| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 134.51 | 15 |
| Intrinsic value (DCF) | 97.98 | -16 |
| Graham-Dodd Method | 80.87 | -31 |
| Graham Formula | 1.67 | -99 |
Nihon Enterprise Co., Ltd. is a Tokyo-based technology company specializing in multi-device content planning, development, and operation. Established in 1989, the company offers a diverse portfolio of digital services, including e-book platforms (Booksmart), traffic information apps (ATIS Traffic Info), women's health apps (Women's Diary), and high-end flea market platforms (Flea-ma.jp). Additionally, Nihon Enterprise provides business support services such as kitting support, sound solutions, and enterprise application development. The company has expanded into renewable energy and sells used terminals and glass coatings. With a strong presence in Japan's software application sector, Nihon Enterprise leverages cloud-based solutions like AplosOne (IP phone service), BizTalk (business chat app), and e-Manabi (learning cloud service) to serve both consumer and enterprise markets. Its diversified digital ecosystem positions it as a niche player in Japan's growing mobile and cloud services industry.
Nihon Enterprise presents a mixed investment profile. With a market cap of ¥4.51B (JPY) and low beta (0.368), it offers stability but limited growth exposure. Positive aspects include ¥4.42B in cash reserves, minimal debt (¥159.9M), and consistent profitability (¥209M net income, 4.5% margin). However, revenue stagnation (¥4.7B) and modest EPS (¥5.43) suggest maturity. The 3 JPY/share dividend yields appeal to income-focused investors, but capex (-¥85.9M) indicates limited expansion efforts. Its niche in Japanese mobile apps faces stiff competition, though diversified revenue streams (from e-commerce to renewable energy) mitigate sector-specific risks. Suitable for conservative investors seeking Japanese small-cap tech exposure with dividend income.
Nihon Enterprise operates in a crowded Japanese digital services market with no dominant specialization. Its competitive advantage lies in regional focus—deep understanding of Japanese consumer behavior (evident in Women's Diary and Flea-ma.jp's luxury focus) and B2B solutions tailored to local enterprises. However, it lacks scale versus global SaaS players. The traffic info app (ATIS) competes with Yahoo Japan's navigation services, while Booksmart faces giants like Rakuten Kobo. Its B2B cloud services (AplosOne, BizTalk) differentiate through Japanese-language optimization but struggle against Slack or Zoom in enterprise adoption. Financial strength (net cash position) allows for niche acquisitions, but R&D spending appears low versus peers. Renewable energy and used device sales provide non-tech diversification, though these segments lack synergy with core digital operations. Key challenges include monetizing smaller apps and competing with vertically integrated rivals like LINE (owned by Z Holdings).