HOUSEI

Basic Information

Stock Code
5035
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
March 1996
Listing Year
July 2022
Official Website
https://www.housei-inc.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
NS Solutions, TIS, GreenB, Nomura Research Institute, Beemap, Ymirlink, Simplex Holdings, Obic, Otsuka Corporation, Dentsu Soken, BIPROGY, NTT DATA Group, SCSK

Overview

Founded in 1996, HOUSEI is a system integrator in the information and communications industry, providing technology and diverse services centered on media typesetting and cross-border EC platforms.

Current Situation

Headquartered in Tokyo, HOUSEI operates commissioned system development, cloud services, and IT personnel dispatching businesses. It listed on the Tokyo Stock Exchange Growth Market in July 2022, with paid-in capital of 605.6 million yen. The company excels in editorial system development for newspaper companies and publishers, and is advancing overseas expansion including in China. It is also developing advanced technologies such as generative AI platforms and facial recognition systems. Aiming for sustainable growth, it is pursuing diversified business expansion and differentiation from group companies through active investments in new technologies and business collaborations via partnerships. Looking ahead, it aims to expand its customer base in cross-border EC and digital media sectors while focusing on building a stable revenue foundation.

Trivia

Interesting Facts

  • Founded in 1996 as a Japanese subsidiary of China's major Founder Group
  • Rare IT company that became independent through a management buyout
  • Global expansion with multiple research labs in Japan and China
  • Top-class domestic market share in media typesetting software
  • Early adoption of AI facial recognition for unmanned store solutions
  • Promoting inbound business for foreign visitors via proprietary cross-border EC platform
  • Exclusive handling of Chinese font licensing for the printing industry
  • Diversified IT-related services including subsidiaries
  • Ongoing participation in major IT trade shows like Page 2023
  • Representative Director Guan Xianghong is a Chinese-born executive bridging Japan and China

Hidden Connections

  • No capital ties with北大方正集団 (Beida Founder Group); achieved independence through MBO dissolving previous investments
  • Deep transaction relationships with major Japanese media companies, developing standard specifications for editing systems
  • Expands security-related business within the group through subsidiary Aido Co., Ltd.
  • Operates a research lab in Wuhan, Hubei Province, China, leveraging global IT talent resources for development
  • Jointly developing digital distribution platforms with partner companies for the publishing industry
  • Generative AI platform 'imprai' under development in collaboration with domestic and international research institutions
  • Security systems include track record in authentication systems for public transportation
  • Cross-border EC services strongly specialized for inbound demand from foreign tourists to Japan

Future Outlook

Growth Drivers

  • Market expansion in generative AI technology and cloud services
  • Growth in cross-border EC and inbound markets
  • Increased system demand accompanying 5G and IoT development
  • Efficiency needs in printing industry due to digitalization
  • Growing demand for AI facial recognition and security technologies
  • Increased demand from IT talent shortages in dispatching
  • Increased corporate IT investments due to DX promotion policies
  • Accelerated overseas expansion of multilingual systems
  • Entrenchment of online utilization post-COVID
  • Rising needs for business automation using AI
  • Expansion of subscription-based services
  • Strengthening of custom solutions for customer-specific needs

Strategic Goals

  • Expand cloud and AI-related sales to over 50% of total
  • Increase overseas sales ratio to over 30%
  • Enter top 5 in generative AI platform market
  • Strengthen business contributing to Sustainable Development Goals (SDGs)
  • Maximize synergies with group companies to diversify revenue base
  • Nationwide rollout of next-generation security solutions
  • Build robust organization through IT talent development and diversity promotion
  • Expand domestic share in digital services for printing industry
  • Advance development of advanced digital media management systems
  • Strengthen R&D at overseas bases to accelerate innovation

Business Segments

Media Industry System Development

Overview
Provides editing and ad management systems for the newspaper and publishing industries to achieve efficiency.
Competitiveness
Extensive industry-specific know-how and long track record
Customers
  • Newspaper companies
  • Publishing companies
  • Media production companies
  • Advertising agencies
  • Plate-making companies
Products
  • Typesetting software
  • Ad layout systems
  • Catalog production systems
  • Article search and billing systems
  • DTP solutions

Cloud Services Business

Overview
Deploys cloud services across various fields to support customer business efficiency improvements.
Competitiveness
Specialization in inbound and international market responsiveness
Customers
  • EC operators
  • Travel industry
  • Real estate management companies
  • Small and medium enterprises
  • Corporate customers
Products
  • Cross-border EC platforms
  • Matching services
  • International payment systems
  • Cloud-based CRM
  • Contract management services

IT Personnel Dispatching Services

Overview
Supports customer projects by providing high-quality IT personnel.
Competitiveness
Training of advanced engineers and stable talent supply
Customers
  • IT companies
  • System development companies
  • Manufacturing
  • Financial institutions
  • Distribution
Products
  • IT engineer dispatching
  • System maintenance services

Printing Industry Services

Overview
Provides software and services to promote digitalization and efficiency in the printing industry.
Competitiveness
Chinese font licensing and technical support
Customers
  • Printing companies
  • Plate-making companies
  • Design companies
Products
  • Typesetting software
  • Font licensing
  • Print management

Security and Authentication Solutions

Overview
Achieves security enhancements with facial recognition and temperature detection devices.
Competitiveness
High-precision authentication systems utilizing AI technology
Customers
  • Government offices
  • Corporate entry/exit management
  • Retail stores
Products
  • Facial recognition terminals
  • Alcohol checkers
  • Unmanned store solutions

Digital Media Management

Overview
Provides solutions to streamline management of large volumes of digital assets.
Competitiveness
Support for various media and advanced search functions
Customers
  • Media companies
  • Advertising agencies
  • Educational institutions
Products
  • Digital media databases
  • Content management systems

Education Platform Business

Overview
Provides comprehensive learning environments for online education.
Competitiveness
Flexible customization and excellent usability
Customers
  • School corporations
  • Corporate training institutions
  • Individual learners
Products
  • Online learning platforms

Cloud Services for Contract Management

Overview
Supports business efficiency through electronic contract management.
Competitiveness
Functions optimized for industry needs
Customers
  • Real estate operators
  • Service industries
  • Small and medium enterprises
Products
  • Contract document management systems

Sales Promotion Support Tools

Overview
Provides various tools to streamline sales activities and promotions.
Competitiveness
Function design specialized for specific industries
Customers
  • Recruitment industry
  • Retail
  • Event planning
Products
  • Sales support tools
  • Marketing software

Video-Print Integration Services

Overview
Promotes production efficiency through integration of video and print data.
Competitiveness
High compatibility with other companies' products
Customers
  • Video production companies
  • Publishing companies
  • Marketing companies
Products
  • Adobe Illustrator plugins
  • Video editing software integration

Information Search and Billing Systems

Overview
Provides systems enabling article search and billing.
Competitiveness
User-friendly management interface and flexible billing settings
Customers
  • Publishers
  • Online media
Products
  • Web publishing management systems
  • Billing management systems

Advertising Management Systems

Overview
Integrates management from ad placement planning to progress tracking.
Competitiveness
Responsiveness to media industry-specific needs
Customers
  • Newspaper companies
  • Advertising agencies
Products
  • Ad layout systems
  • Ad operation management software

Competitive Advantage

Strengths

  • Proven track record in media industry system development
  • Diversified expansion into cross-border EC and cloud services
  • Unique product lineup leveraging advanced technologies
  • Utilization of overseas bases centered on China
  • Long-standing customer base and solid contract development
  • Flexibility to meet diverse industry needs
  • High-quality typesetting and printing-related technologies
  • Strong collaboration with group companies
  • AI and facial recognition implementation capabilities
  • Wide-ranging IT personnel dispatching services

Competitive Advantages

  • Trust built on expertise and extensive track record in media
  • Unique services strong in cross-border EC and inbound sectors
  • Provision of generative AI platforms utilizing AI technology
  • Management of Chinese font licensing for the printing industry
  • Global network supporting multilingual and multinational markets
  • One-stop services through broad cloud offerings and IT dispatching
  • Solution design capabilities customizable per customer
  • Stable revenue base from long-term contracts
  • Enhanced trust through adoption of cutting-edge security technologies
  • Accelerated business growth via active partnerships and subsidiaries

Threats

  • Intensifying competition with major IT firms
  • Risk of product obsolescence due to technological changes
  • Political and economic risks in overseas operations
  • Challenges in talent acquisition and rising labor costs
  • Demand fluctuations from reliance on specific industries
  • Potential cybersecurity incidents
  • Business constraints from regulatory tightening
  • Cost increases and profit pressure from exchange rate fluctuations
  • Intensified competition from new entrants
  • Reduced orders due to customer IT investment restraint

Innovations

2023: Generative AI Development Platform 'imprai' Released

Overview
Launched provision of generative AI development environment utilizing AI technology.
Impact
Contributes to improved AI development efficiency for customers.

2020: AI Temperature-Checking Facial Recognition Terminal 'WelcomID' Sales Started

Overview
Provision of safety management terminals combining facial recognition and temperature detection.
Impact
Utilized for safety in unmanned stores and offices.

2022: Cloud-Based CRM Service 'CustomerIQ' Released

Overview
Deployed cloud service to streamline customer management for SMEs.
Impact
Contributes to improved customer satisfaction.

2021: Unmanned Store 'WelcomID Unmanned Store Solution' Developed

Overview
Launched provision of unmanned payment and entry/exit management systems using facial recognition technology.
Impact
Achieves store operation efficiency.

2023: Contract Management Service 'FRES' for Real Estate Operators Released

Overview
Cloud-based contract management system to improve business efficiency.
Impact
Contributes to shortened contract processing time and error reduction.

2023: DX Promotion for Management Infrastructure

Overview
Advancing initiatives to digitalize internal operations and improve efficiency.
Impact
15% improvement in operational efficiency and cost reduction.

Sustainability

  • Paperless promotion through digital technology utilization
  • IT education support for regional employment promotion
  • Development of environmentally considerate cloud services
  • Commitment to ethical IT procurement in supply chains
  • Initiatives to enhance employee diversity and work-life balance