| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1346.64 | -25 |
| Intrinsic value (DCF) | 643.01 | -64 |
| Graham-Dodd Method | 1152.62 | -36 |
| Graham Formula | 1714.10 | -5 |
Applied Technology Co., Ltd. (4356.T) is a Japan-based engineering services provider specializing in manufacturing, civil engineering, disaster prevention, environmental solutions, and Geographic Information Systems (GIS). Founded in 1984 and headquartered in Osaka, the company delivers cutting-edge technological solutions, including CAD/PLM integration, structural analysis systems, disaster prevention simulations, and GIS consulting. Serving diverse industries, Applied Technology supports businesses with digital transformation, asset management, and environmental policy compliance. With a strong focus on innovation, the company leverages simulation tools and cloud-based platforms to enhance operational efficiency and risk mitigation. As a key player in Japan's IT services sector, Applied Technology combines engineering expertise with software development to address complex industrial and societal challenges. Its comprehensive service portfolio positions it as a trusted partner for enterprises seeking advanced technical solutions in a rapidly evolving digital landscape.
Applied Technology Co., Ltd. presents a niche investment opportunity in Japan's IT services sector, with a stable revenue stream (JPY 7.84B in FY2024) and solid profitability (net income of JPY 725.66M). The company's debt-free balance sheet and consistent operating cash flow (JPY 750.52M) underscore financial stability. However, its low beta (-0.011) suggests limited correlation with broader market movements, potentially reducing volatility but also growth upside. The dividend yield (~1.5% based on a JPY 30/share payout) is modest. Key risks include reliance on the domestic Japanese market and exposure to cyclical industries like construction. Investors may value its specialized engineering solutions but should monitor competitive pressures in the GIS and simulation software space.
Applied Technology Co., Ltd. competes in Japan's fragmented IT engineering services market by combining domain expertise in manufacturing and infrastructure with software development capabilities. Its competitive advantage lies in integrated solutions like disaster prevention simulations and GIS applications, which require specialized technical knowledge. The company's focus on regulatory-driven sectors (e.g., environmental compliance) provides recurring demand. However, it faces challenges from larger IT service providers with greater R&D resources and global reach. While its JPY 9B market cap indicates a mid-tier position, the zero-debt structure allows flexibility for strategic investments. Differentiation comes from industry-specific platforms like its quotation support system for manufacturing, though competition from SaaS providers could pressure margins. The lack of international presence limits growth compared to multinational peers, but deep local market understanding strengthens its position in Japan's infrastructure and public sector projects.