HeartCore partners with NEC for advanced CMS solutions

TOKYO - HeartCore Enterprises, Inc. (NASDAQ:HTCR), a Tokyo-based software and consulting services company currently valued at $14.87 million, has announced a strategic partnership with NEC Solutions Innovators, Ltd., a Japanese ICT systems integrator. The collaboration, effective March 2025, aims to enhance digital transformation efforts by integrating HeartCore’s content management system (CMS) platform with NEC Solutions’ system integration technology. InvestingPro data shows the company has maintained a strong gross margin of ~59% while delivering impressive revenue growth of 39% in the past year.

The partnership is designed to address the growing demand for dynamic CMS solutions that can provide personalized content and real-time updates, crucial for improving customer experience and operational efficiency. By combining HeartCore’s expertise in CMS with NEC Solutions’ technological capabilities, the two companies plan to deliver customized CMS solutions tailored to the specific needs of businesses. According to InvestingPro analysis, HeartCore maintains a healthy balance sheet with more cash than debt, positioning it well for this strategic expansion. Subscribers can access 12 additional ProTips and detailed financial metrics on the platform.

HeartCore’s CEO Sumitaka Kanno emphasized the importance of the partnership in maintaining the company’s market leadership in Japan and expanding its reach across various industries. The integration is expected to streamline information dissemination, optimize operational efficiency, and enhance customer engagement for clients.

HeartCore Enterprises offers a range of services, including SaaS solutions, data analytics, and digital transformation initiatives such as robotics process automation and task mining. The company also provides consulting services to assist Japanese companies in going public in the U.S.

The announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. HeartCore and NEC Solutions’ partnership reflects their commitment to meeting the evolving digital needs of customers and driving long-term value and satisfaction.

This strategic move by HeartCore Enterprises is poised to potentially strengthen its position in the CMS market and contribute to the acceleration of digital transformation initiatives for its clients. Trading at $0.67, significantly below the analyst target price of $2.75, the stock appears undervalued according to InvestingPro’s Fair Value analysis, potentially offering an attractive entry point for investors interested in the digital transformation sector.

In other recent news, HeartCore Enterprises, Inc. has established two key governance committees as part of its transition from a "controlled company" status. This change follows the sale of shares by CEO Sumitaka Yamamoto, which resulted in him no longer holding a controlling interest. The company has formed a Compensation Committee and a Nominating and Corporate Governance Committee, each composed of three independent directors. Heather Neville will chair the Compensation Committee, while Koji Sato will lead the Nominating and Corporate Governance Committee. These committees are part of HeartCore’s efforts to comply with Nasdaq requirements, which mandate a majority of the board be independent directors. The Compensation Committee’s members will receive additional annual compensation, with the Chair earning $7,000 and other members $4,000 each. Similarly, the Nominating and Corporate Governance Committee’s Chair will receive an extra $6,000 annually, while other members will earn $3,000 each. HeartCore has attached the charters for these committees to its SEC filing, outlining its compliance strategy.

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