SystemSoft

Basic Information

Stock Code
7527
Industry
Information and Communications Industry
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
September 1979
Listing Year
November 1996
Official Website
https://www.systemsoft.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
ORTO P, Fixstars, Japan System Techniques, Base, Cresco, TDC Soft, Alpha Systems, Tokei Densan, RVH, RISE, CEC, NSW, NSD

Overview

SystemSoft is a veteran in the information and communications industry, founded in 1979, with system development and real estate information services as its core businesses. It is a Tokyo Stock Exchange Standard Market-listed company under the APAMAN Group.

Current Situation

SystemSoft recorded consolidated sales of approximately ¥2.3 billion for the fiscal year ending September 2024, primarily engaged in system design, development, and marketing businesses. While operating profit and net profit are in the red, it maintains a solid financial foundation with consolidated net assets of about ¥4.4 billion. It is pursuing business diversification through subsidiary absorption mergers and operation of the 'APAMAN' real estate information site. In the highly competitive systems and software industry, it holds strengths primarily in real estate-related fields, with bases in Tokyo and Fukuoka. Moving forward, it will focus on business efficiency improvements and new customer acquisition, aiming for medium- to long-term profitability and growth recovery. In recent years, it has expanded into cloud services and coworking space operations to explore new revenue streams. It emphasizes sustainable management, social contribution activities, and regionally rooted service provision.

Trivia

Interesting Facts

  • In its early days, led the Japanese market with games and tools for the PC-8800 series.
  • As an independent software developer starting from Fukuoka, supported early DTP culture.
  • Pioneered copy protection technology ahead of the industry.
  • Spun off its game development division, giving birth to SystemSoft Alpha.
  • Nurtured many game creators and influenced the industry.
  • Diversified into new sectors after joining the APAMAN Group.
  • Pioneered Japanese localization of Macintosh software.
  • Head office located in Marunouchi Trust Tower N Building.
  • Regional company also serving as the top shareholder of Avispa Fukuoka.
  • 1979-established logo inspired by the ropes of Hakata Gion Yamakasa festival.

Hidden Connections

  • Strong connections with real estate firms nationwide via the APAMAN network.
  • Grew from support for young developers at Kyushu University, with deep university ties.
  • Former game division staff formed the core of industry leaders like Level-5.
  • Multiple Tokyo-listed companies and financial institutions among system development clients.
  • Long contributed to IT industry promotion in Fukuoka City, aiding regional revitalization.
  • Handled numerous Japanese versions of overseas software licenses, strong in translation technology.
  • Engaged in cultural and arts support through affiliates.
  • Stable management with trust banks and securities firms as major shareholders.

Future Outlook

Growth Drivers

  • Expansion of real estate information services market and rising DX demand.
  • Ongoing growth in demand for disaster prevention and business systems from local governments.
  • Expansion of new businesses like coworking spaces.
  • Revenue improvement through higher-value system development.
  • Active investment in cloud and mobile services.
  • Synergy creation through strengthened APAMAN collaboration.
  • Customer base expansion via regional base enhancements.
  • Improved customer experience through new technology adoption.
  • Employee skill development and team strengthening.
  • Advancement of sustainable management.

Strategic Goals

  • Achieve consolidated sales of ¥5 billion.
  • Realize operating profitability and margin improvements.
  • Expand system share in real estate and public sectors.
  • Create new services leveraging advanced technologies.
  • Establish sustainable management contributing to society and environment.
  • Expand coworking business to major domestic cities.
  • Maximize business efficiency through group collaboration.
  • Promote diverse talent utilization and diversity.
  • Enhance customer satisfaction and brand value.
  • Establish business model solving social issues.

Business Segments

System Contract Development

Overview
Provides advanced system solutions for real estate-related and local government sectors.
Competitiveness
Consulting strength backed by regional ties and real estate expertise
Customers
  • Real Estate Industry
  • Architectural Design Offices
  • Local Governments
  • Financial Institutions
  • Distribution Industry
Products
  • Business System Development
  • Disaster Prevention Systems
  • System Consulting

Internet Site Operation

Overview
Operates specialized web services for the rental market and provides information.
Competitiveness
Expertise in operating industry-specific sites
Customers
  • Rental Real Estate Agencies
  • Advertisers
  • General Consumers
Products
  • Rental Property Information Services
  • Online Property Management

Coworking Space Operation

Overview
Operates coworking spaces in Tokyo and regional cities.
Competitiveness
Convenient locations and flexible contract options
Customers
  • Entrepreneurs
  • Freelancers
  • Small and Medium Enterprises
  • Remote Workers
Products
  • Shared Office Services
  • Meeting Room Rentals
  • Event Spaces

Competitive Advantage

Strengths

  • Rich history and technical expertise
  • Specialization in real estate information services
  • Diverse business portfolio
  • Financial strength of the APAMAN Group
  • Regionally tailored customer support
  • Solid financial foundation
  • Flexibility from multi-location operations
  • Long-accumulated system development experience
  • Track record in game software development
  • Expansion of coworking space business

Competitive Advantages

  • System development strength in real estate information
  • Regionally rooted management originating from Fukuoka
  • Strengthened customer base through collaboration with APAMAN
  • Internet service operations specialized in specific fields
  • Risk diversification through diversified businesses
  • Technical accumulation from game development tradition
  • Agility from excellent small teams
  • Coworking space operations centered in urban areas
  • Capital alliances with trust banks and other financial institutions
  • Reliability of Tokyo Stock Exchange Standard Market listing

Threats

  • Intense competition in system development
  • Revenue decline from withdrawal from game market
  • Real estate market fluctuations
  • Risk of continued operating losses
  • Human resource constraints from small workforce
  • Intensified competition from new IT firms
  • Speed of adaptation to technological innovations
  • IT investment cuts during economic downturns
  • Business impacts from changing market needs
  • Strengthened regulations and data privacy requirements

Innovations

2021: Absorption Merger of fabbit Co., Ltd.

Overview
Added coworking space and rental office business to promote diversification.
Impact
Successfully gained new revenue sources and expanded market presence

2023: New Head Office Relocation for Operational Efficiency

Overview
Relocated to Marunouchi Trust Tower N Building due to demolition of Asahi Life Otemachi Building.
Impact
Improved convenience and equipment upgrades enhanced productivity

Sustainability

  • Strengthening ties with local communities
  • Preparation for renewable energy adoption
  • Promotion of waste reduction programs
  • Sustainability education for employees
  • Development of eco-friendly offices