UCHIDA YOKO CO., LTD. (8057) Stock Price

Uchida Yoko is a comprehensive solutions company that handles office furniture, educational materials for schools, and information and communications technology (ICT) systems—from design and implementation through maintenance. Its core business consists of furniture and space design for educational institutions and corporations, manufacturing and sales of educational equipment, and ICT services including the construction of core systems and network infrastructure, software licensing, and maintenance.

The company's primary customers are educational institutions such as universities and primary through secondary schools, government agencies and local authorities, and corporate office divisions. It generates revenue from both public and private sector projects. Revenue comes from initial sales and installation of equipment and furniture, as well as recurring service income from software licensing, maintenance and operations, and complementary income from training, personnel dispatch services, and real estate leasing.

The business is divided into three segments: "Public-Related," "Office-Related," and "Information-Related." The Public-Related segment handles ICT for education and the design and construction of educational materials and facilities. The Office-Related segment manages furniture development, manufacturing, and installation. The Information-Related segment handles the design, construction, and maintenance of business systems and networks. Production, construction, and software development are carried out by multiple subsidiaries and affiliated companies. The company is reorganizing its business portfolio by dividing environment-building and ICT-related businesses across four matrices—private and public sectors—based on product, skill, and market axes.

The company aims to achieve agile growth by mobilizing resources across the entire group in accordance with its 17th Medium-Term Management Plan (fiscal year ending July 2025 through July 2027). The company targets a stable return on equity (ROE) of 10% or above and plans to reach the final integration phase of its group-wide common sales and administrative system by 2025, continuing reforms that began in 2015. Through these initiatives, the company is increasing the proportion of recurring revenue from maintenance, operations, and software licenses alongside traditional product sales, thereby stabilizing overall earnings.

The company prioritizes investment in "people" and "data" as key areas of differentiation. Specific measures include making Uchida Esco, a consolidated subsidiary, a wholly owned subsidiary, and strengthening software development capabilities through 100% investment in a Luxembourg-based software development company. Additionally, through major investments in the group-wide common sales and administrative system and reorganization and reinforcement of systems engineers, the company has established a framework to provide end-to-end services from design and implementation to maintenance and operations, building competitive advantages through comprehensive solutions rather than merely supplying furniture and equipment.

In developing new markets, the company plans to deepen its presence in educational ICT in the public sector and in government and municipal administration. Building on achievements from the GIGA School Initiative, the company will expand school-wide integrated deployment and operation services and system integration projects for municipalities, with plans to consolidate these public sector operations as a priority market by July 2026. In the private sector, the company will enhance proposal capabilities by coordinating business units across the group in response to increased IT investment by major enterprises. Internationally, the company aims to expand software outsourcing and cross-border business initiatives leveraging its invested companies.

Regarding technological innovation, the company positions business transformation through digital technology as a critical priority. The company will simultaneously advance infrastructure development enabling data generation, accumulation, and analysis, and cultivate talent to leverage these capabilities in the field. Specific initiatives include standardizing customer information through the group-wide common system, strengthening engineer skills, and reinforcing training and human resources coordination. Through these efforts, the company aims to improve quality from order to operation and expand recurring maintenance and operation revenue, thereby achieving sustained corporate value enhancement.