HENNGE

Basic Information

Stock Code
4475
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
November 1996
Listing Year
October 2019
Official Website
https://hennge.com/jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Celsys, Broadleaf, Plus Alpha Consulting, PLAID, Appier Group, Finatext Holdings, SmaRegi, WingArc1st, Kaonavi, Sansan, Cybozu, ABEJA

Overview

HENNGE is a SaaS company founded in 1996 specializing in cloud security, providing advanced ID management services in Japan's information and communications industry with strong technological capabilities and market development prowess.

Current Situation

As of the end of September 2020, HENNGE recorded sales of approximately 4.1 billion yen and operating profit of about 530 million yen, achieving steady growth. With cloud security as its core business, it receives high acclaim particularly for corporate ID management and authentication services. Since listing on the Tokyo Stock Exchange Mothers Market in 2019, it has advanced technology development and security enhancements amid growing demand driven by the spread of cloud services domestically and internationally. It has established a subsidiary in Taiwan to accelerate overseas expansion. Products are mainly for corporate customers, and to differentiate from competitors, it focuses on introducing new technologies such as network monitoring and data analysis services. It aims for environmental consideration and sustainable management, targeting further expansion of its customer base and diversification of services. Additionally, to respond to market changes, it incorporates the latest trends in cybersecurity to establish its position as an industry leader.

Trivia

Interesting Facts

  • Originally established as Horizon Digital Enterprise
  • Has an overseas subsidiary in Taiwan and is aggressive in Asian expansion
  • Changed name to HENNGE in 2019 and listed on the stock exchange
  • Started business with email SaaS services
  • Top-class track record in ID management in Japan
  • Founder Kazuhiro Ogame also serves as CTO, focusing on technology development
  • Concentrated resources on cloud security strengthening since 2020
  • Notable growth stock in Japan's information and communications industry
  • Provides diverse cloud integration services
  • Diverse lineup of specialized security products

Hidden Connections

  • Adopted in ID management systems of many government agencies and major corporations
  • Successful example of transition from SME to listed company via Tokyo Mothers listing
  • Accelerating technology rollout in Asia leveraging Taiwan subsidiary
  • Email SaaS launch served as starting point for cloud transformation
  • Management structure supported technically by co-founder Naoyuki Iwatani
  • Excellent ID management technology enables integration with other companies' security platforms
  • Real-time threat detection technology is a result of unique Japanese development
  • Reliable management audited by Deloitte Tohmatsu

Future Outlook

Growth Drivers

  • Expanding cloud security demand from telework promotion
  • Increasing ID management strengthening needs domestically and internationally
  • Evolution of threat detection via AI technology
  • Popularization and advancement of multi-factor authentication
  • Growing demand for defense technologies amid sophisticated cyber attacks
  • Diversification and integration strengthening of cloud services
  • Business expansion in overseas markets, especially Asia
  • Authentication demand from smart device proliferation
  • Support from government digitalization policies
  • Enhancement of services for SMEs

Strategic Goals

  • Achieve 30% share of domestic cloud security market
  • Expand overseas sales ratio to over 20%
  • Complete AI-driven security automation
  • Achieve 80% multi-factor authentication adoption rate
  • Obtain international sustainability management certification
  • Increase employee count to over 300
  • Complete development of next-generation cloud platform
  • Build new service suite for SMEs
  • Strengthen global partnerships
  • Maintain industry-leading security technology standards

Business Segments

Enterprise ID Management Services

Overview
ID management and cloud security services protecting corporate information assets.
Competitiveness
High technological expertise and broad service compatibility
Customers
  • Major IT Companies
  • Financial Institutions
  • Telecommunications Carriers
  • Government Agencies
  • Educational Institutions
  • Manufacturing
  • Retail
  • Healthcare Institutions
  • Service Industry
  • Startups
  • SMEs
Products
  • HENNGE One
  • Multi-Factor Authentication Service
  • Cloud Access Management
  • Single Sign-On
  • Remote Work Environment Setup
  • API Security
  • Endpoint Protection
  • Email Security
  • Data Protection Service
  • Security Monitoring Service

Cloud Security Contract Development

Overview
Contract development of security systems tailored to client needs.
Competitiveness
Flexible customization and industry knowledge
Customers
  • Software Vendors
  • System Integrators
  • IT Consultants
  • Major Manufacturers
  • Local Governments
  • Educational Institutions
  • Healthcare-Related Companies
Products
  • Security System Development
  • Custom Authentication Services
  • Network Monitoring Services
  • Data Analysis Services

Overseas Expansion Support

Overview
Services supporting security deployments overseas.
Competitiveness
Asia expansion network leveraging Taiwan subsidiary
Customers
  • Asian Companies
  • Multinational Corporations
  • Global IT Companies
Products
  • Local Subsidiary Support
  • Cloud Security Localization
  • Multi-Language Services

Competitive Advantage

Strengths

  • High technological expertise specialized in cloud security
  • Comprehensive coverage through a wide range of SaaS services
  • Credibility from Tokyo Stock Exchange Growth listing
  • Extensive customer base in the Japanese market
  • Foundation for international expansion via overseas subsidiary
  • Convenience from support for diverse authentication methods
  • Advanced network monitoring and analysis technology
  • Flexible customization capabilities
  • Robust data protection framework
  • Strong development team and management

Competitive Advantages

  • Domestic top-class cloud ID management service provider
  • Strength in integration with diverse cloud services
  • Rapid service rollout and update capabilities
  • Trust earned from customers through high security standards
  • Improved fundraising power following Tokyo Growth listing
  • Asia market penetration via Taiwan subsidiary
  • Flexible service design aligned with customer needs
  • Security solutions compliant with industry standards
  • Ongoing investment in technological innovation and talent development
  • Superiority in cloud environment monitoring and response speed

Threats

  • Intensifying price competition from rivals
  • Stricter regulations in the cloud security market
  • Increasing sophistication and complexity of cyber attacks
  • Heightened competition from foreign firms entering Japan
  • Risk of lagging behind rapid technological evolution
  • Fluctuations in customer cloud migration pace
  • Risk of service disruptions from natural disasters
  • Intensifying competition for talent
  • Changes in fundraising environment for new tech investments
  • Concerns over IT investment cuts due to economic fluctuations

Innovations

2024: Enhanced Threat Detection System Using AI

Overview
Incorporated AI technology to advance real-time cyber threat detection.
Impact
Improved cyber attack detection rate by 20%

2023: Launch of Zero Trust Security-Compatible Products

Overview
Released a suite of products compatible with the new 'Zero Trust' security model.
Impact
Realized advanced access control, contributing to new customer acquisition

2022: Expansion of Multi-Factor Authentication System Usage

Overview
Provided authentication technology enhancing security while maintaining usability.
Impact
Improved customer satisfaction and 15% increase in renewal rate

2021: Launch of Automated Cloud Access Control Service

Overview
Began providing automated access rights setup and audit functions in the cloud.
Impact
Reduced management costs by 30%, increasing adoptions

2020: Email Security Enhancement Feature Update

Overview
Improved spam and phishing detection accuracy using AI.
Impact
Improved unauthorized email detection rate by 40%

Sustainability

  • Promoting paperless operations internally
  • Operating data centers with high power efficiency
  • Supporting IT education for local communities
  • Reducing CO2 emissions through telework promotion
  • Protecting social infrastructure via security technology
  • Promoting recruitment and development of female engineers
  • R&D of energy-saving solutions
  • Strengthening supply chain sustainability
  • Promoting workplace diversity
  • Regular issuance of environmental reports