Annuncio • Jul 04
OUTSOURCING Inc. SHIZUOKA Common Stock to Be Deleted from OTC Equity OUTSOURCING Inc. SHIZUOKA Common Stock will be deleted from OTC Equity effective July 03, 2024, due to CUSIP Suspended. Annuncio • May 16
OUTSOURCING Inc. to Delist from Prime Section of Tokyo Stock Exchange, Effective June 06, 2024 OUTSOURCING Inc. will be delisted from Prime Section of Tokyo Stock Exchange effective from June 06, 2024 due to Reverse stock split. Buy Or Sell Opportunity • Apr 26
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.6% to €10.30. The fair value is estimated to be €12.95, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 249% in the next 2 years. Buy Or Sell Opportunity • Apr 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.8% to €10.40. The fair value is estimated to be €13.12, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 249% in the next 2 years. New Risk • Apr 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 39% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks High level of debt (55% net debt to equity). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Annuncio • Apr 03
Betamek Berhad (KLSE:BETA) agreed to acquire Sanshin (Malaysia) Sdn. Bhd. from OUTSOURCING Inc. (TSE:2427) for MYR 13.4 million. Betamek Berhad (KLSE:BETA) agreed to acquire Sanshin (Malaysia) Sdn. Bhd. from OUTSOURCING Inc. (TSE:2427) for MYR 13.4 million on March 29, 2024. The transaction will be funded from internally generated funds. Annuncio • Mar 29
Bain Capital Private Equity, LP and Haruhiko Doi completed the acquisition of 95% stake in OUTSOURCING Inc. (TSE:2427) from Haruhiko Doi and others in a Tender offer transaction. Bain Capital Private Equity, LP and Haruhiko Doi made an offer to acquire 95% stake in OUTSOURCING Inc. (TSE:2427) from Haruhiko Doi and others for approximately ¥220 billion in a Tender offer transaction on December 8, 2023. The tender offer price is ¥1755 per share. Chairman and Chief Executive Officer, Haruhiko Doi will tender his entire stake and then reinvest in OUTSOURCING. Post reinvestment, Bain Capital shall own up to 95% stake. The offer is conditional on 83.9 million of minimum number of tendered shares to be purchased. The offer has been approved by the Board of Directors of OUTSOURCING on the recommendation of the Special Committee. The squeeze-out process will be performed to acquire remaining shares after completion of the tender offer. As on January 17, 2024, K.K. BCJ-74 filed a prior notification to the European Commission. Clearance from European Commission is expected to obtain by late February 2024. Mori Hamada & Matsumoto acted as legal advisor, Nomura Securities Co., Ltd. acted as financial advisor and Plutus Consulting Co., Ltd. acted as financial advisor and provided fairness opinion for OUTSOURCING. Mitsubishi UFJ Morgan Stanley Securities acted as financial advisor to Bain.
Bain Capital Private Equity, LP and Haruhiko Doi completed the acquisition of 95% stake in OUTSOURCING Inc. (TSE:2427) from Haruhiko Doi and others in a Tender offer transaction on March 27, 2024. Annuncio • Feb 29
OUTSOURCING Inc. Announces the Resignation of Haruhiko Doi as CEO, Effective March 29, 2024 OUTSOURCING Inc. announced that based on the resolution of the Board of Directors meeting on February 27, 2024, it has been decided that there will be a change in the CEO. Please note that the formal decision regarding this matter will be made at the Board of Directors meeting scheduled to be held after the conclusion of the 27th Ordinary General Meeting of Shareholders, scheduled on March 29, 2024. Mr. Haruhiko Doi will resign from the office of the CEO upon the expiration of his 27th term of office in light of the importance of establishing a next-generation management system. He will hand over his role and provide support to the management team with the aim of establishing a next-generation management system as Honorary Chairman. Scheduled Date of Change: March 29, 2024. Buy Or Sell Opportunity • Feb 23
Now 20% undervalued Over the last 90 days, the stock has risen 44% to €10.40. The fair value is estimated to be €13.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 249% in the next 2 years. New Risk • Feb 19
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.7% Last year net profit margin: 1.6% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks High level of debt (72% net debt to equity). Share price has been volatile over the past 3 months (8.5% average weekly change). Profit margins are more than 30% lower than last year (0.7% net profit margin). Reported Earnings • Feb 19
Full year 2023 earnings released: EPS: JP¥40.98 (vs JP¥87.09 in FY 2022) Full year 2023 results: EPS: JP¥40.98 (down from JP¥87.09 in FY 2022). Revenue: JP¥749.6b (up 8.6% from FY 2022). Net income: JP¥5.16b (down 53% from FY 2022). Profit margin: 0.7% (down from 1.6% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.3% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Professional Services industry in Europe. Annuncio • Jan 18
OUTSOURCING Inc. to Report Fiscal Year 2023 Results on Feb 14, 2024 OUTSOURCING Inc. announced that they will report fiscal year 2023 results at 4:00 PM, Tokyo Standard Time on Feb 14, 2024 Valuation Update With 7 Day Price Move • Dec 12
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to €9.20, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Professional Services industry in Europe. Total returns to shareholders of 41% over the past year. Simply Wall St's valuation model estimates the intrinsic value at €10.43 per share. Annuncio • Dec 11
OUTSOURCING Inc., Annual General Meeting, Mar 27, 2024 OUTSOURCING Inc., Annual General Meeting, Mar 27, 2024. Reported Earnings • Nov 17
Third quarter 2023 earnings released: EPS: JP¥26.72 (vs JP¥18.71 in 3Q 2022) Third quarter 2023 results: EPS: JP¥26.72 (up from JP¥18.71 in 3Q 2022). Revenue: JP¥191.0b (up 7.8% from 3Q 2022). Net income: JP¥3.37b (up 43% from 3Q 2022). Profit margin: 1.8% (up from 1.3% in 3Q 2022). Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Professional Services industry in Europe. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to €7.40, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Professional Services industry in Europe. Total loss to shareholders of 11% over the past year. Board Change • Jul 26
High number of new directors There are 8 new directors who have joined the board in the last 3 years. External Independent Director Hiroshi Kizaki was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Annuncio • Jun 23
OUTSOURCING Inc. to Report Q2, 2023 Results on Aug 14, 2023 OUTSOURCING Inc. announced that they will report Q2, 2023 results on Aug 14, 2023 Annuncio • May 17
OUTSOURCING Inc. Provides Consolidated Earnings Guidance for the Half Year and Full Year Ending December 31, 2023 OUTSOURCING Inc. provided consolidated earnings guidance for the half year and full year ending December 31, 2023. For the first half, the company expects revenue to be JPY 366,000 million, operating profit to be JPY 10,500 million, profit to be JPY 6,500 million, profit attributable to owners of the parent to be JPY 6,000 million, basic earnings per share to be JPY 46.92.For the full year, the company expects revenue to be JPY 770,000 million, operating profit to be JPY 30,500 million, profit to be JPY 18,500 million, profit attributable to owners of the parent to be JPY 18,000 million, basic earnings per share to be JPY 141.17. Annuncio • Jan 19
OUTSOURCING Inc., Annual General Meeting, Mar 28, 2023 OUTSOURCING Inc., Annual General Meeting, Mar 28, 2023. Agenda: To consider and resolved to transition from a company with an Audit and Supervisory Committee. Annuncio • Dec 27
OUTSOURCING Inc. to Report Fiscal Year 2022 Results on Feb 14, 2023 OUTSOURCING Inc. announced that they will report fiscal year 2022 results at 4:00 PM, Tokyo Standard Time on Feb 14, 2023 
