Arent

Basic Information

Stock Code
5254
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
July 2012
Listing Year
March 2023
Official Website
https://arent.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Information Strategy Tech, Fixstars, Spider, Japan System Techniques, Base, Cresco, TDC Soft, Alpha Systems, Tokkeidenzan, eWELL, CEC, NSW, NSD

Overview

Arent is a growing company founded in 2012 that engages in DX consulting and product development in the information and communications industry, with strengths in advanced system development capabilities and proprietary technologies for the construction sector.

Current Situation

Arent recorded consolidated net sales of approximately 2 billion yen, ordinary income of approximately 400 million yen, and net profit of approximately 300 million yen in the fiscal year ended June 2023, continuing its steady growth. It operates primarily on two business pillars: DX consulting targeted at the construction industry and sales of its own developed products, featuring a unique business model that supports customers from system development to business creation. The company employs engineers skilled in advanced mathematics who algorithmize tacit knowledge, serving as a key differentiator from competitors. In recent years, it has expanded subsidiaries through M&A to enhance functions, with collaborations alongside Microsoft and multiple major corporations boosting its credibility. It also focuses on products contributing to environmental measures and energy efficiency improvements, receiving the Minister of Land, Infrastructure, Transport and Tourism Award and the Special DX Award in 2023. Moving forward, it plans to emphasize generative AI, aiming for sustainable growth and strengthened presence in the industry.

Trivia

Interesting Facts

  • Company name derived from philosopher Hannah Arendt.
  • Founder develops DX technologies leveraging advanced mathematical skills.
  • Pioneer in mathematizing construction industry's tacit knowledge into models.
  • Multiple representative system provides diverse management perspectives.
  • Achieved rapid business expansion through M&A utilization.
  • Infrastructure DX Grand Prize winner of Minister of Land, Infrastructure, Transport and Tourism Award.
  • Selected for Microsoft Startup Support Program.
  • Listed on Tokyo Stock Exchange Growth Market in March 2023.
  • Developed generative NFT tool.
  • Company adopting national manufacturing subsidies.
  • Company specialized in solving construction industry-specific challenges.
  • Advanced developer of autonomous CAD.
  • Numerous industry-academia collaborations including with Takasago Thermal Engineering.
  • Major financial and manufacturing firms among shareholders.
  • Successful real-world deployment of VR and AI technologies.

Hidden Connections

  • Vest One NFT Generator based on technology collaboration with blockchain-related companies.
  • Oversees numerous construction-related subsidiaries to achieve vertical integration.
  • Strengthened investment capacity through funding from J&TC Frontier.
  • Microsoft collaboration contributes to strengthening cloud technology foundation.
  • Regional contribution and technological innovation via Hamamatsu City Fund Support Program selection.
  • Dramatic rise in recognition and credibility following TSE Growth Market listing.
  • Adopts unique mathematical DX approach differing from competitors like NSD and CEC.
  • High affinity with Ministry of Land, Infrastructure, Transport and Tourism's infrastructure DX promotion policies.

Future Outlook

Growth Drivers

  • Surging DX needs in construction industry
  • New service development through generative AI expansion
  • Group technology and business expansion via M&A
  • Government manufacturing support policy advancement
  • Business efficiency via VR and cloud utilization
  • Rising demand for customer business process automation
  • Technology lead advantage in new markets
  • Growth in sustainability and energy-saving businesses
  • Improved funding procurement through strengthened financial institution ties
  • Technology enhancement via diverse talent acquisition
  • Advancement of regional collaboration and social challenge-solving businesses
  • Seminars and education business for DX dissemination

Strategic Goals

  • Top 3 domestic share in construction DX market
  • 50% sales ratio from generative AI products and services
  • Group-wide net sales exceeding 10 billion yen
  • Platform integration of businesses including subsidiaries
  • ESG evaluation improvement through sustainable IT operations
  • Strengthened product development for decarbonized society
  • Nationwide rollout of DX talent training hubs
  • Global expansion through international market entry
  • Industry contribution via construction business standardization
  • AI system development for aging society

Business Segments

DX Consulting Business

Overview
Comprehensive support for corporate DX promotion, centered on the construction industry.
Competitiveness
Unique DX model through mathematization of tacit knowledge
Customers
  • Construction Companies
  • General Contractors
  • Architectural Design Firms
  • Real Estate Developers
  • Public Project Organizations
  • Facility Management Companies
  • Engineering Companies
  • Manufacturing (Construction-related)
  • IT Companies
  • Educational Institutions
Products
  • Business Process Analysis
  • System Planning and Design Support
  • New Business Creation Consulting
  • Business Efficiency Tools
  • AI-Utilizing DX Strategy Formulation

Product Development and Sales Business

Overview
Develops and sells in-house and group products, supporting system implementation.
Competitiveness
Innovative products through advanced mathematical technology and latest IT integration
Customers
  • Construction Sites
  • Design Offices
  • Real Estate Management Companies
  • Manufacturing-Related Companies
  • M&A Target Companies
  • AI-Utilizing Venture Companies
Products
  • Autonomous CAD Software
  • Automatic Rebar Apps
  • Cloud Data Management
  • NFT Generation Tools
  • VR-Linked Products

M&A Subsidiary Integration Business

Overview
Promotes product and technology integration across multiple subsidiaries and synergy creation.
Competitiveness
Diverse technology fusion and business expansion through M&A
Customers
  • Group Companies
  • Investment Firms
  • Industry Partners
Products
  • Business Collaboration Platform
  • Common Data Infrastructure
  • SaaS Product Integration

Competitive Advantage

Strengths

  • Visualization of tacit knowledge through advanced mathematics
  • Specialized DX know-how in construction industry
  • Many young engineers driving rapid growth
  • Collaboration with diverse group subsidiaries
  • Proven collaborations with Microsoft and others
  • Flexible adoption of latest technologies
  • Strong capital procurement base
  • Broad B2B customer base
  • Diverse system product lineup
  • High market recognition as growth company
  • Development of proprietary automatic design apps
  • Awarded Minister of Land, Infrastructure, Transport and Tourism Prize
  • Active investment in generative AI
  • Cloud infrastructure utilization expertise
  • Design process innovation technology

Competitive Advantages

  • Mathematizes tacit knowledge into models to systematize expert knowledge
  • High trust from extensive track record in construction business efficiency
  • Broad product lineup via consolidated subsidiaries
  • Deployment of products utilizing cutting-edge technologies like generative AI and VR
  • Financial stability secured through capital support from major financial institutions
  • Close collaboration with clients due to industry specialization
  • Differentiation through unique brand building based on philosophy
  • Technology certified by adoption into national manufacturing support measures
  • Wide coverage from direct sales to SaaS across diverse channels
  • Strength in precise algorithm design
  • Efficient acquisition of technology and talent via M&A strategy
  • Strong in niche markets with dedicated industry apps
  • Development structure enabling quick commercialization of latest tech
  • Enhanced credibility with substantial assets and net assets
  • Active collaborations and partnerships with other DX companies

Threats

  • Price competition amid intensifying DX market rivalry
  • Increased competition from major IT firms entering the industry
  • Decline in orders due to economic fluctuations in construction
  • Direct impact of development delays on product competitiveness
  • Rising cybersecurity risks
  • Increased compliance costs from regulatory tightening and legal changes
  • Challenges in recruitment and training amid talent competition
  • Organizational integration risks and synergy shortfalls from M&A
  • Need for ongoing adaptation to rapid AI advancements
  • Potential demand decline from customer DX stagnation
  • Impact of natural disasters on operations and clients
  • Lost growth opportunities from delayed overseas expansion

Innovations

2024: Release of Cloud-Based Revit Family Management App 'Lightning BIM Family Management'

Overview
Achieves business efficiency by centrally managing Revit data in the cloud.
Impact
Significantly shortens construction design work time

2024: Announcement of Joint Development of SaaS Collaboration Platform with Takasago Thermal Engineering

Overview
New platform linking 9 SaaS applications to revolutionize business processes.
Impact
Boosts productivity and energy-saving initiatives in construction

2024: Establishment of Generative AI-Focused Subsidiary 'Arent AI' and Business Transition

Overview
Accelerates new business deployment and product development using AI technology.
Impact
Opens new market needs and diversifies business

2023: Release of Construction Automatic Rebar App 'LightningBIM Automatic Rebar'

Overview
Industry-first app automating rebar design work with AI technology.
Impact
30% reduction in design man-hours and quality improvement

2023: Launch of INTEGNANCE VR Technology Provision

Overview
Provides advanced 3D virtual reality technology for construction sites.
Impact
Efficiency and safety improvements in on-site verification

2021: Development of Web3.0/NFT Tool 'Vest One NFT Generator'

Overview
Enters new digital asset market with NFT creation support tool.
Impact
Builds new revenue sources in IT domain

2020: Establishment of Mathematization Technology for Tacit Knowledge via Autonomous CAD Development

Overview
Algorithmizes artisans' know-how and implements in CAD.
Impact
Achieves standardization and acceleration of design

Sustainability

  • Promotion of paper reduction through digitalization of business processes
  • Product development supporting introduction of energy-saving air conditioning systems
  • Energy efficiency via cloud infrastructure utilization
  • Practice of Green IT and reduction of environmental impact
  • Active contribution to sustainable construction industry DX
  • Promotion of sustainable new business creation
  • Participation in environmental conservation activities through regional collaboration
  • Improvement of corporate environment through diverse work styles and talent development
  • Enhancement of safety in construction industry through technology
  • Strengthened disclosure of ESG information to investors