Techfirm Holdings Inc. (3625) Stock Price

TechFarm Holdings is a holding company composed of a parent company and six consolidated subsidiaries that operates businesses leveraging advanced technology. The company's core business focuses on custom development of business and enterprise systems, along with their operation and maintenance. Additionally, it operates a distribution platform business handling overseas exports of food and beauty products.

The company's revenue in the ICT sector is primarily generated through custom development projects and long-term operation and maintenance contracts from corporate clients, which serve as a stable income source. The distribution platform generates sales through export sales to producers, wholesalers, and overseas buyers, as well as export-related consulting services.

The business is divided into two main pillars: ICT Solutions and Cross-Border Distribution Platform. The ICT division provides end-to-end services from design through development and operation, with support also available through overseas offices. The distribution division focuses on export agency services, wholesale operations, and export support services.

The company has set a medium to long-term goal of achieving 10 billion yen in group revenue. In the near term, it targets 7.2 billion yen in sales, 600 million yen in operating profit, 580 million yen in ordinary profit, and 330 million yen in net profit attributable to parent company shareholders by June 2026. In the short term, the company prioritizes revenue growth through stable operation of multiple large-scale contract development projects. For the medium to long term, it will execute strategic investments to improve profit margins and enhance corporate value, using sales growth rate, operating profit margin, and EBITDA (assuming M&A activity) as key management metrics. These numerical targets are designed to front-load investments, which will temporarily impact profit structure, while strengthening the revenue base for future growth.

Priority investment areas span both talent and technology. The company is strengthening recruitment of highly skilled engineers and investing in competitive salary structures, revised compensation systems, systematic training programs, and workplace improvements including mental health support. It is also automating internal business processes by applying generative AI to code generation and requirements definition support, while allocating resources to cutting-edge technology research such as drones. This creates differentiation through pioneering services ahead of competitors. Additionally, the company is increasing information sharing at trade shows and industry events to build presence by accumulating development experience in XR and AI fields.

As concrete measures for business expansion, the company is focusing on raising awareness of its cross-border distribution platform and strengthening sales channels. Starting from its Singapore flagship store and proprietary e-commerce site, it will increase advertising investment and strengthen digital marketing through sales data, social media, and media partnerships to support growth of core products. Rather than simply providing export intermediary services, the company is actively positioning itself as a "story maker" that translates customer company value across cultures, expanding domestic sales and sourcing products through proposals to local governments and regional trading companies. Additionally, with an eye toward expanding service-based business, the company is considering M&A and capital partnerships to transform business scale and revenue structure.

Technology innovation initiatives are being pursued company-wide. The company is establishing a framework for company-wide adoption of generative AI to advance system sophistication and business automation, aiming to improve productivity. In parallel, through alliances with partner companies and proof-of-concept projects, it is accelerating technology adoption and social implementation, building a technical foundation capable of responding to opportunities in core system renewal demand and new business creation. These investments directly contribute to value creation that absorbs external challenges such as rising personnel costs and recruitment expenses.