SECOM management is "lost in Bengaluru," ignoring its largest overseas affiliate in Korea
Calls for SECOM to consolidate S-1 (Korea) and Taiwan SECOM to take full accountability
Criticizes SECOM's 'low-bar culture' and demands 'brutal honesty' from the board, including a serious review of current leadership
SINGAPORE, September 29, 2026--(BUSINESS WIRE)--Flashlight Capital Partners Pte. Ltd. ("Flashlight Capital"), a shareholder of SECOM CO., LTD. (TOKYO: 9735) ("SECOM" or the "Company"), today released a letter to SECOM's Board calling for an overhaul of its overseas strategy.
SECOM's May 2023 roadmap targets overseas revenue of 10% of sales by March 2028. With 18 months remaining, overseas revenue stands at just 5.4%, barely above 5.3% three years ago.
"It seems SECOM wants shareholders to forget about its previous commitment," said Sanghyun Lee, Chief Executive Officer of Flashlight Capital. "SECOM's annual report ignores the problems it faces and spends pages on distractions such as a hospital in Bengaluru."
Flashlight Capital also criticized SECOM's neglect of S-1 Corporation (KRX: 012750). S-1's revenue equals 24% of SECOM's but is excluded from consolidation because SECOM's 26% stake falls below the J-GAAP threshold. The firm called on SECOM to raise its stakes in S-1 and Taiwan SECOM to at least 50% – for under JPY156bn – lifting overseas revenue to roughly 28%.
Flashlight Capital calls on the Board to:
Acquire controlling stakes in S-1 and Taiwan SECOM;
Develop a new roadmap with stretch targets for growth and profitability; and
Assess whether current leadership is right to execute SECOM's growth plan.
"SECOM is already the largest security company in the world by revenue, yet trades at 6.6x EV/EBITDA, versus 9.9x for Verisure, a much smaller peer," Lee said. "We believe its share price could re-rate to JPY10,000, 57% upside from current levels."
Lee invoked SECOM's late founder, Makoto Iida, who continuously challenged convention. "We ask the Board to rediscover the spirit its founder built this company on," Lee said. "After all, how can SECOM protect others when it can't protect its own?"
Flashlight Capital also posed five questions to the Board, requesting a response by October 23, 2026.
About Flashlight Capital
Flashlight Capital Partners Pte. Ltd. is a Singapore-based activist investment firm that has led governance campaigns against KT&G (2022) and S-1 Corporation (2026), Korea's largest security services company. For more information, visit www.FlashlightCap.com.
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