Eltes Co., Ltd. (3967) Stock Price

Market cap
¥3.6B
P/E ratio
20.8x
Eltes protects Japan's digital society through four key services: managing social media risks, AI-powered security solutions, digital transformation support, and smart city development.

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Business Overview

Eltes' mission is to ensure the safety of the digital society and support Japan's progress. The company operates four business segments: Digital Risk Management, AI Security, DX Promotion, and Smart City.

The Digital Risk Management segment manages risks related to social media platforms such as SNS and blogs, and provides services to detect information leakage risks within organizations. It offers one-stop services including SNS crisis prevention, crisis response consulting, and reputation recovery.

The AI Security segment promotes digitalization in the security industry and develops security DX products leveraging AI and data. It provides "AIK order," a security request platform, and "AIK assign," which supports the digitalization of security control operations, to improve operational efficiency.

The DX Promotion segment supports digitalization for municipalities and enterprises. It offers "DX-Pand," a digital service window app for residents, and Smart Public Lab utilizing LINE, with services deployed across more than 140 municipalities. The segment is also developing AI chatbot services powered by voice generation AI.

The Smart City segment promotes smart city development through the digitalization of property management. It aims to revitalize regional economies and provides marketing support services for local companies and municipalities.

Management Policy

Eltes has adopted the vision of "creating a safe digital society and advancing Japan." The company is focused on addressing new risks arising from digitalization and supporting the implementation of digital transformation across society.

In its medium-term management plan spanning 2022 to 2024, the company aims for non-linear top-line growth. From 2025 onward, strengthening the revenue base is the top priority. Operating profit is the key performance indicator, with four strategic initiatives: the Digital Risk business, AI Security business, DX Promotion business, and Smart City business.

The Digital Risk business strengthens social risk and internal threat detection services, improving productivity through AI utilization and business process optimization. The AI Security business targets profitability in security DX and is expanding DX product deployment to the security company network.

The DX Promotion business expands municipal DX services and provides DX support for enterprises, while advancing initiatives in the generative AI sector. The Smart City business advances digitalization of property management to improve profitability.

Eltes has formulated a management plan targeting a market capitalization of 20 billion yen between 2026 and 2028, aiming to enhance corporate value. While strengthening management controls, the company is establishing revenue foundations across each business segment and pursuing sustainable growth.

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