■Performance trends of System D ＜3804＞

2. Trends by business sector

(1) School Solution Business

The school solution business provides a school information integrated management system “Campus Plan,” which provides total support for school management. Information systems that support school management can be broadly divided into 2 systems: academic affairs (work for students/students) and corporate systems (internal management work for school corporations), and the “Campus Plan” is characterized by being software that supports these tasks in total, and it is an advantage. The target is for national and public universities and private school corporations (universities, junior colleges, high schools, vocational schools, etc.), and the company's products have been introduced to approximately 350 schools out of 1,113 national, public, and private universities (including junior colleges) nationwide, and it has established a top class market share in the industry※. In addition to universities, introduction is progressing at private vocational schools and high schools, and the cumulative number of schools introduced at the end of 2024/4 was 1,034, an increase of 13 schools compared to the same period last year (number of active users is 531).

*The competitor is Japan System Technology (4323), and the implementation record was 447 schools at the end of 2024/3. Sales for the fiscal year ending 2024/3 were 4,150 million yen.

Cumulative sales for the second quarter of the fiscal year ending 2024/10 were 708 million yen, down 2.0% from the same period last year. Since there were many relatively small-scale projects, sales declined slightly, but implementation to customers progressed as planned, including the next-generation school comprehensive information system “Campus Plan Smart.” As for school solutions, growth was sluggish because university system investments were being postponed due to the COVID-19 pandemic, but in addition to the fact that the COVID-19 pandemic has subsided, the operating results of the “Campus Plan” for Kochi University built on Google Cloud in the previous period were evaluated, and development of functions utilizing generative AI also began, and new order acceptance projects centered on academic affairs systems are on the rise, and there are expectations for future sales expansion It's there.

(2) Wellness solutions business

In the wellness solution business, in addition to the membership management system “Hello EX” for fitness clubs and sports facilities and the operation management system “Hello Fun” for amusement facilities, we are developing a cloud-based member management system “Smart Hello” released in 2020/11, and a cloud-based ticket management system “Smart Hello Ticket” released in 2022/11. As for the same business, there are cases where hardware products such as information devices and entry/exit gates are sold, so the gross profit margin tends to be relatively low compared to other businesses.

The cumulative number of customers at the end of 2024/4 was 1,545 facilities, an increase of 148 facilities compared to the same period last year (the number of active users was 819 facilities). Major competitors of membership management systems include Hacomono Co., Ltd. (approximately 6,000 facilities with implementation history) and Nesty Co., Ltd. (2,200 facilities or more), etc., and Goodfellas Co., Ltd. (over 350 facilities) can be cited in operation management systems for amusement facilities.

Cumulative sales for the second quarter of the fiscal year ending 2024/10 were 358 million yen, down 5.9% from the same period last year. Renewal demand for information terminals for major customers, which contributed to an increase in sales in the same period last year, went round and sales declined due to the impact. However, inquiries for “Smart Hello,” which targets small-scale fitness facilities such as 24-hour gyms and golf schools, and membership fee schools, etc. where new stores have been opened one after another, were strong, and in the 2nd quarter cumulative total, it was newly introduced to 105 facilities (cumulative total 419 facilities), contributing to the accumulation of stock sales. It seems that the high cost performance that allows functions necessary for operation can be used at a low monthly fee of 1 to 0.04 million yen has been evaluated.

On the other hand, “Smart Hello Tickets” have no initial introduction costs (excluding hardware costs), and since they have web ticket sales and mobile ticketing functions, it is possible to realize labor saving/unmanned facilities, and the fact that the latest functions can always be used by providing cloud services. There are 3 rate plans (0.03 million yen, 0.06 million yen, 0.1 million yen per month) * depending on the function, and it is anticipated that they will be introduced to a wide range of amusement facilities, from small to large-scale facilities. New implementation results remained at 1 facility due to a gap in the current 2nd quarter cumulative total, but order acceptance projects have increased, and a rebound in the second half and beyond is expected.

*The small plan (0.03 million yen per month) allows the use of counter ticketing, web ticket sales, play guide collaboration, mobile ticketing, and payment terminal linkage functions. The light plan (0.06 million yen per month) adds automatic cash machine linkage, self ticketing, annual passport, and group reservation functions as additional functions. The standard plan (0.1 million yen per month) also adds group reservation web application, smartphone application, product management, gate collaboration, and ticket vending machine linkage functions. Each plan has phone support (0.01 million yen per month). Separately, on-premise customization is available.

(Author: FISCO Visiting Analyst Joe Sato)