Smartvalue Co.,Ltd. (9417) Stock Price

Smart Value operates cloud solutions as its core business, offering services for local governments, mobility-related sectors, and smart venues. The company provides CLOUD SUITE "Gabukura" for local governments, Mobility IoT services that leverage vehicle data (CiEMS series), "Kuruma Base"—a platform supporting car-sharing and related services—and smart venue operations centered on GLION ARENA KOBE.

Its primary customers are local governments, public institutions, and corporations (automotive operators, car-sharing companies, etc.). The company generates recurring revenue through contract-based cloud platforms. In response to technology commoditization and price pressures, Smart Value is concentrating management resources and restructuring its portfolio, including the transfer of certain digital government business operations scheduled for June 2025.

The business is divided into three segments: Digital Government, Mobility Services, and Smart Venues. In Mobility, CiEMS—which analyzes driving data to reduce accidents and ease traffic congestion—and Kuruma Base, which supports service operations, are core offerings with growing contract numbers (approximately 29,000 units for CiEMS and hundreds of contracts for Kuruma Base). In Smart Venues, the company is building new revenue streams through arena operations and surrounding urban development initiatives.

The company has announced "Moonshot Vision 2028," targeting the fiscal year ending June 2028 to achieve both business growth and improved profitability. The medium-term management plan sets consolidated operating profit targets of 1,144 million yen, with the Mobility Services division targeting 200 million yen and the Smart Venue division targeting 1,294 million yen. Additionally, the company plans to increase the Mobility division's MRR (monthly recurring cloud revenue) to 75 million yen by 2028. As part of its resource concentration strategy, the company is divesting low-value businesses and transferred part of its municipal cloud services business in June 2025, accepting near-term impacts to strengthen its mid-to-long-term revenue structure.

The company is prioritizing three key investment areas: Mobility Services, Smart Venue, and Cloud Infrastructure. In Mobility, the company focuses on the CiEMS series and "Kuruma Base" platform, which leverage automotive data. CiEMS currently serves approximately 29,000 vehicles under contract, while Kuruma Base has several hundred contracts. The company aims to stabilize revenue through expanded subscription-based income. In Smart Venue, centered on GLION ARENA KOBE, the company differentiates itself by combining facility operations with urban development and data utilization rather than offering facility management alone, positioning itself for market leadership through this integrated value proposition.

The company is actively pursuing new market development and business expansion. It is positioning the urban development model demonstrated in Smart Venue as a regional revitalization strategy for nationwide rollout, while establishing market presence in the growing stadium and arena construction and operations support sector. In Mobility, the company is deploying nationwide solutions for labor shortage mitigation, including automation and labor-reduction technologies for construction machinery and rental vehicles. It is also expanding MRR through services addressing traffic accident prevention and corporate fleet optimization. The company aims to stabilize its revenue base through these horizontal expansions.

The company is also investing in technological innovation and operational strengthening. It is investing in cloud service reliability, cybersecurity, and large-scale access management during natural disasters, while advancing generative AI and data analytics for urban marketing and mobility enhancement. Additionally, through strengthening internal controls, business digitalization, and human capital investment—including wage improvements, training, and remote recruitment—the company is building technical and organizational capabilities. The company aims to address social challenges and enhance enterprise value through sustained innovation.