SAP migration demand holds up
CCN Group Co., Ltd. (TSE: 131A), listed on the TOKYO PRO Market, reported results for the first half of FY3/2027, April 1 to September 30, 2026, on November 12, 2026. It began preparing consolidated accounts at the end of FY3/2026, so no year-on-year comparison is given, and Avergence, acquired last year, is consolidated in the income statement from this half. IT Solution Services posted sales of ¥2,688 million and segment profit of ¥109 million. Working as a contractor for large system integrators, it handles many migrations to SAP S/4HANA ahead of the 2027 end of support for SAP ECC6.0, and builds open-system web and cloud applications for work ERP systems cannot cover; it won contract-based projects by selling more to its main clients.
The company noted that more customers are adopting a "Fit to Standard" approach, adapting their business to the system when moving to cloud-based S/4HANA, which tends to shrink development scale. Management Consulting, provided by Avergence through resident-style reform-execution support at client sites, posted sales of ¥265 million and a segment loss of ¥27 million after amortisation of goodwill and customer-related assets. Total assets fell 11.1% to ¥2,644 million and the equity ratio rose to 26.4%.
Guidance unchanged
CCN Group kept the FY3/2027 forecast it published on May 13, 2026: net sales of ¥5,570 million (+21.2%), operating profit of ¥192 million (+54.6%), ordinary profit of ¥172 million (+19.5%) and net profit attributable to owners of ¥105 million (+12.2%). The first half delivered 53.0% of the sales target and 42.9% of the operating profit target. It paid ¥20 a share for FY3/2026 and has not yet set its FY3/2027 dividend.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 2,951 | — | — |
| Operating profit (¥ million) | 82 | — | — |
| Ordinary profit (¥ million) | 74 | — | — |
| Net profit attrib. to owners of parent (¥ million) | 35 | — | — |
| EPS (¥) | 40.76 | — | — |
| IT Solution Services — revenue (¥ million) | 2,688 | — | — |
| IT Solution Services — segment profit (¥ million) | 109 | — | — |
| Management Consulting — revenue (¥ million) | 265 | — | — |
| Management Consulting — segment profit (¥ million) | -27 | — | — |
| Total assets (¥ million) | 2,644 | 2,973 | -11.1% |
| Net assets (¥ million) | 698 | 693 | +0.7% |
| Equity ratio | 26.4% | 23.3% | +3.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 5,570 | — | +21.2% |
| FY3/2027 guidance — operating profit (¥ million) | 192 | — | +54.6% |
| FY3/2027 guidance — ordinary profit (¥ million) | 172 | — | +19.5% |
| FY3/2027 guidance — net profit (¥ million) | 105 | — | +12.2% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.