BayCurrent (6532 JT) is a pure-play Japanese IT and management consultancy company which is growing sales faster than the broader market, thanks to robust hiring, and a strategy of increasing the number of its core clients. Increasing hiring by around +20% YoY is limiting utilisation growth, but we expect gradual improvement from FY26. Spending on IT is a long-term investment in efficiency and a solution to labour shortages, both of which need addressing in Japan. This places IT Service sector c...
In this quarterly strategy report, we look to evaluate where we are with regards the bull market conditions, and where those indicators might be headed, factoring in the downside risks, from Trump tariffs and the US economy, BoJ actions, Japanese earnings and valuations.
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
BayCurrent Consulting’s shares have been recovering since their decline between September 2021 and April of this year. And yet valuations still look attractive, especially compared with global peers. Moreover, with demand strong amid Japanese companies to use IT to either generate or improve profitability, the consulting company’s growth looks set to continue on a similarly strong trend, and its EV/OP set to fall further. In this light, it is a company hard to ignore.
Japanese SaaS and small to mid-sized IT company stock prices have taken huge hits since the market sell off started in mid-November. We take a look at a range of companies and how attractive they are looking now valuations have tumbled.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Lindsay Whipp takes a look at IT and business strategy consultant Baycurrent Consulting, a shrimp among the giants. She compares its consulting business with those of NRI, and global IT giants such as Fujitsu, Hitachi, Accenture and CapGemini.
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