FFRI Security
3692.TMEDIUMScore: 49.1Tactical · Weight: 10%· Data as of 2026-04-15
Investment Thesis
Pure domestic cybersecurity — only Japanese company with proprietary endpoint security engine (FFRI yarai). Defense Ministry and government agency contracts (national security services). H1 FY2026 revenue +74.9% YoY, OP swung to ¥548M profit (from ¥13M loss). Full-year guidance: ¥4.26B revenue (+40.2%). Economic Security Technology Development Program contracts. Positioned as sovereign cybersecurity provider — critical for Active Cyber Defense Law implementation.
Risk
1) PE 38.7x — expensive for a ¥48B market cap company. 2) Revenue still small (¥4.26B forecast) — scale risk. 3) Government contract timing is lumpy. 4) Competition from global endpoint players (CrowdStrike, SentinelOne). 5) Growth Market listing — governance concerns.
Monitoring Trigger
FY2026 full-year results (May 2026). If revenue growth slows below 25%, TRIM. If defense ministry contracts expand significantly, ADD to 15%. Watch for Active Cyber Defense Law implementation contracts. If PE expands above 50x without revenue acceleration, EXIT.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Security Products (yarai) | ¥2.5B | 59% | FFRI yarai endpoint security — predictive defense technology |
| National Security Services | ¥1.2B | 28% | Defense Ministry, government agency security consulting/research |
| Other | ¥0.6B | 13% | NICT research projects, economic security programs |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | Japan Ministry of Defense | Security consulting, research, analysis | National security services for defense and government agencies |
| confirmed | Japanese government agencies | FFRI yarai endpoint security | Deployed across government networks, economic security program participant |
| confirmed | NICT (National Institute of ICT) | Cybersecurity research projects | Supporting NICT demonstration projects and research |