Alpha-Win Company Research Report
PCA CORPORATION(9629 TSE Prime)

Issued: 8/1/2023

Alpha-Win Capital Inc. Research Department
https://www.awincap.com/● Flash Report on Financial Results◆ A major specialized player for enterprise system software, leading the market withcloud-based software as the No. 1 player
・ PCA CORPORATION (hereinafter referred to as the “Company”) and its group sell originally-developed,
packaged business software (for accounting, sales management, purchasing and inventory management, payroll,human resources, work management, attendance management, etc.) mainly to small/medium-sized companies as
on-premises or cloud-based software. It also provides related maintenance services. Its mission is to contribute tosociety as a “Management Support Company” that supports the smooth management and operation of companies.
・It leads the market with its cloud-based business software (PCA Cloud) as the No. 1 player. Thanks to its transition
to a subscription-based business model, its business stability and profitability have improved significantly. It has
been providing products and services that are aimed at improving its corporate users’ business operations,developing its business mainly around cloud and solution services.
・Record-high sales, operating profit, and recurring profit were achieved in FY2020 (note that the Company’s fiscal
years are March-ending; i.e., FY2020 ended in March 2020), thanks to high demand brought by the consumption
tax revision and the end of Windows 7 support. In FY2022, although there was a change in the revenue-recognition
standard, a strong performance was maintained due to a high, event-driven demand for the products. In addition, again on sales of securities was recorded under extraordinary income, resulting in record-high net profit. In areactionary fall from this previous high demand, sales and profits declined in FY2023.

◆ Results for the first quarter of this fiscal year: sales and profits grew significantly YoY
due to continued growth of the cloud service and recovery of the products, presumably
exceeding the Company’s expectations
Q1: Summary of Financial Results
・In the first quarter of FY2024 (April to June 2023; hereinafter, Q1 = April to June), the Company posted sales ofY3,387 million (+14.7% YoY), operating profit of Y428 million (+38.5% YoY), recurring profit of Y436 million(+38.4% YoY), and net profit of Y266 million (+86.9% YoY). Sales and profits significantly increased YoY (Figure1). In the Q1 of the previous fiscal year, both sales and profits had decreased sharply due to the decline in the eventdriven replacement demand for the products and the decline in profit margins caused by increased costs including
upfront investments. However, in the Q1 of the current fiscal year, this reactionary decline from the previous eventdriven demand has eased, and double-digit growths in sales and profits were achieved with the recovery of demand
for the products and the increase in the number of corporate users of the cloud service. Some of the early demandprior to the price revision also seems to have occurred in Q1.
・Progress in Q1 in terms of achieving the Company’s full-year plan was 23.0% for sales and 29.6% for operating
profit, both exceeding the average rates of progress over the past six years (22.0% and 21.4%, respectively). Although
the Company has not announced its Q1 or first-half forecasts for this fiscal year, the Q1 results have presumably
been somewhat higher than its expectations.
【Figure 1】Results for the First Quarter and the Full-Year Plan
Q1 FY2023

Q1 FY2024% Change

Unit: Million yen

Apr-Jun 2022
2,954
241
108
838
1,361
404
1,829
61.9
1,520
51.5
309
10.5
142
4.8

Apr-Jun 2023
3,387
349
95
839
1,616
486
2,116
62.5
1,688
49.8
428
12.6
266
7.9

YoY: %
YoY: Million yen
14.7
433
45.1
108
-11.7
-13
0.1
1
18.7
255
20.2
82
15.7
287
0.6
11.1
168
-1.6
38.5
119
2.2
86.9
124
3.0

Consolidated Sales
Sales Category
Gross Profit
SG&A Expenses
Operating Profit
Net Profit

Change inAmountQ1 Results

Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue
Gross Margin (%)
SG&A Expense Ratio (%)
Operating Margin (%)
Net Margin (%)% of Total
Sales

Progress Compared to Full Year(%)%

Apr-Jun 2022 Apr-Jun 2023
22.8
23.0
21.0
24.9
18.7
17.4
25.2
25.0
22.9
22.2
20.5
23.1
22.7
24.1

100.0
10.3
2.8
24.8
47.7
14.4

22.5

23.0

24.0

29.6

16.1

28.8

Full YearFY2023 Results
FY2024 Company Plan
12,981
14,700
1,149
1,403
577
547
3,327
3,359
5,956
7,282
1,969
2,107
8,051
8,797
62.0
59.8
6,763
7,351
52.1
50.0
1,288
1,445
9.9
9.8
883
925
6.8
6.3

FY2024% Change

FY2024
Change in Amount

YoY: %
13.2
22.1
-5.2
1.0
22.3
7.0

YoY: Million yen
1,719
254
-30
32
1,326
138
746
-2.2
588
-2.1
157
-0.1
42
-0.5

12.2
4.8

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.

Short Report

1/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023

Q1: Sales by Category
・Regarding the sales of each sales category in Q1, merchandise was the only category whose sales decreased YoY,
by -Y13 million (-11.7% YoY). The impact of this decline on the overall sales was small, though. The cloud service’s
sales rose by +Y255 million (+18.7% YoY), the products rose by +Y108 million (+45.1% YoY), other operating
revenue rose by +Y82 million (+20.2% YoY), and the maintenance service rose by +Y1 million (+0.1% YoY),
resulting in an overall increase in sales of Y433 million.
・Sales by category (sales categories defined by the Company) were as follows.
1. In the Q1 of the fiscal year before the previous (FY2022), there was a high demand pertaining to the replacementof the PCA X series, whose support had ended in December 2021. In reaction to this, large declines wereexperienced in the Q1 of the previous fiscal year (FY2023). However, in the Q1 of the current fiscal year
(FY2024), this reactionary decline has eased, and the sales of the products (conventional packaged software or
on-premises) turned to an increase. Since the products have high profit margins, this growth has most likely
boosted the profits as well.
2. Sales of merchandise (ledger sheets, etc.) declined due the further shift toward paperless operations throughdigitalization, as well as due to the decline in the sales of merchandise other than ledger sheets.
3. Sales of maintenance service remained flat due to the further shift from the on-premises (products) to the cloudservice.
4.

Sales of the cloud service were Y1,616 million, returning to a double-digit growth thanks to the steady increasein the number of corporate users of the service. Its sales proportion was the largest among all sales categories,
accounting for 47.7% of total sales (46.1% in the previous fiscal year’s Q1). Combined with the maintenanceservice, which accounted for 24.8% of total sales, the subscription-based businesses accounted for 72.5% of total
sales. Since both businesses have strong continuity and high marginal profit ratios, they are most likely
continuing to contribute significantly to the Company’s financial performance in terms of both sales and profits.
The number of corporate users of the PCA Cloud series (net number), by fiscal year, has been increasing from12,070 in March 2019 to 14,327 in March 2020 (+2,257 YoY), 16,444 in March 2021 (+2,117 YoY), 19,152 at
the end of March 2022 (+2,708 YoY), 21,022 at the end of March 2023 (+1,870 YoY), and 21,594 at the end of
this year’s June (+2,153 compared to 19,441 companies at the end of last year’s June).
Quarterly comparison of the number of corporate users (the number as of the end of each quarter; Figure 2)
shows that although there had been a YoY and QoQ slowdown in the net increase in the number and the net rateof increase, both have begun to recover toward a high growth trend. Similarly, the quarterly sales of the cloudservice (3-months period) showed a +31.1% YoY growth in Q1 FY2022 and slowed down to a +8.5% YoY
growth in Q1 FY2023, but have started to recover with a +18.7% YoY growth in the Q1 of this fiscal year.
We believe that these trends reflect how the growth rate had temporarily slowed down after the event-driven
high demand for the products in FY2022, which had also caused customers to shift to the cloud service, but thegrowth rate has then started to recover toward normal levels with the diminishing impact of this previous demand.

5.

Other operating revenue continued to increase, from Y404 million ⇒ Y486 million (+14.4% YoY). Sales ofother companies’ products (software), such as DX-related products, were strong due to strengthened sales efforts.

【Figure 2】Quarterly Change in the Number of Corporate Users and Sales of the PCA Cloud Series
QuarterNumber of Corporate Users of
the Cloud Service

Cloud Service's SalesAt the End of Each Month,
Cumulative (unit: companies)

For Each Quarter(unit: million yen)March 2021 (Q4)
June 2021 (Q1)
September 2021 (Q2)
December 2021 (Q3)
March 2022 (Q4)
June 2022 (Q1)
September 2022 (Q2)
December 2022 (Q3)
March 2023 (Q3)
June 2023 (Q1)

16,444
Not Disclosed
17,785
18,57819,152
19,441
19,853
20,46621,022
21,594

1,076
1,255
1,340
1,449
1,524
1,361
1,499
1,512
1,584
1,616

Quarterly Change in the Number of Corporate Users (companies)% Change(YoY)

Change in Number
(YoY)

14.8
―
16.5
―
16.5
―
11.6
10.2
9.8
11.1

2,117
―
2,523
―
2,708
―
2,068
1,888
1,870
2,153

% Change(QoQ)

Quarterly Change in Sales (million yen)

Change in Number
(QoQ)

―
―
―
4.5
3.1
1.5
2.1
3.1
2.7
2.7

―
―
―
793
574
289
412
613
556
572

% Change(YoY)

Change in Amount
(YoY)

14.0
31.1
35.1
40.4
41.6
8.4
11.9
4.3
3.9
18.7

132
298
348
417
448
106
159
63
60
255

% Change(QoQ)

Change in Amount
(QoQ)

4.3
16.6
6.8
8.1
5.2
-10.7
10.1
0.9
4.8
2.0

44
179
85
109
75
-163
138
13
72
32

(Ref) Prepared by Alpha-Win Research Dept. from the past financial results summaries and briefing materials, based on data from the FY2023 financial
results summary.

Short Report

2/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023

Q1: Profit
・In terms of profit, since the Company’s business model is characterized by a high marginal profit ratio, changes insales have a significant impact on profit margins and profit growth. In the Q1 of the current fiscal year, the productmix improved due to the sales growth of the products which have high profitability (+Y108 million or +45.1% YoY)
and the cloud service (+18.7% YoY). As a result, the gross margin rose by 0.6 percentage point from 61.9% in the
Q1 of the previous fiscal year to 62.5% in the Q1 of the current fiscal year.
・The SG&A expenses increased by +Y168 million or +11.1% YoY due to higher costs including personnel anddevelopment expenses, but this increase was smaller than the overall sales growth rate of +14.7%. Consequently,
the SG&A expense ratio improved by 1.7 percentage points, from 51.5% ⇒ 49.8%, and the operating margin rosefrom 10.5% ⇒ 12.6% (+2.1 percentage points). The Company’s plan is to have an operating margin of 9.8% for thefull fiscal year, but the Q1 results have exceeded this plan.
・In the Q1 of this fiscal year, there were no major non-operating or extraordinary income/losses, so the net profit
also increased significantly.

Balance Sheet・As of the end of the Q1 of this fiscal year (June 2023), there has been no significant change in the balance sheet
compared to the end of the previous fiscal year (March 2023). Its financial position is firm, with cash & deposits
maintained above the annual sales at approx. Y17.7 billion, an equity ratio of 57.6%, and a current ratio of 210.8%.
In addition, contract liabilities (consideration received for services not yet provided under subscription contracts
such as those of the cloud service) have been steadily accumulating, increasing by +Y387 million (+4.7%) since theend of March to Y8,679 million, due to an increase in the number of cloud subscriptions.

◆Financial Forecasts for This Fiscal Year Onward
The Company’s Financial Forecasts for This Fiscal Year・The Company has not changed its full-year forecasts since their announcement at the beginning of the fiscal year.
For the full fiscal year, it expects sales and profits to increase to sales of Y14,700 million (+13.2% YoY), operating
profit of Y1,445 million (+12.2% YoY), and net profit of Y925 million (+4.8% YoY) (Figure 3 on page 4).
・The Company is forecasting a Y1,719 million YoY increase in overall sales due to greater sales of the cloud service,
the overall price revision of the products and services (in July; rates of price increase not disclosed), and the sales ofthe Hub series. By sales category, the cloud service is expected to grow by +Y1,326 million (+22.3% YoY) to accountfor 77% of the expected overall sales growth.
・With no more reactionary decline from the high, event-driven demand for products, the sales growth of the products
is expected to be the second largest at +Y254 million (+22.1% YoY), followed by the growth of the solutions by+Y138 million (+7.0% YoY), accounting for 15% and 8% of the overall sales growth, respectively. As a result, thesales proportion of the subscription-based businesses is planned to rise to 72.4% of total sales.
・In order to strengthen product development for the next stage of growth, such as the development of the PCA Hubseries, the Company expects increases in the cost of sales (+Y180 million YoY in labor costs and +Y660 million
YoY in subcontracting costs), R&D expense (+Y285 million YoY), and other SG&A expenses (+Y332 million YoY,
including system usage and rent fees).
・However, the Company expects the increase in sales to absorb all of these costs and result in an increase in profit.
The gross margin is expected to worsen by 2.2 percentage points from 62.0% in the previous fiscal year to 59.8% in
the current fiscal year (the same order applies hereinafter).
・The SG&A expense ratio is expected to decline by 2.1 percentage points from 52.1% to 50.0%, since the rate ofincrease in SG&A expenses will be kept at +8.7% YoY, which is lower than the rate of sales growth (+13.2%). As
a result, the operating margin is expected to decline by only 0.1 percentage point, from 9.9% to 9.8%.
・Although the Company’s business model has a high marginal profit ratio, it expects the rate of sales growth and therate of profit growth to be at about the same level this fiscal year due to upfront investment costs. It also does notexpect any significant non-operating or extraordinary income/losses during this fiscal year.
・The Company plans to pay an annual dividend of 17 yen per share, which is the same amount as the previous fiscal
year. The dividend payout ratio is expected to be 36.7% this fiscal year (the Company’s forecast), which is higher
than the Company’s target of 30%. On the other hand, we estimate the DOE for the current fiscal year (based on the
Company’s forecast) to be 1.9%, which is below the target of 2.5%.
Short Report

3/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023

Alpha-Win’s Financial Forecasts for This Fiscal Year Onward
・At the time of our previous company research (see the report issued on June 23, 2023), we had believed that theCompany’s full-year forecasts were reasonable and had expected the results for both sales and profits to be about
the same as the Company’s forecasts (Figure 3). However, the Q1 results exceeded our expectations, so we revised
our forecasts since upward profit revisions for the full fiscal year now seem possible if cost control is conducted
appropriately.
・Starting in Q2, the effect of the upward price revision conducted in July (we estimate the rates of upward revisions
to be double-digit percentages) should contribute to financial performance as expected by the Company. In addition,
we believe the Company may experience sales recovery of the products, sales growth of the cloud service due to a
net increase in the number of subscriptions, and a continued increase in other operating revenue due to strengthened
sales efforts. Therefore, at this point, we believe the Company can achieve sales that are slightly higher than planned.
We revised our sales forecast upward by Y100 million from our previous forecast of Y14,700 million (same as theCompany’s plan) to Y14,800 million.
・On the other hand, the Company expects increases in subcontracting costs, R&D expense, and other related expenses
to strengthen product development for the next stage of growth, such as the development of the PCA Hub series.
However, we believe that the costs may become lower than expected. Therefore, without changing the expected
gross margin, we reviewed the SG&A expenses (the expected SG&A expense ratio has been revised from 51.4% ⇒50.5%, in the order of our previous forecast ⇒ current forecast; the same order applies hereinafter) and revised ourforecast for operating profit upward from Y1,450 million to Y1,570 million (operating margin of 9.9% ⇒ 10.6%).
・We similarly revised net profit from Y925 million to Y1,000 million. Due to this revision, the annual dividend pershare was also revised upward from 17 yen to 18 yen per share (based on an expected dividend payout ratio of 36%).
【Figure 3】Financial Forecasts for This Fiscal Year
Consolidated(unit: million yen)

New RevenueRecognition Standard

12,981
1,149
577
3,327
5,956
1,969
8,051
62.0%
6,763
52.1%
1,288
9.9%
1,326
10.2%
883
6.8%
17.0

14,700
1,403
547
3,359
7,282
2,107
8,797
59.8%
7,351
50.0%
1,445
9.8%
1,478
10.1%
925
6.3%
17.0

Sales
Products
Merchandise

Sales
Category

FY2024: Company Forecast

FY2023
New RevenueRecognition Standard

Maintenance Service
Cloud Service
Other Operating Revenue

Gross Profit
Gross Margin

SG&A Expenses
SG&A Expense Ratio

Operating Profit
O.P. Margin

Recurring Profit
R.P. Margin
Net Profit Attributable to Owners of the Parent

N.P. Margin
Annual Dividend Per Share (yen)YoY: Change inAmount or Diff.

1,719
254
-30
32
1,326
138
746
-2.2%
588
-2.1%
157
-0.1%
152
-0.2%
42
-0.5%
0.0

FY2024: Alpha-Win Research Department's New Forecast

YoY: % Change

New Revenue-Recognition YoY: Change in AmountStandardor Diff.

13.2%
22.1%
-5.2%
1.0%
22.3%
7.0%
9.3%
8.7%
12.2%
11.4%
4.8%

14,800
1,600
520
3,330
7,100
2,250
9,050
61.1%
7,480
50.5%
1,570
10.6%
1,600
10.8%
1,000
6.8%
18.0

1,819
451
-57
3
1,144
281
999
-0.9%
717
-1.6%
282
0.7%
274
0.6%
117
0.0%
1.0

YoY: % Change

14.0%
39.3%
-9.9%
0.1%
19.2%
14.3%
12.4%
10.6%
21.9%
20.7%
13.3%

FY2024: Alpha-Win Research Department's Old Forecast
New Revenue-Recognition
Standard

14,700
1,450
540
3,360
7,200
2,150
9,000
61.2%
7,550
51.4%
1,450
9.9%
1,480
10.1%
925
6.3%
17.0

YoY: Change inAmount or Diff.

1,719
301
-37
33
1,244
181
949
-0.8%
787
-0.7%
162
-0.1%
154
-0.1%
42
-0.5%
0.0

YoY: % Change

Diff. between Alpha-Win's
New and Old Forecasts
New Forecast - Old Forecast

13.2%
26.2%
-6.4%
1.0%
20.9%
9.2%
11.8%

100
150
-20
-30
-100
100
50
-0
-70
-0
120
0
120
0
75
0
1.0

11.6%
12.6%
11.6%
4.8%

(Ref) Prepared by Alpha-Win Research Dept. based on the briefing materials.

・We believe that the Company will be able to continue to increase sales, profits, and dividends, since the effect of
the upward price revision will fully contribute to results in the next fiscal year and the upfront investment costs will
also peak out in the fiscal year after the next or later. Regarding our forecasts for the next fiscal year onward, we
have maintained our previous sales forecasts for now, but have raised our estimates for the profit margins and haveupwardly revised our profit forecasts. We consequently also revised the dividends upward (Figure A on page 6).
・Inflation and the rising interest rates may lead to a deterioration of the financial performance of small and mediumsized companies (the Company’s users) and suppression of IT investments by those companies, which should be
noted as factors that may impact the Company’s financial performance, along with the actual spending of costs.

Short Report

4/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023

Progress with the New Businesses
・After acquiring Dreamhop Co., Ltd., the Company has been focusing on improving its financial performance bystrengthening its sales, services/products, and capital. Although the recent progress has not been disclosed, thiscompany seems to be continuing to post a net loss.
・The Company is also working on the sales promotion of PCA Subscription (same application functions as the cloudservice, with data compatibility) and PCA hyper (enterprise systems for mid-tier companies). However, it is still inthe stage of raising awareness of its products and services and strengthening sales efforts, and significant progresshas still not been seen in this fiscal year’s Q1.
・Regarding PCA Hub (an online storage service that enables safe and secure sharing of important business data andfiles within a company, which is also compliant with the Electronic Books Preservation Act; the goal is to gain atotal of 2,000 corporate users within one year after its release in March 2022), the Company has been working onsequentially increasing the product lineup and promoting sales. In May 2023, the Company released the eDOC
Upload Tool (a desktop application that automatically uploads files stored in a local folder on a PC to the cloud on
PCA Hub eDOC) as a standard function of PCA Hub eDOC to enhance usability, including the automation of
accounting operations.
・The Company’s business is a cash cow and its cash & deposits have been accumulating year after year. Its challenge
will continue to be the improvement of capital efficiency, execution of investment strategies for growth, anddevelopment of businesses that will become the next major source of earnings.
◆ Stock Price and Characteristics
・The Company is seen as a subscription-service growth stock that is defensive, domestic-demand oriented, and smallcap. Since December 2018, it has been significantly outperforming the TOPIX. Also, since the announcement of thefinancial forecasts for the current fiscal year, the stock price has stayed firm in response to the strong results. Afterthe announcement of the Q1 results, the stock price reached a new high for this year in response to the significant
growths in sales and profits (Figure C on page 7).

・The volatility of its financial results and stock price tends to increase before and after the occurrence of high demand
triggered by events such as those related to changes in the tax system, accounting standards, OS, and products.
・Compared to the average valuation of all TSE Prime stocks, the valuation of the Company’s stock based on thisfiscal year’s company forecast is undeniably expensive regarding the P/E, the actual P/B, and the forecasted dividend
yield (based on the closing price on July 31, 2023; as reference, the TSE Prime’s average is 15.8x for the forecasted
P/E, 1.3x for P/B, and 2.2% for the simple average of the dividend yield).
・Comparing the major valuation measures with its competitors Obic Business Consultants and Miroku Jyoho Service,
the Company’s valuation is underpriced for P/B but in the middle range for the remaining measures (Figure 4).
However, it should be noted that the Company’s Q1 results and full-year forecasts for the current fiscal year were
the highest in terms of both the sales growth and the profit growth.
・As mentioned earlier, we expect upward revisions of the Company’s profit forecasts for the current fiscal year. We
estimate the P/E to be about 30x based on the current fiscal year’s forecast, 28x based on the next fiscal year’s
forecast, and about 27x based on the forecast for the fiscal year after the next (Figure B on page 7).
・Going forward, the key points will be the quarterly trends in financial performance, changes in the upfront
investment costs, the growth rate of the cloud service which is its growth driver, the sales trends of its various
products including the PCA Hub series and PCA Subscription, and the trends in Dreamhop’s financial performance.
・Since the Company is rich in cash, we should also watch for share buybacks, dividend hikes, and M&As as the
key factors that may impact future stock price.

Short Report

5/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023【Figure 4】Comparison of Valuation with Competitors
PCA(consolidated)

Company Name
Code
Stock Price (closing price of 7/31/2023)
Market Cap (million yen)This Fiscal Year's Forecasted P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)
This Fiscal Year's Q1: Sales (million yen)
Operating Profit (million yen)This Fiscal Year's Q1: YoY Change in Sales (%)
YoY Change in Operating Profit (%)
Operating Margin (%)
This Fiscal Year's Full-Year Company Forecast: Sales (million yen)
Operating Profit (million yen)This Fiscal Year's Full-Year Company Forecast: YoY Change in Sales (%)
YoY Change in Operating Profit (%)
Operating Margin (%)

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

4733

9928

9629
1,509
33,198
32.6
1.7
1.1
9.6
2.3
3,337
428
14.7
38.5
12.8
14,700
1,445
13.2
12.2
9.8

5,970
450,162
38.6
3.2
1.2
19.2
12.2
9,144
3,741
9.6
1.8
40.9
37,00015,950
9.8
8.4
43.1

1,687
58,718
12.3
2.1
2.7
5.5
1.4
10,484
1,430
7.9
-4.9
13.6
41,600
6,100
0.3
0.3
14.7

(Ref) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary and stock price data.
(Note) Market cap = number of shares outstanding x stock price (closing price on 7/31/2023). EPS values used in P/E calculations are basedon each company’s forecast for FY2024. BPS values used in P/B calculations reflect this fiscal year’s Q1 results. EV/EBITDA = (market
cap + interest-bearing debt – cash & deposits) / (operating profit + depreciation + intangible fixed assets amortization, etc.). Interestbearing debt and cash & deposits are based on this fiscal year’s Q1 results, while the operating profit is based on each company’s fullyear forecast for this fiscal year. Depreciation and intangible fixed assets amortization, etc., are based on the previous fiscal year’s
results. P/S = market cap ÷ sales (each company’s forecast for FY2024).

【 9629 PCA

Sector: Information & Communication 】 Figure A

FY
2020
2021
2022
2022
2023
2024
2024
2024
2025
2025
2025
2026
2026
2019
2020
2021
2022
2023
2024

Old Standard
Old Standard
Old Standard
New Standard
New Standard
CE: New Standard
New E: New Standard
Old E: New Standard
CE Medium-Term Plan: New Standard
New E: New Standard
Old E: New Standard
New E: New Standard
Old E: New Standard
Q1: Old Standard
Q1: Old Standard
Q1: Old Standard
Q1: New Standard
Q1: New Standard
Q1: New Standard

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

YoY

EPS

BPS

(million yen)（%）(million yen)（%）(million yen)（%）(million yen)

（%）

(Y )

(Y )

（Y ）

14,266
13,30815,142
13,382
12,981
14,70014,80014,70015,00015,52015,52016,50016,500
2,346
3,073
2,789
3,328
2,954
3,387

24.7
-6.7
13.8
0.6
-3.0
13.2
13.2
13.2
2.0
4.9
5.6
6.3
6.3
11.3
31.0
-9.2
19.3
-11.2
14.7

2,808
2,340
2,542
2,697
1,326
1,478
1,600
1,480

119.9
-16.7
8.6
15.2
-50.8
11.4
20.7
11.6

1,816
1,668

100.4
-8.1

90.97
83.50

675.81
791.64

18.00
11.33

2,367
883
925
1,000
925

41.9
-62.7
4.8
13.3
4.8

118.36
44.16
46.27
50.00
46.25

847.14870.38903.35899.60

24.00
17.00
17.00
18.00
17.00

1,730
1,570
1,820
1,670
69
598
471
987
315
436

8.1
6.1
5.2
6.4
-62.3
754.6
-21.2
109.4
-68.0
38.4

1,080
980
1,135
1,040
34
364
272
614
142
266

8.0
5.9
5.1
6.1
-64.6
945.3
-25.1
125.4
-76.8
86.9

54.00
49.00
56.75
52.00
1.70
18.25
13.66
30.75
7.13
13.33

939.35931.60977.10965.60541.56616.15676.52810.96830.18867.22

19.00
18.00
20.00
19.00
―
―
―
―
―
―

2,781
2,314
2,516
2,655
1,288
1,445
1,570
1,450
2,500
1,700
1,550
1,800
1,650
57
587
465
975
309
428

122.8
-16.8
8.7
14.7
-51.5
12.2
21.9
12.6
73.0
8.3
6.9
5.9
6.5
-67.1
917.5
-20.7
109.4
-68.3
38.5

Dividend(Ref) Prepared by Alpha-Win Research Dept.
(Note) “CE” is the Company’s forecast/estimate. “E” is Alpha-Win’s forecast/estimate (“Old E” is the previous forecast and “New E” is thecurrent forecast). “Q1” is the result for the period from April to June. EPS, BPS, and dividend are actual values which retroactively reflect
the 3-for-1 stock split conducted on October 1, 2021. “Old Standard” stands for the previous revenue-recognition standard and “NewStandard” stands for the new revenue-recognition standard.

Short Report

6/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023【 Stock Price and Valuation Indicators: 9629 PCA 】 Figure B
7/31/2023

Item

Item

P/E

P/B

Dividend Yield

Dividend Payout Ratio

Stock Price (Y)1,509

Last FY's Forecasts

34.2

1.7

1.1%

38.5%

Shares Outstanding (thou.)

22,000This FY's Forecasts

30.2

1.7

1.2%

36.0%

Market Capitalization (million yen)

33,198

Next FY's Forecasts

27.9

1.6

1.3%

35.2%

Equity Ratio at the End of This FY's Q1

57.6%

Last FY’s ROE

5.1%

Dilutive Shares (thou.)0(Ref) Prepared by Alpha-Win Research Dept. Estimates were made by Alpha-Win.

【Stock Chart (end-of-week prices) : 9629 PCA】

Figure C

(Y)

2,500
2,300
2,100

5.00

Stock price (left axis)
Price relative to TOPIX (right axis)

4.50
4.00

1,900
1,700

3.50

1,500

3.00

1,300
1,100

2.50

900

2.00

700

1.50

500

1.00

(Note) From the fourth week of August 2016 to the fifth week of July 2023 (closing price on 7/31)

(M
M
/Y
Y
)

08
/1
6
12
/1
6
04
/1
7
08
/1
7
12
/1
7
04
/1
8
08
/1
8
12
/1
8
04
/1
9
08
/1
9
12
/1
9
04
/2
0
08
/2
0
12
/2
0
04
/2
1
08
/2
1
12
/2
1
04
/2
2
08
/2
2
12
/2
2
04
/2
3

300

【 Performance】

Period1 month
3 months
6 months
12 months

Return vs. TOPIX
10.5%
9.0%
39.0%
26.1%
16.6%
-1.0%
26.2%
6.5%

(Note) Reflects stock price and index
values through the closing priceon 7/31/2023. Performance
relative to TOPIX (vs. TOPIX) isthe relative performance
calculated by subtracting the
TOPIX’s performance from thestock performance.

(Ref) Prepared by Alpha-Win Research Dept. based on the stock price data.

Short Report

7/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.

Alpha-Win Company Research Report
PCA (9629 TSE Prime)

Issued: 8/1/2023＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimer
This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc.
(hereinafter “Alpha-Win”) on the request of the company presented in this Report.
This Report is not to be construed as a recommendation or solicitation of investment. Alpha-Win shall not beliable for any consequences including direct or indirect loss, lost profit, or damage resulting from the use of or
reliance on this Report. Investors who read this Report must make their own decisions on all investment
matters and take full responsibility regarding their investment.
This Report has been prepared with a focus on objectivity and neutrality based on the analysis of generally accessible
public information and supplemental information including interview(s) by the analyst. Alpha-Win, the writer, and/or
other persons involved in the publication of this Report may already hold, or buy and sell in the future, the stock of
the company presented in this Report.
Contents of this Report are based on information current as of the issue date and are subject to change without
notice.
For the latest (updated) version of this Report, please see our website (https://www.awincap.com/). We do not
warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or fit forany purpose and do not accept any responsibility or liability.
Copyright of this Report belongs to Alpha-Win and no part of the publication may be copied, photocopied, cited, ortranslated without our consent.
For inquiries regarding this Report, please send us an e-mail to info@awincap.com. However, Alpha-Win and thewriter of this Report do not have any obligation to reply to inquiries.
SV2023-0805-900

Short Report

8/8This Alpha-Win Company Research Report (hereinafter “this Report”) has been prepared by Alpha-Win-Capital Inc. (hereinafter “Alpha-Win”) on the request of the company presented in thisReport for the purpose of providing a description of the company. This Report is not to be construed as a recommendation or solicitation of investment. Contents of this Report are based on
information current as of the issue date and are subject to change without notice. We do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
fit for any purpose and do not accept any responsibility or liability. Alpha-Win shall not be liable for any consequences including direct or indirect loss, lost profit, or damage resulting from theuse of or reliance on this Report. Investors who read this Report must make their own decisions on all investment matters and take full responsibility regarding their investment. Intellectual propertyof this Report belongs to Alpha-Win and no part of this Report may be copied, photocopied, cited, or translated without our consent.