# SHINKO Inc.: business model and financials

> Latest period: FY ending Mar 2026, non-consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第12期(2025/04/01－2026/03/31) (S100YE1C)
> Page: https://vizora.meequs.com/en/company/shinko
> Retrieved: 2026-09-30T21:35:05.986Z

## Company

Shinko, founded in 2017, is a company in IT Services & System Integration listed on TSE Standard. It has 895 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | SHINKO Inc. |
| Ticker | 7120 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7120.T) |
| Listing | TSE Standard |
| Head office | 東京都台東区浅草橋五丁目20番8号 |
| Representative (per filing) | 代表取締役社長 村上 芳仁 |
| Founded | Jan 2017 |
| Share capital | ¥183.1M |
| Employees (consolidated) | 895 |
| Average salary (parent only) | ¥5.4M |
| Fiscal year end | March |
| Website | www.kk-shinko.com (https://www.kk-shinko.com/) |
| Corporate number | 7010501036634 |
| EDINET | E38443 |
| Industries (Vizora) | IT Services & System Integration, Health Tech, HR & Staffing |

> Profile source: annual securities report (S100YE1C, filed 2026-06-18). As of filing

## Five-axis industry profile

Primary industry: IT Services & System Integration (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 56.4 | 157 |
| Profitability | 20.2 | 196 |
| Cash conversion | 3.5 | 185 |
| Efficiency | 99.2 | 196 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 62% of Shinko's sales come from Solution business, with Maintenance service business and Staffing service business making up much of the rest.
- Out of every ¥100 of sales, about ¥5 is left as operating profit.
- Revenue changed +14.7% from the prior year, operating profit +32.8%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥19.4B |  |
| Operating income | ¥913.4M | Margin 4.7% |
| Net income | ¥675.2M | Margin 3.5% |
| Free cash flow | -¥481.9M |  |
| Largest business | Solution business | of segment revenue 61.8% |
| Employees (consolidated) | 895 |  |
| EPS | ¥143.53 |  |
| Book value per share | ¥483.4 |  |
| Equity ratio | 25.9% |  |
| Shares outstanding | 5,502,000 |  |
| Treasury shares | 798,102 |  |
| Shareholders | 1,893 |  |
| Average salary (parent only) | ¥5.4M | Filing company only |
| Cash ratio | 17.1% | Cash ÷ revenue 7.7% |
| Vs. industry median margin | -4.2 pp | IT Services & System Integration |
| ROE | 33.6% | Derived from disclosed figures |
| ROA | 8.9% | Derived from disclosed figures |

## Notable figures

- FY2026, segment profit share differs by -20 points

## What changed in 4 years

| Metric | FY ending Mar 2022 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥13886281000 | ¥19383783000 | +39.6% |
| Operating income | ¥605681000 | ¥913401000 | +50.8% |
| Operating margin | 4.4% | 4.7% | +0.4 pp |
| Employees | 804 people | 895 people | +11.3% |
| Cash and equivalents | ¥920993000 | ¥1495527000 | +62.4% |

### Change in segment revenue mix

Span: FY ending Mar 2022 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 保守サービス事業 → 保守サービス事業 | 26.5% |
| 保守サービス事業 → 事業再編・廃止 | 4.9% |
| ソリューション事業 → ソリューション事業 | 52.8% |
| 人材サービス事業 → 人材サービス事業 | 11.7% |
| 人材サービス事業 → 事業再編・廃止 | 4.1% |
| 新設・再編 → ソリューション事業 | 9.0% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Solution business | 4 years | +13.0% | ¥11973870000 | 7.8% | 2 |
| Maintenance service business | 4 years | +4.2% | ¥5140314000 | 19.8% | 2 |
| Staffing service business | 4 years | +0.8% | ¥2269598000 | 13.9% | 2 |

## Income statement（FY ending Mar 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 19,384 | 100.0% | S100YE1C |
| Cost of revenue | 14,881 | 76.8% | S100YE1C |
| Gross profit | 4,502 | 23.2% | S100YE1C |
| SG&A | 3,589 | 18.5% | S100YE1C |
| Operating income | 913 | 4.7% | S100YE1C |
| Ordinary income | 926 | 4.8% | S100YE1C |
| Pretax income | 924 | 4.8% | S100YE1C |
| Income tax | 249 | 1.3% | S100YE1C |
| Net income | 675 | 3.5% | S100YE1C |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 77 |
| SG&A | 18 |
| Operating income | 5 |
| (Ref.) Net income | 3 |

### Margin funnel

Gross margin 23.2% → Operating margin 4.7% → Net margin 3.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +14.7%; Core profit growth: +32.8%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 2.24×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 16,904 | 19,384 | 2,479 | +14.7% |
| Gross profit | 4,023 | 4,502 | 479 | +11.9% |
| Operating income | 688 | 913 | 226 | +32.8% |
| Operating cash flow | 922 | -436 | -1,358 | -147.3% |
| Free cash flow | 751 | -482 | -1,233 | -164.1% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2022 | 13,886 | 606 | 4.4% | 424 | 978 | 943 | S100R79S |
| FY ending Mar 2023 | 15,949 | 753 | 4.7% | 482 | -402 | -431 | S100TU4S |
| FY ending Mar 2024 | 16,146 | 627 | 3.9% | 411 | 1,135 | 1,073 | S100VZY2 |
| FY ending Mar 2025 | 16,904 | 688 | 4.1% | 513 | 922 | 751 | S100YE1C |
| FY ending Mar 2026 | 19,384 | 913 | 4.7% | 675 | -436 | -482 | S100YE1C |

## People and productivity（FY ending Mar 2026, non-consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥21.7M |
| Operating income per employee (consolidated) | ¥1M |
| Net income per employee (consolidated) | ¥754.4K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 804 | 797 | 811 | 860 | 895 |
| Average salary (parent company) | — | ¥5.1M | ¥5M | ¥5.1M | ¥5.4M |
| Average age (parent company) | — | 40.3 years | 40.5 years | 40.0 years | 39.8 years |
| Average tenure (parent company) | — | 11.3 years | 13.4 years | 13.1 years | 12.8 years |

Year over year: Employees (consolidated) +4.1% · Revenue (consolidated) +14.7%

## Segments（FY ending Mar 2026, non-consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Maintenance service business | 5,140 | 26.5% | 1,018 | 19.8% |
| Solution business | 11,974 | 61.8% | 938 | 7.8% |
| Staffing service business | 2,270 | 11.7% | 316 | 13.9% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Maintenance service business | 26.5% | 44.8% | 18.3 | 19.8% |
| Solution business | 61.8% | 41.3% | -20.5 | 7.8% |
| Staffing service business | 11.7% | 13.9% | 2.2 | 13.9% |

Segment → industry: Solution business → IT Services & System Integration / Maintenance service business → IT Services & System Integration / Maintenance service business → Health Tech / Staffing service business → HR & Staffing

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, non-consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -436 | -2.2% | S100YE1C |
| Capital expenditure | 46 | 0.2% | S100YE1C |
| Free cash flow | -482 | -2.5% | 算出 |
| Investing cash flow | -65 | -0.3% | S100YE1C |
| Financing cash flow | 462 | 2.4% | S100YE1C |
| Dividends paid | 152 | 0.8% | S100YE1C |
| Change in cash | -39 | -0.2% | S100YE1C |
| Cash and equivalents | 1,496 | 7.7% | S100YE1C |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 921 | 930 | 1,509 | 1,534 | 1,496 | S100TU4S, S100VZY2, S100YE1C |
| Total assets | 5,522 | 6,467 | 6,516 | 6,370 | 8,769 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Net assets | 990 | 1,625 | 1,915 | 1,751 | 2,274 | S100TU4S, S100VZY2, S100YE1C |
| Share capital | 100 | 181 | 183 | 183 | 183 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Inventories | 249 | 541 | 406 | 267 | 445 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Property, plant and equipment | 118 | 128 | 301 | 305 | 298 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Intangible assets excluding goodwill | 130 | 102 | 91 | 105 | 84 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Goodwill | 18 | 13 | 9 | 4 | — | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Current assets | 4,445 | 5,453 | 5,299 | 5,062 | 7,392 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Current liabilities | 3,122 | 3,397 | 3,062 | 3,064 | 4,707 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Short-term borrowings | — | 300 | — | — | 700 | S100TU4S, S100YE1C |
| Total liabilities | 4,532 | 4,841 | 4,601 | 4,619 | 6,495 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Equity attributable to owners of parent | 990 | 1,625 | 1,915 | 1,751 | 2,274 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Retained earnings | 890 | 1,363 | 1,648 | 2,015 | 2,538 | S100R79S, S100TU4S, S100VZY2, S100YE1C |
| Treasury stock | — | — | -0 | -530 | -530 | S100VZY2, S100YE1C |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 17% | S100YE1C |
| Inventories | 5% | S100YE1C |
| Property, plant and equipment | 3% | S100YE1C |
| Intangibles and goodwill | 1% | S100YE1C |
| Other assets | 74% | S100YE1C |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 74% | S100YE1C |
| Equity | 26% | S100YE1C |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 5,522 | 6,467 | 6,516 | 6,370 | 8,769 |
| Equity | 990 | 1,625 | 1,915 | 1,751 | 2,274 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 921 | 930 | 1,509 | 1,534 | 1,496 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 1.5% | S100YE1C |
| Fixed assets ÷ total assets | 3.4% | S100YE1C |
| Goodwill ÷ parent equity | — | —, S100YE1C |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 17.1% |
| Cash ÷ revenue | 7.7% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -47.7% |
| Cash vs. profit gap | -1,111 JPY mn (of net income -164.6%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 22.5% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 0.2% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 3.0% | 2.51× | 7.7% | 5.58× | 42.8% | S100R79S |
| 2023 | 3.0% | 2.66× | 8.0% | 4.58× | 36.8% | S100TU4S |
| 2024 | 2.5% | 2.49× | 6.3% | 3.67× | 23.2% | S100VZY2 |
| 2025 | 3.0% | 2.62× | 8.0% | 3.52× | 28.0% | S100YE1C |
| 2026 | 3.5% | 2.56× | 8.9% | 3.76× | 33.6% | S100YE1C |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 株式会社ヒューマンサービス | Major shareholder | 17.3% | 2026-03-31 |
| ＳＨＩＮＫＯ従業員持株会 | Major shareholder | 8.5% | 2026-03-31 |
| 福留泰蔵 | Major shareholder | 6.4% | 2026-03-31 |
| エヌ・デーソフトウェア株式会社 | Major shareholder | 4.9% | 2026-03-31 |
| CITIC SECURITIES BROKERAGE （HK） LIMITED AC CLIENT （常任代理人 シティバンク、エヌ・エイ東京支店） | Major shareholder | 3.5% | 2026-03-31 |
| 磯野紀和 | Major shareholder | 2.7% | 2026-03-31 |
| 槇田重夫 | Major shareholder | 2.3% | 2026-03-31 |
| ASGJapan株式会社 | Major shareholder | 2.1% | 2026-03-31 |
| 上田八木短資株式会社 | Major shareholder | 1.9% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 1.6% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第12期(2025/04/01－2026/03/31) | S100YE1C | 2026-06-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YE1C,, |
| 有価証券報告書－第11期(2024/04/01－2025/03/31) | S100VZY2 | 2025-06-19 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VZY2,, |
| 有価証券報告書－第10期(2023/04/01－2024/03/31) | S100TU4S | 2024-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TU4S,, |
| 有価証券報告書－第9期(2022/04/01－2023/03/31) | S100R79S | 2023-06-28 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R79S,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).