Announcement • 17h
ZIGExN Co., Ltd. to Report Q2, 2027 Results on Nov 12, 2026 ZIGExN Co., Ltd. announced that they will report Q2, 2027 results on Nov 12, 2026 Reported Earnings • Aug 14
First quarter 2027 earnings released: EPS: JP¥10.74 (vs JP¥9.69 in 1Q 2026) First quarter 2027 results: EPS: JP¥10.74 (up from JP¥9.69 in 1Q 2026). Revenue: JP¥7.81b (up 16% from 1Q 2026). Net income: JP¥1.07b (up 9.7% from 1Q 2026). Profit margin: 14% (in line with 1Q 2026). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • May 14
ZIGExN Co., Ltd. to Report Q1, 2027 Results on Aug 13, 2026 ZIGExN Co., Ltd. announced that they will report Q1, 2027 results on Aug 13, 2026 Reported Earnings • May 13
Full year 2026 earnings: EPS in line with analyst expectations despite revenue beat Full year 2026 results: EPS: JP¥41.66 (up from JP¥38.13 in FY 2025). Revenue: JP¥29.2b (up 15% from FY 2025). Net income: JP¥4.16b (up 7.4% from FY 2025). Profit margin: 14% (down from 15% in FY 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.1% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • May 12
ZIGExN Co., Ltd., Annual General Meeting, Jun 24, 2026 ZIGExN Co., Ltd., Annual General Meeting, Jun 24, 2026. Announcement • May 09
ZIGExN Co., Ltd. to Report Fiscal Year 2026 Results on May 12, 2026 ZIGExN Co., Ltd. announced that they will report fiscal year 2026 results on May 12, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥11.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 09 June 2026. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Japanese dividend payers (3.6%). Higher than average of industry peers (2.0%). Reported Earnings • Feb 10
Third quarter 2026 earnings released: EPS: JP¥9.14 (vs JP¥9.10 in 3Q 2025) Third quarter 2026 results: EPS: JP¥9.14. Revenue: JP¥7.12b (up 14% from 3Q 2025). Net income: JP¥911.0m (flat on 3Q 2025). Profit margin: 13% (down from 15% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Interactive Media and Services industry in Japan. Reported Earnings • Nov 14
Second quarter 2026 earnings released: EPS: JP¥10.13 (vs JP¥8.90 in 2Q 2025) Second quarter 2026 results: EPS: JP¥10.13 (up from JP¥8.90 in 2Q 2025). Revenue: JP¥7.02b (up 15% from 2Q 2025). Net income: JP¥1.01b (up 12% from 2Q 2025). Profit margin: 14% (in line with 2Q 2025). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 12% per year. Declared Dividend • Nov 13
Dividend of JP¥11.00 announced Shareholders will receive a dividend of JP¥11.00. Ex-date: 30th March 2026 Payment date: 9th June 2026 Dividend yield will be 2.2%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is well covered by both earnings (20% earnings payout ratio) and cash flows (32% cash payout ratio). The dividend has increased by an average of 24% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Nov 12
ZIGExN Co., Ltd. to Report Q3, 2026 Results on Feb 09, 2026 ZIGExN Co., Ltd. announced that they will report Q3, 2026 results on Feb 09, 2026 Announcement • Oct 01
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Alpha Staff Co.,Ltd. from Alpha 1 Group, K.K. for ¥80 million. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Alpha Staff Co.,Ltd. from Alpha 1 Group, K.K. for ¥80 million on September 30, 2025. A cash consideration of ¥80 million valued at ¥80 per share will be paid by ZIGExN Co., Ltd. As part of consideration, ¥80 million is paid towards common equity of Alpha Staff Co.,Ltd. The transaction will be financed through equity investment of ¥80 million. For the period ending March 31, 2025, Alpha Staff Co.,Ltd. reported total revenue of ¥1.93 billion, operating loss of ¥53 million and net loss of ¥54 million. As of March 31, 2025, Alpha Staff Co.,Ltd. reported total assets of ¥1.3 billion and total common equity of ¥135 million. The expected completion of the transaction is November 10, 2025. Board Change • Aug 27
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Outside Director Jun Sakaki was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Aug 14
ZIGExN Co., Ltd. to Report Q2, 2026 Results on Nov 11, 2025 ZIGExN Co., Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 13
First quarter 2026 earnings released: EPS: JP¥9.69 (vs JP¥9.46 in 1Q 2025) First quarter 2026 results: EPS: JP¥9.69. Revenue: JP¥6.76b (up 9.5% from 1Q 2025). Net income: JP¥971.0m (down 1.0% from 1Q 2025). Profit margin: 14% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Interactive Media and Services industry in Japan. Reported Earnings • Jun 27
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: JP¥38.13 (up from JP¥36.54 in FY 2024). Revenue: JP¥25.5b (up 9.5% from FY 2024). Net income: JP¥3.87b (up 1.9% from FY 2024). Profit margin: 15% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Announcement • May 28
ZIGExN Co., Ltd. to Report Q1, 2026 Results on Aug 12, 2025 ZIGExN Co., Ltd. announced that they will report Q1, 2026 results on Aug 12, 2025 Announcement • May 15
ZIGExN Co., Ltd. (TSE:3679) announces an Equity Buyback for 1,500,000 shares, representing 1.49% for ¥700 million. ZIGExN Co., Ltd. (TSE:3679) announces a share repurchase program. Under the program, the company will repurchase up to 1,500,000 shares, representing 1.49% of its issued share capital (excluding treasury stock), for ¥700 million. The purpose of the program is to enhance shareholder value and implement a flexible capital policy. The program will run until March 31, 2026. As of March 31, 2025, the company had 100,426,845 shares in issue (excluding treasury stock) and 11,273,155 shares in treasury. Reported Earnings • May 15
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: JP¥38.13 (up from JP¥36.54 in FY 2024). Revenue: JP¥25.5b (up 9.5% from FY 2024). Net income: JP¥3.87b (up 1.9% from FY 2024). Profit margin: 15% (down from 16% in FY 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Announcement • May 13
ZIGExN Co., Ltd., Annual General Meeting, Jun 25, 2025 ZIGExN Co., Ltd., Annual General Meeting, Jun 25, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥363, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 28% over the past three years. Price Target Changed • Mar 25
Price target decreased by 9.6% to JP¥710 Down from JP¥785, the current price target is an average from 2 analysts. New target price is 61% above last closing price of JP¥440. Stock is down 30% over the past year. The company is forecast to post earnings per share of JP¥37.30 for next year compared to JP¥36.54 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥10.50 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 13 June 2025. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.6%). Reported Earnings • Feb 08
Third quarter 2025 earnings released: EPS: JP¥9.10 (vs JP¥9.43 in 3Q 2024) Third quarter 2025 results: EPS: JP¥9.10 (down from JP¥9.43 in 3Q 2024). Revenue: JP¥6.27b (up 9.6% from 3Q 2024). Net income: JP¥914.0m (down 6.8% from 3Q 2024). Profit margin: 15% (down from 17% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 13% per year, which means it is significantly lagging earnings growth. Announcement • Dec 21
ZIGExN Co., Ltd. to Report Q3, 2025 Results on Feb 07, 2025 ZIGExN Co., Ltd. announced that they will report Q3, 2025 results on Feb 07, 2025 Price Target Changed • Nov 11
Price target decreased by 10.0% to JP¥810 Down from JP¥900, the current price target is an average from 2 analysts. New target price is 54% above last closing price of JP¥526. Stock is up 1.3% over the past year. The company is forecast to post earnings per share of JP¥43.25 for next year compared to JP¥36.54 last year. Declared Dividend • Nov 09
Dividend of JP¥7.50 announced Shareholders will receive a dividend of JP¥7.50. Ex-date: 28th March 2025 Payment date: 13th June 2025 Dividend yield will be 1.4%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (13% earnings payout ratio) and cash flows (11% cash payout ratio). The dividend has increased by an average of 25% per year over the past 6 years and payments have been stable during that time. EPS is expected to grow by 38% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Nov 08
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 5.9% 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. This is currently the only risk that has been identified for the company. Announcement • Sep 21
ZIGExN Co., Ltd. to Report Q2, 2025 Results on Nov 07, 2024 ZIGExN Co., Ltd. announced that they will report Q2, 2025 results on Nov 07, 2024 Announcement • Aug 27
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Hikakaku Co., Ltd. from Jiraffe Inc for approximately ¥380 million. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Hikakaku Co., Ltd. from Jiraffe Inc. for approximately ¥380 million on August 26, 2024. For the period ending March 31, 2024, Hikakaku Co., Ltd. reported total revenue of ¥331 million and EBIT of ¥102 million. The expected completion of the transaction is October 1, 2024. Announcement • Aug 20
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire 66% stake in Hoken-Mammoth from Toru Furukawa for ¥660 million. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire 66% stake in Hoken-Mammoth from Toru Furukawa for ¥660 million on August 19, 2024. A cash consideration of ¥660 million will be paid by ZIGExN Co., Ltd. As part of consideration, ¥660 million is paid towards common equity of Hoken-Mammoth.
For the period ending March 31, 2024, Hoken-Mammoth reported total revenue of ¥823 million and EBIT of ¥11 million.
The expected completion of the transaction is August 30, 2024. New Risk • Aug 05
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 8.4% 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. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥457, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 18x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 16% over the past three years. Announcement • Jun 28
ZIGExN Co., Ltd. to Report Q1, 2025 Results on Aug 07, 2024 ZIGExN Co., Ltd. announced that they will report Q1, 2025 results on Aug 07, 2024 Reported Earnings • Jun 25
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: JP¥36.54 (up from JP¥27.85 in FY 2023). Revenue: JP¥23.2b (up 24% from FY 2023). Net income: JP¥3.80b (up 30% from FY 2023). Profit margin: 16% (in line with FY 2023). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 11
Full year 2024 earnings: EPS in line with expectations, revenues disappoint Full year 2024 results: EPS: JP¥36.54 (up from JP¥27.85 in FY 2023). Revenue: JP¥23.2b (up 24% from FY 2023). Net income: JP¥3.80b (up 30% from FY 2023). Profit margin: 16% (in line with FY 2023). Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • May 11
ZIGExN Co., Ltd., Annual General Meeting, Jun 27, 2024 ZIGExN Co., Ltd., Annual General Meeting, Jun 27, 2024. Announcement • May 10
ZIGExN Co., Ltd. (TSE:3679) announces an Equity Buyback for 4,200,000 shares, representing 4.04% for ¥2,800 million. ZIGExN Co., Ltd. (TSE:3679) announces a share repurchase program. Under the program, the company will repurchase up to 4,200,000 shares, representing 4.04% of its issued share capital (excluding treasury stock), for ¥2,800 million. The purpose of the program is to increase shareholder value by implementing flexible capital policy. The program will run until March 31, 2025. As of March 31, 2024, the company had 104,001,910 shares in issue (excluding treasury stock) and 7,698,090 shares in treasury. Valuation Update With 7 Day Price Move • May 10
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to JP¥652, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 20x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 84% over the past three years. Announcement • Mar 28
ZIGExN Co., Ltd. to Report Fiscal Year 2024 Results on May 09, 2024 ZIGExN Co., Ltd. announced that they will report fiscal year 2024 results on May 09, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥5.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 12 June 2024. Payout ratio is a comfortable 11% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.5%). Reported Earnings • Feb 10
Third quarter 2024 earnings released: EPS: JP¥9.43 (vs JP¥6.41 in 3Q 2023) Third quarter 2024 results: EPS: JP¥9.43 (up from JP¥6.41 in 3Q 2023). Revenue: JP¥5.72b (up 22% from 3Q 2023). Net income: JP¥981.0m (up 47% from 3Q 2023). Profit margin: 17% (up from 14% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Announcement • Jan 06
ZIGExN Co., Ltd. to Report Q3, 2024 Results on Feb 08, 2024 ZIGExN Co., Ltd. announced that they will report Q3, 2024 results on Feb 08, 2024 Reported Earnings • Nov 10
Second quarter 2024 earnings released: EPS: JP¥9.11 (vs JP¥6.43 in 2Q 2023) Second quarter 2024 results: EPS: JP¥9.11 (up from JP¥6.43 in 2Q 2023). Revenue: JP¥5.74b (up 33% from 2Q 2023). Net income: JP¥947.0m (up 40% from 2Q 2023). Profit margin: 17% (in line with 2Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Announcement • Aug 31
ZIGExN Co., Ltd. to Report Q2, 2024 Results on Nov 09, 2023 ZIGExN Co., Ltd. announced that they will report Q2, 2024 results on Nov 09, 2023 Reported Earnings • Aug 10
First quarter 2024 earnings released: EPS: JP¥8.14 (vs JP¥6.45 in 1Q 2023) First quarter 2024 results: EPS: JP¥8.14 (up from JP¥6.45 in 1Q 2023). Revenue: JP¥5.46b (up 33% from 1Q 2023). Net income: JP¥847.0m (up 22% from 1Q 2023). Profit margin: 16% (down from 17% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to JP¥594, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 19x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 82% over the past three years. New Risk • Jul 26
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 7.7% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Jun 28
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥27.85 (up from JP¥20.92 in FY 2022). Revenue: JP¥18.7b (up 23% from FY 2022). Net income: JP¥2.93b (up 30% from FY 2022). Profit margin: 16% (in line with FY 2022). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 33% per year, which means it is significantly lagging earnings growth. Announcement • May 12
ZIGExN Co., Ltd., Annual General Meeting, Jun 26, 2023 ZIGExN Co., Ltd., Annual General Meeting, Jun 26, 2023. Reported Earnings • May 12
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: JP¥27.85 (up from JP¥20.92 in FY 2022). Revenue: JP¥18.7b (up 23% from FY 2022). Net income: JP¥2.93b (up 30% from FY 2022). Profit margin: 16% (in line with FY 2022). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 8.6% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 11
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to JP¥617, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 20x in the Interactive Media and Services industry in Japan. Total returns to shareholders of 89% over the past three years. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥4.00 per share at 0.8% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 13 June 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (1.6%). Buying Opportunity • Feb 13
Now 21% undervalued Over the last 90 days, the stock is up 9.5%. The fair value is estimated to be JP¥497, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 23%. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings is also forecast to grow by 12% per annum over the same time period. Reported Earnings • Feb 10
Third quarter 2023 earnings released: EPS: JP¥6.41 (vs JP¥4.18 in 3Q 2022) Third quarter 2023 results: EPS: JP¥6.41 (up from JP¥4.18 in 3Q 2022). Revenue: JP¥4.70b (up 29% from 3Q 2022). Net income: JP¥667.0m (up 48% from 3Q 2022). Profit margin: 14% (up from 12% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Interactive Media and Services industry in Japan. 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 6% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 4 new directors. 2 experienced directors. 2 highly experienced directors. 2 independent directors (3 non-independent directors). Operating Officer, CEO, President & Representative Director Joe Hirao is the most experienced director on the board, commencing their role in 2007. Independent Outside Director Jun Sakaki was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Nov 11
Second quarter 2023 earnings released: EPS: JP¥6.44 (vs JP¥5.00 in 2Q 2022) Second quarter 2023 results: EPS: JP¥6.44 (up from JP¥5.00 in 2Q 2022). Revenue: JP¥4.32b (up 14% from 2Q 2022). Net income: JP¥677.0m (up 25% from 2Q 2022). Profit margin: 16% (up from 14% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Interactive Media and Services industry in Japan. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥6.45 (vs JP¥6.08 in 1Q 2022) First quarter 2023 results: EPS: JP¥6.45 (up from JP¥6.08 in 1Q 2022). Revenue: JP¥4.11b (up 7.4% from 1Q 2022). Net income: JP¥694.0m (up 5.6% from 1Q 2022). Profit margin: 17% (in line with 1Q 2022). Over the next year, revenue is forecast to grow 12%, compared to a 12% growth forecast for the industry in Japan. 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 19% per year. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 19% share price gain to JP¥345, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 25x in the Interactive Media and Services industry in Japan. Total loss to shareholders of 44% over the past three years. Announcement • May 15
ZIGExN Co., Ltd., Annual General Meeting, Jun 27, 2022 ZIGExN Co., Ltd., Annual General Meeting, Jun 27, 2022. Agenda: General meeting of shareholders. Announcement • May 13
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Struct Co., Ltd from Keito Noguchi, Ryota Aoki, Keisuke Iwatani, South Soei and Funahashi Jun. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Struct Co., Ltd from Keito Noguchi, Ryota Aoki, Keisuke Iwatani, South Soei and Funahashi Jun on May 11, 2022. ZIGExN plan to use the cash on hand as consideration for 55,000 shares of Struct. The transaction has been approved by the President and Representative Director of ZIGExN and is expected to be completed on May 20, 2022. Price Target Changed • Apr 27
Price target decreased to JP¥600 Down from JP¥800, the current price target is provided by 1 analyst. New target price is 95% above last closing price of JP¥308. Stock is down 22% over the past year. The company is forecast to post earnings per share of JP¥21.30 next year compared to a net loss per share of JP¥18.05 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Outside Director Yasuo Usuba was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 07
ZIGExN Co., Ltd. to Report Fiscal Year 2022 Results on May 13, 2022 ZIGExN Co., Ltd. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥3.50 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 14 June 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.2%. Lower than top quartile of Japanese dividend payers (3.4%). In line with average of industry peers (1.3%). Reported Earnings • Feb 16
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: JP¥4.18 (up from JP¥4.05 in 3Q 2021). Revenue: JP¥3.63b (up 11% from 3Q 2021). Net income: JP¥452.0m (up 3.2% from 3Q 2021). Profit margin: 12% (down from 13% in 3Q 2021). Revenue missed analyst estimates by 9.9%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 17%, compared to a 14% growth forecast for the industry in Japan. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 23% per year, which means it has not declined as severely as earnings. Announcement • Dec 30
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Crassone co., ltd. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire Crassone co., ltd. on December 29, 2021. The transaction is expected to close on 2022 21st of the month. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment deteriorated over the past week After last week's 17% share price decline to JP¥345, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 31x in the Interactive Media and Services industry in Japan. Total loss to shareholders of 46% over the past three years. Reported Earnings • Nov 15
Second quarter 2022 earnings released: EPS JP¥5.00 (vs JP¥31.64 loss in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: JP¥3.77b (up 36% from 2Q 2021). Net income: JP¥541.0m (up JP¥3.98b from 2Q 2021). Profit margin: 14% (up from net loss in 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Price Target Changed • Jun 16
Price target decreased to JP¥650 Down from JP¥800, the current price target is an average from 2 analysts. New target price is 49% above last closing price of JP¥436. Stock is up 21% over the past year. Reported Earnings • May 19
Full year 2021 earnings released: JP¥18.05 loss per share (vs JP¥24.02 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: JP¥12.6b (down 4.8% from FY 2020). Net loss: JP¥1.96b (down 174% from profit in FY 2020). Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 25% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥3.00 per share Eligible shareholders must have bought the stock before 30 March 2021. Payment date: 15 June 2021. Trailing yield: 0.7%. Lower than top quartile of Japanese dividend payers (2.7%). Lower than average of industry peers (1.2%). Is New 90 Day High Low • Feb 25
New 90-day high: JP¥438 The company is up 31% from its price of JP¥335 on 27 November 2020. The Japanese market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Interactive Media and Services industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is JP¥608 per share. Reported Earnings • Feb 12
Third quarter 2021 earnings released: EPS JP¥4.04 (vs JP¥5.31 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: JP¥3.27b (up 5.9% from 3Q 2020). Net income: JP¥437.0m (down 26% from 3Q 2020). Profit margin: 13% (down from 19% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Price Target Changed • Feb 12
Price target lowered to JP¥800 Down from JP¥955, the current price target is an average from 2 analysts. The new target price is 91% above the current share price of JP¥419. As of last close, the stock is down 14% over the past year. Analyst Estimate Surprise Post Earnings • Feb 12
Revenue and earnings miss expectations Revenue missed analyst estimates by 8.0%. Earnings per share (EPS) also missed analyst estimates by 1.2%. Over the next year, revenue is forecast to grow 20%, compared to a 12% growth forecast for the Interactive Media and Services industry in Japan. Is New 90 Day High Low • Jan 25
New 90-day high: JP¥403 The company is up 25% from its price of JP¥323 on 27 October 2020. The Japanese market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Interactive Media and Services industry, which is down 1.0% over the same period. Is New 90 Day High Low • Dec 18
New 90-day high: JP¥377 The company is up 8.0% from its price of JP¥350 on 18 September 2020. The Japanese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Interactive Media and Services industry, which is down 4.0% over the same period. Announcement • Dec 11
ZIGExN Co., Ltd. to Report Q3, 2021 Results on Feb 10, 2021 ZIGExN Co., Ltd. announced that they will report Q3, 2021 results on Feb 10, 2021 Announcement • Sep 19
ZIGExN Co., Ltd. (TSE:3679) agreed to acquire PHC Holdings Corporation from HITOWA Holdings Co., Ltd. for ¥180 million. ZIGExN Co., Ltd. (TSE:3679) agreed to acquire PHC Holdings Corporation from HITOWA Holdings Co., Ltd. for ¥180 million on September 18, 2020. Under the terms of the transaction of ZIGExN Co., Ltd. will acquire 1.9 million shares in PHC Holdings Corporation. ZIGExN Co., Ltd. plans to allocate the entire amount of the share acquisition with cash on hand. The transaction is resolved by the Board of Directors of ZIGExN Co., Ltd. The transaction is expected to close on September 30, 2020. Announcement • Sep 12
ZIGExN Co., Ltd. to Report Q2, 2021 Results on Nov 13, 2020 ZIGExN Co., Ltd. announced that they will report Q2, 2021 results on Nov 13, 2020