Japan Experts, Extraordinary Performance, Astris Advisory Japan

Astris Advisory Japan

Japan Experts, Extraordinary Performance

Our Corporate Advisory service is designed to give clients access to a wider range of investors. These include Japan specialists as well as global investors. The goal is to help achieve a fair equity valuation.

Equity Bottom-Up

<ul><li>Multiple positives in Simplex’s Q1-2 FY3/26 results highlighted management’s solid growth execution, resulting in high double-digit growth YoY for sales and OP.</li><li>Most notable are continued strength in Strategic/DX Consulting, and a marked increase in the Enterprise DX business area; we believe this illustrates their model of providing upstream consulting and technology services is winning new business, improving the sales mix, and achieving customer diversification to non-financials.</li><li>Record-high quarterly orders and backlog in Q2 FY3/26 underpin a strong demand environment, and this backdrop has also enabled the company to implement positive pricing revisions. </li></ul>

Multiple positives in Simplex’s Q1-2 FY3/26 results highlighted management’s solid growth execution, resulting in high double-digit growth YoY for sales and OP.Most notable are continued strength in Strategic/DX Consulting, and a marked increase in the Enterprise DX business area; we believe this illustrates their model of providing upstream consulting and technology services is winning new business, improving the sales mix, and achieving customer diversification to non-financials.Record-high quarterly orders and backlog in Q2 FY3/26 underpin a strong demand environment, and this backdrop has also enabled the company to implement positive pricing revisions. 

Simplex Holdings (4373 JP) - Management Showing Conviction for Future Growth

<ul><li>Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable earnings recovery in H2 FY3/25.</li><li>Orders and backlog growth were robust, denoting high earnings visibility.</li><li>Management provided clarity over the insurance business, which will continue as part of Financial Retail, and FY3/26 guidance points to sustained sales and earnings growth YoY in the high teens. </li></ul>

Results in line, demonstrating resilience – FY3/25 results were in line with guidance, as Simplex responded effectively in driving a notable earnings recovery in H2 FY3/25.Orders and backlog growth were robust, denoting high earnings visibility.Management provided clarity over the insurance business, which will continue as part of Financial Retail, and FY3/26 guidance points to sustained sales and earnings growth YoY in the high teens. 

Simplex Holdings (4373 JP) - Disciplined Delivery and Expecting Sales Growth Acceleration

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

SBI Shinsei Bank / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sbi-shinsei-bank-ltd" target="_blank" data-smartkarma-citation="entities:16897:1" rel="noopener">SBI Shinsei Bank (8303 JP)</a> is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.</li>
<li>I previously discussed the IPO in <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:211376" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: The Investment Case</a><a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-valuation-insights" target="_blank" data-smartkarma-citation="insights:211514" rel="noopener"> </a>and <a href="https://www.smartkarma.com/insights/sbi-shinsei-bank-8303-jp-ipo-price-range-is-attractive" target="_blank" data-smartkarma-citation="insights:212880" rel="noopener">SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive</a>.</li>
<li>The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.</li>
</ul>



SBI Shinsei Bank (8303 JP) is a Japanese financial institution. At the IPO price, it will raise JPY322 billion (US$2.1 billion). The shares will be listed on 17 December.
I previously discussed the IPO in SBI Shinsei Bank (8303 JP) IPO: The Investment Case and SBI Shinsei Bank (8303 JP) IPO: Price Range Is Attractive.
The peers have re-rated since the prospectus was released. My analysis suggests that SBI Shinsei is attractively valued at the IPO price.


SBI Shinsei Bank (8303 JP) IPO: Trading Debut

<ul>
<li>Normalizing operations centred on sustained growth – Simplex demonstrated solid execution delivering record-high quarterly sales and OP in Q3 FY3/25, underpinned by a V-shaped margin recovery in the System Integration segment.</li>
<li>Although the insurance project cancellation experienced in Q2 FY3/25 dented profitability, Q3 FY3/25 results show that this was a one-time event.</li>
<li>High growth has been sustained at Strategy/DX Consulting and Enterprise DX, providing a strong foundation for continued business expansion. </li>
</ul>


Normalizing operations centred on sustained growth – Simplex demonstrated solid execution delivering record-high quarterly sales and OP in Q3 FY3/25, underpinned by a V-shaped margin recovery in the System Integration segment.
Although the insurance project cancellation experienced in Q2 FY3/25 dented profitability, Q3 FY3/25 results show that this was a one-time event.
High growth has been sustained at Strategy/DX Consulting and Enterprise DX, providing a strong foundation for continued business expansion. 


Simplex Holdings (4373 JP) - Q3 FY3/25 Results Update

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/socionext-inc" target="_blank" data-smartkarma-citation="entities:36351:1" rel="noopener">Socionext (6526 JP)</a> was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup will expire on 9th Apr 2023.</li>
<li>Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation in 2015.</li>
<li>Coming up for six-month lockup expiry are the Development Bank of Japan, Fujitsu and Panasonic, the trio had each trimmed their respective stakes in the IPO.</li>
</ul>



Socionext (6526 JP) was listed on 12th Oct 2022, when it raised US$457m in its upsized Japan IPO. Its six-month lockup will expire on 9th Apr 2023.
Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation in 2015.
Coming up for six-month lockup expiry are the Development Bank of Japan, Fujitsu and Panasonic, the trio had each trimmed their respective stakes in the IPO.


Socionext Lock-Up - Up 2.67x Since IPO. US$930m Worth of Shares to Be Unlocked

Japan

Simplex Holdings, Inc. provides system information technology solutions. The Company offers system consulting, system development, system operation and maintenance, and other services.  Simplex Holdings serves financial institutions across worldwide.

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Simplex Holdings (4373 JP)