Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a> is a high-growth stock in the software services, testing, consulting, development business. They have a big specialist TAM ahead of them. </li>
<li>Revenue is up 50-fold in 10 years. OP is up 85-fold in that period. Revenue is guided +17.5% in the year to Aug 2025. OP is guided +28%.</li>
<li>There is an event coming up shortly which could trigger an imminent index inclusion. It's worth a look.</li>
</ul>



Shift Inc (3697 JP) is a high-growth stock in the software services, testing, consulting, development business. They have a big specialist TAM ahead of them. 
Revenue is up 50-fold in 10 years. OP is up 85-fold in that period. Revenue is guided +17.5% in the year to Aug 2025. OP is guided +28%.
There is an event coming up shortly which could trigger an imminent index inclusion. It's worth a look.


SHIFT (3697) The Next - Potential Big Index Add

Japanese Turnaround Situations, Short-Ideas, Azabu Research

Michael Allen

Japanese Turnaround Situations, Short-Ideas

Azabu Research

Azabu Research is a publishing and consulting firm focused on distressed equities in the Japanese market. We specialize in turnaround strategies, corporate combinations, divestitures, and restructuring.

Publisher of the Tokyo Turnaround Letter, which conducts the most thorough research possible of publicly available information, including forensic tests for fraudulent overstatement of assets and understatement of liabilities, as well as rigorous market and industry analysis to assess the underlying strengths of the company’s products or services, the appropriateness of the company’s turnaround strategy, and the skill of its current management team. The average length of a report exceeds 25 pages of text and tables, excluding any disclosures or executive summaries.

We have more than 30 years of experience in applying this process to distressed equities in Japan. Additionally, subscribers have free access to detailed, yet easily navigated earnings models for the target company as well as the top five comparable companies, and unlimited access to the analyst for follow-up questions.

Azabu Research also conducts be-spoke research on a project basis, and provides consulting services to companies looking to restructure, divest, make acquisitions, go public, or improve investor sentiment toward their stock.

Independent Research and Consulting Firm

Equity Bottom-Up

<ul>
<li>Shift reported a 95% increase in OP, to ¥3.2bn, compared to consensus estimate of ¥2.6bn on January 14 after the close.</li>
<li>Just under 5 months ago, we suggested the stock was about 45% undervalued. It is up 40%.</li>
<li>We still expect 20% annual growth through 2030. This is no longer a turnaround stock, but now one of the most solid growth stocks in the market.</li>
</ul>


Shift reported a 95% increase in OP, to ¥3.2bn, compared to consensus estimate of ¥2.6bn on January 14 after the close.
Just under 5 months ago, we suggested the stock was about 45% undervalued. It is up 40%.
We still expect 20% annual growth through 2030. This is no longer a turnaround stock, but now one of the most solid growth stocks in the market.


Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a> s share price has been down 65% YTD as the company’s aggressive investment on HR and system reinforcement led to fall in margins which concerned the market.</li>
<li>However, the company has adopted several measures to improve its margins, and we expect the investment in HR and others to generate results going forward.</li>
<li>Though share price has moved up slightly, valuation multiples are at a steep discount, and we would look for building a position.</li>
</ul>



Shift Inc (3697 JP) s share price has been down 65% YTD as the company’s aggressive investment on HR and system reinforcement led to fall in margins which concerned the market.
However, the company has adopted several measures to improve its margins, and we expect the investment in HR and others to generate results going forward.
Though share price has moved up slightly, valuation multiples are at a steep discount, and we would look for building a position.


Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>
<a href="https://smartkarma.com/entities/shift-inc">Shift Inc</a>. is a dominant player in Japan's software quality assurance and testing market, demonstrating a robust track record of high-double-digit revenue growth driven by strong demand for IT services and a successful M&amp;A strategy.</li>
  <li>Despite impressive top-line momentum, the company faces significant margin pressure. A recent 10.7% YoY decline in net income for 1H FY08/26, attributed to rising SG&amp;A expenses, highlights a key challenge in balancing rapid growth with profitability.</li>
  <li>The forward outlook hinges on achieving the ambitious 'SHIFT3000' mid-term goal of JPY 300 billion in net sales. This strategy relies on continued organic growth, aggressive M&amp;A, and the development of a new platform business, though execution risks and profitability concerns remain.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Shift Inc. is a dominant player in Japan's software quality assurance and testing market, demonstrating a robust track record of high-double-digit revenue growth driven by strong demand for IT services and a successful M&amp;A strategy.
  Despite impressive top-line momentum, the company faces significant margin pressure. A recent 10.7% YoY decline in net income for 1H FY08/26, attributed to rising SG&amp;A expenses, highlights a key challenge in balancing rapid growth with profitability.
  The forward outlook hinges on achieving the ambitious 'SHIFT3000' mid-term goal of JPY 300 billion in net sales. This strategy relies on continued organic growth, aggressive M&amp;A, and the development of a new platform business, though execution risks and profitability concerns remain.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

<ul><li>In 1H FY08/26, the company reported sales of JPY72.0bn (+16.8% YoY) and net income of JPY4.0bn (-10.7% YoY).</li><li>Software Testing Related Services segment sales reached JPY47.3bn (+19.5% YoY) with operating profit of JPY9.7bn (-7.5% YoY).</li><li>Software Development Related Services segment sales were JPY21.3bn (+8.0% YoY) with operating profit of JPY1.2bn (-23.8% YoY).</li></ul>

In 1H FY08/26, the company reported sales of JPY72.0bn (+16.8% YoY) and net income of JPY4.0bn (-10.7% YoY).Software Testing Related Services segment sales reached JPY47.3bn (+19.5% YoY) with operating profit of JPY9.7bn (-7.5% YoY).Software Development Related Services segment sales were JPY21.3bn (+8.0% YoY) with operating profit of JPY1.2bn (-23.8% YoY).

Shift Inc (3697 JP): 1H FY08/26 flash update

Japan

SHIFT Inc. offers information technology outsourcing services. The Company provides outsourcing software testing services to corporations and individual clients. SHIFT also provides software solutions and consulting services, as well as educational classes and programs.

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Shift Inc (3697 JP)

SHIFT (3697) The Next - Potential Big Index Add

SHIFT has gone through earnings, surprised to the upside, and is up 10% since when I wrote. The 15:1 stock split which a) makes the Nikkei 225...

Travis Lundy

Shift Beats Q1 Consensus by 30%

Shift's impressive 95% increase in operating profit exceeded expectations, with the stock now up 40% and poised for continued 20% annual growth...

Michael Allen

Shift: Is It a Good Time to Buy?

Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...

Shifara Samsudeen, FCMA, CGMA

Primer: Shift Inc (3697 JP) - Apr 2026

Shift Inc. is a dominant player in Japan's software quality assurance and testing market, demonstrating a robust track record of...

αSK Primers

Shift Inc (3697 JP): 1H FY08/26 flash update

In 1H FY08/26, the company reported sales of JPY72.0bn (+16.8% YoY) and net income of JPY4.0bn (-10.7% YoY). Software Testing Related Services...

Shared Research

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52-week Range

Market Cap (USDm)

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SHIFT (3697) The Next - Potential Big Index Add

SHIFT has gone through earnings, surprised to the upside, and is up 10% since when I wrote. The 15:1 stock split which a) makes the Nikkei 225...

Travis Lundy

Shift Beats Q1 Consensus by 30%

​Shift's impressive 95% increase in operating profit exceeded expectations, with the stock now up 40% and poised for continued 20% annual growth...

Michael Allen

Shift: Is It a Good Time to Buy?

​Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...

Shifara Samsudeen, FCMA, CGMA

Primer: Shift Inc (3697 JP) - Apr 2026

Shift Inc. is a dominant player in Japan's software quality assurance and testing market, demonstrating a robust track record of...

αSK Primers

Shift Inc (3697 JP): 1H FY08/26 flash update

In 1H FY08/26, the company reported sales of JPY72.0bn (+16.8% YoY) and net income of JPY4.0bn (-10.7% YoY). Software Testing Related Services...

Shared Research

Shift's impressive 95% increase in operating profit exceeded expectations, with the stock now up 40% and poised for continued 20% annual growth...

Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...