In response to disappointing Q2 results, a weak performance overseas and a revision down to the Industrial IT Solutions business, NRI shares were sold down -9% on 31 Oct. Lindsay Whipp suggests that close attention to this troubled areas must be monitored and until improvements are evidence, the rich valuations are not justified.
Key Supports Holding Strong In last week's Int'l Compass (Aug. 18) we discussed that, if the 10-year Treasury yield and U.S. dollar (DXY) can stay below their respective resistance levels (4.3%-4.35% and $103.50-$103.70), we remain buyers on the pullback to $93 on MSCI ACWI (ACWI-US). The ACWI-US low on Aug. 18 was $93.02; as long as $93 (1+ year support) holds and the 10-year Treasury yield and DXY are below the aforementioned levels, $93 on ACWI-US is likely to low for this pullback. On the o...
18 months after many Japanese mid-sized enterprise software stocks were sold off, many remain more than 50% lower than their peaks. And yet, these companies continue to grow strong sales. In this report, we take a look at 11 of these companies and at the extent to which their operating performances are reflected in their current valuations.
According to Bloomberg, Japan’s six listed mid-tier IT vendors – that’s NRI (4307 JT), CTC (4739 JT), TIS (3626 JT), SCSK (9719 JT), Biprogy [was Nihon Unisys] (8056 JT) and NS Solutions (2327 JT) – reported 2Q FY22 orders of ¥716bil (+12.4% YoY). The YoY increase, down slightly from the +13.1% YoY growth figure seen in the 1Q FY22 period, Pelham Smithers looks at the relative performance of mid-tier IT vendor orders.
Japan’s Systems Integrators A Brief Note on Why NRI is the Benchmark ERP Software / IT Services analyst Lindsay Whipp explains why NRI is the benchmark company among Japan’s System Integrators. Tags: Fujitsu (6702 JT), NTT Data (9613 JT), TIS Inc (3626 JT), Itochu Techno-Solutions (4729 JT), SCSK (9719 JT), NTT Corp (9432 JT)
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
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.
The independent financial analyst theScreener just downgraded the general evaluation of NOMURA RESEARCH INST. (JP), active in the Computer Services industry. As regards its fundamental valuation, the title loses a star(s) and now shows 1 out of 4 stars. Its market behaviour is also negatively reassessed and may be considered as moderately risky. theScreener believes that this double requalification keeps the title under pressure and justifies an overall rating downgrade to Slightly Negative. As ...
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
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....
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
NRI's overseas operations should see a significant improvement in FY21 as it incorporates new acquisitions and the broader market recovers. While we think it will struggle to meet its mid-term overseas sales target of ¥100bil unless it makes further acquisitions, its strategy is clearly starting to come together. NRI remains leader of the pack of Japanese IT systems integrators and we expect the company to continue to produce strong growth that keeps it there.
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