Jyoho Kikaku

Basic Information

Stock Code
3712
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Osaka Prefecture
Establishment Year
October 1986
Listing Year
May 2003
Official Website
https://www.jyohokikaku.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Celsys, Kyoryo Joho Tsushin, Broadleaf, Plus Alpha Consulting, Appier Group, Finatext Holdings, Smaregi, WingArc1st, Kaonavi, Sansan, Cybozu, OB System, Asahi Joho

Overview

Jyoho Kikaku is an independent systems integrator founded in 1986, specializing in providing credit risk management systems for financial institutions, and boasts a high market share and profitability in the industry.

Current Situation

Jyoho Kikaku primarily serves city banks, regional banks, shinkin banks, and other financial institutions with the planning, development, and sales of credit risk management systems, achieving top-class package utilization rates in the industry. In the fiscal year ended March 2019, it achieved a highly profitable structure with an operating profit margin on sales of 34.4% and ROE of 19.4%. It also handles system support and outsourced data entry services, while securing stable revenue from real estate leasing. Expert-led advanced planning, design, and consulting serve as the source of its competitiveness, with deployment of proprietary credit risk quantification technology and various management systems. While responding to market fluctuations and strengthened financial regulations, it promotes acquisition of new customer segments and system enhancements. Going forward, increased IT investment in the financial sector and the growing importance of credit risk management are expected to support growth. It aims for further performance expansion through sustainable management and technological innovation.

Trivia

Interesting Facts

  • Continuing finance specialization as an independent systems integrator
  • Rare IT company where accountants and tax accountants handle planning and design
  • Moved to TSE Second Section after listing on TSE Mothers in 2003
  • Employee stock ownership actively contributes to management participation
  • Maintaining stable financial institution customer base for many years
  • Rare in the industry for an IT company to engage in real estate leasing
  • Early progress in packaging credit risk management software
  • Strength in independence without reliance on parent companies
  • Top market share in multiple major package products
  • Multifaceted business support including data provision and outsourced entry

Hidden Connections

  • Koshu Tsushin holds some shares, complementing IT industry network
  • Has sales bases in Nagoya and Tokyo, expanding beyond Kansai
  • Aligns with expanding credit risk management needs of financial institutions
  • Collaborative structure with related companies such as Limited Company Support
  • Certified public accountants participate in system design, utilizing financial expert knowledge
  • Positioned as a dedicated manufacturer specialized in operational efficiency for financial institutions
  • Outsourced data entry services enjoy strong trust from financial institutions
  • Pre-listing mergers with companies formed the current business foundation

Future Outlook

Growth Drivers

  • Growing demand for strengthened credit risk management in financial industry
  • Increased IT-related investments due to digitalization push
  • System demand expansion accompanying government financial regulation strengthening
  • Operational efficiency through cloud services and AI technology adoption
  • Corporate foundation strengthening through stable real estate leasing revenue
  • Expansion of IT support for regional banks and shinkin banks
  • Improved corporate evaluation through environmentally conscious management
  • Market expansion for business plan and loan support systems
  • Increasing needs for operational efficiency in small and medium-sized financial institutions
  • Strengthened risk management corresponding to new financial products

Strategic Goals

  • Maintain domestic top position in credit risk management market for financial institutions
  • Sustain operating profit margin over 30%
  • Establish next-generation systems through cloud compatibility and AI utilization
  • Diversify and stabilize real estate leasing revenue
  • Promote sustainability management conscious of social issues
  • Strengthen employee diversity promotion and specialized talent development
  • Expand long-term transactions through improved customer satisfaction
  • Enrich social contributions such as IT education support for regional financial institutions
  • Flexible and rapid service provision corresponding to competitive environment
  • Maintain governance strengthening and information security systems

Business Segments

System Development for Financial Institutions

Overview
Provides systems supporting credit risk management and contract management for financial institutions.
Competitiveness
High planning capabilities with in-house accounting experts and financial-specialized systems
Customers
  • City Banks
  • Regional Banks
  • Shinkin Banks
  • Credit Unions
  • Financial Services Agency-related Institutions
  • Guarantee Associations
Products
  • Credit Risk Management Package
  • Contract Preparation Support System
  • Settlement Support Tools
  • Credit Risk Quantification System
  • Receivable Management System
  • Business Plan Support System

System Support and Outsourced Data Entry Services

Overview
Reduces customer operational burden through maintenance of sales systems and outsourced data entry.
Competitiveness
Top-class maintenance infrastructure and reliability in the industry
Customers
  • Financial Institutions
  • Consulting Firms
  • Financial Software Resellers
Products
  • System Maintenance Services
  • Data Provision Services
  • Outsourced Data Entry Services

Real Estate Leasing Management Business

Overview
Secures stable revenue through leasing and management of owned properties.
Competitiveness
Long-term stability as part of fund operations
Customers
  • Individual Investors
  • Corporate Tenants
  • Real Estate Management Companies
Products
  • Rental Apartment Management
  • Commercial Facility Leasing
  • Real Estate Asset Management

Financial Consulting Services

Overview
Provides consulting aimed at improving credit management for financial institutions.
Competitiveness
Utilization of specialized knowledge from certified public accountants and tax accountants
Customers
  • Small and Medium-sized Financial Institutions
  • New Entrant Financial Businesses
Products
  • Credit Risk Evaluation Consulting
  • System Implementation Support
  • Regulatory Compliance Support

Competitive Advantage

Strengths

  • High expertise specialized for financial institutions
  • High-profit structure with operating profit margin over 30%
  • Progress in packaging credit risk management software
  • Unique development capabilities led by experts in planning and design
  • Comprehensive support system including outsourced data entry
  • Stable revenue from real estate leasing
  • Top-class customer utilization rate in the industry
  • Continuous system maintenance capabilities
  • High adaptability to financial regulations
  • Promotion of management participation through employee stock ownership

Competitive Advantages

  • Strong customer base centered on banks and shinkin banks
  • Sophistication of accounting and risk management systems for financial industry
  • High-quality consulting provided by utilizing experts
  • Flexible customer response and customization as an independent firm
  • Top-class utilization rate for credit risk management systems in domestic market
  • Lineup of packaged evaluation and management tools
  • One-stop service from support to data provision
  • Accumulation of proprietary technologies in finance and risk areas
  • Revenue supplementation through real estate leasing business
  • Transparent management structure and information disclosure

Threats

  • Increased system compliance costs due to financial regulations and legal amendments
  • Expansion of solutions for financial industry by major IT companies
  • Changes in packaged systems due to spread of cloud services
  • Risk of IT budget cuts by financial institutions
  • Progress of consolidation among regional financial institutions due to population decline
  • Increasing risks of cyber attacks and data breaches
  • Decline in competitiveness due to delays in adopting new technologies
  • Fluctuations in financial investment appetite due to economic changes
  • Real estate market price fluctuation risks
  • Intensifying competition with global IT companies

Innovations

2023: Enhancement of Credit Risk Quantification System

Overview
Utilizing AI technology to strengthen the credit risk quantification model and achieve improved accuracy.
Impact
Contributes to improved risk management accuracy for financial institutions

2022: Initiation of Cloud-Compatible System Development

Overview
Began development of cloud version of credit risk management systems for financial institutions.
Impact
Realizes reduction in implementation costs and operational efficiency

2021: UI Refresh for Contract Preparation Support System

Overview
Improved screen design pursuing user-friendly operability.
Impact
Improved customer satisfaction and operational efficiency

2020: Expansion of Data Provision Services

Overview
Strengthened regular provision services of various risk-related data for financial institutions.
Impact
Contributes to promoting data utilization by customers

Sustainability

  • Reducing paper documents and environmental impact through business efficiency improvements
  • Forming sustainable organizations through employee education and diversity promotion
  • Active information sharing and IT support activities for local communities
  • Customer information protection through strengthened data security
  • Maintaining financial soundness through stable real estate revenue