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6028: Privatization Progress Will Pressure Shares Despite Profitability Outlook

Update shared on 08 Dec 2025

Fair value Increased 4.49%
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AnalystConsensusTarget's Fair Value
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1Y
67.2%
7D
0.1%

Analysts have nudged their price target on TechnoPro Holdings higher, from ¥3,868 to ¥4,042, citing expectations for slightly stronger long term profitability and modestly improved valuation support, despite a marginally higher discount rate and slightly softer revenue growth assumptions.

What's in the News

  • Private equity funds managed by Blackstone completed the approximately ¥400 billion acquisition of a 79.9% stake in TechnoPro Holdings on September 24, 2025, paving the way for full privatization and planned delisting by year end (M&A transaction closing).
  • TechnoPro will convene a special shareholders meeting on November 20, 2025 to vote on share consolidation and partial amendments to its Articles of Incorporation, which will align its capital structure with the new ownership framework (Extraordinary shareholders meeting).
  • The Board of Directors resolved on October 20, 2025 to propose share consolidation, abolish share units, amend Articles of Incorporation, and initiate procedures for early redemption of corporate bonds, signaling a broader balance sheet and governance overhaul (Board and bylaw changes).
  • The company launched a share repurchase program authorizing the buyback of up to 309,817 shares, about 0.29% of issued shares, with authorization granted on October 16, 2025 and the program running through December 10, 2025 (Buyback transaction announcement).
  • TechnoPro was removed from the S&P Global BMI Index and the S&P Japan 500, reflecting its transition toward private ownership and anticipated delisting (Index constituent drops).

Valuation Changes

  • Fair Value Estimate has risen slightly, moving from approximately ¥3,868 to ¥4,042 per share.
  • Discount Rate has increased marginally, from about 5.02% to 5.05%, implying a slightly higher required return.
  • Revenue Growth Assumption has edged down modestly, from around 8.51% to 8.43% annually.
  • Net Profit Margin Assumption has risen moderately, from roughly 8.33% to 9.02%, reflecting expectations of stronger profitability.
  • Future P/E Multiple has declined slightly, from about 17.97x to 17.39x, indicating a modestly lower valuation multiple applied to future earnings.

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