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Earnings presentation5599S&J CorporationInformation and Communications, Services and Others

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027

Revenue increased year on year in the first half, while operating profit, ordinary profit and net income declined due to higher personnel and communications expenses. In the second quarter alone, the operating profit margin improved from the first quarter as a result of restrained hiring and measures to reduce communications expenses.

Worth reading
55In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
51
¥ million (year-on-year decrease in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,191 million+7.9%
Operating profit¥227 million-18.4%
Ordinary income¥227 million-19.0%
Net income¥154 million-20.0%
Operating profit margin19.1 %
Results for the three months of the current quarter
Net Sales
¥600 million+5.8%
Operating profit
¥138 million-8.5%
Operating profit margin
23.1 %
Ordinary income
¥139 million
Net income
¥94 million
Full-year earnings forecast
Net Sales
¥2,740 million
Operating profit
¥620 million
Ordinary income
¥600 million
Net income
¥405 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales43.5 %
Operating profit36.6 %
Ordinary income37.9 %
Net income38.1 %
What the company explained in this material
New initiatives
  • Strengthening the partner network for monitoring Microsoft products
  • Use of generative AI in development and SOC operations
  • Strategy to increase the number of sales partners by at least fivefold
  • My SOC 365 service equipped with automated defense capabilities powered by autonomous AI
  • Launch of CSIRT-Pro, a domestic security data lake compatible with generative AI
Key KPIsA metric the company considers important as a management benchmark.
  • ARR¥2,187 million
  • Stock revenue ratio90.4 %
  • Service retention rate99.1 %
  • Churn rate0.9 %
  • Number of inquiries9.4 Times year on year
    Year on year against the same period last yearApproximately 9.4x
  • Number of companies participating in SOC tours150 companies or more
Segment results
SOC services
Net Sales
¥931 million
Consulting Services
Net Sales
¥259 million
SOC monitoring services
Net Sales
¥378 million
EDR monitoring services
Net Sales
¥108 million
In-house product monitoring
Net Sales
¥300 million
Microsoft monitoring
Net Sales
¥110 million
Other
Net Sales
¥34 million
Medium-term management plan targets
FY2026
Net Sales
¥2,740 million
Operating profit
¥620 million
Ordinary income
¥600 million
Net income
¥405 million
FY2027
Net Sales
¥3,300 million
Operating profit
¥800 million
Ordinary income
¥800 million
Net income
¥530 million
FY2028
Net Sales
¥4,000 million
Operating profit
¥1,120 million
Ordinary income
¥1,120 million
Net income
¥740 million
Market Size / Share
$14,510.4 million (2024 endpoint security market)
Microsoft share28.6%
Number of employees
80 people
Change during the periodUp 1 person from the end of the previous fiscal year
Hiring planActual: 80 people, versus the full-year plan of 87
Annual Dividend
¥17 per share
Interim0
End of period17
Payout ratio
20 % or higher as a guideline
Acquisition of treasury shares
Actual purchases
  • 119
    PeriodFebruary–May 2025
    Number of Shares110,200
    Share unitShares
    Amount unit¥ million
  • 299
    PeriodDecember 2025–March 2026
    Number of Shares160,000
    Share unitShares
    Amount unit¥ million
Going forwardMake an appropriate decision based on the financial condition, business environment and other factors
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥1,191 million (YoY +7.9%)
Operating profit¥227 million (YoY -18.4%)
Ordinary income¥227 million (YoY -19.0%)
Net income¥154 million (YoY -20.0%)
Operating profit margin19.1 %
Results for the three months of the current quarterNet Sales ¥600 million (YoY +5.8%) / Operating profit ¥138 million (YoY -8.5%) / Operating profit margin 23.1 % / Ordinary income ¥139 million / Net income ¥94 million
Full-year earnings forecastNet Sales ¥2,740 million / Operating profit ¥620 million / Ordinary income ¥600 million / Net income ¥405 million
Progress against full-year forecastNet Sales 43.5 % / Operating profit 36.6 % / Ordinary income 37.9 % / Net income 38.1 %
Segment resultsSOC services Net Sales ¥931 million / Profit Not disclosed / Consulting Services Net Sales ¥259 million / Profit Not disclosed / SOC monitoring services Net Sales ¥378 million / EDR monitoring services Net Sales ¥108 million / In-house product monitoring Net Sales ¥300 million / Microsoft monitoring Net Sales ¥110 million / Other Net Sales ¥34 million
Key KPIsARR ¥2,187 million, Stock revenue ratio 90.4 %, Service retention rate 99.1 %, Churn rate 0.9 %, Number of inquiries 9.4 Times (year on year), Number of companies participating in SOC tours 150 companies or more
Number of employees80 people
Medium-term management plan targetsFY2026 Net Sales ¥2,740 million / Operating profit ¥620 million / Ordinary income ¥600 million / Net income ¥405 million / FY2027 Net Sales ¥3,300 million / Operating profit ¥800 million / Ordinary income ¥800 million / Net income ¥530 million / FY2028 Net Sales ¥4,000 million / Operating profit ¥1,120 million / Ordinary income ¥1,120 million / Net income ¥740 million
Annual Dividend¥17 per share
Payout ratio20 % or higher as a guideline
Acquisition of treasury sharesActual purchases Period February–May 2025 / Number of Shares 110,200 / Share unit Shares / Amount 119 / Amount unit ¥ million, Period December 2025–March 2026 / Number of Shares 160,000 / Share unit Shares / Amount 299 / Amount unit ¥ million / Going forward Make an appropriate decision based on the financial condition, business environment and other factors
Market Size / ShareMarket Size $14,510.4 million (2024 endpoint security market) / Microsoft share 28.6%
New initiativesStrengthening the partner network for monitoring Microsoft products, Use of generative AI in development and SOC operations, Strategy to increase the number of sales partners by at least fivefold, My SOC 365 service equipped with automated defense capabilities powered by autonomous AI, Launch of CSIRT-Pro, a domestic security data lake compatible with generative AI
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased as recurring revenue from monitoring services and other offerings rose, despite a decline in spot revenue from vulnerability assessments. The decline in operating profit was attributable to higher personnel expenses resulting from the previous fiscal year's aggressive hiring and higher communications expenses associated with developing new services. Profit margins improved in the second quarter as a result of restrained hiring and measures to reduce communications expenses.

How to read this page

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Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending March 2027 | S&J Corporation (5599) timely disclosure | Komori