Research

AViC: Acquisition-led growth funded by bank debt, president-controlled

AViC Co., Ltd. (9554) · Published 2026-10-24 · Beluuga AI Research Team · Independent research

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

Business overview

  • AViC reports one segment, digital marketing, with two service lines: internet advertising, mainly search-linked, display and in-feed ads that it buys from media operators and resells with a consulting fee (or advises on for a consulting fee only), and SEO consulting, which covers keyword strategy, website structure and article content. The annual securities report for the year to September 2025 states there were no sales to external customers outside Japan.
  • At September 30, 2025 the group was the parent plus four consolidated subsidiaries: FACT (digital consulting), a majority-owned subsidiary in Hainan, China (China-market consumer marketing and support for Japanese companies entering China), Rearation (social media marketing, acquired by share exchange in May 2025) and ASY Marketing (a joint venture formed in June 2025 with a Chinese partner and two Japanese companies for live streaming, education and advertising in Japan and China). Spica was added as a consolidated subsidiary from the second quarter of the year to September 2026.
  • The company dates its substantive founding to March 2018, when the current president subscribed for new shares and became president, and it listed on the Tokyo Stock Exchange Growth market in June 2022. The fiscal year ends September 30, and the group had 91 employees at September 30, 2025.
  • Clients are served directly and through large general advertising agencies; ADK Digital Communications was disclosed as a major customer in the year to September 2025, and in May 2024 AViC formed a joint venture with ADK Marketing Solutions to give the partnership its own sales function aimed at large-budget clients.

Investment case

  1. Management states it targets per-employee productivity, headcount and the absolute amount of operating profit, and that the focus on operating profit is meant to strengthen the balance sheet and borrowing capacity so it can act on acquisition and China opportunities; the annual securities report says all three indicators were on plan for the year to September 2025.
  2. The third-quarter earnings release for the year to September 2026 shows cumulative sales and profits above the prior-year period, and the full-year forecast revised on May 15, 2026 was left unchanged (see Performance & Balance).
  3. The annual securities report states internal reserves are sufficient and that borrowing is available, so management sees no particular financial issue; cash and deposits rose again in the nine months to June 2026 (see Performance & Balance).
  4. The board has five directors, three of whom are audit and supervisory committee members who are all outside and independent, and a voluntary nomination and remuneration committee with an independent majority and independent chair was set up from October 1, 2025. Under the stated Midas Capital governance principles, AViC receives no investment or loans from Midas group companies, has no officers shared with them, and conducts its disclosed transactions with them on terms equivalent to those with independent third parties.

Bear case

  1. The largest shareholder is an investment limited partnership whose voting rights are in substance held by the president's asset-management company, and the second-largest is a partnership in substance voted by the individual who owned the predecessor company from 2014 to 2018 (see Shareholders). The company states that if Midas Capital changed its policies and these holders' wishes were no longer reflected, shareholder votes on director elections, mergers, capital reductions and articles amendments could be materially affected; Midas Capital is also entitled to a share of gains above contributed capital when the partnerships sell AViC shares.
  2. Long-term borrowings and goodwill both rose sharply in the nine months to June 2026, and goodwill amortization and interest expense increased (see Performance & Balance). A loan agreement with Mizuho Bank signed January 29, 2026 carries covenants requiring net assets to stay above a set proportion of the prior year-end level and operating profit not to be a loss for two consecutive fiscal years; a breach could make all debt under the agreement due immediately.
  3. The company pays no dividend, citing priority on retained earnings, and forecasts no dividend for the year to September 2026.
  4. The company itself lists share liquidity as a risk, citing the tradable share ratio defined by the Tokyo Stock Exchange at September 30, 2025, and outstanding stock options, including a trust-type option plan, could dilute existing holders if exercised (see Trading liquidity).

Catalysts

  • Full-year results for the year to September 30, 2026, measured against the forecast revised on May 15, 2026, including the first full-period contribution from Spica and the cost of the new Mizuho borrowing.
  • The company's stated liquidity policy of requesting partial secondary sales by major shareholders, raising growth capital through public offerings, and stock option exercises; any such offering or sale would change the shareholder mix (see Shareholders).
  • Further acquisitions and progress at the China subsidiary and the ASY Marketing joint venture, and any change in the investors or terms of the major shareholders' partnerships, which the company has said it will disclose promptly.

Key risks

  • Dependence on the president and senior staff, whom the company describes as holding industry know-how and playing a key role in strategy, and on hiring and training staff who understand media operators' algorithms; the company rates the talent risk as high-impact.
  • Exposure to advertisers' budgets and economic conditions, rapid technological change, rising competition, and changes in relationships with individual media operators such as Google.
  • Possible impairment of goodwill and customer-related assets recorded on acquisitions, and the risk that new businesses such as the China operations do not recover their investment.
  • Reputational risk from shareholders that carry the 'Midas' name if Midas Capital or another company it has invested in loses public trust, and loss of the knowledge-sharing and referral benefits if a partnership withdraws from the Midas group.

Trading liquidity

Median daily trading value US$0.32mn
Average daily volume 38,720 shares

2025-10-07 to 2026-10-23 (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.
  • Year-on-year comparisons are affected by acquisitions: Rearation was consolidated from May 2025 and Spica from the second quarter of the year to September 2026, and the third-quarter financial statements were not reviewed by the auditor and include no cash flow statement.
  • Governance and risk descriptions come from the annual securities report filed in December 2025, while financial data run to June 2026 and the shareholder list is as of March 31, 2026, so ownership stakes and board composition may have changed between documents.
  • Qualitative statements are taken from the annual securities report for the year to September 2025 and the third-quarter earnings release for the year to September 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

No offer or solicitation. This material is provided for information purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security or other financial instrument in the United States or in any other jurisdiction, and it is not a recommendation to buy, sell or hold any security. It is not directed at, and may not be relied on by, any person in any jurisdiction where its publication or availability would be contrary to law or regulation.

Not investment advice. This material is general and impersonal. It does not take into account the investment objectives, financial situation or particular needs of any reader, and it is not tailored to any person. It is published to all readers on the same terms and on a regular basis, and no reader receives advice on the merits of any security for their own account. Readers should make their own independent decisions and consult their own legal, tax, accounting and investment advisers before making any investment.

Regulatory status. Beluuga AI, Inc. is not registered with the U.S. Securities and Exchange Commission (SEC) or any state securities authority as an investment adviser under the Investment Advisers Act of 1940, is not registered as a broker-dealer under the Securities Exchange Act of 1934, and is not a member of the Financial Industry Regulatory Authority (FINRA). It is not registered as a Financial Instruments Business Operator under Japan's Financial Instruments and Exchange Act. This material is not a research report prepared by a FINRA member firm and is not subject to FINRA Rule 2241, Regulation Analyst Certification (Regulation AC) or the other U.S. rules that govern broker-dealer research. The SEC, FINRA and the Financial Services Agency of Japan have not reviewed, approved or passed on the merits or accuracy of this material.

European Union and European Economic Area. Beluuga AI, Inc. is not authorised or supervised by any national competent authority in the European Union or the European Economic Area, including under the Markets in Financial Instruments Directive (MiFID II). This material is not investment advice, a personal recommendation or investment research within the meaning of MiFID II, and it is not a prospectus or other offering document under the Prospectus Regulation (EU) 2017/1129. It has not been prepared in accordance with the requirements of Regulation (EU) No 596/2014 (the Market Abuse Regulation) for investment recommendations and is not intended to be relied on as one.

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Securities of Japanese issuers. The securities discussed are issued by companies incorporated in Japan and listed on the Tokyo Stock Exchange. They may not be registered under the U.S. Securities Act of 1933, and the issuers may not be subject to the periodic reporting requirements of the Securities Exchange Act of 1934. Information about these issuers may be less extensive than information about U.S. issuers, and their financial statements are prepared under Japanese GAAP, IFRS or U.S. GAAP as each issuer elects. U.S. persons may face restrictions, tax consequences and practical limits on buying, holding or selling these securities. Investments in non-U.S. securities involve risks that include currency movements, lower trading liquidity, and differences in market practice, corporate governance and legal protection.

Currency. Amounts shown in US$ are converted from Japanese yen at a mid-market rate for convenience only. They are not the amounts an investor would receive, and changes in exchange rates may cause the value of a yen-denominated investment to fall in US$ terms even if its value in yen does not.

Sources, accuracy and forward-looking statements. This material is based on the issuers' public disclosure documents and on market data, and it was prepared with the assistance of AI tools and reviewed by the Beluuga AI Research Team. We believe the sources to be reliable but do not guarantee that the information is accurate, complete or current, and the material may contain errors. Statements about the future, including catalysts and risks, are assumptions and are not guarantees; actual results may differ materially. Past performance is not a guide to future performance. The material speaks only as of its date, and we have no obligation to update it. Where the issuer's original disclosure is in Japanese, the Japanese original prevails over any English description given here.

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Overview
Services

AViC Co.,Ltd.

Aviation Industry Corporation of China (AVIC) is a state-owned aerospace and defense conglomerate engaged in the research, development, and manufacturing of military and civilian aircraft, including fighter jets, military transport aircraft, military and civil helicopters, unmanned aerial vehicles (UAVs), and regional commercial aircraft. Beyond aviation, AVIC operates across industrial manufacturing, electronics and information technology, transportation equipment, electrical power, modern services, engineering construction, and financial services. As China's primary aviation defense contractor, AVIC serves both domestic military and civilian markets as well as international customers through subcontracting production and global business partnerships.

Market Cap
¥9.91B
US$63.2M
EV
¥9.18B
US$58.6M
Stock¥1,558▼-2.50%
US$1 = ¥156.80 (2026-10-23)
LTM EV/EBITDA
8.7
x
LTM EV/EBIT
9.0
x
LTM PER
13.9
x
LTM PBR
3.4
x
Stock vs TOPIX (1Y, base=100)vs TOPIX ▼-37.3%pt
100
Oct 24, 25 – Oct 23, 26StockTOPIX
MC → EV Bridge
9.91BUS$63.2MMarket Cap1.97BUS$12.6M+ Debt2.72BUS$17.3M− Cash0.00BUS$0.02M− Inv. Sec.0.03BUS$0.17M+ NCI9.18BUS$58.6MEV
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Performance & Balance
Revenue 5Y (¥B)
1.33US$8.48M'21/91.25US$7.94M'22/91.49US$9.49M'23/91.93US$12.3M'24/92.68US$17.1M'25/9
EBITDA 5Y (¥B)
0.12US$0.79M'21/90.32US$2.05M'22/90.33US$2.10M'23/90.48US$3.04M'24/90.75US$4.81M'25/9
Net Income 5Y (¥B)
0.23US$1.44M'22/90.22US$1.40M'23/90.31US$1.98M'24/90.54US$3.44M'25/9
Capital Structure
60%
40%
EquityD/E 0.68xDebt
Liquidity vs Debt 5Y (¥B)▲ Net Cash
CashInv. Sec.Debt
0.33US$2.10M0.06US$0.39M'21/90.72US$4.62M0.04US$0.26M'22/90.75US$4.78M'23/91.24US$7.93M0.33US$2.11M'24/92.10US$13.4M0.73US$4.66M'25/9
Shareholders
Top 10 hold 77.0%
1
Sogo ICHIHARA, Midas Investment Limited Partnership
34.33%
2
Kyohei IWATA, Midas Investment Limited Partnership
22.26%
3
Custody Bank of Japan, Ltd. (Trust Account)
6.62%
4
Hideki YOSHIMURA, Midas A Investment Limited Partnership
4.39%
5
NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN (Standing Proxy: Nomura Securities Co., Ltd.)
2.01%
6
The Master Trust Bank of Japan, Ltd. (Trust Account)
1.88%
7
Hideki NAKAJIMA
1.62%
8
Yuji YAMASHIRO
1.37%
9
Makoto SASANO
1.27%
10
Nomura Trust and Banking Co., Ltd. (Investment Trust Account)
1.23%
Management
5 officers
Sogo ICHIHARA
Representative Director, President
Apr 2009 Joined CyberAgent, Inc. Mar 2018 Joined the Company; appointed Representative Director, President (current) Oct 2023 Director, FACT Co., Ltd. (current) May 2025 Director, Realation Co., Ltd. (current) Jun 2025 Director, ASY Marketing Co., Ltd. (current)
1986-11-10
Makoto SASANO
Director, CFO
Apr 2010 Joined Mizuho Financial Group, Inc. Jan 2020 Joined the Company; appointed CFO Feb 2020 Director, CFO (current) Oct 2023 Director, FACT Co., Ltd. (current) Jan 2024 Director, Aiweike (Hainan) Media Technology Co., Ltd. (current) May 2024 Director, ADK AViC Performance Design Co., Ltd. (current) May 2025 Director, Realation Co., Ltd. (current) Jun 2025 Director, ASY Marketing Co., Ltd. (current)
1987-11-13
Azusa ANJO
Director (Full-time Audit and Supervisory Committee Member)
Dec 1995 Joined Daido Audit Corporation (currently Gravitas Audit Corporation) Aug 1997 Joined Seki Soken Co., Ltd. May 2000 Joined Nexus Co., Ltd. Jun 2002 Joined Sanyu Audit Corporation Apr 2006 Representative, Anjo Accounting Office (current) Apr 2022 Statutory Auditor, HR Cloud Co., Ltd. (current) Dec 2023 Outside Director (Full-time Audit and Supervisory Committee Member), the Company (current) Dec 2023 Statutory Auditor, FACT Co., Ltd. (current) May 2025 Statutory Auditor, Realation Co., Ltd. (current) Jun 2025 Statutory Auditor, ASY Marketing Co., Ltd. (current)
1971-10-28
Yuta YAMAMOTO
Director (Audit and Supervisory Committee Member)
Apr 2007 Joined Boston Consulting Group K.K. May 2012 Joined NK Relations Co., Ltd. (currently Noritsu Koki Co., Ltd.) May 2013 Director, JMDC Inc. Jan 2014 Registered as attorney-at-law; Representative, Yuta Yamamoto Law Office (currently Yamamoto Law Office) (current) Jun 2015 Director, Noritsu Koki Co., Ltd. Jun 2016 Director, Doctor-Net Co., Ltd. Apr 2019 Executive Vice President and CFO, JMDC Inc. Apr 2019 Director, Unike Software Research Co., Ltd. Jun 2019 Director, Medical Database Co., Ltd. Jun 2019 Director, Doctor-Net Co., Ltd. Apr 2020 Director, NS Partners Co., Ltd. Jun 2020 Director and Executive Vice President, CFO, JMDC Inc. Aug 2020 Outside Director, the Company Nov 2020 Director, Data Index Co., Ltd. Dec 2021 Outside Director (Audit and Supervisory Committee Member), the Company (current) Jun 2023 Director, JMDC Inc. (current)
1982-12-14
Isshin NAGATOSHI
Director (Audit and Supervisory Committee Member)
Apr 2006 Joined Bain & Company Japan, Inc. Apr 2015 Joined Sega Games Co., Ltd. (currently Sega Corporation) Mar 2018 Joined Mercari, Inc. Apr 2020 Director, Merpay Inc. Apr 2021 Director, Mercoin Inc. Jan 2022 Executive Officer, Japan Region COO, Mercari, Inc. Dec 2022 Outside Director, the Company Dec 2024 Outside Director (Audit and Supervisory Committee Member), the Company (current) Jul 2025 Director and CFO, Skymatics Corporation (current)
1981-05-26
Large Shareholding Reports
Midas Capital Co., Ltd.
2026-06-02
5.00%
Ichihara Holdings Co., Ltd.
2026-06-01
37.69%→34.22%
Kyohei IWATA
2026-05-13
22.30%→23.23%
Correction filing (name/detail fix only) — ratio carried over from the original filing
Kyohei IWATA
2026-05-13
22.30%→23.31%
Kyohei IWATA
2026-05-13
22.30%→23.31%
Correction filing (name/detail fix only) — ratio carried over from the original filing
Kyohei IWATA
2026-05-12
22.30%→23.23%
Kyohei IWATA
2025-09-22
22.52%→22.30%
Kyohei IWATA
2025-09-10
23.01%→23.01%
Kyohei IWATA
2025-09-10
—
Kyohei IWATA
2025-09-10
23.01%→23.01%
Kyohei IWATA
2025-09-10
23.01%→23.01%
Kyohei IWATA
2025-09-10
23.01%→23.01%
Kyohei IWATA
2025-09-10
23.01%→22.52%
Correction filing (name/detail fix only) — ratio carried over from the original filing
Kyohei IWATA
2025-09-08
23.01%→22.52%
Disclosures
No disclosures
Primary Source Filings
TDnet
2026-08-14
Q3 Earnings Flash
FY ending Sep 2026
EDINET
2026-06-02
Large Shareholding Report
EDINET
2026-06-01
Large Shareholding Report
EDINET
2026-05-15
Semi-Annual Securities Report
Period: Oct 2025 – Sep 2026
EDINETAmended
2026-05-13
Change Report
EDINETAmended
2026-05-13
Change Report
EDINET
2026-05-13
Large Shareholding Report
EDINET
2026-05-12
Large Shareholding Report
TDnet
2026-02-13
Q1 Earnings Flash
FY ending Sep 2026
EDINET
2025-12-22
Annual Securities Report
Period: Oct 2024 – Sep 2025
EDINET
2025-09-22
Large Shareholding Report
EDINETAmended
2025-09-10
Change Report
EDINET
2025-09-10
Large Shareholding Report
EDINET
2025-09-10
Large Shareholding Report
EDINET
2025-09-10
Large Shareholding Report
EDINET
2025-09-10
Large Shareholding Report
EDINETAmended
2025-09-10
Change Report
EDINET
2025-09-08
Large Shareholding Report
TDnet
2025-08-14
Q3 Earnings Flash
FY ending Sep 2025
EDINET
2025-05-15
Semi-Annual Securities Report
Period: Oct 2024 – Sep 2025
TDnet
2025-02-14
Q1 Earnings Flash
FY ending Sep 2025
EDINET
2024-12-23
Annual Securities Report
Period: Oct 2023 – Sep 2024
EDINET
2024-05-15
Quarterly Securities Report
Period: Jan 2024 – Mar 2024
EDINET
2024-02-14
Quarterly Securities Report
Period: Oct 2023 – Dec 2023
EDINET
2023-12-27
Annual Securities Report
Period: Oct 2022 – Sep 2023
EDINET
2023-08-14
Quarterly Securities Report
Period: Apr 2023 – Jun 2023
EDINET
2023-05-15
Quarterly Securities Report
Period: Jan 2023 – Mar 2023
EDINET
2023-02-14
Quarterly Securities Report
Period: Oct 2022 – Dec 2022
EDINET
2022-12-26
Annual Securities Report
EDINET
2022-08-10
Quarterly Securities Report
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