Report

PSA ERP Software: Japan Mid-Sized Enterprise Software – The Great Sell-Off: 18 Months On (A story in charts)

18 months after many Japanese mid-sized enterprise software stocks were sold off, many remain more than 50% lower than their peaks. And yet, these companies continue to grow strong sales. In this report, we take a look at 11 of these companies and at the extent to which their operating performances are reflected in their current valuations.
Underlyings
2U Inc.

2U is provider of education technology for nonprofit colleges and universities. The company builds, delivers, and supports digital and in-person educational offerings, including graduate degrees, undergraduate degrees, professional certificates, boot camps, and short courses, across the career curriculum continuum. In its Graduate Program Segment, the company provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. In its Alternative Credential Segment, the company provides online short courses and technical, skills-based boot camps through relationships with nonprofit colleges and universities.

Credit Saison Co. Ltd.

Credit Saison is mainly engaged in the provision of credit services. Along with its affiliates, Co. operates in five business segments: credit services, lease, finance, real estate-related and entertainment. Co. is engaged in the credit card (SAISON and UC) business, the servicing (loan collection agency) business, the handling vendor leasing business for office equipment mainly targeting SME clients, the credit guarantee (unsecured free-loans to individual customers) business, the finance (long-term fixed-rate mortgage loans) business, the real estate and real estate leasing business, and the amusement business mainly indoor recreation facilities.

Nomura Research Institute Ltd.

Nomura Research Institute is mainly engaged in the provision of consulting, financial and industrial IT services, and IT platform services. Consulting Services segment offers management consulting and system consulting services. Financial IT Solutions segment provides IT services including system development, operation outsourcing, and shared-online services for securities, insurance, banking, and other financial industries. Industrial IT Solutions segment provides IT services for distribution, manufacturing, service, and healthcare industries. IT Platform Services segment offers IT infrastructure services, managed services, and advanced information technology services.

PKSHA Technology Inc.

PKSHA Technology Inc is a Japan-based company mainly engaged in algorithmic license business. The Company operates through two business segments. The Cloud Intelligence segment is engaged in the sale of algorithm modules, and algorithm software BEDORE and CELLOR in the area of intelligent processing in the digital space. The Mobility & MaaS segment is engaged in the sale of algorithm modules related to image/video analysis and sales of algorithm software Hrus in the area of intelligent operation of real space for smart city. The algorithm modules include text understanding modules, dialogue modules, image/video analysis modules, recommendation modules, prediction modules, anomaly detection modules, and reinforcement learning modules.

Ricoh Company Ltd.

Ricoh is engaged in the development, manufacture, sale and service of office equipment and printing equipment. Office Printing segment offers multifunctional printers, copiers, laser printers, digital duplicators, wide format printers, facsimile, scanners and related parts and supplies. Office Service segment offers PCs, servers, network equipment, projectors and unified communication systems for video/web conferencing. Commercial Printing segment offers cut sheet printers, continuous feed printers, related parts and supplies. Industrial Printing segment offers inkjet heads, imaging systems and industrial printers. Thermal Media segment offers thermal paper and thermal transfer ribbons.

Shift Incorporated (3697 JT)

VISIONAL INC

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Lindsay Whipp

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