Abalance

Basic Information

Stock Code
3856
Industry
Electrical Equipment
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
April 2000
Listing Year
September 2007
Official Website
https://www.abalance.jp/
TSE Information
TSE Information
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Other Companies
Yashu Denki, MK System, F-Brain, Convano, Tanaka Shoji, Izumi Denko, Fujii Sangyo, Inaba Denki Sangyo

Overview

Abalance is an electrical equipment company headquartered in Shinagawa-ku, Tokyo, established in 2000. It has grown with IT solutions and solar power generation as its main pillars, and also operates a construction machinery sales business.

Current Situation

Abalance recorded consolidated net sales of approximately 6.678 billion yen, operating profit of approximately 361 million yen, and net profit of approximately 216 million yen for the fiscal year ended June 2020, establishing a stable management foundation. Its main businesses are software development and consulting, particularly providing ECM, knowledge management, and SharePoint-related solutions aimed at market expansion. Construction machinery sales and solar power generation businesses are conducted through its subsidiary WWB Co., Ltd., maximizing group synergies domestically and internationally. In 2024, an insider trading incident occurred, but the company is striving to strengthen governance. It is also conscious of SDGs, focusing on organizational diversity such as appointing female directors. Moving forward, it will promote smart grid business and expansion of solar power generation materials manufacturing, aiming for mid- to long-term business growth and enhancement of corporate value. Overseas expansion continues centered on its Vietnamese subsidiary, with plans underway for a new manufacturing plant.

Trivia

Interesting Facts

  • After founding in 2000, underwent multiple name changes to arrive at current name
  • Has experience establishing business base in Silicon Valley, USA
  • Subsidiary WWB serves as pillars in solar power and construction machinery sales
  • Past insider trading incident came to light and became a social issue
  • Company name 'Abalance' means harmony and the best, reflecting group philosophy
  • Implemented Japan's first female director appointment to strengthen SDGs
  • Expanding influence in industry through capital alliance with Meiji Machinery
  • Secured construction machinery inventory funds via third-party allotments
  • Developed proprietary ECM products during Real Communications era
  • Rare IT company with track record supervising SharePoint-related books

Hidden Connections

  • Shareholder Ryujunsei is also the founder of subsidiary WWB and holds strong influence over management.
  • Vietnam solar panel manufacturing subsidiary functions as domestic sales base, making significant contribution to group earnings.
  • Capital alliance with established Japanese construction machinery firm Meiji Machinery, advancing industry linkages.
  • Unique diversified management with IT-related and construction machinery businesses coexisting in the group.
  • History of multiple audit firm changes, continuously working on strengthening financial structure.
  • Early initiatives in SDGs and governance strengthening, achieving female executive appointments.
  • Essentially Mothers-listed but continues to appear after market change to TSE Standard.
  • After failed overseas venture withdrawal due to Lehman Shock impact, focusing on stable domestic and Asian expansion.

Future Outlook

Growth Drivers

  • Expansion of solar power market and government renewable energy promotion
  • Increasing demand for cloud-based IT solutions
  • Growing demand for eco-friendly construction machinery products
  • Base expansion overseas and strengthened cost competitiveness
  • Brand value enhancement through SDGs compliance
  • Increasing demand for knowledge management supporting business efficiency
  • Business strengthening via group company synergies
  • Improved market penetration through diverse sales channels
  • Expansion of industry-specific IT services
  • Stable management base through capital alliances
  • New customer development accompanying technology development and product diversification
  • Deepened CSR activities and strengthened community collaboration

Strategic Goals

  • Achieve 30% domestic share in solar power business
  • Surpass 5 billion yen in annual IT business sales
  • Double profitability in construction machinery-related business
  • Achieve group-wide SDGs goals
  • Further optimize and expand overseas production system

Business Segments

ECM/Knowledge Management Solutions

Overview
Provides IT solutions for corporate information sharing and business efficiency improvement.
Competitiveness
Abundant knowledge management track record and multi-industry adaptability
Customers
  • Major manufacturers
  • Financial institutions
  • Pharmaceutical companies
  • Information & communications services
  • Public institutions
  • Educational institutions
  • Research institutions
  • Major trading companies
  • IT vendors
Products
  • Knowledge Market software
  • AskMe Q&A system
  • SharePoint customization
  • Business process automation tools

Solar Power System Design & Construction

Overview
Provides development and maintenance of solar power equipment for residential and industrial use.
Competitiveness
Balance of global procurement capabilities and construction quality
Customers
  • Residential developers
  • Public facility operators
  • Industrial power users
  • Renewable energy generators
Products
  • Solar panel installation work
  • System maintenance & management
  • Power generation system consulting
  • Solar panel materials wholesaling

Construction Machinery Sales & Services

Overview
Strengthens machinery provision and after-sales services for construction sites.
Competitiveness
Local sales network and rapid response
Customers
  • Construction companies
  • Civil engineering contractors
  • Rental companies
  • Construction machinery importers
Products
  • Used & new hydraulic excavator sales
  • Construction machinery maintenance services
  • Machinery import agency
  • Parts supply

IT Consulting

Overview
Provides support for resolving customer corporate management issues through IT utilization.
Competitiveness
Flexible response by expert team with rich practical experience
Customers
  • Mid-sized companies
  • Listed companies
  • SMEs
  • Venture companies
Products
  • IT strategy planning
  • Business efficiency support
  • System integration
  • Cloud implementation support

Overseas Procurement & Manufacturing Support

Overview
Support services for overseas product procurement and production base establishment.
Competitiveness
Low-cost procurement via Asian regional network
Customers
  • Domestic manufacturers
  • Export companies
  • Solar-related businesses
Products
  • Vietnam-made solar panel procurement
  • Overseas factory establishment support
  • Quality control consulting

Competitive Advantage

Strengths

  • Diversified business operations
  • Integration of IT and renewable energy
  • Domestic and international group collaboration
  • Solid financial foundation
  • Abundant knowledge management track record
  • Solid sales capabilities in construction machinery market
  • Strengthened governance and organizational diversity
  • Low-cost manufacturing via overseas Vietnam base
  • Flexibility in multi-market business operations
  • Professional IT service delivery capabilities
  • Stable customer base
  • Experience in regulatory compliance and emphasis on compliance
  • High technical expertise
  • Established brand recognition in domestic market
  • Comprehensive solution provision capabilities

Competitive Advantages

  • Unique product lineup strong in information sharing and knowledge management
  • Integrated system from solar panel manufacturing to sales
  • Market service expansion through collaboration with construction machinery sales company
  • Overseas expansion experience in Silicon Valley
  • Flexible IT consulting adaptable from SMEs to large enterprises
  • New solution creation power backed by extensive industry knowledge
  • Corporate value enhancement through SDGs promotion and female director appointments
  • Market access via diverse sales channels
  • Strengthened capital relations through tender offers
  • Import of various software and added-value services
  • Meticulous risk management system
  • Business efficiency support via information technology utilization
  • Fusion of expertise and local services
  • Customer loyalty through combined machinery maintenance and sales
  • Synergy maximization via group management integration strategy

Threats

  • Risk of corporate image decline due to insider trading incident
  • Intensifying competition in SME market
  • Risk of fluctuations in renewable energy policies
  • Political and economic risks in overseas production bases
  • Intensifying competition due to rapid IT technology changes
  • Impact of financial market volatility on fundraising
  • Intensifying talent acquisition competition
  • Increased compliance costs from strengthened regulations
  • Economic uncertainty from COVID-19 and similar impacts
  • Growing cybersecurity risks
  • Risk of delayed response to diversifying customer needs
  • Cost increases from rising resource prices

Innovations

2024: Undisclosed Information Incident on New Factory Establishment

Overview
Subsidiary's Vietnam manufacturing plant new site plan was used in stock trading before disclosure, leading to insider trading crackdown.
Impact
Implemented review of internal management systems and governance strengthening.

2023: Expansion of Vietnam Solar Panel Manufacturing Base

Overview
VIETNAM SUNERGY enhanced manufacturing capacity, contributing to strengthened domestic sales.
Impact
Increased solar business sales and improved market competitiveness.

2022: Tie-up with Meiji Machinery via Tender Offer

Overview
Made Meiji Machinery an equity-method affiliate, strengthening business synergies.
Impact
Expanded construction machinery business domain and reinforced earnings base.

2020: Fundraising via Third-Party Allotment

Overview
Conducted multiple third-party allotments primarily for construction machinery inventory funds.
Impact
Supported development of construction machinery sales business through fundraising.

2021: Expansion of SharePoint Cloud Services

Overview
Evolved IT services in response to cloud demand by launching BP On-Demand.
Impact
Achieved customer base expansion and improved profitability.

Sustainability

  • Promoting diversity through female director appointments
  • Expanding and promoting renewable energy business
  • High-efficiency solar panel materials to reduce environmental impact
  • Sustainable business operations and strengthened governance
  • Corporate activities emphasizing coexistence with local communities