(Sep 29, 2026)
SECOM used to chase ambition. Now it writes vision statements.
SECOM promised 10% of revenue from overseas by 2028. It’s at 5.4%, with 18 months to go.
SECOM’s Road Map 2027, announced in May 2023, set a target of 10% of revenue from overseas by March 2028. The revenue and EBIT targets have already been met. The overseas share has barely moved: 5.3% when the plan was announced, 5.4% today.
S-1 is Korea’s largest security company. Samsung owns only 20.6%, yet appoints S-1’s CEOs, none of whom came from the security industry. S-1’s market share has fallen from 65% to below 50%.
SECOM is S-1’s largest shareholder with 26%, yet it seems unconcerned. In SECOM’s 91-page annual report, “S-1” appears only three times.
By revenue, SECOM is the world’s largest security company. But Verisure is growing four times faster (13.6% p.a. vs. SECOM’s 3.4%) and is on track to overtake SECOM as early as 2032.
The difference is overseas. 93% of Verisure’s revenue comes from outside its home market; for SECOM, it is 5.4%. No wonder Verisure trades at 10.0x EV/EBITDA and SECOM at 6.8x.
In May 2026, SECOM published Vision 2040. We read it many times and still cannot tell what it means.
SECOM’s answer to all this? “Peace of Mind through Anticipation.” We do not believe the unbearably light banner can steer the company for the next 14 years. A catchphrase this light risks cementing SECOM’s complacency rather than confronting it.
In 1970, with manned patrols at their peak of more than 2,000 contracts, founder Makoto Iida abolished them and staked SECOM on machine security, which then had just 500.
In his words: “SECOM should always have the spirit of challenge and the spirit of breaking the status quo.”
With the right changes, we believe SECOM can be re-rated to JPY 10,000 per share.
We ask the Board to make three decisions:
1. Rigorously review SECOM’s governance, incentives and management, including whether current leadership is equipped for the task.
2. Consolidate S-1 and Taiwan SECOM. That would lift SECOM’s overseas share to 28%, and revenue and EBITDA by 31% and 28%.
3. Develop a new road map worthy of SECOM’s founding spirit.
