Company Overview
No.1 <3562> raises the motto of "Being the greatest driving force to revive Japan's companies", and mainly works with small and medium-sized enterprises in planning, developing, manufacturing, selling, and maintaining information security equipment and in selling and maintaining office automation products. The company started in 1989 as JBM Co., Ltd. (currently No.1) in Yokohama, Kanagawa Prefecture, as a sales company for corporate software. Then, it started selling office automation equipment such as multifunction copiers, business phones, and PCs, and its own maintenance and maintenance services, expanded its business by starting sales and services throughout Japan, and gained new customers and improved support services. Recently, it has also focused on the consulting service "No.1 Business Support", a subscription-based (monthly payment) consulting service, to expand stock returns. Alexon, a subsidiary that was incorporated in July 2020, is performing well in the trend of DX with information security equipment planned, developed, and manufactured, leading its growth. It has about 16,000 customers, mainly small and medium-sized enterprises nationwide. Although construction, medical and welfare, and manufacturing industries make up more than 50% of the customer composition by industry, other industries also include many sectors.
Although it is a single segment, it can be classified into 1) information security equipment sales business, 2) office automation product sales and maintenance business, 3) information and communication terminal sales business, 4) Web solution, and 5) business consulting business according to the content of its business. The company group consists of seven companies, including the company, five consolidated subsidiary companies, and one associated company not subject to the equity method (as of the end of February 2024). Consolidated subsidiaries include Club One Systems Co., Ltd. (established in May 2013), Office Alpha Co., Ltd. (subsidiarized in September 2014), No.1 Partner Co., Ltd. (a joint venture with Hikari Tsushin <9435> established in April 2019), No.1 Digital Solution Co., Ltd. (NDS) (a joint venture with Hyper <3054> established in June 2020, and Alexon, which was incorporated in July 2020. The associated company not subject to the equity method is Saison Business Support Co., Ltd. (a joint venture with Credit Saison <8253> established in September 2022). In addition, it plans to make IT Engineering Co., Ltd. a subsidiary in April 2024, and to make OZ MODE Co., Ltd. a subsidiary in June 2024, playing an important role in expanding into new business areas.
1. Overview of each business
(1) Information security equipment sales business
It mainly sells products made by its subsidiary Alexon, which was incorporated in July 2020, and has established a system as a "manufacturing wholesaler" that plans, develops, designs, manufactures, and sells. With the spread of the Internet and the trend of DX, information security measures have become a major issue for companies, and demand is expanding. It has a rich lineup of products such as UTM*1 and Security Switch*2.
*1 A product that integrates multiple different security functions into one piece of hardware and performs Unified Threat Management. It has the function of preventing various attacks (unauthorized access, DoS attacks, virus attacks, etc.) that invade from the Internet into the internal network at the entrance of the network in advance.
*2 A security device that monitors communication packets flowing in the internal network and performs monitoring functions that identify infected devices and quickly shut them down to prevent the spread and attack on the network when a virus enters the inside.
(2) Office Automation (OA) related product sales business
It has been the company's main business since its establishment. It purchases and sells OA equipment such as multifunction copiers, business phones, and PCs. In addition, it also receives counter service fees based on the use of copiers as compensation for maintenance services and consumables such as toner from customers. Also, its subsidiary Office Alpha specializes in selling and renting used OA equipment.
(3) Sales business of information and communication terminals
No.1 Partner, a joint venture with Optic Fiber Communication, uses web marketing to sell various information and communication devices such as mobile Wi-Fi, SIM cards, and emergency disaster communication equipment "HazardTalk". In addition, NDS also handles the sale of the fully managed cloud service "Digitelas" developed in partnership with Japan Oracle <4716>.
(4) Web Solution Business
We offer an SEO consulting service that creates and operates multiple websites that capture the characteristics of each industry and adds the strengths of each company to support.
(5) Business Consulting Business
Starting in September 2020, we started "No.1 Business Support". In the face of significant changes in the business environment, we aim to deepen solution sales (management support and IT support) for management with various management issues by assigning dedicated business consultants ※ 1 for each customer, "contributing to sales growth", "contributing to business improvement and efficiency", "avoiding risks" To do. In October 2023, we fully renewed and expanded our menu for solving management issues, such as enhancing cooperation with each professional and matching business support members.
※ 1 Business consultants are personnel who regularly visit (including online visits) existing customers, grasp customer needs and issues, and provide optimal services tailored to the company's situation and environment.
※ 2 SOICO Consulting Co., Ltd. has been established with the aim of providing comprehensive support for tax, labor, legal affairs, and subsidy applications through its business partners. By investing in this company, we have established a cooperative structure to facilitate and enhance the provision of each business-related service.
2. Main products
The company's main products are security-related (including UTM), server-related, websites, MFPs (multifunction printers), business phones, and crime prevention security. Among them, the security-related (including UTM), server-related, and website-related products are self-planned and focused on as high value-added products, accounting for 58.8% of the sales composition ratio by product (fiscal year ending February 2024).
(Written by Fisco Guest Analyst Ikuo Shibata)