Capital Asset Planning, Inc. (3965) Stock Price

Capital Asset Planning develops and provides systems that streamline business processes for financial retail operations. The company offers front-end systems that support the sales of insurance and investment products, cloud-based solutions for back-office functions such as contract management, and proposal auto-generation tools powered by generative AI.

Its primary customers include banks, life insurance companies, securities firms, financial product intermediaries, and accounting firms. The company generates revenue through custom development, software licensing and maintenance services, and consulting. Additionally, it provides calculation services for tax and inheritance planning as connected services, securing recurring revenue through fixed-rate and usage-based fees.

The company's business is concentrated in a single segment centered on system development, with four main product lines. These include front-end proposal and sales support tools used by sales staff and customers, cloud-based back-office solutions for contract management, connected library services that calculate inheritance, tax, and cash flow analyses, and an integrated asset management platform featuring multi-client family office capabilities along with education and training services.

The company has established a medium-term management plan covering the fiscal years ending September 2025 through September 2027, targeting sustained growth in revenue, operating profit, and ROE. The basic strategy involves shifting away from a revenue structure overly dependent on contract development work, and strengthening recurring revenue streams such as licensing fees and maintenance services to improve profit margins. Through organizational initiatives including the establishment of wholly-owned subsidiary Wealth Engine in June 2024 and the joint venture Trust Engine with Taiwan-based SoftBI established in July 2025, the company aims to stabilize its business foundation and transform its revenue structure by 2027.

Priority investment areas include platform development that integrates tax management and asset management, and cloud-based business process solutions for financial retail. Building on four existing product lines—front-end proposal and sales support systems, back-office contract management cloud, library connectivity for inheritance, tax, and cash flow calculations, and an integrated asset management platform—the company will add differentiated features leveraging generative AI and APIs. Leveraging its strengths in actuarial science, financial engineering, and tax expertise, the company aims to differentiate itself through services tailored to Japanese regulations and business practices.

For market expansion, in addition to deepening relationships with existing customer segments including banks, securities firms, IFAs (financial instrument intermediaries), and accounting firms, the company plans to enter Southeast Asian markets. Malaysia, Thailand, Indonesia, and Vietnam are identified as target countries for expansion. Following industry interviews, on-site research, and analysis leveraging SoftBI's customer base, the company plans to enter these markets initially through contract development services. Additionally, centered on Wealth Engine, the company aims to expand its business by offering multi-client family office services that provide integrated asset management and inheritance planning solutions domestically and internationally.

Regarding technology innovation, the company is advancing research and development with generative AI as the core focus. Notably, through collaboration with Elith, a University of Tokyo-backed startup (December 2024), the company has jointly developed a financial statement reading system. Building on this, the company plans to advance generative AI-driven proposal automation and automation of tax and inheritance calculations. By enhancing API and cloud capabilities to improve connectivity with third-party systems, and by investing in human capital through internal education programs such as "CAP University" and strengthened recruitment, the company aims to accelerate service development through personnel who combine technical expertise with business domain knowledge.