DAIWA COMPUTER CO., LTD. (3816) Stock Price

Yamato Computer is a company that handles information systems comprehensively, from design and development through implementation and operation. The company's core business is contract software development, with service integration—including cloud-based software services (SaaS)—as its main offering. It operates alongside three consolidated subsidiaries.

The company's primary customers are information systems and business departments at enterprises across a wide range of industries. Revenue consists of upfront payments from contract development projects, along with recurring income from SaaS usage fees, maintenance and operation services, and hardware sales.

The company operates two reporting segments: "Software Development Related Business" and "Service Integration Business." In contract development, it provides design, development, implementation, and maintenance services, as well as consulting on development process improvement. In service integration, it offers comprehensive support including cloud service provision, implementation assistance, maintenance, equipment sales, and supply services. The subsidiary Fit.com primarily handles service integration operations. Additionally, beyond system sales, subsidiaries Roots Inc. and Asashoi Farm Inc. operate agricultural activities including crop production, processing, and sales.

Daiwa Computer has announced its medium-term management plan "DCX 2030," targeting fiscal year ending July 2030 as the final year of the plan and aiming to realize a "second founding period" marked by the company's 50th anniversary in 2027. The company has set clear management targets of securing and continuously expanding gross profit and operating profit. Its strategy centers on contract software development as the core business, while strengthening revenue structure through expanded recurring revenue from SaaS-based cloud services and maintenance and operations. The company aims to achieve medium to long-term performance improvement through diversifying its revenue base.

Priority investment areas are three pillars: productivity improvement in software development, cloud services, and smart agriculture (i-Agriculture) initiatives. Specifically, the company is pursuing efforts to enhance development efficiency using generative AI, strengthening personnel by increasing project managers, and making capital investments in cloud and agriculture-related sectors. As a differentiation strategy, the company emphasizes "quality, safety, and trust," plans to expand high-value-added solution proposals in partnership with partners, and aims to broaden its customer base through marketing tools utilizing NFC and RFID technology.

For new market development and business expansion, the company plans to nurture revenue pillars beyond software development through restructured sales initiatives targeting improved SaaS retention rates and increased brand awareness, as well as strategic capital investment in smart agriculture. Leveraging its group structure including consolidated subsidiaries, the company aims to increase customer touchpoints and expand its revenue base continuously by operating across service integration, hardware sales, and agricultural production, processing, and sales. The company is strengthening market responsiveness through enhanced mid-career hiring and sales reorganization.

In technology innovation efforts, the company is widely applying generative AI (technology for automatic generation of text and code) in internal training and development operations to improve productivity and service appeal. The company is strengthening human capital through education system development for engineer development, skill visualization, strategic investment in required skills, and improvements to personnel systems and office environments. The company is also advancing the strengthening of secure and reliable service infrastructure, aiming to enhance business competitiveness through both technological and human resource capabilities.