HENNGE

4475.TMEDIUM

Satellite · Weight: 20%· Data as of 2026-04-15

¥955+0%

6-month daily

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

2026-07earningsQ2 FY2026 earnings

2026-10-01catalystActive Cyber Defense Law — drives cloud security adoption

Update History

2026-04-15new_narrativeHOLD

View report →

Initial DD — ARR ¥10B+, 86.6% gross margin, targeting ¥20B by FY2029

Key Metrics

22.9

19.5

Fwd PE

9.6

P/B

46.0%

ROE

17.6%

Op Margin

188%

D/E

0.6%

Div Yield

N/A

FCF

¥30.4B

Mkt Cap

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

Sources & References

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Peer Comparison

Company	PE	Fwd PE	ROE	Op Margin	FCF
Trend Micro	22.5	21.5	26.3%	21.1%	+¥42.7B
Digital Arts	21.7	21.7	17.8%	42.7%	N/A
HENNGE	22.9	19.5	46.0%	17.6%	N/A
Cyber Security Cloud	20.4	N/A	18.6%	21.7%	+¥578M
FFRI Security	38.7	67.1	28.4%	31.3%	N/A
Macnica Holdings	14.7	N/A	10.18%	~3.5% (overall distributor; cyber segment >9%)	N/A
Internet Initiative Japan (IIJ)	19.08	N/A	14.96%	10.7%	N/A
Soliton Systems	14.55	N/A	~20%	14.1%	N/A