SCAT Inc. (3974) Stock Price

SCAT Corporation is a company centered on ICT solutions for the beauty industry, while also operating business services and care services. As its core business, the company develops and sells POS-based customer management systems and cloud-based services for beauty salons, along with smartphone apps and customer acquisition support tools such as booking and email distribution features. The company provides end-to-end support from sales through maintenance and customer support across seven locations nationwide, including implementation assistance and remote support.

The company's primary customers include beauty salons ranging from single-location to multi-location operations, beauty distributors, small and medium-sized enterprises, and care service users. Revenue comes from multiple sources including software lease sales, monthly ASP subscription fees, implementation and maintenance contracts, BPO outsourcing fees, and care facility usage fees.

The business is divided into three segments: beauty ICT, business services, and care services. The beauty ICT segment offers product lines including POS and customer management systems, customer acquisition support tools, and sales management systems for distributors. The business services segment provides accounting outsourcing, remote management support, and consulting in collaboration with specialized professionals. The care services segment operates paid nursing homes, short-stay facilities, adult day services, and home care support services, with a focus on medical coordination and business continuity planning.

The company has set a medium- to long-term target return on equity (ROE) of 10%, pursuing growth through both structural reform of existing operations and creation of new services. While prioritizing stable revenue growth rates, operating margins, and ordinary income margins, the company aims to build stable cash flow by expanding recurring revenue streams such as subscriptions and maintenance contracts. The company maintains and expands its customer base through implementation support and remote assistance leveraging seven nationwide locations, while working to improve earnings per share.

The priority investment area is ICT for the beauty industry, with focus on enhancing features of products including point-of-sale systems, customer management, cloud services, mobile applications, and reservation and email distribution tools. Specifically, the company plans major version upgrades and will build recurring revenue by accumulating post-sale maintenance, content distribution, and new paid services. The company also pursues differentiation through alliances with other companies, leveraging the Ministry of Economy, Trade and Industry's DX certification and IT implementation subsidy programs as tailwinds.

In new market development, the company will leverage customer touchpoints cultivated in beauty ICT to expand back-office support for small and medium-sized enterprises through business services including accounting outsourcing, management consulting, and business process outsourcing. In the care services business, the company will secure stable revenue by maintaining occupancy rates at paid nursing homes and short-stay facilities, while responding to demand recovery through restructuring day services and home-based support and strengthening non-insurance-covered home services to develop new revenue sources.

On the technology front, the company will continue investing in system stability and security enhancement, strengthening servers and operational capabilities to advance information security and unauthorized access prevention measures. The company is promoting digital transformation (DX) of internal operations to improve operational efficiency and decision-making agility, while aiming to transition into a "DX partner" that supports customers' own digital transformation through the services it provides. The company is simultaneously advancing human resources recruitment and development and strengthening corporate governance to drive sustained corporate value creation.