AVANT GROUP CORPORATION (3836) Stock Price

Avant Group develops, sells, and maintains software and systems that support corporate management decisions and business reforms. The company also provides consulting and business process outsourcing services centered on software solutions. Its flagship product is "DivaSystem," a consolidated accounting package that helps companies streamline financial closing and information disclosure processes.

The company's primary customers include corporate executives, accounting departments, and audit firms—mainly organizations seeking to enhance corporate value. Revenue comes from multiple sources: software sales and maintenance, license fees, financial closing outsourcing services, and contract consulting and system development work.

The company operates across three main business divisions. The consolidated financial reporting division develops and maintains DivaSystem and provides accounting outsourcing services. The digital transformation (DX) promotion division offers solutions leveraging data platforms, artificial intelligence, and data analytics, along with technical training. The management solutions division provides end-to-end support for group management and business management, from planning and implementation through operation and maintenance.

Under its medium-term management plan "BE GLOBAL 2028," the company aims to double revenue and triple net profit by June 2028. The company prioritizes "software gross profit" and "operating profit per employee" as growth indicators, and manages six key performance metrics including ROE and DOE to drive numerically-backed business growth. Starting from June 2024, the company has reorganized its business segments into three pillars: "Consolidated Financial Reporting," "Digital Transformation Promotion," and "Management Control Solutions," simultaneously pursuing revenue expansion and productivity improvement.

The company differentiates itself by combining software as its core offering with high-value-added services including consulting and accounting outsourcing. Specifically, it has formed a SaaS suite for enterprise value management that integrates DivSystem LCA for consolidated accounting, AVANT Cruise for management control, and TRINITY BOARD for board-level reporting, gaining competitive advantage through information delivery directly supporting customer management decisions. On the revenue side, the company measures software gross profit to inform strategic decisions and strengthens efforts to maintain high profitability under the principle that "losses are unacceptable."

The company focuses on enterprises seeking digital transformation of their management operations as a growth market, and estimates annual growth potential of 15–30% in subcategories such as consolidated financial reporting, business intelligence and data infrastructure, and investor-focused management information platforms. To activate demand in these markets, the company plans to build long-term customer relationships through software sales, maintenance, and licensing revenue combined with accounting outsourcing and consulting services, thereby diversifying and scaling its revenue structure. The company will pursue external talent recruitment and functional integration within the group as needed.

The company positions technological innovation as a critical growth driver and allocates a portion of profits to reinvestment in R&D and human capital. For operational efficiency, the company is adopting cutting-edge technologies such as generative AI and implementing concrete measures to enhance "value creation productivity" through both "revenue productivity" (increasing sales with the same input) and "cost productivity" (reducing input costs). Additionally, the company is investing in employee development environments and workplace engagement improvements (targeting a Great Place to Work score of 70 for the group), aiming to build competitive advantage through both technological and human capital capabilities.