Research

Applied Technology: transcosmos subsidiary with group-held cash, profit dip

APPLIED TECHNOLOGY CO., LTD. (4356) · Published 2026-10-30 · Beluuga AI Research Team · Independent research

Not investment advice or a solicitation. See Important disclosures below.

Business overview

  • Applied Technology is an Osaka-based software and engineering firm that reports two segments: Solution Services, which sells in-house systems for sales support, after-sales service, CAD/PLM and BIM (3D building data) to manufacturers such as housing-equipment and building-materials makers and to construction companies; and Engineering Services, which provides data analysis and numerical simulation, mainly for disaster prevention, environmental assessment, town planning and civil-engineering CIM work, often for public-sector clients.
  • The company changed its reportable segment classification in the year to December 2025, according to the annual securities report. It files non-consolidated accounts and had 270 employees at December 31, 2025, working from Osaka, Tokyo and Sapporo after closing its Fukuoka office in September 2025.
  • Several product lines are co-branded with its parent, transcosmos inc. (toDIM for manufacturing, toBIM for building, toCIM for civil engineering). The BooT.one add-in for Autodesk Revit builds on BIM standards know-how taken over from TAISEI CORPORATION.
  • Since November 2024 its main third-party software sales have moved to agency contracts under which it receives a commission from the software vendor. The company says this lowers reported revenue and cost of sales but does not change the profit earned per transaction.

Investment case

  1. The company states that it funds all working capital and IT investment from its own resources, and its balance sheets show no interest-bearing debt alongside cash and group deposits that grew through the year to December 2025 and the first half of 2026 (see Performance & Balance).
  2. The annual securities report names absolute operating profit as its main management indicator, with earnings per share and the number of customers also tracked. In the year to December 2025, operating profit rose even as revenue fell, which the company attributes partly to the shift to agency contracts in software sales.
  3. The cash dividend paid in the first half of 2026 for the year to December 2025 was larger than the prior year's payment, and the company has kept its year-end dividend forecast for the year to December 2026 unchanged. Its articles allow the board, rather than the shareholders' meeting, to decide dividends and share buybacks.
  4. The company cites demand drivers in its own filings: the Ministry of Land, Infrastructure, Transport and Tourism has made BIM/CIM use the rule for directly managed public works since fiscal 2023, and new handling guidelines published in March 2025 call for attribute data in 3D models. The interim release also reports rising inquiries for voluntary environmental assessments of data-center sites.

Bear case

  1. Interim operating profit for the six months to June 2026 fell sharply from a year earlier despite higher revenue. The company attributes this to unprofitable projects in Solution Services, and the provision for order losses rose over the half.
  2. Engineering Services sales of river flood-control work fell sharply in the first half of 2026. The company says measures for first-class rivers were nearly completed by fiscal 2025, small and medium rivers under local governments become subject to the same standard from fiscal 2026, and delays in the national budget held back municipal tenders.
  3. Order intake and order backlog both declined in both segments in the year to December 2025, according to the annual securities report.
  4. The company's full-year forecast for the year to December 2026, unchanged since February 10, 2026, calls for lower operating and net profit than in 2025. It has also said the agency-contract shift will reduce 2028 revenue against the original target of its mid-term plan, yet has kept the plan figures unchanged.

Catalysts

  • Municipal tenders for town-planning support and for river and sewer disaster-prevention work, which the company expects to increase from July 2026; this tests whether Engineering Services sales recover in the second half.
  • Full-year results for the year to December 2026, which will show whether the unprofitable Solution Services projects have been closed out as the company states, and whether the unchanged profit and dividend forecasts are met.
  • Progress on the mid-term plan OGI GrowUp 2028, announced February 8, 2024, which targets the year to December 2028 and focuses on BIM/CIM, customer-contact solutions and SaaS offerings sourced partly through overseas startups.

Key risks

  • Unprofitable projects: Solution Services relies heavily on fixed-price contracts that carry completion responsibility, and the company notes projects have been getting larger, so management failures can cause cost overruns, late delivery or damages claims, as occurred in the first half of 2026.
  • Parent-subsidiary control: transcosmos inc. is the parent and largest shareholder (see Shareholders), and the company places surplus funds in intra-group financing. The company states it relies on the parent's system for preventing unfair transactions with subsidiaries and on its own internal rules, and has no separate dedicated framework.
  • Talent: the company names securing and training specialist engineers as essential, and competition for such staff is intensifying.
  • Technology change, information security breaches and third-party intellectual property claims are also listed in the company's business-risk disclosure as factors that could affect results.

Trading liquidity

Median daily trading value US$0.03mn
Average daily volume 3,523 shares

2025-10-03 to 2026-10-29 (250 trading days). Trading value is daily closing price × daily volume on the Tokyo Stock Exchange.

Assumptions

  • Financial figures on this page come from beluuga.ai's daily data set; trading liquidity is measured over the period shown. We do not use consensus estimates.
  • Revenue comparisons across 2024, 2025 and 2026 are affected by the move to agency contracts for software sales from November 2024 and by the segment reclassification in the year to December 2025; profit lines are less affected by the contract change, according to the company.
  • The president changed after the shareholders' meeting of March 25, 2026: the earnings release for the first half of 2026 lists a different representative director and president from the one named in the annual securities report, and the former president was proposed to remain on the executive council as a standing executive director. The interim results are not subject to auditor review.
  • Qualitative statements are taken from the annual securities report for the year to December 2025 and the second-quarter (interim) earnings release for the year to December 2026.

This is independent research. No company paid for or reviewed it. We do not publish ratings, price targets or buy/sell views. Figures on the other slides of this page come from beluuga.ai's daily data set.

Important disclosures

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Overview
Information & Communication

APPLIED TECHNOLOGY CO.,LTD.

Oyo Gijutsu (OGI) operates two core business segments: Solution Services and Engineering Services. The Solution Services segment provides proprietary software systems and DX solutions supporting sales, design, procurement/production, and after-service processes primarily for manufacturing and construction industries. The Engineering Services segment delivers specialized engineering services including data analysis and numerical simulation, with a focus on environmental, disaster prevention, and urban development fields.

Market Cap
US$57.4M
¥9.16B
EV
US$52.9M
¥8.45B
StockUS$10.05(¥1,605)▼-2.13%
US$1 = ¥159.70 (2026-11-12)
LTM EV/EBITDA
9.6
x
LTM EV/EBIT
10.2
x
LTM PER
13.8
x
LTM PBR
1.4
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-30.3%pt
100
Nov 13, 25 – Nov 13, 26StockTOPIX
MC → EV Bridge
US$57.4M¥9.16BMarket CapUS$0.00M¥0.00B+ DebtUS$4.50M¥0.72B− CashUS$0.00M¥0.00B− Inv. Sec.US$52.9M¥8.45BEV
AI Briefing
Generating insights…
Performance & Balance
Revenue 5Y (US$)
US$40.4M¥6.45B'21/12US$44.3M¥7.08B'22/12US$46.5M¥7.42B'23/12US$49.1M¥7.84B'24/12US$46.7M¥7.45B'25/12
EBITDA 5Y (US$)
US$6.06M¥0.97B'21/12US$6.32M¥1.01B'22/12US$6.47M¥1.03B'23/12US$6.19M¥0.99B'24/12US$7.82M¥1.25B'25/12
Net Income 5Y (US$)
US$4.45M¥0.71B'21/12US$4.61M¥0.74B'22/12US$4.48M¥0.72B'23/12US$4.54M¥0.73B'24/12US$5.72M¥0.91B'25/12
Capital Structure
100%
EquityD/E 0.00xDebt
Liquidity vs Debt 5Y (US$)▲ Net Cash
CashInv. Sec.Debt
US$3.18M¥0.51B'21/12US$3.09M¥0.49B'22/12US$3.07M¥0.49B'23/12US$3.92M¥0.63B'24/12US$4.87M¥0.78B'25/12
Business Segments (Non-consol.)
2024/12 · US$ (¥B)
73%
Solution service business
Revenue
US$36.0M(¥5.75B)
Segment profit
US$5.95M(¥0.95B)16.6%
27%
Engineering service business
Revenue
US$13.1M(¥2.09B)
Segment profit
US$3.30M(¥0.53B)25.2%
Adjustments
Revenue
—
Segment profit
-US$3.39M(¥-0.54B)
Shareholders
Top 10 hold 83.2%
1
transcosmos inc.
60.22%
2
Hikari Tsushin KK Investment Limited Liability Partnership
6.50%
3
UH Partners 2 Investment Limited Liability Partnership
4.24%
4
Custody Bank of Japan, Ltd. (Trust Account)
2.58%
5
APPLIED TECHNOLOGY CO.,LTD. Employee Stock Ownership Association
2.38%
6
Masataka OKUDA
1.96%
7
Daisuke GOMI
1.65%
8
Osaka Small and Medium Business Investment & Consultation Co., Ltd.
1.40%
9
The Master Trust Bank of Japan, Ltd. (Trust Account)
1.30%
10
HIKARI TSUSHIN,INC.
1.00%
Management
9 officers
Toshiro FUNABASHI
Chairman of the Board, Director
Sep 1985 Joined the Company Feb 2004 General Manager, SI Business Division Nov 2004 General Manager, Industrial Systems Business Division Jan 2006 Executive Officer, General Manager, Industrial Systems Business Division Jan 2008 Executive Officer, General Manager, Industrial Business Division Mar 2010 Director Jul 2010 Managing Director, in charge of Business Planning Mar 2015 Senior Managing Director, in charge of Business Planning Jan 2016 Representative Director, President Mar 2026 Chairman of the Board, Director (current)
1959-11-17
Takahiro KONISHI
Representative Director, President
Apr 2002 Joined the Company Jan 2011 General Manager, Solutions Service Department, Solutions Division Jan 2016 Head of Business Planning Office and General Manager, Development Department 1, Solutions Division Jan 2017 Executive Officer, Deputy Head of Solutions Division Jan 2019 Executive Officer, Head of Business Strategy Division Mar 2020 Director, Head of Business Strategy Division Mar 2022 Managing Director Jan 2024 General Manager, DX Business Sep 2024 Representative Director, Senior Managing Director Mar 2026 Representative Director, President (current)
1976-03-03
Hiroyuki FURUHARA
Director, Vice President
Apr 1979 Joined Tohyama Hideo Certified Public Tax Accountant Office Jun 1985 Joined Mainichi International Inc. Nov 1987 Joined D.B.S.S. Inc. Oct 1989 Joined trans cosmos inc. Jun 1993 General Manager, Finance Department, trans cosmos inc. Jul 1996 Director, CFO, transcosmos America, Inc. Nov 2003 Deputy Head, Accounting and Finance Division, trans cosmos inc. Mar 2005 Representative Director, President, transcosmos Assist Inc. (current) Mar 2005 Representative Director, TCI Business Services Inc. (current) Apr 2005 General Manager, Administration Division, trans cosmos inc. Jun 2005 Executive Officer, General Manager, Administration Division, trans cosmos inc.; Audit & Supervisory Board Member, DoubleClick K.K. Mar 2008 Audit & Supervisory Board Member, the Company Jun 2008 Audit & Supervisory Board Member, J-Stream Co., Ltd. Mar 2009 Retired as Audit & Supervisory Board Member, the Company Apr 2009 Managing Officer, General Manager, Administration Division, trans cosmos inc. Mar 2010 Audit & Supervisory Board Member, the Company Mar 2013 Retired as Audit & Supervisory Board Member, the Company Apr 2017 Executive Officer, Deputy Head of Head Office Administration, General Manager of Head Office Administration Division and General Manager of Corporate Promotion Office, trans cosmos inc. Apr 2019 Executive Officer, General Manager, Administration Division, in charge of Business Administration Division, trans cosmos inc. Aug 2020 Executive Officer, Deputy Head of Head Office Administration, General Manager of Head Office Administration Division, in charge of Business Administration Division, trans cosmos inc. Jun 2023 Executive Officer, Deputy Head of Head Office Administration, General Manager of Head Office Administration Division, trans cosmos inc. Apr 2024 Executive Officer, Deputy Head of Corporate Administration, General Manager of Corporate Administration Division, trans cosmos inc. (current) Mar 2025 Director, the Company Mar 2026 Director, Vice President, the Company (current)
1960-08-07
Yutaka AMEMIYA
Director
Apr 1979 Joined Sekisui House, Ltd. Apr 2007 General Manager, CAD/AES Center, Technology Division, Sekisui House, Ltd. Apr 2009 General Manager, Design Systems Office, Technology Division, Sekisui House, Ltd. Apr 2015 General Manager, Technical Affairs Department, Technology Division, Sekisui House, Ltd. Apr 2016 Executive Officer, Sekisui House, Ltd. Apr 2020 Advisor, the Company Mar 2026 Director, the Company (current)
1955-08-09
Mie KADOMATSU
Director (Non-Executive)
Jun 1985 Joined trans cosmos inc. May 1995 General Manager, Call Management Business Division, West Japan Regional Headquarters, trans cosmos inc. Jun 1996 Director, Deputy Head of Human Resources Division, trans cosmos inc. Apr 2000 Representative Director, Best Career Co., Ltd. Jan 2006 Recruitment and Training Department, Engineering Solutions Service Division, trans cosmos inc. Apr 2015 General Manager, Building Infrastructure Service Division, BPO Services Group, trans cosmos inc. Mar 2016 Director, the Company Mar 2018 Retired as Director, the Company Jun 2018 Managing Officer, Building Infrastructure Service Division, BPO Services Group, trans cosmos inc. Mar 2020 Director, the Company (current) Jun 2020 Executive Officer, Building Infrastructure Service Division, BPO Services Group, trans cosmos inc. Jun 2021 Managing Executive Officer, Building Infrastructure Service Division, BPO Services Group, trans cosmos inc. Apr 2022 Managing Executive Officer, Deputy Head of BPO Services Group and Head of Urban Engineering Services, BPO Services Group, trans cosmos inc. Jun 2024 Director, Managing Executive Officer, Head of Urban Engineering Services and Deputy Head of BPO Services Group, trans cosmos inc. (current)
1959-12-10
Masato KAJIURA
Director (Non-Executive)
Apr 1992 Joined trans cosmos inc. Jun 2022 Managing Officer, Deputy Head of Building Infrastructure Service Division, Urban Engineering Services, BPO Services Group; Deputy Head of Urban Engineering Services, BPO Services Group; General Manager, Service Management Department, Building Infrastructure Service Division, trans cosmos inc. Apr 2023 Managing Officer, Head of Urban Solutions Service Division and Deputy Head of Urban Engineering Services, BPO Services Group, trans cosmos inc. Jun 2024 Executive Officer, Head of Urban Solutions Service Division and Deputy Head of Urban Engineering Services, BPO Services Group, trans cosmos inc. (current) Mar 2025 Director, the Company (current)
1971-09-28
Nobuo TAKENAKA
Director, Audit and Supervisory Committee Member
Apr 1972 Joined former Misawa Homes Co., Ltd. (now Misawa Homes Co., Ltd.) Jun 1995 Director, Misawa Homes Co., Ltd. Jun 2004 Executive Officer, Misawa Homes Co., Ltd. Jun 2007 Director, Senior Managing Executive Officer, Misawa Homes Co., Ltd. Jun 2008 Representative Director, President and Executive Officer, Misawa Homes Co., Ltd. Jun 2011 Chairman, General Incorporated Association Environmentally Harmonized Housing Promotion Council (now General Incorporated Association Environmentally Harmonized Community Association) (current) Mar 2016 Outside Director, Yokohama Rubber Co., Ltd. Jun 2017 Chairman of the Board, Misawa Homes Co., Ltd. Mar 2018 Director, Audit and Supervisory Committee Member, the Company (current) Jun 2022 Director, Misawa Homes Co., Ltd. Jun 2023 Advisor, Osue Corporation (current) Jun 2023 Chairman, General Incorporated Association Hosei University Alumni Association (current) Apr 2025 Chairman of Council of Trustees, Hosei University (current)
1948-07-16
Toshiaki NAKAO
Director, Audit and Supervisory Committee Member
Apr 1972 Joined Sumitomo Life Insurance Company Apr 1994 General Manager, Corporate Sales Department, Tokyo North Sales Headquarters, Sumitomo Life Insurance Company Mar 2001 General Manager, Fourth Sales Department, First Corporate Division, Sumitomo Life Insurance Company Apr 2006 Executive Officer, General Manager, Osaka Sales Department, Sumisei Non-Life Insurance Co., Ltd. Mar 2013 Director, the Company Mar 2016 Director, Audit and Supervisory Committee Member, the Company (current)
1948-04-30
Manabu ONDA
Director, Audit and Supervisory Committee Member
Apr 2000 Joined Onda Accounting Office Oct 2004 Joined Glory Total Management Co., Ltd. (now GTM Research Inc.) Oct 2014 Representative Partner, GTM Tax Accountant Corporation (current) Dec 2015 Director, GTM Research Inc. Dec 2016 Managing Director, GTM Research Inc. Jun 2018 Outside Audit & Supervisory Board Member, J-Stream Co., Ltd. (current) Oct 2019 Outside Audit & Supervisory Board Member, Delivery Consulting Co., Ltd. (current) Apr 2020 Representative Director, President, GTM Consulting Co., Ltd. (current) Aug 2020 Director, Audit and Supervisory Committee Member, the Company (current) Apr 2022 Representative Director, Executive Vice President, GTM Research Inc. (current)
1976-09-14
Large Shareholding Reports
Koutsushin Co., Ltd.
2026-06-01
7.49%→7.49%
Annual report (as of 2026-06-30): 1.00%
Koutsushin Co., Ltd.
2025-09-26
7.49%→7.49%
Annual report (as of 2026-06-30): 1.00%
Koutsushin Co., Ltd.
2025-08-12
7.49%→7.49%
Annual report (as of 2026-06-30): 1.00%
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-11-11
Q3 Earnings Flash
FY ending Dec 2026
EDINET
2026-08-12
Semi-Annual Securities Report
Period: Jan 2026 – Dec 2026
TDnet
2026-08-12
Q2 Earnings Flash
FY ending Dec 2026
EDINET
2026-06-01
Large Shareholding Report
TDnet
2026-05-13
Q1 Earnings Flash
FY ending Dec 2026
EDINET
2026-03-24
Annual Securities Report
Period: Jan 2025 – Dec 2025
TDnet
2026-02-10
Full-Year Earnings Flash
FY ending Dec 2025
TDnet
2026-01-28
業績予想の修正
TDnet
2025-11-12
Q3 Earnings Flash
FY ending Dec 2025
EDINET
2025-09-26
Large Shareholding Report
EDINET
2025-08-12
Semi-Annual Securities Report
Period: Jan 2025 – Dec 2025
EDINET
2025-08-12
Large Shareholding Report
TDnet
2025-05-13
Q1 Earnings Flash
FY ending Dec 2025
EDINET
2025-03-26
Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-08-14
Semi-Annual Securities Report
Period: Jan 2024 – Dec 2024
EDINET
2024-05-13
Quarterly Securities Report
Period: Jan 2024 – Mar 2024
EDINET
2024-03-26
Annual Securities Report
Period: Jan 2023 – Dec 2023
EDINET
2023-11-13
Quarterly Securities Report
Period: Jul 2023 – Sep 2023
EDINET
2023-08-10
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-05-12
Quarterly Securities Report
Period: Jan 2023 – Mar 2023
EDINET
2023-03-24
Annual Securities Report
Period: Jan 2022 – Dec 2022
EDINET
2022-11-11
Quarterly Securities Report
EDINET
2022-08-12
Quarterly Securities Report
EDINET
2022-05-13
Quarterly Securities Report
EDINET
2022-03-25
Annual Securities Report
EDINET
2021-11-12
Quarterly Securities Report
EDINET
2021-08-12
Quarterly Securities Report
EDINET
2021-05-13
Quarterly Securities Report
EDINET
2021-03-24
Annual Securities Report
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