuing further growth. It is also focusing on expanding its information security domain and strengthening security product offerings.

No.1 is investing in developing management talent and improving productivity through system investments. The company cultivates next-generation management candidates through employee training and is advancing business process automation and system development for advanced analytics. These efforts build a robust management foundation befitting a century-old company and contribute to realizing a sustainable society.

The company is also advancing sustainability management and human capital management. Through reducing environmental impact and contributing to local communities, it aims for sustained growth. The company is also improving employee satisfaction, developing next-generation management talent, and promoting diversity to create a more comfortable work environment. These efforts realize sustained growth for both society and the company.

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