Aankondiging • Apr 08
Tecnos Japan Incorporated to Delist from Standard Section of the Tokyo Stock Exchange, Effective April 30, 2025 Tecnos Japan Incorporated will be delisted from Standard Section of the Tokyo Stock Exchange effective from April 30, 2025, due to Acquisition by a demand for share, etc. cash-out. Valuation Update With 7 Day Price Move • Feb 11
Investor sentiment improves as stock rises 38% After last week's 38% share price gain to JP¥1,149, the stock trades at a trailing P/E ratio of 18.7x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 183% over the past three years. Aankondiging • Feb 07
Ant Capital Partners No. 6 Investment Limited Partnership and Ant Capital Partners Co., Ltd. proposed to acquire remaining 99.99% stake in Tecnos Japan Incorporated (TSE:3666) from Asset Value Investors Limited, Masanori Tokuhira, NS INC. and others for for ¥22.3 billion. Ant Capital Partners No. 6 Investment Limited Partnership and Ant Capital Partners Co., Ltd. proposed to acquire remaining 99.99% stake in Tecnos Japan Incorporated (TSE:3666) from Asset Value Investors Limited, Masanori Tokuhira, NS INC. and others for ¥22.3 billion on February 4, 2025. The offeror will fund the transaction using a loan of ¥12.6 billion raised from MUFG Bank, Ltd. The transaction is subject to minimum tender. The Board of Directors of Tecnos Japan Incorporated formed a special committee for the transaction. In the event the offeror is unable to acquire all of the shares, it will proceed with the squeeze out procedures. The expected completion of the transaction is March 21, 2025.
Nishimura & Asahi acted as legal advisor for Tecnos Japan Incorporated. MUFG Bank, Ltd. acted as financial advisor for Tecnos Japan Incorporated. Nagashima Ohno & Tsunematsu acted as legal advisor for Ant Capital Partners Co., Ltd. Daiwa Securities Co. Ltd. acted as financial advisor for Ant Capital Partners Co., Ltd. New Risk • Feb 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.3% average weekly change). Reported Earnings • Feb 05
Third quarter 2025 earnings released: EPS: JP¥18.08 (vs JP¥12.92 in 3Q 2024) Third quarter 2025 results: EPS: JP¥18.08 (up from JP¥12.92 in 3Q 2024). Revenue: JP¥3.82b (up 23% from 3Q 2024). Net income: JP¥349.0m (up 41% from 3Q 2024). Profit margin: 9.1% (up from 8.0% in 3Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year whereas the company’s share price has increased by 29% per year. Aankondiging • Jan 03
Tecnos Japan Incorporated to Report Q3, 2025 Results on Feb 04, 2025 Tecnos Japan Incorporated announced that they will report Q3, 2025 results on Feb 04, 2025 Reported Earnings • Nov 19
Second quarter 2025 earnings released: EPS: JP¥13.65 (vs JP¥30.26 in 2Q 2024) Second quarter 2025 results: EPS: JP¥13.65 (down from JP¥30.26 in 2Q 2024). Revenue: JP¥3.58b (up 14% from 2Q 2024). Net income: JP¥262.0m (down 55% from 2Q 2024). Profit margin: 7.3% (down from 19% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Declared Dividend • Nov 15
Dividend of JP¥19.00 announced Shareholders will receive a dividend of JP¥19.00. Ex-date: 28th March 2025 Payment date: 11th June 2025 Dividend yield will be 2.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (22% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Buy Or Sell Opportunity • Oct 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to JP¥653. The fair value is estimated to be JP¥823, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 31%. Aankondiging • Sep 28
Tecnos Japan Incorporated to Report Q2, 2025 Results on Nov 13, 2024 Tecnos Japan Incorporated announced that they will report Q2, 2025 results on Nov 13, 2024 Buy Or Sell Opportunity • Sep 11
Now 21% undervalued Over the last 90 days, the stock has risen 2.2% to JP¥658. The fair value is estimated to be JP¥830, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 31%. Reported Earnings • Aug 11
First quarter 2025 earnings released: EPS: JP¥16.57 (vs JP¥14.69 in 1Q 2024) First quarter 2025 results: EPS: JP¥16.57 (up from JP¥14.69 in 1Q 2024). Revenue: JP¥3.34b (up 2.3% from 1Q 2024). Net income: JP¥318.0m (up 13% from 1Q 2024). Profit margin: 9.5% (in line with 1Q 2024). Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (JP¥12.2b market cap, or US$85.3m). Buy Or Sell Opportunity • Aug 05
Now 27% undervalued Over the last 90 days, the stock has risen 4.3% to JP¥633. The fair value is estimated to be JP¥866, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 29%. Aankondiging • Aug 02
Tecnos Japan Incorporated announced that it expects to receive ¥115.9656 million in funding Tecnos Japan Incorporated announced a private placement to issue 137,400 common shares at an issue price of ¥844 per share for the gross proceeds of ¥115,965,600 on July 31, 2024. The transaction will incldue participation from new individual investor Anand Ghalsasi for 137,400 shares. The transaction has been approved by shareholders and is expected to close on September 2, 2024. The company has disclosed the issue expenses of ¥7,500,000 and net proceeds of ¥108,465,600. Aankondiging • Jun 28
Tecnos Japan Incorporated to Report Q1, 2025 Results on Aug 09, 2024 Tecnos Japan Incorporated announced that they will report Q1, 2025 results on Aug 09, 2024 Buy Or Sell Opportunity • May 30
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.9% to JP¥606. The fair value is estimated to be JP¥759, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 29%. Reported Earnings • May 21
Full year 2024 earnings released: EPS: JP¥71.47 (vs JP¥46.79 in FY 2023) Full year 2024 results: EPS: JP¥71.47 (up from JP¥46.79 in FY 2023). Revenue: JP¥12.6b (up 15% from FY 2023). Net income: JP¥1.37b (up 52% from FY 2023). Profit margin: 11% (up from 8.2% in FY 2023). Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Aankondiging • May 17
Tecnos Japan Incorporated, Annual General Meeting, Jun 25, 2024 Tecnos Japan Incorporated, Annual General Meeting, Jun 25, 2024. Aankondiging • Mar 29
Tecnos Japan Incorporated to Report Fiscal Year 2024 Results on May 15, 2024 Tecnos Japan Incorporated announced that they will report fiscal year 2024 results on May 15, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥18.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.2%). Higher than average of industry peers (1.4%). Buy Or Sell Opportunity • Mar 06
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 5.0% to JP¥654. The fair value is estimated to be JP¥545, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 23%. Reported Earnings • Feb 11
Third quarter 2024 earnings released: EPS: JP¥12.92 (vs JP¥16.25 in 3Q 2023) Third quarter 2024 results: EPS: JP¥12.92 (down from JP¥16.25 in 3Q 2023). Revenue: JP¥3.11b (up 8.1% from 3Q 2023). Net income: JP¥248.0m (down 20% from 3Q 2023). Profit margin: 8.0% (down from 11% in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Feb 11
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 5.1% to JP¥643. The fair value is estimated to be JP¥530, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 23%. Aankondiging • Dec 28
Tecnos Japan Incorporated to Report Q3, 2024 Results on Feb 09, 2024 Tecnos Japan Incorporated announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 02
Second quarter 2024 earnings released: EPS: JP¥30.26 (vs JP¥13.59 in 2Q 2023) Second quarter 2024 results: EPS: JP¥30.26 (up from JP¥13.59 in 2Q 2023). Revenue: JP¥3.14b (up 18% from 2Q 2023). Net income: JP¥581.0m (up 124% from 2Q 2023). Profit margin: 19% (up from 9.8% in 2Q 2023). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Oct 12
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.5% average weekly change). Earnings have declined by 0.9% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Aankondiging • Oct 05
Tecnos Japan Incorporated to Report Q2, 2024 Results on Oct 31, 2023 Tecnos Japan Incorporated announced that they will report Q2, 2024 results on Oct 31, 2023 Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to JP¥725, the stock trades at a trailing P/E ratio of 14.3x. Average trailing P/E is 19x in the IT industry in Japan. Total loss to shareholders of 4.7% over the past three years. New Risk • Aug 02
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Japanese stocks, typically moving 7.6% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.6% average weekly change). Earnings have declined by 0.9% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (JP¥14.0b market cap, or US$98.0m). Reported Earnings • Aug 01
First quarter 2024 earnings released: EPS: JP¥14.69 (vs JP¥10.89 in 1Q 2023) First quarter 2024 results: EPS: JP¥14.69 (up from JP¥10.89 in 1Q 2023). Revenue: JP¥3.26b (up 33% from 1Q 2023). Net income: JP¥282.0m (up 32% from 1Q 2023). Profit margin: 8.6% (down from 8.7% in 1Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. New Risk • Jun 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 0.5% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (5.5% average weekly change). Market cap is less than US$100m (JP¥11.8b market cap, or US$83.9m). Reported Earnings • May 19
Full year 2023 earnings released: EPS: JP¥46.79 (vs JP¥32.95 in FY 2022) Full year 2023 results: EPS: JP¥46.79 (up from JP¥32.95 in FY 2022). Revenue: JP¥11.0b (up 22% from FY 2022). Net income: JP¥901.0m (up 39% from FY 2022). Profit margin: 8.2% (up from 7.2% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Aankondiging • May 16
Tecnos Japan Incorporated, Annual General Meeting, Jun 23, 2023 Tecnos Japan Incorporated, Annual General Meeting, Jun 23, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥14.10 per share at 2.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 12 June 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (1.7%). Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥564, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 18x in the IT industry in Japan. Total returns to shareholders of 19% over the past three years. Reported Earnings • Feb 01
Third quarter 2023 earnings released: EPS: JP¥16.25 (vs JP¥3.95 in 3Q 2022) Third quarter 2023 results: EPS: JP¥16.25 (up from JP¥3.95 in 3Q 2022). Revenue: JP¥2.87b (up 32% from 3Q 2022). Net income: JP¥311.0m (up 299% from 3Q 2022). Profit margin: 11% (up from 3.6% in 3Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Aankondiging • Jan 04
Tecnos Japan Incorporated (TSE:3666) signed a basic agreement to acquire Brainsellers.com from Harumi Watanabe, Yuji Otsuka for ¥786 million. Tecnos Japan Incorporated (TSE:3666) signed a basic agreement to acquire Brainsellers.com from Harumi Watanabe, Yuji Otsuka for ¥786 million on January 4, 2023. Transaction is expected to close on January 16, 2023. Reported Earnings • Nov 18
Second quarter 2023 earnings released: EPS: JP¥13.59 (vs JP¥9.94 in 2Q 2022) Second quarter 2023 results: EPS: JP¥13.59 (up from JP¥9.94 in 2Q 2022). Revenue: JP¥2.66b (up 16% from 2Q 2022). Net income: JP¥260.0m (up 33% from 2Q 2022). Profit margin: 9.8% (up from 8.6% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 10 experienced directors. 1 highly experienced director. 2 independent directors (6 non-independent directors). Executive Officer and Director Takanori Chiba was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Nov 02
Second quarter 2023 earnings released: EPS: JP¥13.59 (vs JP¥9.94 in 2Q 2022) Second quarter 2023 results: EPS: JP¥13.59 (up from JP¥9.94 in 2Q 2022). Revenue: JP¥2.66b (up 16% from 2Q 2022). Net income: JP¥260.0m (up 33% from 2Q 2022). Profit margin: 9.8% (up from 8.6% in 2Q 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 07
First quarter 2023 earnings released: EPS: JP¥10.89 (vs JP¥12.78 in 1Q 2022) First quarter 2023 results: EPS: JP¥10.89 (down from JP¥12.78 in 1Q 2022). Revenue: JP¥2.46b (up 6.9% from 1Q 2022). Net income: JP¥213.0m (down 16% from 1Q 2022). Profit margin: 8.7% (down from 11% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • May 17
Full year 2022 earnings released: EPS: JP¥32.95 (vs JP¥33.52 in FY 2021) Full year 2022 results: EPS: JP¥32.95 (down from JP¥33.52 in FY 2021). Revenue: JP¥9.05b (up 10% from FY 2021). Net income: JP¥650.0m (down 1.7% from FY 2021). Profit margin: 7.2% (down from 8.1% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. No highly experienced directors. 2 independent directors (6 non-independent directors). Executive Officer and Director Takanori Chiba was the last director to join the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥13.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 11 June 2022. Payout ratio is a comfortable 40% and this is well supported by cash flows. Trailing yield: 2.6%. Lower than top quartile of Japanese dividend payers (3.4%). Higher than average of industry peers (1.5%). Reported Earnings • Feb 02
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥4.00 (down from JP¥12.07 in 3Q 2021). Revenue: JP¥2.18b (up 4.5% from 3Q 2021). Net income: JP¥78.8m (down 67% from 3Q 2021). Profit margin: 3.6% (down from 11% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 15% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 01
Second quarter 2022 earnings released: EPS JP¥9.94 (vs JP¥7.91 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥2.29b (up 16% from 2Q 2021). Net income: JP¥196.0m (up 26% from 2Q 2021). Profit margin: 8.6% (up from 7.9% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 03
First quarter 2022 earnings released: EPS JP¥12.81 (vs JP¥10.04 in 1Q 2021) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2022 results: Revenue: JP¥2.30b (up 15% from 1Q 2021). Net income: JP¥252.7m (up 28% from 1Q 2021). Profit margin: 11% (up from 9.8% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 14% per year. Reported Earnings • May 17
Full year 2021 earnings released: EPS JP¥33.52 (vs JP¥6.59 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: JP¥8.20b (up 6.8% from FY 2020). Net income: JP¥661.0m (up 409% from FY 2020). Profit margin: 8.1% (up from 1.7% in FY 2020). Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥12.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 11 June 2021. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (2.7%). Higher than average of industry peers (1.3%). Is New 90 Day High Low • Mar 05
New 90-day low: JP¥640 The company is down 12% from its price of JP¥731 on 04 December 2020. The Japanese market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the IT industry, which is flat over the same period.