Internet Initiative Japan Q4 20 Results – Blowout Quarter / Guidance and Massive Dividend Hike

Internet Initiative Japan (Buy) Well-Positioned for Corporate IT Spend, Raising Forecasts/Valuation

IIJ (Buy) - Q1 21 Results Reaction: Margin Expansion Accelerates

Internet Initiative Japan - New Pricing Plans Are Competitive and Impact Is Manageable

Internet Initiative Japan Q3 20 Results: A Second FY20 Guidance Upgrade Highlights Margin Confidence

Internet Initiative Japan - Q2 20 Results: Profitability Beat Drives Guidance Upgrade, Dividend Hike

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

Internet Initiative Japan / Equity Bottom-Up

<p>We consider Internet Initiative Japan (IIJ) to be a core holding in the Japan telecom space, supported by exposure to faster growth corporate revenue buoyed by a track record of success in bringing new products and services to market. The company has generally operated at the leading edge of service offerings being among the first to offer cloud services and MVNO mobile, followed more recently by network tools like security and IoT solutions. This progression of adding services to sell into a receptive enterprise user base has helped generate consistent top-line growth for over 20 years with margin improvement and free cash flow generation now ramping up. We value IIJ at ¥3,270/share and with 25% potential upside we are initiating coverage at Buy.  </p>

We consider Internet Initiative Japan (IIJ) to be a core holding in the Japan telecom space, supported by exposure to faster growth corporate revenue buoyed by a track record of success in bringing new products and services to market. The company has generally operated at the leading edge of service offerings being among the first to offer cloud services and MVNO mobile, followed more recently by network tools like security and IoT solutions. This progression of adding services to sell into a receptive enterprise user base has helped generate consistent top-line growth for over 20 years with margin improvement and free cash flow generation now ramping up. We value IIJ at ¥3,270/share and with 25% potential upside we are initiating coverage at Buy.  

Internet Initiative Japan - Potential Growth Remains Under-Appreciated (Initiation of Coverage)