AGS Corporation (3648) Stock Price

Market cap
¥20.8B
P/E ratio
11.9x
AGS delivers comprehensive IT services including software development, data center operations, and cloud solutions for financial institutions, public organizations, and corporations.

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Business Overview

AGS provides comprehensive information services ranging from system consulting to outsourcing, based on IT services that integrate software development and operations to meet digitalization needs. The AGS Group operates with three consolidated subsidiaries.

AGS's business segments are as follows. In information processing services, the company provides contract computing services centered on large-scale mainframe systems based on its data center. It also offers total support including peripheral services such as data entry, printing, and delivery.

Additionally, AGS operates an Internet Data Center (Saitama iDC) and provides 24/7 system monitoring and operations. In cloud services, the company offers private cloud solutions for enterprises and cybersecurity attack simulation training services.

In software development, AGS provides information strategy planning support, application development, and network design and construction for financial institutions, public organizations, and general corporations. AGS holds CMMI Level 3 certification and delivers high-quality software development.

As other information services, AGS provides IT consulting, system package sales and implementation support, infrastructure and security consulting, and public cloud operations support such as AWS. AGS delivers a comprehensive range of IT solutions.

Finally, in system equipment sales, AGS sells computer equipment, peripherals, and forms tailored to customer needs without dependence on specific manufacturers. AGS operates as an independent multivendor.

Management Policy

AGS is advancing its management strategy "Keep On Changing" to achieve sustainable growth while addressing social challenges through its IT business. This strategy follows the first medium-term management plan, which runs from fiscal 2022 through the end of fiscal 2024. The second medium-term management plan will begin in fiscal 2025.

AGS's growth strategy is built on four key initiatives. First is the expansion of cloud and infrastructure security business. This aims to support customers in solving their challenges through rapid deployment and high-quality system implementation via cloud service combinations, as well as the construction of reliable infrastructure.

Second is the deepening of core business. AGS will expand its customer relationships and steadily execute major projects such as core system upgrades. Additionally, the company will deliver higher-quality services through the use of rapid development tools and generative AI.

Human resources strategy is also a critical initiative. AGS will strategically develop, recruit, and deploy talent to realize its future business vision, while creating an environment where employees can experience growth. This aims to enhance the vitality of the entire organization.

Finally, AGS will pursue operational efficiency improvements. Through business process reform, organizational optimization, and enhanced revenue management, the company will increase productivity and operational efficiency. This will strengthen the growth strategy and enable sustainable growth.

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