Neural Pocket

Basic Information

Stock Code
4056
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
January 2018
Listing Year
August 2020
Official Website
https://www.neuralpocket.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Neural Pocket is an AI engineering company founded in 2018 and based in Tokyo, leveraging its proprietary deep learning technology to provide image and video analysis solutions. It is a leading firm in the information and communications industry.

Current Situation

Neural Pocket achieved sales of approximately 1 billion yen and net profit of 11 million yen in the fiscal year ended December 2021. Its core business involves image and video analysis using proprietary AI algorithms, demonstrating strong competitiveness in transportation and advertising sectors. Through capital and business alliances with major companies including Sony, it is accelerating technology development and market expansion, while actively establishing new subsidiaries and overseas bases. Mindful of contributing to a sustainable society, the company is developing diverse services applying deep learning. Moving forward, it plans to promote the adoption of AI camera-equipped digital signage and remote work management systems, aiming to sustain growth in its AI business through 2030. The latest capital raise has strengthened its financial foundation, with a focus on differentiating from competitors, acquiring new customers, contributing to local communities, and pursuing global expansion.

Trivia

Interesting Facts

  • Founder Michimatsu Rwei is an AI specialist from McKinsey.
  • Changed company name to Neural Pocket in 2019 to strengthen AI focus.
  • Rapidly implemented subsidiary acquisitions for business expansion post-listing.
  • Announced collaborations with Sony and Kyodo News in 2023.
  • Holds numerous patented technologies in AI image analysis.
  • 45 employees as of 2021, a small-scale enterprise.
  • Established branch in Thailand to enter Southeast Asian market.
  • Also offers AI analysis services in fashion sector.
  • Provides AI-based remote work management tools.
  • Offers products with AI cameras embedded in digital signage.

Hidden Connections

  • Alliance with Sony includes important collaboration for technology sharing in video processing.
  • Alliance with Kyodo News enhances AI analysis of news data.
  • Subsidiary Focus Channel specializes in electronic signage for apartment advertising.
  • Neural Marketing Co., Ltd. was formed by merger of Netten and Focus Channel previously.
  • Founder from strategy consulting leverages strong business perspective.
  • Applications of AI image analysis span from traffic management to advertising effectiveness measurement.
  • Tokyo Stock Exchange Growth Market emphasizes growth potential for emerging companies and has high visibility.
  • RemoDesk demand is growing amid remote work proliferation.

Future Outlook

Growth Drivers

  • Market expansion and increasing demand for image recognition AI technology
  • Overseas market development centered on Southeast Asia
  • Sustained technological innovation through alliances with major firms like Sony
  • Increasing advertising demand in digital signage sector
  • Widespread adoption of remote work management systems
  • Expansion of AI service applications across diverse industries

Strategic Goals

  • Expand global sales ratio to over 30%
  • Aim for top domestic market share in AI image analysis technology
  • Develop and deploy sustainable AI systems
  • Complete revenue growth from multiple subsidiaries and business diversification
  • Maintain annual R&D investment over 1 billion yen
  • Build ecosystem through expansion of partners in Japan and abroad

Business Segments

AI Image Analysis Services

Overview
Customizable AI image and video analysis services tailored to customer needs.
Competitiveness
Achieves high-precision analysis with proprietary deep learning technology.
Customers
  • Local governments
  • Transportation operators
  • Advertising agencies
  • Retailers
  • Parking lot operators
  • Manufacturers
  • Commercial facilities
Products
  • Digiflow
  • Digipark
  • Digisuru
  • SIGN DIGI

Remote Work Management Systems

Overview
Management and analysis tools aimed at improving remote work efficiency.
Competitiveness
Cloud-based system with emphasis on security.
Customers
  • IT companies
  • Consulting firms
  • Financial services
  • Small businesses
Products
  • RemoDesk

Fashion Trend Analysis Services

Overview
Provides market trends by analyzing SNS data with AI.
Competitiveness
High accuracy specialized in image-centric data analysis.
Customers
  • Apparel companies
  • Marketing firms
  • Brand operators
Products
  • AIMD

Digital Signage Business

Overview
Planning and operation of digital signage equipped with AI cameras.
Competitiveness
Automatic optimal advertisement delivery technology.
Customers
  • Advertising agencies
  • Commercial facilities
  • Event companies
Products
  • SIGN DIGI

Competitive Advantage

Strengths

  • AI analysis capabilities with proprietary deep learning technology
  • Broad service deployment across diverse industries
  • Technical backing from capital and business alliance with Sony
  • Global responsiveness through overseas expansion
  • High R&D capabilities despite small scale
  • Business diversification utilizing numerous subsidiaries
  • Southeast Asia entry via Thai subsidiary establishment
  • High-precision algorithms specialized in image recognition
  • Flexible customization provision capabilities
  • Operating profit turning positive while building growth foundation

Competitive Advantages

  • Higher recognition accuracy than competitors due to proprietary algorithms
  • Technology and capital enhancement through collaborations with Sony and Kyodo News
  • Cross-industry AI solutions for diverse sectors
  • Real-time analysis technology based on machine learning
  • Image analysis services strong in specific niche markets
  • Achieved listing in under 5 years since founding, demonstrating growth potential
  • Expansion into remote work management and digital signage
  • Successful early business expansion through subsidiary acquisitions
  • Market expansion strategy via overseas bases including Thailand
  • Emerging technology company gaining attention on Tokyo Stock Exchange Growth Market

Threats

  • Intensifying competition due to rapid technological innovations in AI
  • Risk of market share squeeze from entry of major corporations
  • Increased burdens from strengthened data privacy regulations
  • Cultural and regulatory barriers accompanying rapid overseas expansion
  • Risk of development stagnation from intensifying talent acquisition competition
  • Risk of patent infringement on emerging technologies
  • Possibility of IT investment cuts due to economic fluctuations
  • Security risks such as cyber attacks
  • Organizational management challenges accompanying employee growth
  • Increased competition costs for brand awareness enhancement

Innovations

2023: Capital and Business Alliance with Sony

Overview
Collaborating with Sony to advance joint development of AI image analysis technology.
Impact
Contributes to technological enhancement and market expansion.

2023: Strengthening Overseas Expansion with Thai Subsidiary Establishment

Overview
Established base for business expansion targeting Southeast Asian market.
Impact
Builds foundation for global operations.

2023: Subsidiary Acquisition of Neural Marketing Co., Ltd.

Overview
Promotes technology integration in marketing field.
Impact
Diversifies services and expands customer base.

2023: Capital and Business Alliance Agreement with Kyodo News

Overview
Advances strengthening of information dissemination and AI analysis collaboration.
Impact
Supports management foundation strengthening and new business expansion.

2023: Third-Party Allotment Capital Increase

Overview
Fundraising for business expansion and R&D expenses.
Impact
Strengthens financial base and accelerates growth.

2022: Full Subsidiary Acquisition of Netten Co., Ltd.

Overview
Strengthens and diversifies electronic signage business.
Impact
Expands related markets and reinforces brand.

2021: Full Subsidiary Acquisition of Focus Channel Co., Ltd.

Overview
Strengthens business accompanying entry into apartment signage field.
Impact
Enhances presence in real estate advertising market.

Sustainability

  • AI technology development mindful of reducing environmental impact
  • Promotion of AI technology provision to local communities
  • Talent recruitment respecting diversity and inclusion
  • Thorough data management and privacy protection
  • Workstyle reform through promotion of remote work