Valuation Update With 7 Day Price Move • Jul 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to JP¥1,747, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 17x in the Software industry in Japan. Total returns to shareholders of 49% over the past three years. Announcement • Jun 27
Japan System Techniques Co., Ltd. (TSE:4323) announces an Equity Buyback for 2,000,000 shares, representing 8.06% for ¥2,500 million. Kansai Paint Co., Ltd. (TSE:4613) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 8.06% of its issued share capital (excluding treasury stock), for ¥2,500 million. The purpose of the program is to achieve a total payout ratio of 50% or higher according to shareholder return policy, to improve cost of capital and capital efficiency, to use the portion of repurchased shares for the restricted stock compensation plan for employees and short- to medium-term incentive compensation for directors and a remaining portion of repurchased shares will be cancelled. The program will run until June 25, 2027. As of March 31, 2026, the company had 24,826,501 shares in issue (excluding treasury stock) and 10,419 shares in treasury. Announcement • Jun 25
Japan System Techniques Co., Ltd. to Report Q1, 2027 Results on Aug 13, 2026 Japan System Techniques Co., Ltd. announced that they will report Q1, 2027 results on Aug 13, 2026 Reported Earnings • May 18
Full year 2026 earnings released: EPS: JP¥106 (vs JP¥99.22 in FY 2025) Full year 2026 results: EPS: JP¥106 (up from JP¥99.22 in FY 2025). Revenue: JP¥32.5b (up 11% from FY 2025). Net income: JP¥2.62b (up 7.3% from FY 2025). Profit margin: 8.1% (down from 8.3% in FY 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 19% per year and the company’s share price has also increased by 19% per year. Announcement • May 14
Japan System Techniques Co., Ltd., Annual General Meeting, Jun 26, 2026 Japan System Techniques Co., Ltd., Annual General Meeting, Jun 26, 2026. Announcement • May 09
Japan System Techniques Co., Ltd. to Report Fiscal Year 2026 Results on May 14, 2026 Japan System Techniques Co., Ltd. announced that they will report fiscal year 2026 results on May 14, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥34.00 per share Eligible shareholders must have bought the stock before 30 March 2026. Payment date: 12 June 2026. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (2.3%). New Risk • Mar 03
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 5.7% 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. Valuation Update With 7 Day Price Move • Feb 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to JP¥2,057, the stock trades at a trailing P/E ratio of 18.3x. Average trailing P/E is 18x in the Software industry in Japan. Total returns to shareholders of 159% over the past three years. Reported Earnings • Feb 14
Third quarter 2026 earnings released: EPS: JP¥26.46 (vs JP¥30.22 in 3Q 2025) Third quarter 2026 results: EPS: JP¥26.46 (down from JP¥30.22 in 3Q 2025). Revenue: JP¥7.87b (up 8.0% from 3Q 2025). Net income: JP¥654.0m (down 12% from 3Q 2025). Profit margin: 8.3% (down from 10% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 37% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 20
Japan System Techniques Co., Ltd. to Report Q3, 2026 Results on Feb 12, 2026 Japan System Techniques Co., Ltd. announced that they will report Q3, 2026 results on Feb 12, 2026 Declared Dividend • Dec 13
First half dividend of JP¥24.00 announced Shareholders will receive a dividend of JP¥24.00. Ex-date: 30th March 2026 Payment date: 12th June 2026 Dividend yield will be 1.5%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (33% earnings payout ratio) and cash flows (31% cash payout ratio). The dividend has increased by an average of 23% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 64% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 15
Second quarter 2026 earnings released: EPS: JP¥31.76 (vs JP¥19.96 in 2Q 2025) Second quarter 2026 results: EPS: JP¥31.76 (up from JP¥19.96 in 2Q 2025). Revenue: JP¥7.89b (up 13% from 2Q 2025). Net income: JP¥785.0m (up 60% from 2Q 2025). Profit margin: 9.9% (up from 7.0% in 2Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 12
Japan System Techniques Co., Ltd. Announces Dividend for the Second Quarter-End of Fiscal Year Ending March 31, 2026, Payable on December 12, 2025 Japan System Techniques Co., Ltd. announced dividend for the second quarter-end of fiscal year ending March 31, 2026. For the period, the company announced dividend of JPY 11.00 per share against JPY 0.00 per share a year ago. Scheduled date of payment of dividend: December 12, 2025. Announcement • Sep 25
Japan System Techniques Co., Ltd. to Report Q2, 2026 Results on Nov 12, 2025 Japan System Techniques Co., Ltd. announced that they will report Q2, 2026 results on Nov 12, 2025 Reported Earnings • Aug 15
First quarter 2026 earnings released: EPS: JP¥12.98 (vs JP¥7.38 in 1Q 2025) First quarter 2026 results: EPS: JP¥12.98 (up from JP¥7.38 in 1Q 2025). Revenue: JP¥7.04b (up 12% from 1Q 2025). Net income: JP¥321.0m (up 77% from 1Q 2025). Profit margin: 4.6% (up from 2.9% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 25
Japan System Techniques Co., Ltd. to Report Q1, 2026 Results on Aug 13, 2025 Japan System Techniques Co., Ltd. announced that they will report Q1, 2026 results on Aug 13, 2025 Announcement • May 15
Japan System Techniques Co., Ltd., Annual General Meeting, Jun 26, 2025 Japan System Techniques Co., Ltd., Annual General Meeting, Jun 26, 2025. Announcement • Apr 25
Japan System Techniques Co., Ltd. Proposes Year-End Dividend for the Fiscal Year Ended March 31, 2025, Payable on June 12, 2025 The Board of Directors of Japan System Techniques Co., Ltd. (JAST) approved a resolution on April 25, 2025 to pay dividends from surplus as follows with a record date of March 31, 2025. For the period, the company provided year-end dividend of JPY 27 per share compared to JPY 45 per share a year ago. Record date is March 31, 2025. Effective date is June 12, 2025. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to JP¥1,530, the stock trades at a trailing P/E ratio of 15.7x. Average trailing P/E is 18x in the Software industry in Japan. Total returns to shareholders of 157% over the past three years. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥27.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 11 June 2025. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.7%). In line with average of industry peers (1.6%). Announcement • Mar 19
Japan System Techniques Co., Ltd. to Report Fiscal Year 2025 Results on May 14, 2025 Japan System Techniques Co., Ltd. announced that they will report fiscal year 2025 results on May 14, 2025 Reported Earnings • Feb 15
Third quarter 2025 earnings released: EPS: JP¥30.22 (vs JP¥18.27 in 3Q 2024) Third quarter 2025 results: EPS: JP¥30.22 (up from JP¥18.27 in 3Q 2024). Revenue: JP¥7.29b (up 14% from 3Q 2024). Net income: JP¥746.0m (up 67% from 3Q 2024). Profit margin: 10% (up from 7.0% 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 16% per year but the company’s share price has increased by 51% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 20
Japan System Techniques Co., Ltd. to Report Q3, 2025 Results on Feb 13, 2025 Japan System Techniques Co., Ltd. announced that they will report Q3, 2025 results on Feb 13, 2025 Valuation Update With 7 Day Price Move • Nov 22
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to JP¥1,942, the stock trades at a trailing P/E ratio of 22.7x. Average trailing P/E is 23x in the Software industry in Japan. Total returns to shareholders of 187% over the past three years. Buy Or Sell Opportunity • Nov 16
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 2.5% to JP¥1,660. The fair value is estimated to be JP¥1,380, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.4% over the last 3 years. Earnings per share has grown by 11%. Declared Dividend • Nov 13
Dividend of JP¥27.00 announced Shareholders will receive a dividend of JP¥27.00. Ex-date: 28th March 2025 Payment date: 11th June 2025 Dividend yield will be 1.6%, which is higher than the industry average of 1.4%. Sustainability & Growth Dividend is covered by both earnings (52% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share has grown by 41% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Nov 07
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. This is currently the only risk that has been identified for the company. Announcement • Oct 10
Japan System Techniques Co., Ltd. Starts Sales of Digital Certificate System Japan System Techniques Co., Ltd. has developed a new digital certificate product as part of the GAKUEN Series, which is a strategic university management system. Sales of digital certificates started on September 1, 2024. In addition, JAST signed a business alliance agreement with Seiko Solutions Inc. in September 2024. This matter will have only a negligible effect on JAST's results of operations. An announcement will be made in a timely manner if there is any additional information that should be disclosed. Japan System Techniques Co., Ltd. ("JAST") has developed a new digital certificate products as part of the GAK UEN Series, which is a Strategic university management system. Sales of Digital Certificate System. In conjunction with the development of the digital certificate system, JAST entered into the business alliance agreement with Seiko solutions Inc. (Head office: Chiba City; President: Jun Sekine) in September 2024 for the purpose of enabling the two companies to issue digital certificates to university students. The certificates are linked to the systems provided by JAST and Seiko Solutions. Background. JAST sells automated certificate issuing kiosks that are linked to the systems used by universities for their educational operations. Universities currently need to take activities involving surveys by the Japan's Ministry of Education, Culture, Sports, Science and Technology regarding the digitalization of academic records, paperless online job-hunting activities by students, operations to comply with global standards, and other matters. To help meet these needs, JAST developed a digital certificate issuing function that incorporates the electronic signature service of Seiko Solutions. Mie University, a national university in Mie prefecture, will start using this digital certificate system in October 2024. Outline of the Digital Certificate System. The new digital certificate system incorporates JAST's GAKUEN Series, a strategic university management system, and eviDaemon for PadES, which allows placing digital signatures and time stamps on PDF files. Combining these two systems enables students to apply for and receive digital certificates with guaranteed authenticity using the UNIVERAL PASSPORT web service system for students. JAST plans to add functions for paying digital certificate fees electronically and for the ALUPA alumni service to issue digital certificates. Features of the Digital Certificate System. Simplifies applications for issuing student certificates. This service allows students to download many types of digital certificates with guaranteed authenticity by simply submitting applications from their smartphones. More efficient use of time by university personnel. Automation of the receipt of certificate applications from students and issuance of certificates eliminates the need for using people to issue the certificates. Speedy implementation of the system. Announcement • Sep 26
Japan System Techniques Co., Ltd. to Report Q2, 2025 Results on Nov 11, 2024 Japan System Techniques Co., Ltd. announced that they will report Q2, 2025 results on Nov 11, 2024 Announcement • Sep 24
Japan System Techniques Co., Ltd. and Katsu And Katsu Inc. Start of Demonstration Trial of Table Service Robot Japan System Techniques Co., Ltd. (JAST) and KatsuandKatsu inc. have started a demonstration trial of restaurant table service provided by a robot as a new venture for both companies. Katsu &Katsu operates tonkatsu (breaded, deep-fried pork cutlet) restaurants. The aim of the trial is to show that the robot can improve the quality of services by lowering the amount of work performed by people and solve Japan's labor shortage. Summary of the Demonstration Trial: For this trial, table service robots will be used at the Hirano store in Osaka and the Kobe Kozukayama store in Kobe. KatsuandKatsu will use the robots to bring food that customers ordered to their tables and collect dishes and other items after meals are finished. During the trial, JAST will provide support for the operation of the robots to perform table service currently performed by employees, and the benefits will be measured and assessed. The plan is to start using the robot in early September at the Hirano store and then at the Kobe Kozukayama store for about one month. Reported Earnings • Aug 18
First quarter 2025 earnings released: EPS: JP¥7.38 (vs JP¥2.49 in 1Q 2024) First quarter 2025 results: EPS: JP¥7.38 (up from JP¥2.49 in 1Q 2024). Revenue: JP¥6.30b (up 12% from 1Q 2024). Net income: JP¥181.0m (up 197% from 1Q 2024). Profit margin: 2.9% (up from 1.1% in 1Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,389, the stock trades at a trailing P/E ratio of 16.3x. Average trailing P/E is 20x in the Software industry in Japan. Total returns to shareholders of 268% over the past three years. Buy Or Sell Opportunity • Jul 26
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.3% to JP¥1,643. The fair value is estimated to be JP¥2,124, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.7% over the last 3 years. Earnings per share has grown by 17%. Buy Or Sell Opportunity • Jul 10
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 8.4% to JP¥1,667. The fair value is estimated to be JP¥2,130, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.7% over the last 3 years. Earnings per share has grown by 32%. Announcement • Jul 08
Japan System Techniques Co., Ltd. Announces Board and Committee Changes Japan System Techniques Co., Ltd. at the 52nd Annual General Meeting of Shareholders held on June 25, 2024 and the Board of Directors meeting held after this shareholders meeting, following proposed changes in Directors and Audit & Supervisory Committee members have been implemented at the same date. The company appointed Gao Yongdong as External Director. The company announced that Masami Yabushita's desigantion has been changed from Full-time Audit & Supervisory Board member to Director, full-time Audit &Supervisory Committee member; Jiro Mogami's desigantion has been changed from External Audit & Supervisory Board member to External Director, Audit & SupervisoryCommittee member. The company also announced the appointment of Misa Machida as External Director, Audit & Supervisory Committee member. The company announced that Keizo Yamamoto's desigantion has been changed from Substitute External Audit & Supervisory Board member to Substitute External Director, Audit & Supervisory Committee member. Announcement • Jun 27
Japan System Techniques Co., Ltd. to Report Q1, 2025 Results on Aug 13, 2024 Japan System Techniques Co., Ltd. announced that they will report Q1, 2025 results on Aug 13, 2024 New Risk • May 22
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 8.0% 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. Buy Or Sell Opportunity • May 22
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at JP¥1,691. The fair value is estimated to be JP¥2,116, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 9.7% over the last 3 years. Earnings per share has grown by 32%. Reported Earnings • May 16
Full year 2024 earnings released: EPS: JP¥170 (vs JP¥72.24 in FY 2023) Full year 2024 results: EPS: JP¥170 (up from JP¥72.24 in FY 2023). Revenue: JP¥26.2b (up 11% from FY 2023). Net income: JP¥2.09b (up 18% from FY 2023). Profit margin: 8.0% (up from 7.5% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has increased by 68% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 16
Japan System Techniques Co., Ltd. Revises Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 2024 Japan System Techniques Co., Ltd. revised consolidated earnings guidance for the fiscal year ending March 31, 2024. For the year, company expects net sales of ¥26,150 million compared to previous guidance of ¥25,300 million, operating income of ¥2,780 million compared to previous guidance of ¥2,540 million, profit attributable to owners of parent of ¥2,080 million compared to previous guidance of ¥1,880 million and net income per share of ¥84.80 compared to previous guidance of ¥76.65. Announcement • Apr 20
Japan System Techniques Co., Ltd. Launches Disease/In Injury and Drug Use Statistics Dashboard Service Using Medical Big Data Japan System Techniques Co., Ltd. (JAST) has developed a statistics dashboard service called Medicine Tiger concerning the use of drugs for diseases and injuries and started providing this service on April 9, 2024. The new service was developed with the cooperation of Ataru Igarashi, an associate professor at Yokohama City University. Medicine Tiger uses the REZULT medical big data platform that is based on the large volume of health insurance invoices held by JAST. By using health insurance invoice data, Medicine Tiger can calculate the rates at which drugs were prescribed for specific diseases or injuries as well as rates at which diseases or injuries are linked with specific prescription drugs. Medicine Tiger then generates a list of the top ten. Data can be categorized by dates, gender, age, type of prescription and region. This makes it possible to see with ease differences in prescription patterns when changing parameters. Data analysis concerning differences between prescription drugs received at hospitals and at pharmacies is possible too. In addition to performing these basic functions, Medicine Tiger can be customized to match the requirements of individual customers. Service name: Medicine Tiger. Start of service: April 9, 2024. This service can support research activities and is useful for a diverse array of activities in any business field. JAST assumes the followings cases for the use of this service. Marketing: Drug prescription trends, market share surveys and other information for determining marketing strategies. Medical device development: Clinical trial feasibility studies, examinations to establish protocols for clinical trials. Pharmacists: Examinations to find alternate drugs to replace drugs that will no longer be available. Physicians: Provision of information about drugs that cannot be used together. Announcement • Apr 13
Japan System Techniques Co., Ltd., Annual General Meeting, Jun 25, 2024 Japan System Techniques Co., Ltd., Annual General Meeting, Jun 25, 2024. Agenda: To consider appointment of directors after the transition to a company with an Audit & Supervisory Committee system and officers effective April 1, 2024. Announcement • Mar 24
Japan System Techniques Co., Ltd. to Report Fiscal Year 2024 Results on May 13, 2024 Japan System Techniques Co., Ltd. announced that they will report fiscal year 2024 results on May 13, 2024 Upcoming Dividend • Mar 21
Upcoming dividend of JP¥45.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 10 June 2024. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (1.3%). Announcement • Mar 12
Japan System Techniques Co., Ltd. Revises Dividend Guidance for the Fiscal Year Ending March 31, 2024 Japan System Techniques Co., Ltd. revised dividend guidance for the fiscal year ending March 31, 2024. For the year, the company expects to pay dividend of JPY 45.00 per share against JPY 32.00 per share paid a year ago. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to JP¥4,085, the stock trades at a trailing P/E ratio of 29.4x. Average trailing P/E is 24x in the Software industry in Japan. Total returns to shareholders of 463% over the past three years. Buy Or Sell Opportunity • Mar 01
Now 31% overvalued after recent price rise Over the last 90 days, the stock has risen 49% to JP¥4,085. The fair value is estimated to be JP¥3,111, however this is not to be taken as a sell 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%. Reported Earnings • Feb 14
Third quarter 2024 earnings released: EPS: JP¥36.53 (vs JP¥35.06 in 3Q 2023) Third quarter 2024 results: EPS: JP¥36.53 (up from JP¥35.06 in 3Q 2023). Revenue: JP¥6.40b (up 14% from 3Q 2023). Net income: JP¥448.0m (up 4.2% from 3Q 2023). Profit margin: 7.0% (down from 7.6% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 61% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Nov 21
Japan System Techniques Co., Ltd. Provides Dividend Guidance for the Fiscal Year Ending March 31, 2024 Japan System Techniques Co., Ltd. provided dividend guidance for the fiscal year ending March 31, 2024. For the year, the company expects to pay dividend of JPY 40.00 per share against JPY 32.00 per share paid a year ago. Reported Earnings • Nov 12
Second quarter 2024 earnings released: EPS: JP¥48.11 (vs JP¥41.91 in 2Q 2023) Second quarter 2024 results: EPS: JP¥48.11 (up from JP¥41.91 in 2Q 2023). Revenue: JP¥6.49b (up 10% from 2Q 2023). Net income: JP¥590.0m (up 15% from 2Q 2023). Profit margin: 9.1% (up from 8.7% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has increased by 41% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Sep 22
Japan System Techniques Co., Ltd. to Report Q2, 2024 Results on Nov 10, 2023 Japan System Techniques Co., Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Announcement • Aug 21
Japan System Techniques Co., Ltd. Announces Dividend Guidance for the Year Ending March 31, 2024 Japan System Techniques Co., Ltd. announced dividend guidance for the year ending March 31, 2024. For the year, the company expects to pay the dividend of JPY 40 per share against JPY 32 per share a year ago. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to JP¥1,948, the stock trades at a trailing P/E ratio of 14.8x. Average trailing P/E is 24x in the Software industry in Japan. Total returns to shareholders of 168% over the past three years. New Risk • Aug 15
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 6.1% 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. This is currently the only risk that has been identified for the company. Reported Earnings • Aug 12
First quarter 2024 earnings released: EPS: JP¥4.97 (vs JP¥18.18 in 1Q 2023) First quarter 2024 results: EPS: JP¥4.97 (down from JP¥18.18 in 1Q 2023). Revenue: JP¥5.64b (up 10% from 1Q 2023). Net income: JP¥61.0m (down 73% from 1Q 2023). Profit margin: 1.1% (down from 4.4% 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 46% per year whereas the company’s share price has increased by 45% per year. Announcement • Jun 24
Japan System Techniques Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Japan System Techniques Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 17
Full year 2023 earnings released: EPS: JP¥144 (vs JP¥112 in FY 2022) Full year 2023 results: EPS: JP¥144 (up from JP¥112 in FY 2022). Revenue: JP¥23.5b (up 9.9% from FY 2022). Net income: JP¥1.77b (up 33% from FY 2022). Profit margin: 7.5% (up from 6.2% 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 60% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥32.00 per share at 1.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 09 June 2023. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.6%). In line with average of industry peers (1.7%). Reported Earnings • Feb 12
Third quarter 2023 earnings released: EPS: JP¥35.06 (vs JP¥18.52 in 3Q 2022) Third quarter 2023 results: EPS: JP¥35.06 (up from JP¥18.52 in 3Q 2022). Revenue: JP¥5.63b (up 14% from 3Q 2022). Net income: JP¥430.0m (up 89% from 3Q 2022). Profit margin: 7.6% (up from 4.6% 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 75% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Announcement • Dec 26
Japan System Techniques Co., Ltd. to Report Q3, 2023 Results on Feb 10, 2023 Japan System Techniques Co., Ltd. announced that they will report Q3, 2023 results on Feb 10, 2023 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. 3 experienced directors. 7 highly experienced directors. 1 independent director (6 non-independent directors). External Auditor Jiro Mogami was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Nov 12
Japan System Techniques Co., Ltd. Provides Consolidated Earnings Guidance for the Fiscal Year Ending March 31, 202 Japan System Techniques Co., Ltd. provided consolidated earnings guidance for the fiscal year ending March 31, 2023. For the year, the company expects net sales of JPY 22,400 million, operating income of JPY 2,120 million, profit attributable to owners of parent of JPY 1,370 million and net income per share of JPY 111.70. Reported Earnings • Nov 12
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: JP¥5.89b (up 14% from 2Q 2022). Net income: JP¥514.0m (up 14% from 2Q 2022). Profit margin: 8.7% (in line with 2Q 2022). Announcement • Sep 23
Japan System Techniques Co., Ltd. to Report Q2, 2023 Results on Nov 10, 2022 Japan System Techniques Co., Ltd. announced that they will report Q2, 2023 results on Nov 10, 2022 Announcement • Aug 23
Japan System Techniques Co., Ltd. Announces Development Activities Begin for Cloud BankNeo Front Compliance Japan System Techniques Co., Ltd. announced that work has started for the development of the Cloud BankNeo Front Compliance (Front Compliance) as a system for supporting financial product sales operations. Front Compliance will be part of the BankNeo integrated informational systems for financial institutions and will use the Salesforce Platform for the development of business applications. Overview of Front Compliance: Front Compliance, which operates on the Salesforce Platform, will be developed with the objective of increasing the efficiency of financial institution salespeople who visit prospective customers. The new system will cover every step from confirming the suitability of financial products recommended by salespeople to the procedures required to complete the sale of a product. The software will be able to confirm that products are suitable for specific customers, produce consultation forms, select products to recommend, receive the approval of managers, and produce customer interaction record cards. All paper forms that were previously required for these activities will be converted to an electronic format. Primary benefits of Front Compliance: Consolidation of business process flow and elimination of paper documents: Front Compliance will enable salespeople to use this system to perform suitability confirmations prior to the sale of a financial product to confirm compliance with laws that become increasingly complex as more amendments are made. This will greatly reduce the time needed for data entry. Furthermore, customers can use an electronic signature to ask for documents, thereby eliminating the need to output paper documents. Prevents problems concerning compliance with laws and regulations: Front Compliance will generate a list of financial products that are suitable based on the investing profiles of individual customers. Furthermore, this system will automatically display the documents that are required for the financial products that were selected. As a result, this system will ensure that no documents are overlooked and prevent problems with customers. CRM link for improving productivity: Front Compliance allows linking data with Salesforce Financial Services Cloud, which is a customer relationship management product for financial institutions. This customer data linkage with CRM is expected to reduce customer management expenses by centralizing data. Sales of this product are scheduled to begin in the spring of 2023. Reported Earnings • Aug 12
First quarter 2023 earnings released: EPS: JP¥36.37 (vs JP¥42.94 in 1Q 2022) First quarter 2023 results: EPS: JP¥36.37 (down from JP¥42.94 in 1Q 2022). Revenue: JP¥5.12b (up 4.5% from 1Q 2022). Net income: JP¥223.0m (down 5.9% from 1Q 2022). Profit margin: 4.4% (down from 4.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Announcement • Jun 24
Japan System Techniques Co., Ltd. to Report Q1, 2023 Results on Aug 10, 2022 Japan System Techniques Co., Ltd. announced that they will report Q1, 2023 results on Aug 10, 2022 Reported Earnings • May 18
Full year 2022 earnings released: EPS: JP¥225 (vs JP¥108 in FY 2021) Full year 2022 results: EPS: JP¥225 (up from JP¥108 in FY 2021). Revenue: JP¥21.4b (up 14% from FY 2021). Net income: JP¥1.33b (up 130% from FY 2021). Profit margin: 6.2% (up from 3.1% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 100% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. 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. 5 experienced directors. 5 highly experienced directors. 1 independent director (6 non-independent directors). External Auditor Jiro Mogami was the last director to join the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 08
Japan System Techniques Co., Ltd. to Report Fiscal Year 2022 Results on May 13, 2022 Japan System Techniques Co., Ltd. announced that they will report fiscal year 2022 results on May 13, 2022 Upcoming Dividend • Mar 23
Upcoming dividend of JP¥40.00 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 11 June 2022. Payout ratio is a comfortable 9.2% and this is well supported by cash flows. Trailing yield: 1.6%. Lower than top quartile of Japanese dividend payers (3.4%). Lower than average of industry peers (1.8%). Reported Earnings • Feb 12
Third quarter 2022 earnings: Revenues and EPS in line with analyst expectations Third quarter 2022 results: EPS: JP¥37.03 (up from JP¥11.75 in 3Q 2021). Revenue: JP¥4.94b (up 21% from 3Q 2021). Net income: JP¥228.0m (up 262% from 3Q 2021). Profit margin: 4.6% (up from 1.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth.