KYCOM Holdings

Basic Information

Stock Code
9685
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Fukui Prefecture
Establishment Year
May 1968
Listing Year
December 1990
Official Website
https://www.kyd.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
AGS, Pole to Win Holdings, Digital Hearts Holdings, SHIFT, Systems Design, ODK Solutions, Blue Meme, Barutes Holdings, Nichi Enter, Genova, e-Guardian, Open Group, Sanritsu

Overview

KYCOM Holdings is a holding company in the information and communications industry based in Fukui Prefecture, founded in 1968. It specializes in commissioned software development and data processing services, maintaining a stable customer base.

Current Situation

KYCOM Holdings recorded consolidated sales of approximately 5.1 billion yen, operating profit of about 450 million yen, and net profit of around 350 million yen for the fiscal year ending March 2021, maintaining a solid revenue base. Its primary business is system and software development centered on commissioned projects, along with data-related services. It has a high dependence on sales to the Hitachi Group, with multiple executives from Hitachi affiliates. Mergers and new establishments of subsidiaries occur frequently, aiming to enhance competitiveness through business reorganization. Information processing outsourcing services are its main operations, catering to diverse customer needs. It balances local commitment with nationwide customer support, pursuing a strategy to strengthen its growth foundation in the medium to long term. While considering sustainability, it focuses on developing new IT solutions and improving operational efficiency. Under a strong financial base, it promotes management integration of subsidiaries to effectively utilize resources.

Trivia

Interesting Facts

  • Historic IT company in Fukui Prefecture established in 1968
  • Many executives from Hitachi background, maintaining strong group ties
  • Numerous subsidiaries with frequent mergers and reorganizations
  • Key corporate group in the Hokuriku region's IT industry
  • Specializes mainly in commissioned development and data processing
  • Deeply rooted role in Fukui City's local economy
  • Characteristic high sales dependence on Hitachi Group
  • High technical capabilities handling system development in diverse fields
  • Has history of administrative monetary penalty from Financial Services Agency
  • Rare listed IT company headquartered outside Tokyo in a regional area
  • Contributes to local IT talent development through educational activities
  • Early adoption of cloud and AI-related services
  • Diversified service expansion including GIS consulting
  • One of the veteran IT companies maintaining steady growth over many years
  • Possesses client base spanning multiple industries

Hidden Connections

  • Secures stable order base through capital and business alliance with Hitachi Group
  • Pursues management efficiency and competitiveness through mergers and reorganizations of multiple subsidiaries
  • Plays important role in Fukui Prefecture's industrial promotion, contributing to local economy
  • Financial Services Agency penalty served as turning point for management improvements
  • Expected to vitalize IT industry in Hokuriku region with Hokuriku Shinkansen extension
  • Promotes diversified business expansion through group management after becoming holding company
  • Uniquely offers services for local governments utilizing GIS technology
  • One subsidiary operates unexpected businesses like rental cars

Future Outlook

Growth Drivers

  • Expanding DX promotion needs from government and companies
  • Further strengthening ties with Hitachi Group
  • Industrial revitalization in Fukuriku Prefecture and Hokuriku region
  • Accelerated adoption of cloud, AI, and IoT technologies
  • Increasing demand for outsourcing
  • Trend of digital talent development in regional IT companies
  • International expansion utilizing overseas subsidiaries
  • Strengthened corporate responses to sustainability
  • Rising demand for security measures
  • Effects from system integration and group reorganization

Strategic Goals

  • Expand commissioned development market share as industry leader
  • Nationwide expansion and enhancement of diverse IT services
  • Achieve sales of 10 billion yen
  • Contribute to sustainable management and decarbonized society
  • Value enhancement through technological innovation
  • Establish position as regionally committed DX support company
  • Expand overseas business and strengthen global collaboration
  • Improve productivity and competitiveness through talent development
  • Establish advanced security services
  • Diversification and efficiency leveraging group reorganization

Business Segments

System Development and Commissioning

Overview
Supports business efficiency by developing advanced custom systems for a wide range of industries.
Competitiveness
Strong collaboration with Hitachi Group and experienced engineering capabilities.
Customers
  • Manufacturing
  • Distribution
  • Financial Institutions
  • Public Organizations
  • Medical Institutions
  • Educational Institutions
  • Service Industry
  • Construction
  • Hitachi Group
Products
  • Business System Commissioned Development
  • Sales Management Systems
  • Customer Management Systems
  • Project Management Tools
  • AI Analysis Services
  • Mobile App Development

Data Services and Outsourcing

Overview
Offers outsourcing services covering all aspects of customer information processing operations.
Competitiveness
Reputation for high-quality data processing and operation monitoring systems.
Customers
  • Insurance Companies
  • Logistics Companies
  • Distribution
  • Financial Institutions
  • Manufacturing
Products
  • Data Entry
  • Data Analysis
  • IT Infrastructure Monitoring
  • System Operation Management

IT Infrastructure Construction and Operation

Overview
Provides one-stop services from IT infrastructure design and implementation to maintenance and operation.
Competitiveness
Fine-tuned services with local commitment and nationwide coverage.
Customers
  • Small and Medium Enterprises
  • Government Agencies
  • Educational Institutions
  • Medical Corporations
  • Financial Institutions
Products
  • Server Design and Construction
  • Network Construction
  • Cloud Service Implementation Support
  • IT Maintenance Services

System Integration and Subsidiary Reorganization Support

Overview
Provides system integration for subsidiaries and support for reorganization to improve group management efficiency.
Competitiveness
Specialized expertise based on experience with numerous subsidiaries.
Customers
  • Group Companies
  • Corporate Customers
  • Corporate Reorganization Projects
Products
  • System Integration Consulting
  • Subsidiary Merger and Reorganization Support
  • IT Asset Management

Cloud Service Provision

Overview
Provides comfortable and secure IT environments using the latest cloud technologies.
Competitiveness
Flexible cloud design and operation support tailored to customers.
Customers
  • Small and Medium Enterprises
  • Startups
  • IT-Related Companies
Products
  • Cloud Server Environment Construction
  • Cloud System Operation Support
  • Security Solutions

Education and Training Services

Overview
Provides education and training programs based on the latest IT technology trends.
Competitiveness
Practical content derived from long years of development experience.
Customers
  • In-House Training Managers
  • Technical Personnel Training Institutions
  • Corporate Training Centers
Products
  • IT Engineer Training
  • System Implementation Support Education
  • Business Improvement Seminars

Security and Audit Services

Overview
Supports audits and countermeasures to enhance IT system security.
Competitiveness
Highly reliable services backed by extensive audit experience.
Customers
  • Financial Institutions
  • Manufacturing
  • Public Institutions
  • Information and Communications Companies
Products
  • System Audits
  • Information Security Measures
  • Risk Assessments

Logistics and Rental Car Systems

Overview
Develops business efficiency systems for logistics and rental car operations.
Competitiveness
Industry-specific expertise and flexible responsiveness.
Customers
  • Logistics Companies
  • Rental Car Companies
  • Transportation Companies
Products
  • Logistics Management Systems
  • Reservation and Management Systems
  • Customer Management Tools

International Business and Overseas Subsidiary Support

Overview
International business supporting IT strategies and operations for overseas subsidiaries.
Competitiveness
Overseas expansion know-how including ASEAN bases.
Customers
  • Overseas-Related Companies
  • Global Customers
  • Overseas Subsidiary Management
Products
  • IT System Overseas Implementation Support
  • Multilingual System Construction
  • Global IT Management

GIS Consulting

Overview
Provides consulting services utilizing geographic information systems.
Competitiveness
High-precision analysis and proposals by specialized teams.
Customers
  • Local Governments
  • Construction Companies
  • Environmental Companies
Products
  • Geographic Information System Construction
  • Data Analysis Support
  • Environmental Monitoring

Financial and Finance Systems

Overview
Develops systems specialized for the finance industry.
Competitiveness
Strength in handling industry-specific legal regulations.
Customers
  • Financial Institutions
  • Leasing Companies
  • Finance Companies
Products
  • Leasing Management Systems
  • Finance Customer Management
  • Financial Data Analysis Tools

IT Outsourcing

Overview
Undertakes IT operation tasks for various companies, providing stable services.
Competitiveness
Locally rooted, hands-on services.
Customers
  • Small and Medium Enterprises
  • Local Governments
  • Educational Institutions
Products
  • IT Operation Management
  • System Maintenance Support
  • Help Desk

Competitive Advantage

Strengths

  • Deep customer relationships through local commitment
  • Long track record in commissioned development
  • Advanced system development technology
  • Strong ties with Hitachi Group
  • Comprehensive strength from diverse subsidiaries
  • Stable financial base
  • Flexible customer responsiveness
  • Knowledge and experience across multiple industries
  • Robust IT infrastructure management capabilities
  • Abundant human resources and number of engineers
  • Active subsidiary reorganization and integration
  • Balance of nationwide expansion and local support
  • High-quality outsourcing services
  • Expansion into diverse business areas
  • Prudent management with a long-term perspective

Competitive Advantages

  • Secures stable order base through strong ties with Hitachi Group
  • Rapid response to customer needs due to local commitment
  • Comprehensive IT services leveraging diverse subsidiaries
  • High customization capabilities centered on commissioned development
  • One-stop provision from IT infrastructure design to operation
  • Optimal proposals by segment utilizing extensive industry knowledge
  • Swift adaptation to market environments through flexible organizational restructuring
  • Maintains human resource competitiveness through ongoing technical training
  • Long-term investment base supported by stable financial operations
  • Covers broad customer base through nationwide locations
  • Operation management system providing high-quality outsourcing
  • Enhanced customer satisfaction through diverse service menu
  • Proven track record with high-reliability clients like government and medical institutions
  • Cost efficiency improvements via latest cloud technology adoption
  • Gains customer trust through strengthened information security

Threats

  • Intensifying competition with major IT companies
  • Burden of keeping up with rapid IT technology evolution
  • Risk of declining technical capabilities due to talent shortage
  • Revenue structure risk dependent on Hitachi Group
  • Increasing cyber security risks
  • Talent outflow due to fluid labor market
  • Decrease in IT investments due to economic fluctuations
  • Demand contraction due to stagnant regional economy
  • Price competition from standardization of cloud services
  • Profit pressure from rising personnel training costs
  • Increased operational burden from stricter regulations
  • Price competition with overseas rivals

Innovations

2024: Enhanced AI Analysis Tool Deployment

Overview
Actively deploying AI-utilizing software to improve data analysis operation efficiency.
Impact
Improved processing speed by about 20%, achieving productivity gains

2023: Cloud Service Expansion

Overview
Implemented advanced cloud infrastructure and expanded customer support services.
Impact
Contributed to higher customer satisfaction and increased new orders

2022: System Integration Platform Development

Overview
Developed a management platform for integrating systems across multiple subsidiaries.
Impact
Successfully improved resource efficiency and reduced operation costs

2021: Strengthened Remote IT Infrastructure Monitoring

Overview
Enhanced 24/7/365 monitoring services through remote capabilities.
Impact
Significantly shortened troubleshooting times and ensured stable operations

2020: Software Development Automation Tool Introduction

Overview
Promoted automation using RPA tools to boost development efficiency.
Impact
Achieved shorter development periods and improved quality

Sustainability

  • Energy-efficient data center operations
  • Reduced environmental impact through paperless and digitalization efforts
  • Commute reduction via promotion of remote work
  • IT education support activities in collaboration with local communities
  • Social trust assurance through strengthened information security
  • Equipment recycling promotion aimed at waste reduction
  • Diverse talent utilization and work-style reform initiatives
  • Compliance with environmental standards in supply chain
  • ISO 14001 environmental management system certification
  • Research and adoption of low-environmental-impact technologies