FUSO DENTSU CO., LTD. (7505) Stock Price

Fusō Dentsū primarily operates in the installation of information and communication equipment, sales of office equipment, and system consulting and software development. The company provides comprehensive services spanning from equipment implementation through operation and maintenance.

Its main customers are manufacturers, trading companies, and corporate information systems departments, with installation work and equipment sales serving as primary revenue sources. In addition to project-based contract revenue, the company generates stable earnings through ongoing maintenance and operation services.

The business operates under a single segment and offers a complete product line including design and installation, equipment sales, system consulting and software development, and operation and maintenance services. By providing end-to-end support from design and implementation through post-deployment operations, the company enables customers to improve business efficiency and ensure stable system performance.

The company has announced its medium-term management plan "FuSodentsu Vision 2027," with fiscal year 2025 as the first year. The plan targets revenue of ¥55,000 million (¥5.5 billion), operating profit of ¥2,200 million (¥220 million), an operating margin of 4.0%, and ROE of 10.0% by September 2027. This represents an upward revision from the initial target of ¥46,000 million in revenue, with the company aiming for approximately 19.6% growth in both sales and profit. These numerical targets are designed to achieve stable growth independent of short-term project revenue while maintaining shareholder returns.

The company has identified three priority investment areas: deepening customer understanding by industry, strengthening digital transformation (DX) support that partners with customers, and expanding technology and capabilities through business alliances and M&A. Specific initiatives include deploying network and office equipment alongside expanded planning and consulting services to enhance value delivery before and after implementation, and investing in research on advanced technologies and partnerships with external companies to fill technology gaps. The company differentiates itself by offering end-to-end services from equipment installation through operation and maintenance.

For new market development, the company is organizing six industry segments to deliver market-focused value, beyond its traditional focus on manufacturers, trading companies, and corporate IT departments. By conducting deep analysis of industry-specific challenges and converting them into solutions, the company aims to expand orders beyond one-time projects and sales. Through M&A and alliances, it is acquiring new customer segments and services, expanding recurring revenue from maintenance and operations to stabilize earnings.

In technological innovation, the company is advancing operational sophistication through research into advanced technologies and migration to new business systems. Internally, it is promoting a culture of challenge and speed-focused action guidelines while investing in talent development and organizational reform. Additionally, the company is strengthening digital marketing and customer satisfaction initiatives to build long-term customer relationships beyond technology implementation, thereby enhancing enterprise value.