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Stock Analysis & ValuationAsahi Intelligence Service Co., Ltd. (9799.T)

Professional Stock Screener
Previous Close
¥1,280.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1029.26-20
Intrinsic value (DCF)718.60-44
Graham-Dodd Method670.08-48
Graham Formula1134.27-11

Strategic Investment Analysis

Company Overview

Asahi Intelligence Service Co., Ltd. (9799.T) is a Tokyo-based IT services provider specializing in information processing, system integration, and network management. Established in 1962, the company offers a comprehensive suite of services, including LAN/WAN construction, Windows/UNIX server management, software maintenance, and help desk support. Operating in Japan's competitive IT services sector, Asahi Intelligence Service caters to businesses requiring robust IT infrastructure and operational efficiency. The company's expertise in system integration and host computer maintenance positions it as a key player in Japan's technology-driven economy. With a market capitalization of ¥16.35 billion, Asahi Intelligence Service demonstrates stability in a sector increasingly reliant on digital transformation. Its low beta (0.208) suggests resilience against market volatility, making it an attractive option for conservative investors seeking exposure to Japan's IT services industry.

Investment Summary

Asahi Intelligence Service presents a stable investment opportunity within Japan's IT services sector, supported by consistent revenue (¥14.79 billion) and net income (¥1.07 billion). The company's strong cash position (¥6.78 billion) and minimal debt (¥210 million) underscore financial health, while a dividend yield of ~2.8% (¥28 per share) adds income appeal. However, its modest market cap and domestic focus limit growth scalability compared to global IT service providers. The low beta indicates lower volatility, appealing to risk-averse investors, but may also reflect slower growth momentum. Investors should weigh its steady performance against limited international expansion opportunities.

Competitive Analysis

Asahi Intelligence Service competes in Japan's fragmented IT services market, differentiating itself through specialized system integration and operational management services. Its long-standing presence (since 1962) grants deep client relationships and localized expertise, a key advantage over global competitors lacking Japan-specific knowledge. The company's focus on LAN/WAN and server management aligns with SME demand for infrastructure support, though it lacks the cloud-centric offerings of larger rivals. Financial stability (high cash reserves, low debt) provides resilience but may come at the expense of aggressive R&D or expansion. Competitors with broader portfolios (e.g., cloud, AI) could pressure Asahi to diversify beyond traditional IT services. Its niche in system operation improvement and help desk services offers sticky revenue streams but faces competition from automation trends.

Major Competitors

  • SCSK Corporation (9719.T): SCSK is a larger Japanese IT services firm (market cap ~¥400 billion) with strengths in enterprise systems and cloud solutions. It outperforms Asahi in scale and diversification but lacks Asahi's localized SME focus. SCSK's higher R&D budget supports innovation but increases cost pressures.
  • GungHo Online Entertainment (3765.T): GungHo specializes in online gaming and mobile services, diverging from Asahi's IT infrastructure focus. Its strength in digital entertainment contrasts with Asahi's B2B model, though both compete for IT talent. GungHo's volatile earnings (gaming hits-driven) make it riskier than steady Asahi.
  • GMO Internet, Inc. (3903.T): GMO Internet offers broader digital services (domain, cloud, payments), competing indirectly with Asahi's infrastructure segment. Its fintech and crypto ventures introduce higher growth potential but also regulatory risks absent in Asahi's traditional IT operations.
  • SB Technology Corp. (4726.T): SB Tech provides similar system integration services but emphasizes public sector and large corporate clients. Its SoftBank affiliation grants资源优势, though Asahi's independence may appeal to clients seeking neutral vendors. SB Tech's larger scale enables more competitive pricing.
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