Densan System Holdings

Basic Information

Stock Code: 4072
Industry: Information and Communications Industry
Category Detail: Systems & Software
Prefecture: Gifu Prefecture
Establishment Year: July 2021
Listing Year: July 2021
Official Website: https://ds-hd.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Nippon Steel Solutions, TIS, System Lisa, NeoJapan, Nomura Research Institute, Simplex Holdings, Obic, Otsuka Shokai, Dentsu Research Institute, BIProGY, NTT Data Group, ISB, SCSK

Overview

Densan System Holdings is a holding company in the information and communications industry established in 2021, primarily an independent SIer specializing in system integration and payment agency services.

Current Situation

Densan System Holdings recorded consolidated sales of approximately 50.3 billion yen and net profit of approximately 2 billion yen for the fiscal year ending December 2021, maintaining a stable financial base. Headquartered in Gifu City, Gifu Prefecture, it is known as an independent SIer mainly providing payment collection agency services for convenience stores and others. In 2021, it transitioned to a holding company structure to strengthen group management, collaborating with subsidiaries to offer a wide range of services from system development to operation and maintenance, and payment services. It has expanded its business areas through acquisitions of shares in IT-related subsidiaries and pursued diversification. Amid societal digitalization and the progress of cashless payments, growth is anticipated, and as a Tokyo Stock Exchange Prime Market-listed company, it boasts strong fundraising capabilities. In the medium to long term, it pursues a strategy to enhance profitability through new technology adoption and expansion of payment business, while deepening regionally rooted services to strengthen social trust.

Trivia

Interesting Facts

Rare independent SIer strong in both system integration and payment agency domains.
Established nationwide holding company structure while rooted in the Tokai region.
Convenience store collection agency services have a history dating back to the 1980s.
Holding company established in 2021 is relatively new, but history traces to subsidiary founded in 1967.
Parent and subsidiary have the same capital, but different shareholder compositions.
Diversified into new businesses like location information services through subsidiary acquisitions.
High reliability as an audit client of Deloitte Touche Tohmatsu.
High attention from investors as Tokyo Stock Exchange Prime Market-listed company.
Group has approximately 900 employees, over half belonging to subsidiaries.
100% ownership of subsidiaries enables rapid management integration.
Share transfer renewed shareholder composition and strengthened management base.
Core services span multiple IT-related domains comprehensively.
Convenience store payment agency supports diverse payment methods.
Gifu Prefecture headquarters symbolizes long-term regional closeness.
Leverages business continuity from founding even under holding company structure.

Hidden Connections

Close collaborative relationship between parent and subsidiary management teams.
Multiple-year contracts with numerous convenience store chains in payment agency field.
Provides highly reliable services through collaboration with financial institutions.
Contributes to regional revitalization through IT support for local SMEs.
Established efficient group management structure through share transfer.
Subsidiary's location information services seeing increased use in logistics.
Know-how from system development and payment agency mutually utilized.
Maintains long-term audit contract with Deloitte Touche Tohmatsu.

Future Outlook

Growth Drivers

Increased agency demand from cashless payment expansion
Expanded IT system demand from DX promotion
Strong relationships with regional companies centered on Tokai area
Increased system maintenance services accompanying cloud migration
Improved service quality through IT talent development and securing
Growing needs for IT adoption support among SMEs
Promotion of next-generation payment technology development and implementation
Business synergies through strengthened subsidiary collaboration
Enhanced brand value through sustainability efforts
Expanded opportunities for new customer acquisition amid digital society
Growing demand for security enhancement measures
Stable growth leveraging coexistence with local communities

Strategic Goals

Achieve consolidated sales over 70 billion yen
Expand domestic market share in payment agency business
Create new services using cloud and AI technologies
Strengthen sales in Tokai region and nationwide
Advance sustainability management and enhance regional contributions
Continuously expand IT talent development programs
Support customer productivity improvement through digitalization
Strengthen competitiveness through introduction of diverse payment technologies
Implement stable dividend policy and shareholder returns
Sustainable growth through active investment in next-generation technologies

Business Segments

System Integration

Overview

Provides custom system design, development, and operation/maintenance to a wide range of industries.

Competitiveness

Flexible responsiveness based on regional closeness and extensive SI experience

Customers

Manufacturing
Distribution
Financial Institutions
Public Institutions
Telecommunications Carriers
Medical Institutions
Educational Institutions
Retail
Services
Logistics

Products

Business System Development
Cloud Construction
System Operation and Maintenance
AI/IoT Solutions

Payment Agency Services

Overview

Provides agency for various payment processing and related services to support cashless transition.

Competitiveness

Track record in convenience store collection agency and extensive network

Customers

Convenience Stores
Financial Institutions
E-commerce Operators
Local Governments
Educational Institutions
Public Service Providers

Products

Collection Agency Services
Electronic Money Payments
Credit Card Payments

IT Outsourcing

Overview

Deploys software development support including IT personnel dispatch and operation/maintenance services.

Competitiveness

Stable service provision by experienced engineers

Customers

IT Companies
Telecom Companies
Manufacturing
Small and Medium Enterprises
Public Institutions

Products

System Development Assistance
Operation and Maintenance Contracting
IT Engineer Dispatching

Location Information Services

Overview

Provides systems and services utilizing location information through subsidiaries.

Competitiveness

Service provision leveraging high-precision location information technology

Customers

Logistics
Retail
Real Estate

Products

Location Information Management Systems
Tracking Services

IT Education and Training Services

Overview

Deploys education programs for IT talent development to support technology enhancement.

Competitiveness

Practical education content based on field experience

Customers

Corporations
Educational Institutions

Products

IT Skills Training
System Development Education

Competitive Advantage

Strengths

Strong foothold centered on the Tokai region
Broad industry responsiveness
Long years of SI experience and high technical capabilities
Proven track record in convenience store collection agency services
Stable financial base
Diversification through subsidiary group
Comprehensive operation and maintenance system
Active investment support through financial strength
Reliability of Prime Market listing
High customer satisfaction
Regionally rooted sales organization
Diverse IT service offerings
Rapid market responsiveness
Brand value from extensive track record
Audit by Deloitte Touche Tohmatsu

Competitive Advantages

Flexible proposal capabilities as an independent SIer
Powerful network in convenience store payment agency
Technical capabilities to meet diverse industry needs
Improved management efficiency through holding company structure
Strength in regionally close sales expansion
Business diversification through subsidiary collaboration
Prominent market position in Tokai area
Advances R&D with stable financial strength
Maintains good customer relationships
Enhanced reliability through Prime Market listing
Focuses on IT talent development for technology succession
Covers customer needs with broad service lineup
Possesses cost-efficient operation and maintenance system
Proactively responding to expansion of digital payments
Secures public sector projects backed by social credibility

Threats

Intensifying competition with major IT companies
Strengthened regulations in cashless market
Risk of service obsolescence due to technological changes
Decline in development capabilities due to talent acquisition difficulties
Economic contraction in local markets
Rise of emerging IT ventures
Uncertainty in societal digitalization
Cost increase risks from exchange rate fluctuations
Expansion of cyber security risks
Transformation of payment structures in financial industry
Increased operational costs accompanying technology adoption
System failures due to natural disasters

Innovations

2021: Transition to Holding Company Structure

Overview: Changed to holding company structure via share transfer, strengthening group management.
Impact: Improved management and capital efficiency.

2022: Development of Smartphone Payment Compatible Systems

Overview: Launched new payment agency services compatible with smartphone payments.
Impact: Contributed to new customer acquisition and market expansion.

2023: Cloud Platform Enhancement

Overview: Strengthened cloud service capabilities for rapid response to customer needs.
Impact: Contributed to improved operational efficiency and sales growth.

2023: Strengthened Cyber Security Measures

Overview: Adopted latest security technologies to enhance customer system safety.
Impact: Effective in improving customer trust and reducing risks.

2024: Expansion of AI Technology Application in Operations

Overview: Launched business efficiency services utilizing AI and machine learning.
Impact: Succeeded in automating customer operations and cost reduction.

2023: Development of Payment Data Utilization Solutions

Overview: Launched marketing support services for customers using payment data analysis.
Impact: Contributed to customer sales growth.

2022: Launch of DX Promotion Support Program

Overview: Deployed digital transformation support services for small and medium enterprises.
Impact: Contributed to customer base expansion and revenue diversification.

2024: Preparation for Next-Generation Payment System Platform Construction

Overview: Initiated development of payment platform utilizing blockchain technology.
Impact: Expected to strengthen future competitiveness.

2020: Business Expansion through Subsidiary Acquisition

Overview: Acquired IT-related subsidiary to strengthen location information services and others.
Impact: Contributed to new business development and sales growth.

2021: Operational Efficiency Improvement in Payment Systems

Overview: Introduced automation tools for payment agency operations to improve processing speed.
Impact: Reduced operational costs and improved customer satisfaction.

Sustainability

Participation in local IT talent development programs
Promotion of energy-saving IT infrastructure adoption
Resource conservation through paperless initiatives
Social contributions via sponsorship of local events
Customer protection through enhanced information security
Comprehensive career support for women and young employees
Improved work-life balance through work style reforms
Business operation reforms aimed at reducing environmental impact
Disaster prevention support through collaboration with local governments
Implementation of diversity promotion projects
Contribution to social efficiency through digitalization support
Formulation of sustainable procurement guidelines