Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

<ul><li>Regained momentum points to further upside –Q1-2FY3/25 results were a positive surprise with OP growth of 22.2% YoY, a stark contrast to the negative growth profile seen in Q1.</li><li>Management is executing its strategy to improve profitability despite rising staff- related and outsourcing costs by investing resources in advanced services and IT infrastructure, as well as raising prices demonstrating pricing power.</li><li>The company has upwardly revised FY3/25 guidance, reflecting an expected improvement in the sales mix driving earnings. </li></ul>

Regained momentum points to further upside –Q1-2FY3/25 results were a positive surprise with OP growth of 22.2% YoY, a stark contrast to the negative growth profile seen in Q1.Management is executing its strategy to improve profitability despite rising staff- related and outsourcing costs by investing resources in advanced services and IT infrastructure, as well as raising prices demonstrating pricing power.The company has upwardly revised FY3/25 guidance, reflecting an expected improvement in the sales mix driving earnings. 

ID Holdings (4709) - Strong Results and FY Upward Revision

<ul><li>Q1-3 FY3/2024 results were ahead of FY company guidance which remained unchanged, positioning the company for a robust year-end in our view.</li><li>The key earnings drivers remain DX-related, having a positive impact on sales growth and profitability improvements in Cybersecurity, Consulting and Training, and IT Infrastructure segments.</li><li>ID Holdings’ objectives of strengthening its DX-related offerings, developing effective vendor partnerships, optimizing administrative operations, and shifting human resources to profit centers continue to yield positive results. </li></ul>

Q1-3 FY3/2024 results were ahead of FY company guidance which remained unchanged, positioning the company for a robust year-end in our view.The key earnings drivers remain DX-related, having a positive impact on sales growth and profitability improvements in Cybersecurity, Consulting and Training, and IT Infrastructure segments.ID Holdings’ objectives of strengthening its DX-related offerings, developing effective vendor partnerships, optimizing administrative operations, and shifting human resources to profit centers continue to yield positive results. 

ID Holdings (4709) - Expecting a Solid Finish to the Year

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jastec-co-ltd" target="_blank" data-smartkarma-citation="entities:9201:1" rel="noopener">Jastec Co Ltd (9717 JP)</a> has recommended a tender offer from <a href="https://www.smartkarma.com/entities/ntt-data-corp" target="_blank" data-smartkarma-citation="entities:11232:1" rel="noopener">NTT Data Corp (9613 JP)</a> at JPY1,940 per share, a 37.6% premium to the undisturbed price (5 April). </li>
<li>The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 66.67% ownership ratio.</li>
<li>Based on the irrevocables, the minimum acceptance condition requires a 56.4% minority acceptance rate. The acceptance condition is achievable as the offer represents a 22-year high.</li>
</ul>



Jastec Co Ltd (9717 JP) has recommended a tender offer from NTT Data Corp (9613 JP) at JPY1,940 per share, a 37.6% premium to the undisturbed price (5 April). 
The transaction is a two-step acquisition through a cash tender offer and subsequent squeeze-out. The lower limit of the tender offer is set at a 66.67% ownership ratio.
Based on the irrevocables, the minimum acceptance condition requires a 56.4% minority acceptance rate. The acceptance condition is achievable as the offer represents a 22-year high.


Jastec (9717 JP): NTT Data (9613 JP)’s Tender Offer at JPY1,940

<ul><li>Strategic shifts continue to reap rewards–IDHoldings’Q1 FY3/2024 performance demonstrated a continuation of the robust results experienced in FY3/2023, with DX remaining the core demand driver.</li><li>Business segment sales in System Management, IT Infrastructure, and Cybersecurity, Consulting, and Training grew strongly YoY, demonstrating that the company’s efforts to remodel its business have been successful to better support and serve its customers.</li><li>We have kept our earnings estimates unchanged for FY3/2024 and beyond, with the expectation that high-margin DX demand will continue, driving continued profitability improvements in the business.</li></ul>

Strategic shifts continue to reap rewards–IDHoldings’Q1 FY3/2024 performance demonstrated a continuation of the robust results experienced in FY3/2023, with DX remaining the core demand driver.Business segment sales in System Management, IT Infrastructure, and Cybersecurity, Consulting, and Training grew strongly YoY, demonstrating that the company’s efforts to remodel its business have been successful to better support and serve its customers.We have kept our earnings estimates unchanged for FY3/2024 and beyond, with the expectation that high-margin DX demand will continue, driving continued profitability improvements in the business.

ID Holdings (4709) - Seizing DX Opportunities and Driving Growth

Japan

ID Holdings Corporation operates as an independent data processing company. The Company provides services including system integration, data entry, software development, network security systems development, and other services. ID Holdings offers its services to customers in security, cloud data, system administration management, and other fields.

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ID Holdings (4709 JP)

ID Holdings (4709) - Strong Results and FY Upward Revision

Regained momentum points to further upside –Q1-2FY3/25 results were a positive surprise with OP growth of 22.2% YoY, a stark contrast to the...

Astris Advisory Japan

ID Holdings (4709) - Expecting a Solid Finish to the Year

We maintain our earnings forecasts for FY3/2024 and beyond and believe that disclosed company plans for FY3/2025 appear too conservative

Astris Advisory Japan

Jastec (9717 JP): NTT Data (9613 JP)’s Tender Offer at JPY1,940

Based on the irrevocables, the minimum acceptance condition requires a 56.4% minority acceptance rate. The acceptance condition is achievable as...

Arun George

ID Holdings (4709) - Seizing DX Opportunities and Driving Growth

Strategic shifts continue to reap rewards–IDHoldings’Q1 FY3/2024 performance demonstrated a continuation of the robust results experienced in FY3/2023

Astris Advisory Japan

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