Investment Thesis
Cloud security SaaS with ARR exceeding ¥10B (Mar 2025), targeting ¥20B by FY2029 (20%+ CAGR). HENNGE One accounts for 94.6% of revenue. Q1 FY2026 revenue +20.1% YoY. Gross margin 86.6% — best-in-class. Mid-term plan: 20%+ ARR CAGR through FY2029. Zero-trust identity/access management positioned for Active Cyber Defense Law compliance demand.
Risk
1) PB 9.6x — very expensive on book value. 2) Net income volatile — ROE 46% is from low equity base, not scale. 3) Growth Market listing — governance standards lower. 4) Competition from Microsoft Entra ID, Okta. 5) Concentration risk: HENNGE One is 95% of revenue.
Monitoring Trigger
Q2 FY2026 results. If ARR growth drops below 15%, TRIM. If Prime Market upgrade announced, ADD. Track HENNGE One enterprise customer count and ARPU trends. If OP margin expands above 20%, positive signal.
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| HENNGE One | ¥10.8B | 95% | Cloud security SaaS — identity, access management, email DLP |
| Other | ¥0.6B | 5% | Consulting and other services |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | Japanese enterprises | HENNGE One cloud security | 2,600+ corporate customers, cloud identity/access management |
| confirmed | Microsoft 365 / Google Workspace users | SSO & email DLP | Integration with major cloud platforms for zero-trust security |