DENSAN CO.,LTD. (3640) Stock Price

Market cap
¥18.7B
P/E ratio
4x
Densan provides IT services including software development, data centers, and telecommunications to government agencies, businesses, and healthcare organizations.

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Business Overview

Densan operates in the information processing business across two segments: the public sector and the industrial sector. Specifically, the company provides information processing and telecommunications services, software development and system provision services, system equipment sales, and related services. These services are offered to a diverse range of customers including local governments, private enterprises, financial institutions, and healthcare and welfare organizations.

In the public sector, Densan provides system services, equipment sales, information processing services, and data center services to local governments. In particular, its comprehensive administrative information system "Reams" is highly regarded as a core system for local governments, enabling efficient management of resident records, tax administration, and welfare-related operations.

In the industrial sector, Densan and its subsidiary TMR Systems Corporation provide software development and information processing services to private enterprises and healthcare institutions. For individual consumers, the company operates an internet service provider business called "avis," offering internet connectivity services via telephone lines, optical fiber, and cable television networks.

As an information processing and telecommunications service provider, Densan handles outsourced computing, data entry operations, and system operations management. In its data center services, the company provides housing, hosting, and cloud services from facilities equipped with robust security and earthquake-resistant structures, enabling customers to operate their IT infrastructure safely and efficiently.

In software development and system provision services, Densan offers custom development and system integration services. The company develops and sells packaged systems tailored to diverse business needs, including "Reams" for local governments, electronic medical record systems for healthcare institutions, and care service support systems. This supports customers in improving operational efficiency.

In system equipment sales, Densan sells equipment and supplies related to software development and system provision services. As additional related services, the company provides equipment maintenance, LAN construction, and training services, offering comprehensive support for customer system environments. This realizes a one-stop total solution supporting customers throughout their entire IT lifecycle.

Management Policy

Densan's mission is to leverage information technology to deliver high-quality services to customers. In the public sector, the company is strengthening system offerings for local governments and aims to complete the transition to "Reams" by the end of fiscal year 2025. Additionally, Densan is advancing digital transformation solutions for municipalities to improve administrative efficiency and enhance public convenience.

In the industrial sector, Densan is focusing on acquiring new projects for lease management packages and production control systems. The company is also expanding sales of AI-powered products to support customers' operational efficiency. Densan aims to strengthen partnerships with collaborating companies, create sales opportunities with new customers, and enhance development capabilities in specialized fields.

To respond to digital technology evolution and meet customer needs, Densan prioritizes securing and developing DX talent. The company is advancing research into emerging technologies and promoting the development of new products and services in growth areas such as cloud services, AI, and IoT. This approach enables Densan to continue delivering new value to customers.

In the data center business, Densan aims to expand cloud services and operate customers' IT infrastructure safely and efficiently. The company is advancing the adoption of government cloud services in line with the standardization of municipal information systems and is committed to providing environmentally conscious services.

Densan uses operating profit margin and ROE as key management indicators to improve profitability. The company has set targets of operating profit margin of 10% or higher and ROE of 10% or higher, pursuing continuous achievement. Through these efforts, Densan aims to realize sustainable growth and remain a company that contributes to customers and society.

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