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

Issued: 1/31/2022

Alpha-Win Capital Inc. Research Department
http://www.awincap.com/● Flash Report on Financial Results◆ A major specialized player in enterprise system software, taking a lead in the cloudbusiness as its No. 1 in the industry
・PCA CORPORATION (hereinafter referred to as the "Company") sells originally-developed, packaged businesssoftware (for accounting, sales management, purchasing and inventory management, payroll, human resources, work
management, etc.) mainly to small/medium-sized companies as on-premises or as cloud-based software. It also
provides related maintenance services. Its mission is to contribute to society as a “Management Support Company”
that supports other companies conduct smooth management and operation. It is taking a lead in cloud-based businesssoftware (PCA Cloud) as No. 1 in the industry. Going forward, it plans further shift to the subscription businesses.
・In recent years, results have been solid thanks to the transition to the subscription-based business model and theevent-driven high demand. In the fiscal year before the previous (FY 2020; note that the Company’s fiscal year is
March ending, e.g., FY 2022 ends in March 2022), sales and profit had increased for the fifth consecutive fiscal
year and record-high profit was achieved. In the previous fiscal year, sales and profit had declined following theprevious event-driven spike of demand caused by the consumption tax revision and the end of support for Windows
7. However, this fiscal year (FY 2022), although there was negative impact due to the transition to the new revenuerecognition standard, this was absorbed by the replacement demand for the products and the growth of the cloud,and increases in sales, profit, and dividend are expected.
・Currently, it is listed on the First Section of the Tokyo Stock Exchange. In the new market segments of the TSEstarting in April 2022, the Company is expected to move to the Prime Market.

◆ Results for the first nine months of this fiscal year: solid growth of the products and thecloud, sales growth, and significant profit growth. Hit record-high profit and has mostly
achieved its full-year profit goal.
Results for the First Nine Months of FY 2022 (April-Dec 2021)
・In the first nine months of FY 2022 (hereinafter, first nine months or Q3 YTD = April through December), there
was sales growth as well as significant growths in profit: sales were Y10,144 million (+7.8% year-on-year or YoY;
note that numbers in this Report have generally been rounded to the first decimal place), operating profit was Y2,563
million (+68.2% YoY), recurring profit was Y2,599 million (+67.2% YoY), and net profit was Y2,268 million(+115.0% YoY) (Figure 1 on page 2). Record-high profits for the first nine months (operating, recurring, and net)
had been achieved.
・Due to the application of the new revenue-recognition standard starting this fiscal year, compared to the conventional
standard (previous standard), sales had been decreased by Y1,323 million and operating profit had been decreased
by Y157 million. When this impact is excluded, sales would actually have been Y11,467 million (+21.8% YoY) andoperating profit would have been Y2,720 million (+78.5% YoY).
・Compared to the full-year company plan (based on the new standard), progress in the first nine months was 75.1%
for sales, 99.1% for operating profit, and 98.2% for net profit. Progress with profit had been particularly extremely
strong, having mostly achieved the full-year plan (right most column of Figure 1 on page 2). Progress with sales andoperating profit had also greatly exceeded the past 16 fiscal years’ average progress (during the first nine months)of 69.7% and 69.0%, respectively.
・In the first nine months, due to replacement demand for the PCA X series whose support ended in December 2021
(shift to the DX series), sales of products (conventional package software: on-premises) doubled YoY. Sales of thecloud service were also solid and grew by +35.6% YoY (middle column of Figure 1 on page 2). These had been thedrivers of overall growth, compensating for the sales decline of maintenance service, merchandise, and otheroperating revenue. Due to the change in the accounting standard, sales of the “other operating revenue” category
decreased by Y1,413 million YoY (-63.9%), but this decline would have been kept at Y263 million (-11.9%) under
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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 First Section)

Issued: 1/31/2022/2022

the previous standard. The percentage of sales of the subscription business (cloud + maintenance) was 64.3% under
the new standard (58.3% under the old standard), accounting for the majority of the total sales and indicating
improved business continuity, profitability, and management stability.
・In terms of profit, sales growth and improvement of profit margins had led to a significant profit growth. The grossmargin had increased by 7.3 percentage points from 59.6% in the first nine months of the previous fiscal year to66.9% in the current fiscal year due to the change in the accounting standard and the improvement of the productmix (based on the old standard, the gross margin increased by 1.1 percentage points to 60.7%). Similarly, the SG&A
expenses ratio fell by 1.7 percentage points from 43.4% to 41.7%, and as a result, the operating margin rose by 9.1
percentage points from 16.2% to 25.3% (based on the old standard, the SG&A expenses ratio improved by 6.4
percentage points to 37.0% and the operating margin improved by 7.5 percentage points to 23.7%).
・Investment securities were sold both in the first half and the second half, with gain on sales of Y673 million andY438 million each, totaling Y1,111 million recorded as extraordinary income. As a result, net profit doubled YoY.
【Figure 1】Results for the First Nine Months and Full-Year PlanFirst Nine Months
of FY 2021

Results

First Nine Months of FY 2022

Apr-Dec 2020
Unit: million yen, %Consolidated Sales

Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue

Sales Category
Gross Profit
SG&A Expenses
Operating Profit

Gross Margin (%)
SG&A Expenses Ratio (%)

Recurring Profit
Net Profit

Operating Margin (%)
Recurring Margin (%)
Net Margin (%)

Apr-Dec 2021

Previous RevenueRecognition Standard
9,414
1,176
394
2,650
2,982
2,212
5,611
59.6
4,087
43.4
1,524
16.2
1,554
16.5
1,055
11.2

Diff. from Previous
FY's First Nine Months

Diff. in %New RevenueSimple Comparison (new std. for this FY
and old std. for last FY)
Recognition Standard
10,144
730
7.8
2,463
1,287
109.3
357
-37
-9.5
2,479
-171
-6.5
4,044
1,062
35.6
799
-1,413
-63.9
6,790
1,179
21.0
66.9
7.3
4,227
140
3.4
41.7
-1.7
2,563
1,039
68.2
25.3
9.1
2,599
1,045
67.2
25.6
9.1
2,268
1,213
115.0
22.4
11.2

Apr-Dec 2021

YoY Difference

Previous RevenueRecognition Standard
11,487
2,478
357
2,636
4,044
1,949
6,963
60.6
4,242
36.9
2,720
23.7
2,614
22.8
2,283
19.9

Diff. in %Comparison under Previous
Revenue-Recognition Std.
2,073
22.0
1,302
110.6
-37
-9.5
-14
-0.5
1,062
35.6
-263
-11.9
1,352
24.1
1.0
155
3.8
-6.5
1,196
78.5
7.5
1,060
68.2
6.2
1,228
116.4
8.7

FY 2021 Full Year

FY 2022 Full-Year
Forecast (CE)

Progress (againstcompany plan)Apr 2020 - Mar 2021

Apr 2021 - Mar 2022

This FY's First Nine Months (%progress and % diff.)

Previous RevenueRecognition Standard
13,309
1,985
486
3,553
4,058
3,228
8,001
60.1
5,687
42.7
2,315
17.4
2,341
17.6
1,721
12.9

New RevenueRecognition Standard
13,515
3,506
393
3,265
5,456
891
8,901
65.9
6,314
46.7
2,586
19.1
2,604
19.3
2,310
17.1

New RevenueRecognition Standard
75.1
70.3
90.8
75.9
74.1
89.7
76.3
1.1
66.9
-5.0
99.1
6.1
99.8
6.4
98.2
5.3

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

Results for Q3 FY 2022 (Oct-Dec 2021)
・During the three months of this fiscal year’s Q3 (Oct-Dec 2021), too, sales and profit growth had been maintained:
sales were Y3,535 million (+2.9% YoY: simple comparison with the old standard – the same applied to below),
operating profit was Y810 million (+38.2% YoY), and net profit was Y819 million (+75.8% YoY) (Figure 2). The
operating margin had declined from Q1 to Q3 in the order of 29.3% ⇒ 23.7% ⇒ 22.9%, but the amount ofoperating profit had remained high at Y975 million ⇒ Y778 million ⇒ Y810 million.
・Comparing Q3 of this fiscal year with the previous fiscal year’s Q3 by sales category, sales of merchandise,maintenance, and other still showed negative growth, but sales of products and the cloud service have been solidand grew by +65.9% and +40.2%, respectively.
【Figure 2】Quarterly Transition in Financial Performance (Results and Plan)

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

Results

Q1 FY 2021

Q2 FY 2021

Q3 FY 2021

Q4 FY 2021

Q1 FY 2022

Q2 FY 2022

Q3 FY 2022

Q4 FY 2022

Unit: million yen

Apr-June 2020

July-Sept 2020

Oct-Dec 2020

Jan-Mar 2021

Apr-June 2021

July-Sept 2021

Oct-Dec 2021

Jan-Mar 2022 CE

Products
Merchandise
Maintenance Service
Cloud Service
Other Operating Revenue
Gross Margin (%)
SG&A Expenses Ratio (%)
Operating Margin (%)
Recurring Margin (%)
Net Margin (%)

2,789
307
77
899
957
546
1,756
63.0
1,290
46.3
465
16.7
471
16.9
272
9.8

Previous Revenue-Recognition Standard
3,192
3,433
420
449
98
219
877
875
991
1,034
805
860
1,909
1,946
59.8
56.7
1,437
1,360
45.0
39.6
473
586
14.8
17.1
488
595
15.3
17.3
317
466
9.9
13.6

3,895
809
91
902
1,076
1,016
2,390
61.4
1,600
41.1
790
20.3
787
20.2
613
15.7

3,328
935
85
820
1,255
231
2,284
68.6
1,309
39.3
975
29.3
987
29.7
614
18.4

New Revenue-Recognition Standard
3,281
3,535
783
745
82
190
826
833
1,340
1,449
250
318
2,222
2,284
67.7
64.6
1,444
1,474
44.0
41.7
778
810
23.7
22.9
795
817
24.2
23.1
835
819
25.4
23.2

3,371
1,043
36
786
1,412
92
2,111
62.6
2,087
61.9
23
0.7
5
0.1
42
1.2

(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary. Q4 FY 2022 CE (company forecast) was calculated by “fullyear company plan” minus “results for the first nine months.”・Sales of the cloud have been especially strong, having grown from Y1,255 million ⇒ Y1,340 million ⇒ Y1,449
million in the same order as above, and the YoY rate of change also increased from +Y298 million (+31.1%) ⇒+Y349 million (+35.2%) ⇒ +Y415 million (+40.2%). Both the amount and the rate of change of sales have been
growing at an accelerated rate. Cloud’s sales have continued to increase YoY as well as QoQ regardless of eventdriven demand or seasonality (Figure 3 on page 3).
・The number of corporate users of the cloud service (number of current users; Figure 4 on page 3) has been increasing
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 First Section)

Issued: 1/31/2022/2022

steadily from 12,070 in March 2019 to 14,327 in March 2020 (+2,257 from the previous year or +18.7%), 16,444
in March 2021 (+2,117 or +14.8%), and 18,578 in December 2021 (+2,134 or +12.9%) (would be 19,289 corporate
users for the full fiscal year, or +2,845 and +17.3% compared to the end of the previous fiscal year, based on asimple calculation from the net increase in the number of users during April-December 2021). The cloud-based
subscription business has high continuity and marginal profit ratio as well as growth potential. Its sales are the largest
among all sales categories and it is the growth driver for the Company as a whole.
【Figure 3】Quarterly Change in Sales of the Cloud Business
1,600

45.0

Sales of Cloud Service (left axis: million yen)
1,400

Percent of Total Sales (right axis: %)40.0

YoY Growth Rate (right axis: %)

35.0

1,200

30.0
1,000
25.0
800
20.0
600
15.0
400

10.0

200

5.0

0

0.0

Ｑ1 Ｑ２ Ｑ３ Ｑ４ Ｑ1 Ｑ２ Ｑ３ Ｑ４ Ｑ1 Ｑ２ Ｑ３ Ｑ４ Ｑ1 Ｑ２ Ｑ３ Ｑ４ Ｑ1 Ｑ2 Ｑ3 Ｑ４
FY 2017

FY 2018

FY 2019

FY 2020Ｑ1 Ｑ2 Ｑ3 Ｑ４CE

FY 2021

FY 2022(Ref) Prepared by Alpha-Win Research Dept. based on the financial results summary.
(Note) Q4 FY 2022 (CE) is based on the Company’s estimate/forecast.

【Figure 4】Change in the Annual Sales and Number of Corporate Users of the Cloud Service(Results and Forecasts)
30,0009,000

Sales of the Cloud Service (right axis: million yen)
25,000End of Dec 2021
18,578 companies

Number of Corporate Users of the Cloud Service(left axis: companies)

End of Mar 2021
16,444 companies
20,000

8,000
7,000
6,000
5,000

15,0004,000
10,000

3,000
2,000

5,000
1,000
0

0
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
FY
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 E 2023 E 2024 E(Note) Sales from FY 2008 to FY 2010 have not been disclosed. Estimates are partially included in the number of corporate
users of the cloud service. Forecasts were prepared by Alpha-Win Research Dept.

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 First Section)

Issued: 1/31/2022/2022

・As of the end of Q3 of this fiscal year, there has been no significant change to the balance sheet compared to theend of the previous fiscal year. Due to the increase in profits from the businesses and the sale of securities, in theorder of the end of the previous fiscal year ⇒ this fiscal year’s Q3, cash and deposits increased from Y11,749
million ⇒ Y14,820 million and net assets increased from Y15,995 million ⇒ Y17,077 million. The ratio of cash
and deposits to the planned sales for this fiscal year or to the total assets in Q3 is 109.7% (equivalent to 13.2 monthsof average monthly sales, exceeding the expected annual sales) or 53.9%, respectively, indicating that it hasabundant liquidity at hand. In addition, the equity ratio is 61.0% and the current ratio is 213.8%, showing its solid
financial position.

◆ Q4 plan and financial forecast for this fiscal year onward: conservative company forecast
The Company’s Plan for Q4 and the Full Year・With the announcement of interim financial results (October 25, 2021), the Company had also announced significant
upward revisions to its full-year forecast (FY 2022) compared to its initial forecast to reflect the solid financial
performance in the first half: sales were raised from Y12,447 million ⇒ Y13,515 million, operating profit was
raised from Y1,866 million ⇒ Y2,586 million, and net profit was raised from Y1,192 million ⇒ Y2,310 million.
Although sales and profit drops had been expected at the beginning of the fiscal year due to the increase in investment
costs for future growth and the impact of the application of the new revenue-recognition standard, sales and profits
are now expected to both increase.
・The Company's forecasts for the current full fiscal year are the second highest levels in its history for sales andoperating profit following the results of FY 2020, and net profit is expected to hit a record high due to the postingof gain on sale of securities.
・Although results for the first nine months had presumably exceeded the Company’s internal forecasts, since theimpact of COVID-19 is uncertain and the Company is planning to increase upfront investment in preparation forgrowth in the next fiscal year onward, the Company has not changed its full-year forecasts. When results for the firstnine months are subtracted from the Company's full-year plan, the expected sales in Q4 (January to March 2022)
come out to be Y3,371 million (-13.4% YoY). Also, the SG&A expenses are expected to increase sharply by about
Y500 million (+30.5% YoY) in Q4 due to upfront investment costs, such as increasing sales promotion expenses
and personnel expenses by a little more than Y300 million during the fiscal year in preparation for future growth.
As a result, the operating margin is expected to drop sharply from 22.9% in Q3 to 0.7% in Q4 and significant
decreases in profit are expected, with operating profit expected to decrease to Y23 million (-97.1% YoY) and net
profit expected to decrease to Y42 million (-93.1% YoY).
・Q4's sales forecast by sales category (= “full-year company forecast” – “first nine months’ results”) is as follows.
*Since the upgrade from the old product, the X series, to the DX series is expected to continue, sales of products inthis fiscal year’s Q4 are expected to be Y1,043 million, compared to Y809 million in the previous fiscal year’s Q4
and Y745 million in this fiscal year’s Q3. However, the rate of increase in sales of products (YoY) is expected toslow down from +204.6% ⇒ +86.3% ⇒ +65.9% ⇒ +29.0% in the order of this fiscal year’s Q1 ⇒ Q4.
* Cloud’s sales are expected to decrease from Y1,449 million (+40.2% YoY) in this fiscal year’s Q3 to Y1,412
million in Q4 (-Y37 million or -2.6% compared to Q3 and +31.3% YoY).
* Sales of maintenance, in the order of Q1 ⇒ Q4 of this fiscal year, are expected to be Y820 million ⇒ Y826
million ⇒ Y833 million ⇒ Y786 million. Other operating revenue is also expected to drop sharply from Q3sales of Y318 million to Y92 million in Q4.
Alpha-Win Research Department’s Forecast for This Full Fiscal Year・Cumulative profit through Q3 has mostly reached the Company's full-year forecast for the current fiscal year. Since
there will be no large change in the fundamentals in Q4, it is highly likely that the final result will exceed the forecast.
・Although the Company expects sales growth to slow down in Q4 for the cloud, maintenance, and other operating
revenue, since there seems to be no particular factor that would cause this, the Company’s full-year forecast seems
somewhat conservative considering the results up through Q3.
・The amount of upward revision to the profits will depend on the products’ sales situation and the Company's cost
control including its upfront investment. In Q4, although the intentional increase in upfront investment is expected
to cause profit to be reduced, the actual operating profit in Q4 excluding this impact would be estimated to be around
Y700 million, which is about the same as Q3.
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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 First Section)

Issued: 1/31/2022/2022

・The Alpha-Win Research Department forecasts that results will be above the Company’s plan, at sales of Y13,760
million (+Y245 million compared to the Company's plan), operating profit of Y2,700 million (+Y114 million), andnet profit of Y2,380 million (+Y70 million). As mentioned above, results for the first nine months had presumably
exceeded the Company's expectations, and the Company’s sales and cost assumptions seem conservative. Therefore,
we kept the forecasts for both sales and profits the same as before (Figure A on page 6).
・The Company has doubled its dividend to 24 yen from the previously planned 12 yen (both reflect the 3-for-1 stock
split), so we also raised our forecast to same amount as the Company’s plan. This 12-yen dividend hike consists ofan increase in ordinary dividend by 1 yen and 11 yen in commemorative dividend associated with the rebranding of
PCA Cloud and PCA Subscription (changed product/service name and logo). As a result of the dividend hike, theexpected dividend payout ratio for the current fiscal year will be 20.8% (based on the Company's forecasted EPS)
and the dividend yield will be 1.6% (based on the closing price of Y1,545 on January 28, 2022).
Medium-Term Financial Forecast
・The consolidated numerical targets (after revision) for this fiscal year, which is the final year of the current mediumterm management plan, had mostly been achieved in the previous fiscal year. Although the Company had announced
that it plans to increase upfront investment (by about +Y300 million compared to the beginning of the fiscal year),
the goals are expected to be achieved again this fiscal year. The new medium-term management plan will start fromthe next fiscal year, whose strategy, measures, and numerical targets would be key points to watch.
・The Alpha-Win Research Department has revised the dividend forecast for the next fiscal year and beyond, adding
the increase in ordinary dividend during the current fiscal year (+1 yen) to our previous forecast. At this point,
though, we have not changed our medium-term financial forecast (sales and profits) that we had previously prepared.
・In the next fiscal year, since there will most likely be no more event-driven high demand for the products and gainon sales of securities, net profit is expected to decline. However, from the next fiscal year onward, since the period
of decline following the previous event-driven spike of demand for the products will have ended and the cloud andthe attendance management system will continue to be growth drivers, we expect that the Company will return to a
growth trend for its sales and profits, assuming that the impact of COVID-19 will have settled down by then.
・We expect the average annual growth rate of EPS (on a normalized basis) to be 8-10% over the medium term. Withsolid financial performance, further return of profit to shareholders such as dividend hikes and flexible buyback ofshares is anticipated.
・Meanwhile, challenges remain with effectively using its abundant cash for future growth, finding and developing
businesses that will be the next main source of earnings, and getting the current new businesses (PCA Subscription,
hyper, HR business, PCA Hub, healthcare business, etc.) on track to monetize them.

◆ Stock Price
Performance
・The Company’s stock is seen as a domestic-demand-oriented, small-cap growth stock in subscription-based
businesses. Since August 2018, it has been significantly outperforming the TOPIX. Over the past 12 months,
although small-cap stocks have been bearish and the Company’s stock has been slightly underperforming the TOPIX,
it has been significantly outperforming its competitors Obic Business Consultants (OBC: TSE First Section 4733)
and Miroku Jyoho Service (MJS: TSE First Section 9928) due to its solid financial results.
・Q3 results had positive news such as the high progress with profit and dividend hike, but stock price went down
after the announcement of the results due to profit-taking sales and other factors.
Valuation
・The Company’s valuation was compared to the average of the First Section of the TSE (14.3 for forecasted P/E, 1.2
for actual P/B, and 2.2% for the simple average of dividend yield) and its competitors OBC and MJS (based on theclosing price on 1/28/2022; Figure 5 on page 6).
・Compared to the TSE First Section, the Company’s P/E is relatively low based on the forecast for this fiscal year
(however, based on the company’s forecast for this fiscal year’s profit excluding extraordinary income/losses, thisfiscal year’s P/E is estimated to be about 17.5). Compared with its two competitors, the Company’s valuation ismostly in the middle.
Outlook・Over the medium term, stable growth is expected due to continued growth of the cloud, and stock price is also
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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 First Section)

Issued: 1/31/2022/2022

expected to remain firm.
・Key points to watch are the changes in the number of users and sales growth rate of the cloud service, contributionof the new businesses to profit, future measures to return profit to shareholders, and future M&As.
【Figure 5】Comparison of Valuation with Competitors
Company Name

PCA
(consolidated)

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

9629

4733

9928

Code
Stock Price (at 1/28 closing)Market Cap (million yen)
P/E (price-to-earnings ratio)
P/B (price-to-book ratio)
Dividend Yield (%)
EV/EBITDA
P/S (price-to-sales ratio)

1,545
35,690
13.4
1.8
1.6
7.6
2.6

4,150
312,927
25.9
2.4
1.7
12.5
9.2

1,167
40,619
9.3
1.6
3.3
7.6
1.1

(Ref) Prepared by Alpha-Win Research Dept. based on each company’s financial results summary. Reflects results through Q3 FY 2022
for PCA and OBC. Reflects results through Q2 FY 2022 for MJS since its Q3 results have not been announced yet.
(Note) “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29),” etc., have been applied to each company starting in theforecast for FY 2022.
・Market cap = shares outstanding x market stock price 【1/28 closing price】
・EV/EBITDA = (market cap + interest-bearing debt – cash & deposits) / (O.P. + depreciation + intangible fixed assets amortization, etc.)
Operating profit (O.P.) is based on each company’s forecast for this fiscal year.
“Interest-bearing debt – cash & deposits” is based on the actual results for Q2 or Q3.
“Depreciation + intangible fixed assets amortization, etc.” is based on the actual results for FY 2021
・EPS values used in P/E calculations are based on each company’s forecast for FY 2022. BPS values used in P/B calculations are based on
Q2 or Q3 results of FY 2022. Dividend is based on each company’s forecast.
・P/S = market cap / sales 【each company’s forecast for FY 2022】! 9629 PCA

Sector: Information & Communication " Figure A

FY
2018
2019
2020
2021
2022
2022
2023
2024

Sales

YoY

O.P.

YoY

R.P.

YoY

N.P.

YoY

EPS

BPS

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

（%）

(Y )

(Y )

Old Std.
Old Std.
Old Std.
Old Std.
CE New Std.
E New Std.
E New Std.
E New Std.

9,785
11,43914,266
13,30813,515
13,76013,70015,000

4.5
16.9
24.7
-6.7
1.6
3.4
-0.4
9.5

807
1,248
2,781
2,314
2,586
2,700
2,300
2,600

86.8
54.7
122.8
-16.8
11.8
16.7
-14.8
13.0

834
1,277
2,808
2,340
2,604
2,720
2,320
2,620

79.9
53.0
119.9
-16.7
11.3
16.2
-14.7
12.9

441
906
1,816
1,668
2,310
2,380
1,580
1,780

2021

Q1 Old Std.

2022

Q1 New Std.

2,789

-9.2

3,328

19.3

465

-20.7

975

109.4

471

-21.2

987

109.4

2021

Q2 Old Std.

3,191

-22.1

473

-60.1

488

2022

Q2 New Std.

3,281

2.8

778

64.5

2021

Q3 Old Std.

3,434

-2.9

586

2022

Q3 New Std.

3,535

2.9

2021

Q4 Old Std.

3,894

9.4

2022

Q4 CE New Std.

3,371

2021

Q3 YTD Old Std.

9,414

2022

Q3 YTD New Std.

10,144

Dividend
（Y ）

174.1
105.5
100.4
-8.1
38.5
42.7
-33.6
12.7

21.46
548.1344.42
596.5990.97
675.81
83.50
791.64115.52119.01
899.31
79.00
954.3189.00 1,030.32

10.33
10.33
18.00
11.33
24.00
24.00
13.00
14.00

272

-25.1

13.66

676.52

0.00

614

125.4

30.75

810.96

0.00

-59.0

317

-61.1

15.85

702.75

0.00

795

62.9

835

163.4

41.80

823.79

0.00

-24.6

595

-23.4

466

-0.6

23.30

734.20

0.00

810

38.2

817

37.3

819

75.8

40.93

838.25

0.00

790

239.1

786

224.8

613

261.2

30.64

791.64

11.33

-13.4

23

-97.1

5

-99.4

42

-93.1

2.40

－

24.00

-12.1

1,524

-40.2

1,554

-39.4

1,055

-35.9

52.86

734.10

0.00

7.8

2,563

68.2

2,599

67.2

2,268

115.0

113.41

838.250.00(Note) CE: the Company’s forecast/estimate. E: Alpha-Win’s forecast/estimate. Q1: results for Apr-June. Q2: results for July-Sept. Q3: resultsfor Oct-Dec. Q4: results for Jan-Mar. Q3 YTD: results for Apr-Dec. Forecasts for EPS, BPS, and dividend reflect the 3-for-1 stock split
conducted on Oct 1, 2021 (past years have been revised retroactively). “Accounting Standard for Revenue Recognition (ASBJ Statement No.
29),” etc., have been applied starting in FY 2022. “Old Std.” stands for the previous revenue-recognition standard, and “New Std.” stands forthe new revenue-recognition standard.
! Stock Price and Valuation Indicators: 9629 PCA " Figure B
1/28/2022

Item

Dividend Yield

Dividend Payout Ratio

Stock Price (Y)1,545Last FY (actual)

18.5

2.0

0.7%

13.6%

Shares Outstanding (thou.)

23,100This FY (est.)

13.0

1.7

1.6%

20.2%

Market Capitalization (million yen)

35,690

Next FY (est.)

19.6

1.6

0.8%

16.5%

Equity Ratio at End of This FY's Q3

61.0%

Last FY's ROE

11.4%

Item

Dilutive Shares (thou.)

0

P/E

P/B

(Note) Estimates were made by Alpha-Win Research Dept.

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 First Section)

Issued: 1/31/2022/2022【Stock Chart (end-of-week prices) : 9629 PCA】

Figure C

(Y)

2,500

5.00

2,300
2,100
1,900

Stock price (left axis)

4.50

Price relative to TOPIX (right axis)

4.00

1,700

3.50

1,500

3.00

1,300
1,100

2.50

900

2.00

700
1.50

500

1.00
(M
M
/Y
Y
)

08
/1
6
11
/1
6
02
/1
7
05
/1
7
08
/1
7
11
/1
7
02
/1
8
05
/1
8
08
/1
8
11
/1
8
02
/1
9
05
/1
9
08
/1
9
11
/1
9
02
/2
0
05
/2
0
08
/2
0
11
/2
0
02
/2
1
05
/2
1
08
/2
1
11
/2
1

300

(Note) From the fourth week of August 2016 to January 28, 2022

【Performance】
PeriodReturn vs. TOPIX
1 month-7.0%-1.2%
3 months-10.5%-4.3%
6 months
-3.4%
-2.2%
12 months
0.5%
-3.2%

(Note) Reflects stock price andindex values through the closing
price on 1/28/2022. Performancefor the most recent 1 month is thecomparison between the closing
price on the last day of theprevious month and the closing
price on 1/28. The same applies tothe other periods.

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

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However, Alpha-Win and the writer of this Report do not have any obligation to reply to inquiries. SV2022-0201-1100

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.