Toukei Computer Co.,Ltd. (4746) Stock Price

Toukai Densan handles information processing and software development services, equipment sales, leasing, and other business operations. These businesses are conducted through the company, three subsidiaries, one affiliated company, and its parent company Upward.

In information processing and software development, Fine System, a non-consolidated affiliated company, develops software, with Toukai Densan outsourcing some of this work. Additionally, Dalian Toukai Software Co., Ltd., a non-consolidated subsidiary, operates as an offshore base providing local user support.

Furthermore, TOUKAI (THAILAND) CO., LTD., a non-consolidated subsidiary, was established in Thailand to support Japanese companies shifting their production bases overseas. Through this, Toukai Densan supports international business expansion.

In equipment sales, Toukai Densan sells hardware required for systems it has developed to customers. Products handled include office servers, personal computers, and peripherals from manufacturers such as NEC, Fujitsu, and Canon.

In leasing and other operations, Eastern Lease, a consolidated subsidiary, handles leasing and rental services for office automation equipment. Toukai Densan itself also engages in real estate rental operations. Through these services, the company meets diverse customer needs.

Toshin Densan accumulates operational expertise through industry-specific system development and implementation, while advancing the development and enhancement of packaged products. The company also aims to provide ERP systems by making proposals utilizing new IT technologies. Going forward, the company plans to expand service products leveraging its information system assets.

The company anticipates system development demand driven by social changes including AI adoption, cashless payment solutions, and cloud migration. Learning from past unprofitable projects, the company is strengthening rigorous procedures at the time of contract acceptance to minimize losses.

Additionally, the company is pursuing a growth strategy that reduces personnel dependency in software development operations by utilizing proprietary IT assets and product licensing. This strategy has contributed to revenue exceeding 1.7 billion yen and improved profitability. The company aims to continue expanding this business segment.

Product license sales enable rapid system releases by having customers align their operations to the system. This approach allows the company to acquire numerous projects at competitive prices while improving operational efficiency.

While the pursuit of efficiency has enhanced profitability, it carries the risk of limiting employee development opportunities. To enhance long-term corporate value, the company prioritizes employee capability development and pursues challenges in new technologies, new business areas, and system development across different industries.

Toshin Densan emphasizes balancing short-term business growth with long-term growth through employee development. The company will continue expanding system operations and product license sales while supporting employee growth.