BASIS Research Memo (5): Higher revenue and profit expected for the fiscal year ending June 2027, with proactive investment under the new medium-term management plan (1)

The consolidated earnings outlook for the fiscal year ending June 2027 calls for revenue of ¥9,909 million, up 17.6% year on year; operating profit of ¥329 million, up 52.4%; ordinary profit of ¥324 million, up 53.9%; and net profit attributable to owners of the parent of ¥194 million, up 72.3%, indicating increases in both revenue and profit. EBITDA is expected to increase 39.9% to ¥411 million, while adjusted EBITDA is expected to increase 43.9% to ¥481 million. Revenue is targeted at approximately ¥10 billion, the target set in the previous medium-term plan.

In line with the new medium-term management plan, the service categories will be changed to IoT services, network services and SaaS services. The purpose of the change is to make performance and growth areas visible based on what the company provides, with the aim of expanding its infrastructure technology platform.

Revenue from IoT services is expected to increase 59.2%, supported by demand for smart meters, network cameras and sensors, as well as a large-scale project for in-store digital signage that has already been secured. SaaS service revenue will grow through expanded sales of BLAS and cross-selling, with BPaaS conversion in view. Network service revenue is expected to decline 3.8%, including demand for conventional mobile network construction, while the company will strengthen orders for design and maintenance projects.

SaaS services will promote expanded sales of BLAS and BPaaS conversion, strengthening the generation of recurring revenue. The company will advance the use of field data through collaboration with MODE and aims to generate revenue from the installation, operation and maintenance of IoT projects. Overall, it expects to improve profit margins through high-value-added projects and stronger order intake.