Digital Media Professionals Inc. (3652) Stock Price

Market cap
¥7.6B
P/E ratio
-25.4x
Digital Media Professional licenses semiconductor technology, sells specialized chips for gaming and AI devices, and provides custom chip design services to manufacturers.

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Business Overview

Digital Media Professional operates three main business segments. First, in the IP Core Licensing business, the company provides hardware IP and software IP, granting licenses to semiconductor manufacturers and end-product manufacturers. This business is divided into license revenue and recurring revenue, with the latter consisting of running royalty income and subscription income.

Second, in the Product business, the company sells LSI products that incorporate its IP cores. These products are embedded in amusement equipment and AI-enabled devices. The company also procures and sells camera modules for mass-production drones and image recognition systems for collaborative robots.

Finally, in the Professional Services business, the company leverages its IP cores to design and optimize customers' SoC systems. It also provides services in algorithm development based on GPU, vision, and AI technologies, as well as software and hardware development. Through these services, the company supports customers' product development.

Management Policy

Digital Media Professional operates under the vision of "Making the Image Intelligent," aiming to solve real-world problems by leveraging image intelligence. Under this vision, the company provides innovative products and services to address customer and societal challenges while enhancing corporate value.

The company's medium to long-term management strategy views social and environmental challenges such as declining birth rates and aging populations, and climate change, as opportunities. By contributing to solutions for these challenges, the company aims to generate profits and increase corporate value. In particular, the company emphasizes delivering added value across the entire product and service development cycle for customers.

In the amusement sector, Digital Media Professional supplies the RS1 image processing semiconductor, enabling a unified platform for 2D and 3D titles. This reduces manufacturing and development costs for gaming machines and supports market share expansion.

In the robotics and safety sectors, the company is developing service robots for manufacturing and logistics industries using visual SLAM and autonomous driving technologies. In the safety sector, the company aims for commercialization in areas such as safe driving education using drive recorders and smart city-related applications.

Additionally, the company positions next-generation edge semiconductor and FA (factory automation) businesses as new growth engines to expand revenue. The company aims to drive business growth by introducing edge AI semiconductors into growing markets and providing one-stop robot-related key components in the FA sector. Through these efforts, the company seeks to achieve significant enhancement of corporate value.

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