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

Issued: 2/6/2023

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/
2019/8/1● Flash Report on Financial Results◆ A major specialized player in enterprise system software, taking a lead in the cloudbusiness as No. 1 in the industry
・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, humanresources, work management, attendance management, etc.) mainly to small/medium-sized companies as onpremises or as cloud-based software. It also provides related maintenance services. Its mission is to contribute tosociety as a “Management Support Company” that supports companies in conducting smooth management andoperation.
・It is taking a lead in cloud-based business software (PCA Cloud) as No. 1 in the industry. Thanks to the transition
to the subscription-based business model, its business stability and profitability have improved significantly.
・The PCA Group has been providing products and services that help improve its corporate users’ operation withregards to work-from-home and staggered working hours during the COVID-19 crisis, and has been developing its
business mainly around cloud and solution services.

◆ Results for the first nine months of this fiscal year: continued fallback from the eventdriven high demand for the products, resulting in sales and profit declines
First Nine Months: Summary of Results
・The Company’s financial results for the first nine months of FY 2023 (the first nine months were from April to
December 2022; hereinafter, Q1 = April to June, Q2 = July to September, Q3 = October to December, and Q4 =January to March; note that the Company’s fiscal year is March ending, i.e., FY 2023 ends in March 2023) were as
follows: sales of Y9,533 million (-6.0% YoY), operating profit of Y1,340 million (-47.7% YoY), recurring profit ofY1,372 million (-47.2% YoY), and net profit of Y824 million (-63.6% YoY). Compared to the same period of theprevious fiscal year, there were a sales decline and a significant profit drop (Figure 1). The main reasons for thesedeclines were the lower sales due to the fallback from the high, event-driven replacement demand for the products
and the higher costs due to upfront investments and inflation which caused the profit margin to decline.
・In terms of achieving the upwardly-revised company plan for the full year (described later on page 3), there was alarge progress in the first nine months of this fiscal year, with a progress of 73.3% for sales, 96.3% for operating
profit, and 102.0% for net profit.
【Figure 1】Results for the First Nine Months
Results for the First Nine Months

FY 2022: First Nine Months

FY 2023: First Nine Months

Change in Amount% Change% of Total Sales

Unit: million yen

Apr-Dec 2021

Apr-Dec 2022

Million yen%%

Consolidated Sales

Sales by Category

10,144

9,533

-611

-6.0

100.0

Products

2,463

865

-1,598-64.9

9.1

Merchandise

357

432

75

21.0

4.5

Maintenance Service*

2,479

2,488

9

0.3

26.1

Cloud Service*

4,044

4,372

328

8.1

45.9

Other Operating Revenue

799

1,375

576

72.1

14.4

6,790

5,976

-814

-12.0

Gross Profit
Gross Margin (%)
SG&A Expenses
SG&A Expenses Ratio (%)
Operating Profit
Operating Margin (%)
Recurring Profit
Recurring Margin (%)
Net Profit
Net Margin (%)

66.9

62.7

-4.2

4,227

4,635

408

41.7

48.6

7.0

2,563

1,340

-1,223

25.3

14.1

-11.2

2,599

1,372

-1,227

25.6

14.4

-11.2

2,268

824

-1,444

22.4

8.6

-13.7

9.7
-47.7
-47.2
-63.6

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

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1/7This 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: 2/6/2023

First Nine Months: Sales by Category
・In terms of the sales of each sales category (the Company’s categorization of sales for which results are disclosed),
only the products’ sales declined YoY. Sales of the cloud service, merchandise, maintenance service, and especiallyother operating revenue increased, but were not enough to offset the decline in the products’ sales.
・Sales by category were as follows (descriptions all pertain to the first nine months):
1.

Regarding the products (conventional packaged software: on-premises), there was an early replacement demandmainly in the first half of the previous fiscal year prior to the end of support for the PCA X series in December
2021 (shift to the DX series). A fallback from this demand was seen during this fiscal year’s first nine months,
and sales fell significantly (from the first nine months of FY 2022 ⇒ the first nine months of FY 2023; the sameorder applies hereinafter) from Y2,463 million ⇒ Y865 million (-Y1,598 million or -64.9% YoY; from 24.3%⇒ 9.1% of total sales). Since the products have a high profit margin compared to the other categories and also
experienced a large decline in the amount of sales, this category had most likely also pushed down the overallprofit.

2.

Despite the continued trend of going paperless through digitalization, demand for merchandise (ledger sheets,etc.) such as pay slips has been solid. Its sales increased from Y357 million ⇒ Y432 million (+Y75 million or+21.0% YoY; 3.5% ⇒ 4.5% of total sales).

3.

Sales of maintenance service increased slightly from Y2,479 million ⇒ Y2,488 million (+Y9 million or +0.3%
YoY) due to decreased sales of the on-premises (products) and the shift to the cloud services.

4.

The cloud service’s sales were Y4,372 million, which accounted for the largest proportion of total sales among
the sales categories (45.9%). Combined with maintenance service (26.1% of total sales), the subscription
businesses accounted for 72.0% of total sales. Since both businesses have high continuity and marginal profit
ratios, they have likely been continuing to contribute significantly to the Company’s stability of businessperformance in terms of both sales and profits.
The sales growth rate of the cloud has slowed down, with a sales growth of +35.6% YoY in the first nine months
of FY 2022 but +8.1% YoY in the first nine months of FY 2023. This slowdown during this fiscal year waspresumably due to the expansion of business scale with further implementation of the cloud service among its
customers, as well as the fallback from the partial high demand in the previous fiscal year for the migration fromthe products to the cloud service.
On a yearly basis, the number of corporate users of the cloud service (net number) has been increasing from12,313 in March 2019, 14,388 in March 2020 (+2,075 YoY), 16,444 in March 2021 (+2,056 YoY), 19,152 as ofthe end of March 2022 (+2,708 YoY), 19,441 as of the end of June 2022 (YoY increase not disclosed for thisperiod), and 19,853 as of the end of September 2022 (+2,608 YoY), and exceeded 20,000 users at 20,406 as ofthe end of December 2022 (+1,828 YoY).
The year-on-year increase in the number of corporate users has been slowing down compared to before. However,looking at the increase in the number compared to the most recent quarter (QoQ), in the order of Q3 FY 2022 ⇒Q4 FY 2022 ⇒ Q1 FY 2023 ⇒ Q2 FY 2023 ⇒ Q3 FY 2023, the amount of growth in the number of corporate
users has been recovering from +793⇒ +574⇒ +289 ⇒ +412 ⇒ +553.
The cloud’s quarterly sales (three-month periods) have been solid as shown in Figure 2 on page 3, but the YoY
sales growth rate has been slowing down.

5.

Other operating revenue increased significantly from Y799 million ⇒ Y1,375 million (+72.1% YoY). Sales ofother companies’ products such as those related to DX have been strong.

Short Report

2/7This 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: 2/6/2023【Figure 2】Quarterly Change in the Sales of the Cloud Business(Ref) Prepared by Alpha-Win Research
Dept. based on the financial
45
results summary.

1,800

Cloud's Sales (left axis: million yen)

1,600

YoY Rate of Change (right axis: %)

40

1,400

35

1,200

30

1,000

25

800

20

600

15

400

10

200

5

0

0

Q1

Q2

Q3

Q4

Q1

FY 2017

Q2

Q3

Q4

Q1

FY 2018

Q2Q3

FY 2019

Q4

Q1

Q2

Q3

FY 2020

Q4

Q1

Q2

Q3

FY 2021

Q4

Q1

Q2

Q3

FY 2022

Q4

Q1

Q2

Q3

FY 2023First Nine Months: Profit
・Since the Company has a business model with a high marginal profit ratio, changes in sales tend to have a large
impact on changes in profit margins and profits. In this fiscal year’s first nine months, the sales composition changed
significantly due to a large decrease in the sales of the products which have good profitability and a large increase in
the less profitable other operating revenue. With worsened product mix and increased costs, the gross margin declined
by 4.2 percentage points from 66.9% in the previous fiscal year’s first nine months to 62.7% in this fiscal year’s firstnine months (Figure 1 on page 1).
・While sales declined by -6.0% YoY, the SG&A expenses increased by Y408 million or +9.7% YoY due to higher
personnel, development, and other costs. As a result, the SG&A expenses ratio rose by 7.0 percentage points from
41.7% ⇒ 48.6% and the operating margin declined sharply from 25.3% ⇒ 14.1% (worsened by -11.2 percentage
points). This first nine months’ result exceeded the Company’s targeted full-year operating margin of 10.7%, though.
・In the first nine months of the previous fiscal year, a gain on sales of investment securities of Y1,111 million wasrecorded under extraordinary income, but there were no major non-operating or extraordinary income/losses during
this fiscal year’s first nine months. Consequently, there was a greater rate of decline for net profit than operating profit.

Balance Sheet・As of the end of the Q3 of this fiscal year (December 2022), there has been no significant change in the balance
sheet compared to the end of the previous fiscal year (March 2022).
・Its financial position has continued to be solid, with a high equity ratio of 59.4% and current ratio of 215.8%.
・The Company’s business is a cash cow. Its cash & deposits have been accumulating year after year and exceeding
the annual sales (from Y16.1 billion at the end of March 2022 ⇒ Y16.8 billion at the end of December 2022; the sameorder applies hereinafter). Its challenges will be to improve capital efficiency, execute investment strategies for growth,and develop businesses that will become the next major source of earnings.
・Contract liability (previously “unearned revenue,” etc.: applicable to subscription contracts such as the cloud andrefers to consideration received for services which have not yet been provided) had increased from about Y7.3 billion⇒ about Y7.7 billion with the growth of the cloud business.

◆Financial Forecast for This Fiscal Year
Financial Forecast for This Full Fiscal Year: Announced upward revisions, increased dividend, andcancelled treasury shares・Upon announcing the Q3 results (on January 30, 2023), the Company also upwardly revised its full-year forecasts
which had been announced at the beginning of the fiscal year, both on a consolidated and non-consolidated basis(Figure 3 on page 4). For the full fiscal year (consolidated; the same applies hereinafter), the Company raised its
sales forecast by +Y80 million or +0.6% (from the initial forecast ⇒ revised forecast; the same order applies
hereinafter) from Y12,927 million (-3.4% YoY) ⇒ Y13,008 million yen (-2.8% YoY).
Short Report
3/7This 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: 2/6/2023

・The forecast for operating profit was significantly raised (by +Y291 million or +26.5%) from Y1,100 million (58.6% YoY) ⇒ Y1,391 million (-47.6% YoY). The Company expects the operating margin to improve from 8.5%
⇒ 10.8% since its initial cost estimates had been conservative and it has been reducing costs through a more efficientuse of expenses. The Company has also revised its net profit forecast upward from Y639 million (-73.0% YoY) ⇒Y808 million (-62.6% YoY).
・The fallback from the event-driven high demand for the products is expected to still continue and impact the fullyear results too. As the sales growth of other operating revenue and the cloud will not be enough to compensate forthis decline, the Company expects an overall decline in sales.
・The Company’s new forecast is almost the same as our forecast in terms of both sales and profits, so there was no
major surprise.
(Ref) Prepared by Alpha-Win Research Dept.
based on the financial results summary.

【Figure 3】Forecast of Consolidated Results for the Full Fiscal Year
Consolidated

FY 2022(unit: million yen)
New Revenue-Recognition Standard

Results

Sales
Products
Merchandise

Sales byCategory

Maintenance Service
Cloud Service
Other Operating Revenue

Gross Profit
Gross Margin

SG&A Expenses
SG&A Expenses Ratio

Operating Profit
O.P. Margin

Recurring Profit
R.P. Margin

FY 2023: Company Forecast
Old Forecast: CE New Forecast: CE

13,382
2,954
439
3,316
5,568
1,103
8,809
65.8%
6,153
46.0%
2,655
19.8%
2,697
20.2%

12,927
1,399
402
3,257
6,115
1,752
7,845
60.7%
6,744
52.2%
1,100
8.5%
1,132
8.8%

Amount of Revision:
New - Old

13,008FY 2023: Alpha-Win Research Department's Forecast% Revision:
New/Old

81

1,391
10.7%
1,426
11.0%

0.6%

291
2.2%
294
2.2%

26.5%

26.6%

Net Profit Attributable to Owners of the
Parent

2,367

639

808

169

N.P. Margin
Annual Dividend Per Share (yen)

17.7%
24.0

4.9%
13.0

6.2%
17.0

1.3%
4.0

Alpha-Win's
Forecast: E

Alpha-Win's Forecast - The
Company's New Forecast

12,950
1,300
400
3,250
6,200
1,800
8,000
61.8%
6,700
51.7%
1,400
10.8%
1,420
11.0%

26.0%

% Difference(E / New CE)

-58

-0.4%

9
2.3%
-6
2.2%

800

-8

6.2%
17.0

1.2%
0.0

0.8%
-0.5%
-1.3%

Q1 FY 2022

Q2 FY 2022

Q3 FY 2022

Q4 FY 2022

Q1 FY 2023

Q2 FY 2023

Q3 FY 2023

Q4 FY 2023

Unit: million yen

Apr-Jun 2021

Jul-Sep 2021

Oct-Dec 2021

Jan-Mar 2022

Apr-Jun 2022

Jul-Sep 2022

Oct-Dec 2022

Jan-Mar 2023

Sales by Category

3,328

3,281

3,535

3,238

2,954

3,209

3,370

935

783

745

491

241

316

308
210

Merchandise

85

82

190

82

108

114

Maintenance Service

820

826

833

837

838

850

800

Cloud Service

1,255

1,340

1,449

1,524

1,361

1,499

1,512

Other Operating Revenue
Gross Profit
Gross Margin (%)

231

250

318

304

404

480

491

2,284

2,222

2,284

2019

1,829

2,083

2,064

% Change(FY2023/FY2022)

-41

-44.6

-44

-44.9

-115

Loss

64.6

62.4

61.9

64.9

61.2

1,474

1926

1,520

1,545

1,570

39.3

44.0

41.7

59.5

51.5

48.1

46.6

975

778

810

92

309

538

493

51

Operating Margin (%)

29.3

23.7

22.9

2.8

10.5

16.8

14.6

1.5

987

795

817

98

315

556

501

54

Recurring Margin (%)

29.7

24.2

23.1

3.0

10.7

17.3

14.9

1.6

614

835

819

99

142

352

330

-16

Net Margin (%)

18.4

25.4

23.2

3.1

4.8

11.0

9.8

-0.5

Net Profit

Amount of Change(FY2023 - FY2022)

7.3

67.7

Recurring Profit-47.3%

237

1,444

SG&A Expenses Ratio (%)-66.2%-47.3%

3,475

68.6

Operating Profit-1,5678.9%

Q4 (Jan-Mar)

1,309

SG&A Expenses-3.2%-56.0%
-8.9%
-2.0%
11.4%
63.2%
-9.2%

-11.5%-7.0

Quarterly Results

Products

YoY: % Change-432-1,654
-39
-66
632
697
-809
-4.1%
547
5.8%
-1,255-9.0%-1,277-9.2%(Ref) Prepared by Alpha-Win Research Dept. basedon the financial results summary.

【Figure 4】Quarterly Consolidated Results (Results and Forecasts)

Consolidated Sales

YoY: Amount of
ChangeFinancial Outlook for This Fiscal Year’s Fourth Quarter
・In Q4 (January to March 2023), the Company expects to increase sales to Y3,475 million (+7.3% YoY), but it
expects operating profit to be halved YoY to Y51 million (-44.6% YoY) and net profit to fall from a profit of Y99
million in Q4 of the previous fiscal year to a loss of -Y16 million (Figure 4). The decline in operating profit isexpected to be mainly caused by the Company’s ambitious investment (over Y200 million) in promotional expenses,
as it sees the Revised Electronic Books Preservation Act (hereinafter, “Electronic Books Preservation Act”) and the
new invoicing system as business opportunities. Regarding the Electronic Books Preservation Act, its grace period(during which preservation in paper form will be allowed) will end on December 31, 2023. The new invoicing system
will start on October 1, 2023. Since most companies, regardless of size, will have to adapt to these new laws/systems,
replacement demand for the Company’s software and services is anticipated (e.g., sales expansion of PCA Hub*eDOC). *PCA Hub is the Company’s originally developed, online storage service that enables corporate users to safely andsecurely share important business data and files. Meets the requirements of the Electronic Books Preservation Act. Aiming togain 2,000 corporate users in the first year after its release in March 2022.
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4/7

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 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: 2/6/2023

・The Company’s profit forecast for Q4 (January to March 2023) seems somewhat conservative (operating margin of
1.5% expected for Q4), and we believe that further upward revisions may be possible for the full fiscal year depending
on cost control. However, since the Company intends to accelerate upfront investments for growth in the next fiscal
year and beyond, we have not changed our forecast (for sales and profits).
・At the beginning of this fiscal year, the Company had planned to reduce its annual dividend from 24 yen/share in
the previous fiscal year (including a commemorative dividend of 11 yen/share) to 13 yen/share for this fiscal year
(maintaining the same amount of ordinary dividend). However, on December 26, 2022, the Company announced that
it will increase dividend to 17 yen/share, so we also revised up our forecast for dividend from 16 yen to 17 yen
accordingly.
・The Company had previously determined the amount of dividend based on the dividend payout ratio, but in orderto improve the stability of dividend in its dividend policy, the Company has decided to place more emphasis on the
consolidated DOE and pay this fiscal year’s dividend based on a DOE of 2.0%.
・On the same day, the Company also announced its decision to cancel 1.1 million treasury shares (4.8% of the total
number of outstanding shares before the cancellation) and executed the cancellation on December 28. As a result, theCompany now has 22 million shares outstanding, of which it holds approximately 2 million shares as treasury shares(9.1% of the total number of outstanding shares).

Forecast for Next Fiscal Year Onward
・We have not changed our forecast for this fiscal year onward since our previous report (issued on December 19,2022) (Figure 3 on page 4).
・From the next fiscal year onward, since the fallback from the event-driven high demand for the products will haveended, the Company’s overall sales are expected to return to growth with the continued growth of the cloud. While
the rise in costs due to upfront investments in R&D, personnel, and promotion expenses, as well inflation, will likely
push down profits, the Company is expected to conduct cost control so that it will return to a profit growth trend alongwith the sales growth.
・Although the slowdown in the growth rate of the cloud’s number of contracts (net increase) and sales is a point ofconcern, we plan to reflect the positive effects of the Electronic Books Preservation Act and the announcement of the
final results for FY 2023 in reviewing our medium-term financial outlook.

◆Stock Price and Valuation
Stock Characteristics and Performance
・The Company’s stock is seen as a subscription-service growth stock that is defensive, domestic-demand oriented,
and small-cap. Since December 2018, it had been significantly outperforming the TOPIX.
・However, after the announcement of the Q3 results (on January 30, 2023), the stock price fell due to sell-offs since
all positive news seemed to have come out for now with the announcement of the upward revisions. The stock has
been underperforming the major indices since then (Figure 5 on page 6). As reference, the historical beta of theCompany’s stock (on a monthly basis over the past five years; vs. TOPIX; including dividends) is low at 0.62.
Therefore, as a characteristic of this stock, it will be less likely to outperform the TOPIX and economically sensitive
stocks during this recent market rally in anticipation of lower interest rates.
・Volatility of its financial results and stock price tends to increase in response to high demand triggered by events
such as those related to changes in the tax system, accounting standards, OS, and products. At this point, the impactof the Electronic Books Preservation Act is expected to be limited so that there will be no major demand driven by it.
However, it is still a tailwind for the Company and its impact on future financial performance and stock price should
be closely watched.

Valuation
・Compared to the average of all TSE Prime stocks, valuation of the Company’s stock based on this fiscal year’s
company forecast (after the upward revisions) is undeniably expensive regarding the P/E, actual P/B, and forecasted
dividend yield (Figure 5 on page 6).
・Its valuation also does not seem cheap compared to its competitors Obic Business Consultants (listed on TSE Prime;
securities code 4733) and Miroku Jyoho Service (also TSE Prime; 9982) regarding the major valuation measures
excluding P/B.
・Based on our financial forecasts, the P/E would be about 21x for next fiscal year and about 16x for the fiscal year
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5/7This 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: 2/6/2023

after the next. The stock price already seems to reflect the anticipated future recovery in financial performance tosome extent.

Key Points Going Forward
・Over the medium term, changes in the Company’s overall sales and profit margins will depend on the cloud’s growthrate, whether the new businesses will succeed (PCA Hub series, PCA Subscription, PCA hyper, Dreamhop’s mental
health business, etc.), the sales situation of the products, and cost control. An especially key point will be the cloudbusiness, specifically concerning the increase in the number of corporate users of PCA Cloud and its quarterly rateof change in sales, since the business has been the Company’s growth driver but has been experiencing a slowdown
in its growth rate.
・Since the Company is rich in cash, it has enough capital to potentially conduct share buybacks, dividend hikes,
and M&As in the future. These will be important factors that may impact the stock price.
【Figure 5】Comparison of Valuation and Performance with Major Indices and Competitors
Closing price on February 3, 2023

This fiscal year's forecasted
P/E (in terms of theCompany's planned EPS)

Stock price or
index

Actual P/B
Forecasted dividend
Return since the beginning(at the end of theyield (simple average):of the year: %most recent quarter)%

Return since January
30, 2023: %PCA (TSE Prime 9629)

1,266

31.30

1.46

1.34

-5.7

OBC (TSE Prime 4733)

4,935

30.18

2.72

1.42

14.9

-3.2

MJS (TSE Prime 9928)
Average of all TSE Prime stocks
Average of all TSE Standard stocks

1,755
1,013.91
1,022.87

14.55
13.58
14.44

2.52
1.16
0.92

2.28
2.38
2.23

21.6
4.2
2.8

11.5
4.4
-0.1

Average of all TSE Growth stocks

993.61

82.15

4.27

0.32

7.1

1.3

TOPIX

1,970.26

4.2

4.4

Nikkei Stock Average

27,509.46

5.4

0.3

12.78

1.15

2.28

-8.3

(Ref) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary and stock price data.

【 9629 PCA

Sector: Information & Communication 】 Figure A

FY
2019
2020
2021
2022

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

YoY

EPS

BPS

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

（%）

(Y )

(Y )

Dividend（Y ）Old Standard

11,43914,266
13,30815,142

16.9
24.7
-6.7
13.8

1,248
2,781
2,314
2,516

54.7
122.8
-16.8
8.7

1,277
2,808
2,340
2,542

53.0
119.9
-16.7
8.6

906
1,816
1,668

105.5
100.4
-8.1

44.42
90.97
83.50

596.59675.81
791.64

10.33
18.00
11.33

2022

New Standard(applies to all below)

13,382

0.6

2,655

14.7

2,697

15.2

2,367

41.9

118.36847.14

24.00

2023
2023
2023
2024
2025
2025

CE Initial Forecast
CE Revised Forecast
E Forecast
ECEE

12,927
13,008
12,95014,31015,00015,520

-3.4
-2.8
-3.2
10.5

1,100
1,391
1,400
1,870
2,500
2,550

-58.6
-47.6
-47.3
33.6

1,132
1,426
1,420
1,890

-58.0
-47.1
-47.3
33.1

639
808
800
1,130

-73.0
-62.6
-66.2
41.3

31.95
40.45
40.00
56.50

863.09902.60

13.00
17.00
17.00
18.00

36.4

2,570

36.0

1,550

37.2

77.50

962.10

19.00

8.5(Ref) Prepared by Alpha-Win Research Dept.
(Note) CE: the Company’s forecast/estimate. E: Alpha-Win’s forecast/estimate. “Old Standard” stands for the previous revenue-recognition
standard and “New Standard” stands for the new revenue-recognition standard.

【 Stock Price and Valuation Indicators: 9629 PCA 】 Figure B
Dividend Yield

Dividend Payout Ratio

1.45

2.0%

13.6%

30.6

1.42

1.4%

42.5%

21.7

1.36

1.5%

31.9%

59.4%

Last FY’s ROE

14.4%

Item

2/3/2023

Stock Price (Y)1,226Last FY's Forecasts

10.4

Shares Outstanding (thou.)

22,000This FY's Forecasts

Market Capitalization (million yen)

26,972

Next FY's Forecasts

Dilutive Shares (thou.)

0

Item

P/E

P/B

Equity Ratio at the End of This FY's Q3(Ref) Prepared by Alpha-Win Research Dept.
(Note) Forecasts were made by Alpha-Win Research Dept. “Shares Outstanding” are the number of shares after the cancellation of treasury shares.

Short Report

6/7This 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)【Stock Chart (end-of-week prices) : 9629 PCA】

Issued: 2/6/2023

Figure C

(Y)

2,500
2,300
2,100

5.00

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

4.50

1,900

4.00

1,700

3.50

1,500
1,300

3.00

1,100

2.50

900

2.00

700
500

1.50
1.00

08
/1
6
01
/1
7
06
/1
7
11
/1
7
04
/1
8
09
/1
8
02
/1
9
07
/1
9
12
/1
9
05
/2
0
10
/2
0
03
/2
1
08
/2
1
01
/2
2
06
/2
2
11
/2
2
(M
M
/Y
Y)

300

(Note) From the fourth week of August 2016 to the first week of February 2023

【Performance】
PeriodReturn vs. TOPIX
1 month-8.6%-12.8%
3 months
7.4%
5.3%
6 months
2.5%
1.0%
12 months-22.7%-26.6%(Note) Reflects stock price and index values
through the closing price on 2/3/2023.
Performance vs. TOPIX is the relative
performance calculated by subtracting the
TOPIX’s performance from the Company’s
performance. Performance for the onemonth period is the comparison between theclosing price on the last day of the December
2022 and the closing price on 2/3/2023 (thesame applies to the other periods).

＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊

Disclaimers
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
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other persons involved in the publication of this Report may already hold, or buy and sell in the future, the stock of
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Contents of this Report are based on information current as of the issue date and are subject to change without
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do not warrant or represent that the information in this Report is accurate, reliable, complete, appropriate, or
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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 the writer of this Report do not have any obligation to reply to inquiries. S2023-0206-0900

Short Report

7/7This 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.