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

Issued: 7/25/2024

Alpha-Win Capital Research Department
https://www.awincap.com/● Financial Results Flash Report◆ A major player specialized in enterprise system software, leading the market as theNo. 1 player in cloud-based software
・PCA CORPORATION (hereinafter, the “Company”) and its group provide originally developed and cloud-based
business software (for accounting, sales management, purchasing and inventory management, payroll, humanresources, work management, attendance management, and more) mainly to small/medium-sized companies. It also
provides related maintenance services. Its mission is to contribute to society as a “Management Support Company”
that supports companies in streamlining management and operation.
・It leads the market as the No. 1 player in cloud-based business software (PCA Cloud). Thanks to its transition to a
subscription-based business model, its business stability and profitability have improved significantly. It has been
providing software that is aimed at improving its corporate users’ business operations, developing its businessmainly around cloud and solution services.
・Record-high sales and profits were achieved in FY2020 (note that the Company’s fiscal years are March-ending,i.e., FY2020 ended in March 2020) thanks to a surge in demand in response to the consumption tax revision and theend of Windows 7 support. In FY2022, although there was a change in the revenue-recognition standard, strong
performance was maintained due to high, event-driven demand for the products. In addition, a gain on sales of
securities was recorded under extraordinary income, resulting in record-high net profit.
・On the other hand, in a reactionary decline from this previous high demand, sales and profits declined in FY2023.
However, in FY2024, the Company achieved record-high sales for the first time in four fiscal years, driven by cloudservices. Although record profits were not reached, profits rose sharply, and the Company increased its dividend
significantly for the enhancement of shareholder returns (based on a dividend payout ratio of 100%).

◆ Results for the First Quarter of This Fiscal Year: Significant increases in sales andprofits due to continued growth of the cloud services. Results appear to have exceeded theCompany’s expectations.
Q1: Summary of Financial Results
・In the first quarter of FY2025 (Apr-Jun 2024: hereinafter, Q1 = Apr-Jun), the Company recorded net sales of 3,879
million yen (+14.5% YoY), operating profit of 700 million yen (+63.6% YoY), ordinary profit of 708 million yen(+62.3% YoY), and profit attributable to owners of parent (hereinafter, “net profit”) of 455 million yen (+71.0%
YoY) (Figure 1). Boths sales and profits increased significantly YoY.
・In last fiscal year’s Q1, sales and profits rose by double digits due to a recovery from the reactionary fall following
an event-driven surge in demand for the products, as well as due to an increase in the number of corporate users of
the cloud services. In the Q1 of this fiscal year, in addition to sales growth, profit margins improved due to the pricerevision, continued growth of the cloud services, and cost control, resulting in an even higher rate of profit growth.
・The progress in Q1 of this fiscal year toward achieving the Company’s full-year plan was 23.5% for net sales and29.7% for operating profit, both higher than the average progress over the past seven years (22.1% and 21.0%,
respectively). Although the Company has not announced Q1 or first-half forecasts for the current fiscal year, Q1
results have most likely exceeded the Company’s expectations.
(Ref) Prepared by Alpha-Win Research Dept.
based on the financial results summary.

【Figure 1】First-Quarter Results and Progress against Full-Year Plan
Results for the First Quarter
Units: Million yen

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

Products
Merchandise
Maintenance Service
Cloud Services
Other Operating Revenue
Gross Profit Margin (%)
SG&A Expense Ratio (%)
Operating Profit Margin (%)
Profit Attributable fo Owners of Parent

Net Profit Margin (%)

Short Report

FY2024First Quarter

FY2025First Quarter

April to June
2023
3,387
349
95
839
1,616
486
2,116
62.5
1,688
49.8
428
12.6
266
7.9

April to June
2024
3,879
156
107
957
2,204
453
2,546
65.6
1,846
47.6
700
18.0
455
11.7

% Change
YoY: %
14.5
-55.2
12.0
14.2
36.4
-6.7
20.3
9.4
63.6
71.0

Change inAmountYoY:
million yen
492
-193
12
118
588
-33
430
3.2
158
-2.2
272
5.4
189
3.9

% of Change
in Sales% of Net
Sales

%

%
100.0
-39.2
2.4
24.0
119.5
-6.7

100.0
4.0
2.8
24.7
56.8
11.7

Progress (%) toward Achieving
Full-Year Plan
April to June
April to June
2023
2024
22.6
23.5
28.6
32.8
17.9
20.7
23.5
27.1
21.6
23.3
21.8
18.0
22.0
24.4
23.0

22.8

18.5

29.7

16.5

27.5

Full YearFY2024FY2025Results
Company Plan
15,01816,507
1,222
476
532
518
3,568
3,535
7,467
9,462
2,227
2,514
9,636
10,441
64.2
63.3
7,326
8,084
48.8
49.0
2,309
2,357
15.4
14.3
1,611
1,656
10.7
10.0

% Change(This FY)

Amount of Change(This FY)

% of Change
in Sales% of NetSales

YoY: %

YoY: million yen

%

%

9.9
-61.0
-2.7
-0.9
26.7
12.9
8.4
10.3
2.1
2.8

1,489
-746
-14
-33
1,995
287
805
-0.9
758
0.2
48
-1.1
45
-0.7

100.0
-50.1
-0.9
-2.2
134.0
19.3

1/7

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.

100.0
2.9
3.1
21.4
57.3
15.2

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

Issued: 7/25/2024

Q1: Sales by Category
・Sales of each category in Q1 were as follows. The decline in sales due to the termination of product sales wascompensated by higher sales of the subscription businesses (cloud and maintenance) (Figure 1 on page 1).
1.

Products: To focus business resources for development and support on the subscription services, sales of thepreviously provided packaged software (PCA Software) were terminated in March 2024. As a result, sales of
products fell by half (from Q1 FY2024 to Q1 FY2025; the same order applies hereinafter), from 349 million yen
to 156 million yen (-193 million yen or -55.2% YoY). However, the impact was limited, partly because theprevious fiscal year’s sales were already at a low level.

2.

Merchandise (ledger sheets, etc.): Sales increased slightly (+12 million yen or +2.8%), partly due to the trend
towards digitalization and paperless operations.

3.

Maintenance Service: Sales rose by double digits from 839 million yen to 957 million yen (+118 million yenor +14.2% YoY) due to the price revision, despite the further shift from the on-premises (products) to the cloud.

4.

Cloud Services: Sales increased significantly from 1,616 million yen to 2,204 million yen (+588 million yen or+36.4% YoY). There was a steady increase in the number of corporate users of the services, partly due to thefurther shift from the products to the cloud services. In addition to this, the price revision also contributed to thehigh rate of increase in sales.
Sales of the cloud services accounted for 56.8% of the Company’s net sales, making it the largest sales categoryby sales proportion (47.7% in the Q1 of the previous fiscal year). Together with maintenance service (24.7% of
net sales), the subscription businesses accounted for the majority of net sales, at 81.5% (72.5% in the Q1 of theprevious fiscal year). With long-term viability and high marginal profit ratios, these two businesses seem to be
making a significant contribution to the Company’s business performance in terms of both sales and profits.
By fiscal year, the (net) number of corporate users of the PCA Cloud series has been increasing from 12,070 at
the end of March 2019 to 14,327 at the end of March 2020 (+2,257 YoY), 16,444 at the end of 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),
22,899 at the end of March 2024 (+1,877 YoY), and 23,252 at the end of June 2024 (+1,658 compared to 21,594
at the end of the previous year’s June).
A quarterly comparison of the number of corporate users (the number as of the end of each quarter) (Figure 2)
shows a steady YoY and QoQ rise in both the net number and the rate of increase, although both are slowing
down compared to before. Regarding the quarterly (three-months) sales of the cloud services, the rate of increase(YoY) has been accelerating since Q1 FY2023, most likely mainly due to an increase in the number of corporate
users with the acquisition of new customers and an increase in the unit price due to the price revision.

【Figure 2】Quarterly Change in the Number of Corporate Users, Sales, and Estimated Average Unit Price of the
PCA Cloud Series
Number of Corporate Users of the
Cloud Services: A

Quarter

Cumulative Number of Users at theEnd of the Month (units: companies)

Ended Mar. 2021 (Q4)
Ended June 2021 (Q1)
Ended Sept. 2021 (Q2)
Ended Dec. 2021 (Q3)
Ended Mar. 2022 (Q4)
Ended June 2022 (Q1)
Ended Sept. 2022 (Q2)
Ended Dec. 2022 (Q3)
Ended Mar. 2023 (Q4)
Ended June 2023 (Q1)
Ended Sept. 2023 (Q2)
Ended Dec. 2023 (Q3)
Ended Mar. 2024 (Q4)
Ended June 2024 (Q1)

16,444Not disclosed
17,785
18,57819,152
19,441
19,853
20,40621,022
21,594
22,23822,72922,89923,252

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

14.8
―
16.5
―
16.5
―
11.6
9.8
9.8
11.1
12.0
11.4
8.9
7.7

Change in
Number (YoY)

2,117
―
2,523
―
2,708
―
2,068
1,828
1,870
2,153
2,385
2,323
1,877
1,658

Cloud Services' Sales:
B% Change(QoQ)

Change in
Number (QoQ)

―
―
―
4.5
3.1
1.5
2.1
2.8
3.0
2.7
3.0
2.2
0.7
1.5

―
―
―
793
574
289
412
553
616
572
644
491
170
353

For Each Quarter(units: million yen)

1,076
1,255
1,340
1,449
1,524
1,361
1,499
1,512
1,584
1,616
1,827
1,933
2,091
2,204

Monthly Unit Price of the Cloud Services(thousand yen / company / month)YoY Diff. for
the Left

Change inAmount (QoQ)

B (quarterly sales ) / Average of A During the Period / 3months

%

44
179
85
109
75
-163
138
13
72
32
211
106
158
113

26.6
26.9
23.5
25.4
25.0
25.5
25.3
27.8
28.7
30.6
31.8

Quarterly Change in Sales (million yen)
% Change
(YoY)

14.0
31.1
35.1
40.4
41.6
8.4
11.9
4.3
3.9
18.7
21.9
27.8
32.0
36.4

Change inAmount (YoY)

132
298
348
417
448
106
159
63
60
255
328
421
507
588

% Change
(QoQ)

4.3
16.6
6.8
8.1
5.2
-10.7
10.1
0.9
4.8
2.0
13.1
5.8
8.2
5.4

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

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.

-5.8%
-5.3%
7.5%
9.3%
14.5%
19.9%
25.9%

Alpha-Win Company Research Report
PCA (9629 TSE Prime)
5.

Issued: 7/25/2024

Other Operating Revenue: Sales fell from 486 to 453 million yen, a decline of -33 million yen (-6.7% YoY).
Performance was weak compared to the planned full-year increase in sales, but this was most likely partly due
to seasonal factors.

Q1: Profits
・In terms of profit, since the Company’s main business model is characterized by a high marginal profit ratio, changes
in sales have a significant impact on profit margins and profit. Accordingly, in this fiscal year’s Q1, the gross profit
margin rose by 3.1 percentage points from 62.5% in the previous fiscal year’s Q1 to 65.6% in this fiscal year’s Q1
due to a relatively high rate of sales growth for the highly profitable cloud services, an improved product mix, and theprice revision (implemented in July 2023, fully contributing to performance in the Q1 of the current fiscal year).
・ SG&A expenses increased by +158 million yen or +9.4% YoY, partly due to higher personnel expenses,
development costs, and other costs, but this was below the company-wide sales growth rate of +14.5%. Consequently,
the SG&A expense ratio improved by 2.2 percentage points, from 49.8% to 47.6%, and the operating profit marginrose significantly from 12.6% to 18.0% (+5.4 percentage points). This Q1’s operating profit margin has exceeded theCompany’s expectation of 14.3% for the full fiscal year.
・Since there was no major non-operating or extraordinary income/losses in this fiscal year’s Q1, net profit also
increased significantly.

Balance Sheet・As of the end of this fiscal year’s Q1 (June 2024), there has been no significant change in the balance sheet comparedto the end of the previous fiscal year (March 2024). While cash & deposits have decreased by about 1.4 billion yen
since the end of March, they are still maintained above the annual sales at approx. 19.5 billion yen. With an equity
ratio of 55.3% and a current ratio of 195.4%, its financial standing is firm.
・Contract liabilities (consideration received for services not yet provided under subscription contracts, such as thoseof the cloud services) have been maintained at a high level of 10,063 million yen, although they have decreasedslightly by -13 million yen compared to the end of March.

◆Financial Forecasts for This Fiscal Year and Beyond
The Company’s Financial Forecasts for This Fiscal Year・The Company has not changed the full-year forecasts announced at the beginning of the fiscal year. It forecasts fullyear net sales of 16,507 million yen (+9.9% YoY), operating profit of 2,357 million yen (+2.1% YoY), and net profitof 1,656 million yen (+2.8% YoY). Steady growth is expected in the current fiscal year, particularly with the cloudservices, but the profit margin is expected to deteriorate due to upfront investments for the next stage of growth. The
profit growth rate is therefore expected to be small compared to the sales growth rate (Figure 3 on page 4).
・In the current fiscal year, the Company expects an overall sales growth of +1,489 million yen (+9.9% YoY). It
expects product sales to fall sharply by -746 million yen YoY (-61.0% YoY) due to the termination of packaged
software sales, which will also lead to a slight decline in maintenance sales by -33 million yen (-0.9% YoY).
・In contrast, due to an increase in the number of corporate users and a shift from the products to PCA Cloud and
PCA Subscription, the cloud services’ sales are expected to increase significantly this fiscal year by +1,995 million
yen (+26.7% YoY). This is expected to offset the decline in sales of products and merchandise (the expected increasein the cloud services’ sales accounts for 134% of the overall, net amount of sales growth). Sales of solutions andothers are also expected to increase by +287 million yen (+12.9% YoY) due to firm demand, to which the Company
will actively respond.
・The price revision implemented in July 2023 will also make a full contribution this full fiscal year (Q1 and the sales
growth effect that comes with a time lag).
・On the other hand, cost of sales (labor, subcontracting, and cloud costs), R&D expenses, and other SG&A expenses(personnel expenses, advertising and sales promotion expenses, and system usage fees) will be increased tostrengthen the development of products such as the PCA Hub series for the next stage of growth. Consequently, thegross profit margin will fall by -0.9 percentage point from 64.2% to 63.3% (from the previous year to the current
fiscal year; the same order applies hereinafter), and the SG&A expense ratio will increase by +0.2 percentage pointfrom 48.8% to 49.0%. As a result, the operating profit margin is expected to fall by -1.1 percentage points from
15.4% to 14.3%, but the profit growth brought by increased sales is expected to absorb all factors that negatively
impact the profit margin, ensuring a slight increase in profit.
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: 7/25/2024

・No major non-operating or extraordinary income/losses are expected in the current fiscal year either.
・For annual dividend, the Company plans to pay 83 yen/share, an increase of 2 yen/share from the previous fiscal
year. The Company expects the dividend payout ratio to be 100.4%, the same level as the previous fiscal year’s
100.6%, achieving the new dividend payout ratio target of 100%. The DOE is also expected to remain largely
unchanged at 8.9% (company forecast) this fiscal year, compared to 9.0% in the previous fiscal year.

Alpha-Win’s Forecasts for This Fiscal Year Onwards
・We expect the Company to achieve net sales of 16,500 million yen in the current fiscal year, almost the same as theCompany’s forecast (16,507 million yen). On the other hand, we believe that upward revisions of the Company’s
profits are possible, as its cost assumptions (SG&A expense ratio) in the profit plan seem somewhat conservative.
We expect operating profit to be 2,500 million yen (+143 million yen or +6.1%) compared to the Company’s forecastof 2,357 million yen, and net profit to be 1,700 million yen (+44 million yen or +2.7%) compared to the Company’s
forecast of 1,656 million yen. We expect dividends for the current fiscal year to be 84 yen/share, which is lower thanthe Company’s forecast of 83 yen/share due to the difference in the EPS forecast.
・Our forecasts for the current fiscal year, the next fiscal year, and the fiscal year after the next remain unchanged
from our previous report (Figure 3; see page 38 of the report issued on July 12, 2024, for more details).
・Inflation and rising domestic interest rates may lead to a deterioration of the financial performance of small/mediumsized companies (the Company’s users) and suppression of their IT investments. These, along with the budget
execution status, should be noted as factors that may impact the Company’s financial performance.
・The actual rate of increase in sales and profit in the Q1 of the current fiscal year has exceeded our expectations.
However, we have kept our profit forecasts the same, since this higher rate of profit growth seems to be due tounspent (or deferred) budget that the Company had not intended. We believe, though, that the possibility of upwardrevisions to full-year profits has increased, although this would depend on the appropriate control of costs and theCompany’s plan for budget execution.
・Starting in Q2, the positive effect of the price revision in last year’s July (price increase rate of around 15% according
to our estimate) is expected to come to an end, excluding contracts that have not reached their renewal dates yet(contracts of longer than one year). However, while there will be a decline in sales due to the termination of productsales, an increase in sales is expected due to a net increase in number of contracts for the cloud services and anincrease in other operating revenue due to strengthened sales activities. In addition, the rate of sales growth in Q1(+14.5% YoY) was 4.6 percentage points higher than the full-year plan (+9.9% YoY), indicating strong top-line
growth.
・The Company’s forecast for the nine months from Q2 to Q4 (full-year forecast minus Q1 result) is as follows: net
sales of 12,628 million yen (+8.6% YoY), operating profit of 1,657 million yen (-11.9% YoY), and net profit of
1,201 million yen (-10.7% YoY). However, it is unlikely that there will be a YoY profit decline despite a sales growthduring this period, unless investments are deliberately increased from its initial plan.
【Figure 3】Financial Forecasts for This Fiscal Year
Consolidated(units: million yen)
Net Sales
Products
Merchandise

Sales
Category

Maintenance Service
Cloud Services
Other Operating Revenue

Gross Profit
Gross Profit Margin

SG&A Expenses
SG&A Expense Ratio

Operating Profit
Operating Profit Margin

Ordinary Profit
Ordinary Profit Margin
Profit Attributable to Owners of Parent

Net Profit Margin
Annual Dividend Per Share (yen)FY2024FY2025: Company Forecast

New RevenueRecognition Standard

New RevenueRecognition Standard

15,018
1,222
532
3,568
7,467
2,227
9,636
64.2%
7,326
48.8%
2,309
15.4%
2,343
15.6%
1,611
10.7%
81.00

16,507
476
518
3,535
9,462
2,514
10,441
63.3%
8,084
49.0%
2,357
14.3%
2,391
14.5%
1,656
10.0%
83.00

YoY: Diff. inAmount / Diff.

1,489
-746
-14
-33
1,995
287
805
-0.9%
758
0.2%
48
-1.1%
48
-1.1%
45
-0.7%
2.00

YoY: % Change

9.9%-61.0%
-2.7%
-0.9%
26.7%
12.9%
8.4%
10.3%

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

Short Report

FY2025: Alpa-Win Forecast's Difference
from the Company Forecast

FY2025: Alpha-Win's Forecast

2.1%
2.1%
2.8%

New RevenueRecognition Standard

16,500
480
520
3,500
9,500
2,500
10,400
63.0%
7,900
47.9%
2,500
15.2%
2,530
15.3%
1,700
10.3%
84.00

YoY: Diff. inAmount / Diff.

1,482
-742
-12
-68
2,033
273
764
-1.1%
574
-0.9%
191
-0.2%
187
-0.3%
89
-0.4%
3.00

YoY: % Change

9.9%-60.7%
-2.3%
-1.9%
27.2%
12.3%
7.9%
7.8%
8.3%
8.0%
5.5%

Difference (amount)

Difference (%)

-7
4
2
-35
38
-14
-41
-0.2%
-184
-1.1%
143
0.9%
139
0.8%
44
0.3%
1.00

0.0%
0.8%
0.4%
-1.0%
0.4%
-0.6%
-0.4%
-2.3%
6.1%
5.8%
2.7%

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: 7/25/2024

New Products and Businesses
・Regarding the PCA Hub series (online storage services that enable the safe and secure sharing of important businessdata and files within a company), in June of this year, the Company released the following three services: PCA Hub
Year-End Adjustment (a service that digitalizes year-end adjustment application documents), Labor Management (aservice that digitalizes personal information registration), and HR Suite (a digital personnel and labor management
service). The Hub series now has six main services. The Company intends to gradually enhance its service lineup
and promote sales to further facilitate the digitalization of operations and automation of accounting by small/mediumsized companies.
・After acquiring Dreamhop Co., Ltd., the Company has been focusing on improving its financial performance bystrengthening its sales, services/products, and capital. Although information on recent situations has not been
disclosed, Dreamhop seems to be continuing to post a loss; drastic measures are awaited.
・The Company is also working on the sales promotion of PCA Subscription (common application function as thecloud version; data compatibility) and PCA Hyper (enterprise systems for mid-tier companies). With the end of theon-premises PCA Software (packaged software products), a shift from the products to the cloud services and PCA
Subscription is anticipated.
・The Company’s business is a cash cow, with ample cash and deposits. Challenges remain in implementing businessstrategies and measures to improve cash efficiency and profitability (“quickly achieve an ROE of at least 10% and apositive EVA spread,” as stated as medium-term goals), as well as in developing businesses that will become thenext earnings drivers.

◆ Stock Price and Characteristics
・The Company has been seen as a small-cap, domestic-demand-oriented growth stock with a subscription business.
It has been significantly outperforming the TOPIX since December 2018. The share price has especially soared andsignificantly outperformed TOPIX and its competitors after the Company’s announcement of a change in its capitaland dividend policy in January 2024 to strengthen shareholder returns. On the day following the announcement of
its Q1 results (July 24), the Company’s share price rose against the market crash in response to its strong businessperformance (Figure C on page 7).
・Compared to the average valuation of all stocks listed on the TSE Prime Market, it cannot be denied that theCompany’s stock is overvalued in terms of P/E (based on the Company’s forecasts for this fiscal year) as well as theactual P/B. In contrast, the expected dividend yield is high, based on which its stock seems undervalued (based on
the closing price on July 25, 2024; as reference, the TSE Prime’s average for the expected P/E is 15.83, P/B is 1.36,
and the simple average of dividend yield is 2.36%).
・We also compared the major valuation measures with its competitors Obic Business Consultants and Miroku Jyoho
Service. The Company is in the middle range in terms of P/E, P/B, P/S, and EV/EBITDA, but its dividend yield isthe highest (Figure 4 on page 6).
・As mentioned earlier, we expect upward revisions of the profit for the current fiscal year compared to the Company’s
forecast. The P/E is estimated at 25.6 based on our forecast for the current fiscal year and 24.2 based on our forecast
for the next fiscal year. Based on our forecast for the fiscal year after the next, we expect it to fall to 22.6, but theP/E still does not indicate a sense of undervaluation (Figure B on page 7). The same is true for the P/B, which is 2.3(based on Q1 results). However, the EPS is expected to rise over the medium term, and assuming that the dividend
payout ratio is 100%, the dividend yield is expected to be 3.9%, 4.1%, and 4.4% in the same order as above. Basedon these levels, its stock seems undervalued even at the current high price.

・Going forward, the key factors will be the quarterly trends in business performance in Q2 and beyond, changes in
the amount of upfront investments, the growth rate of the cloud business which is the growth driver, sales trends ofproducts such as the PCA Hub series and PCA Subscription, and the business performance trends of Dreamhop and
Xronos.
Short Report

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: 7/25/2024

・As the Company is cash-rich, its share price may also be impacted by the following key factors: share buybacks,
dividend increases, stock splits, and M&As.
・It should be noted that the volatility of financial performance and share price tends to increase before and after
periods of high demand caused by events such as changes in the tax system or accounting standards.
【Figure 4】Comparison with Competitors (Valuation, Business Performance, and Financial Indicators)

Market where listed, stock price,and valuation

Company Name

PCA
(consolidated)

Code (TSE Prime Market)

9629 (PRM)

Obic Business Consultants(OBC: nonconsolidated)

Miroku Jyoho Service(MJS: consolidated)

4733 (PRM)

9928 (PRM)

Stock price (closing price on 7/25/2024)

2,170

6,316

1,868

Market capitalization (million yen)

47,740476,252

65,018P/E (price-to-earnings ratio)

26.2

30.6

12.6

P/B (price-to-book ratio)

2.3

3.2

2.1

Dividend yield (%)

3.8

1.4

2.9

EV/EBITDA

11.0

14.8

5.9

P/S (price-to-sales ratio)

2.9

9.9

1.4

Net Sales (million yen)

16,50748,00045,500Gross Profit Margin (%)

63.3

81.9

Not disclosed

Operating Profit (million yen)

2,357

21,5006,740

Operating Profit Margin (%)

14.3

44.8

14.8

EPS (company forecast): YoY change (%)

2.8

12.3

4.7

Last Fiscal Year's Results (full year)

DOE (%): Result

9.0

3.8

5.8

Results for the Most Recent Period

Equity Ratio (%)

55.3

77.0

58.0

Company Forecasts for This Fiscal
Year (full year)(Ref) Prepared by Alpha-Win Research Department based on each company’s financial results summary and stock price data.
(Notes)・Market capitalization = total outstanding shares x market stock price [closing price on July 25, 2024]
・The EPS values used in P/E calculations are the companies’ most recent forecasts for FY2025. The BPS values used in the P/B
calculations reflect the results of this fiscal year’s Q1 for PCA and OBC and the previous fiscal year’s results for MJS whose Q1 results
have not been announced yet.
・EV/EBITDA = (market cap + interest-bearing debt - cash & deposits) / (operating profit + depreciation + intangible fixed asset
amortization, etc.)
・Interest-bearing debt and cash & deposits reflect the results of this fiscal year’s Q1 for PCA and OBC and the previous fiscal year’s
results for MJS.
・Operating profit is based on the company forecasts for this full fiscal year. Depreciation and intangible fixed asset amortization, etc., arelast fiscal year’s results.
・P/S = market cap / sales [the companies’ forecast for FY2025]【 9629 PCA

Sector: Information & Communication 】 Figure A

FY
2021
2022
2022
2023
2024
2025
2025
2025
2026
2027
2019
2020
2021
2022
2023
2024
2025

A: Old Standard
A: Old Standard
A: New Standard
New Standard (the same applies below)
A
CE
CE: Medium-Term Plan
E
E
E
Q1: Old Standard
Q1: Old Standard
Q1: Old Standard
Q1: New Standard
Q1: New Standard
Q1: New Standard
Q1: New Standard

Net Sales

YoY

Operating Profit

YoY

Ordinary Profit

YoY

Net Profit

YoY

EPS

BPS

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

（%）

(Y )

(Y )

（Y ）

13,30815,142
13,382
12,981
15,01816,507
15,00016,50018,34020,400
2,346
3,073
2,789
3,328
2,954
3,387
3,879

-6.7
13.8
0.6
-3.0
15.7
9.9
-0.1
9.9
11.2
11.2
11.3
31.0
-9.2
19.3
-11.2
14.7
14.5

2,340
2,542
2,697
1,326
2,343
2,391

-16.7
8.6
15.2
-50.8
76.6
2.1

1,668

-8.1

83.50

791.64

11.33

2,367
883
1,611
1,656

41.9
-62.7
82.5
2.8

118.36
44.16
80.48
82.70

847.14870.38932.76

24.00
17.00
81.00
83.00

2,530
2,680
2,880
69
598
471
987
315
436
708

8.0
5.9
7.5
-62.3
754.6
-21.2
109.4
-68.0
38.4
62.3

1,700
1,800
1,925
34
364
272
614
142
266
455

5.5
5.9
6.9
-64.6
945.3
-25.1
125.4
-76.8
86.9
71.0

84.86
89.85
96.09
1.70
18.25
13.66
30.75
7.13
13.33
22.75

936.57942.43
949.52541.56616.15676.52810.96830.18867.22876.67

84.00
89.00
96.00
―
―
―
―
―
―
―

2,314
2,516
2,655
1,288
2,309
2,357
2,500
2,500
2,650
2,850
57
587
465
975
309
428
700

-16.8
8.7
14.7
-51.5
79.2
2.1
8.3
8.3
6.0
7.5
-67.1
917.5
-20.7
109.4
-68.3
38.5
63.6

Dividend(Ref) Prepared by Alpha-Win Research Department(Notes) “CE” is the Company’s forecast/estimate. “E” is Alpha-Win’s forecast/estimate. Q1 is the result for the period from April to June. The
3-for-1 stock split conducted on October 1, 2021, has been retroactively reflected in the EPS, BPS, and dividend results. “Old Standard”
stands for the previous revenue-recognition standard and “New Standard” stands for the new revenue-recognition standard.

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)

Issued: 7/25/2024【 Stock Price and Valuation Indicators: 9629 PCA 】 Figure B
Dividend Yield

Dividend Payout Ratio

Stock Price (Y)2,170

Forecast for Last FY

27.0

2.3

3.7%

100.6%

Shares Outstanding (thou.)

22,000

Forecast for This FY

25.6

2.3

3.9%

99.0%

Market Capitalization (million yen)

47,740

Forecast for Next FY

24.2

2.3

4.1%

99.1%

Forecast for the Fiscal Year After the Next

22.6

2.3

4.4%

99.9%

9.0%

Last FY’s ROE

8.9%

7/25/2024

Item

Dilutive Shares (thou.)Equity Ratio at the End of Last FY

0
55.7%

Item

P/E

P/B

Dividend on Equity Ratio (DOE) at the End of Last FY(Ref) Prepared by Alpha-Win Research Dept. (Note) Estimates were made by Alpha-Win.

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

Figure C

(Y)

2,500
2,300
2,100

【Performance】
PeriodReturn vs. TOPIX
1 month-8.3%-4.8%
3 months
10.9%
12.2%
6 months
35.2%
29.0%
12 months
43.8%
27.1%

5.00

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

4.50

1,900

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

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
04
/2
3
09
/2
3
02
/2
4

(M
M
/Y
Y
)

300

(Notes) Reflects stock price and index
values through the closing priceon July 25, 2024. Performance (vs.
TOPIX) is the relative
performance calculated bysubtracting the TOPIX’s
performance from the stock
performance.

(Note) From the fourth week of August 2016 to the fourth week of July 2024 (through the closing price on July 25)(Ref) Prepared by Alpha-Win Research Dept based on stock price data.

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

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 for any 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 the writer of this Report do not have any obligation to reply to inquiries.
SV2024-0726-0000
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.