Technology
Earnings have grown +600% over the last 5 years to ¥3.5bn with OPM increasing from 5.6% to 22.3%. For FY24, I’ll should be able to achieve >¥4.5bn and given the strong business momentum, a further +15-20% OP growth in FY25. Why is the story so good? I'll is increasingly dominant in software for inventory and sales management for manufacturers and wholesalers; and 1) as the labour market gets tighter demand is growing for software to improve operational flow; 2) project sizes are getting bigger; 3) strong demand means it can "cherry-pick" projects; 4) I'll has been raising the % of its business that includes higher margin consulting; 5) it is also expanding in to software for retailers.
Edition: 187
- 31 May, 2024