TKC Corporation (9746) Stock Price

TKC is a company that provides information processing services and accounting software to support accounting and tax operations for accounting firms, their client companies, and local government bodies. Its main services include information processing through cloud and data center operations, accounting software provision, business consulting, sales of office equipment and supplies, and printing of continuous forms and other documents.

The company's primary customers are accounting firms, their affiliated companies, and local municipalities. Revenue is primarily generated through system usage fees, software sales, and maintenance and support contracts. These are supplemented by printing products, publications, and equipment sales, while recurring subscription fees create a relatively stable revenue base.

The business is divided into three main pillars: "Accounting Firm Operations," "Local Government Operations," and "Printing Operations." The accounting and local government divisions provide information processing services, software development, implementation support and consulting, and help desk services. The printing division manufactures and sells continuous forms, office forms, data printing, and related products.

The company is placing the expansion of a stable revenue base at the center of its medium- to long-term growth strategy. By serving accounting firms, their clients, and local government agencies, the company prioritizes recurring revenue from software sales, maintenance and support services, and cloud usage fees. It leverages its current customer base of over 800,000 accounts and a network of 11,600 members across national associations as key strengths. For local government clients, the company plans to complete the transition to "standards-compliant systems" that conform to national specifications by the end of March 2026. Through this process, the company expects significant performance growth in fiscal year 60, aiming for stable growth and enhanced corporate value.

Priority investment areas are concentrated in advancing system development capabilities, developing talent, and strengthening cybersecurity. Specifically, the company will establish an AI-skilled development team through AI adoption initiatives including joint research with Utsunomiya University, implementation of generative AI in programming processes, and enhanced education and recruitment efforts. Leveraging its own data center infrastructure, the company enhances security through 24/7 operational monitoring expertise and active capital investment in equipment. By providing high-value-added services in full compliance with regulations, the company differentiates itself from competitors.

For new market development and business expansion, the company pursues both deepening relationships with existing customers and expanding into adjacent markets. For accounting firms, the company promotes digitalization of monthly operations through the FX Cloud series, monthly settlement report services, and digital invoice integration (Peppol-based invoicing), while enhancing added value through the TKC Monitoring Information Service, which strengthens partnerships with financial institutions. In the local government market, the company aims to expand market share in administrative digital transformation-related implementation and maintenance services, leveraging the standards migration as an opportunity. In the printing business, the company develops new sales channels by capturing demand for local government tax notification documents and developing environmentally conscious products utilizing FSC certification.

Technological innovation is core to the company's management strategy, with the goal of enhancing customer business productivity through systems incorporating generative AI and machine learning. By strengthening its development capabilities, the company enables rapid response to legal and regulatory changes. Following the standards-compliant system migration, the company will continue supporting customer sustainable growth through ongoing feature additions and operational support. Through these initiatives, while maintaining its founding principle of "strengthening companies through accounting," the company aims to maximize long-term corporate value through enriching human capital and improving capital efficiency.