Tech quick value Japan part 3

In this series I try to look for value in Japan fast growing tech stocks.

Let’s go for Part 3

Beaglee Inc (3981)

Beaglee Inc.is a Japan-based company engaged in the content platform business which provides content distribution service and an environment for creators. The main service provided by the content platform business is involved in the operation of a comic distribution Website Manga Okoku. The Company is also involved in some new related business with the assets and know-hows cultivated from the operation of Manga Okoku, such as the provision of the illustration distributed media ETOPICA, the manga-specialized crowd-funding service FUNDIY, as well as the native application business.

PE 10.5

7 years revenue CAGR: 14.64%

7 years profit CAGR: 16.21%

Pros:

+market not saturated

+international expansion plans

Cons:

-no dividend paying

-2/3rd of the profits are actually the content segment, so mangas.

Property Data Bank Inc (4389)

Property Data Bank, Inc. is engaged in development of software for real estate and facility management, as well as provision of integrated asset management cloud service under the name

PE 21.

4 years revenue CAGR: 13%

4 years profit CAGR: 17.17%

Pros:

+software, nice margins

+dividend payer

Cons:

-low grower but still ok

-high valuation vs Japan value

Atled Corp (3969)

ATLED CORP. is a Japan-based company mainly engaged in the development and sale of workflow products. The workflow products are the digitization of the business flow from deliberation, application, approval for various businesses. The main products are package softwares X-point and Agileworks, and cloud services providers X-point Cloud and ATLED WorkPlatform. X-point and X-point Cloud are targeted at small to medium-sized enterprises, Agileworks is targeted at medium to large enterprises, and ATLED WorkPlatform is targeted at software vendors and system development companies.

PE 17.

7 years revenue CAGR: 16.7%

6 years profit CAGR: 23%

Pros:

+b2b software

+good growth and decent valuation

+dividend payer

Cons:

-none

This one warrants a deeper dive

Members Co Ltd (2130)

Members Co., Ltd. is a Japan-based company principally providing Internet business support. The Company supports the Internet business of client companies through the provision of comprehensive web production services such as website construction, social media marketing, multi-device correspondence, the attracting service of customers' corporate websites and others.

PE 15.

7 years revenue CAGR: 13%

7 years profit CAGR: 33.63%

Pros:

+good profitability and growth

Cons:

-service business depends on the economy.

CE Holdings Co Ltd (4320)

CE Holdings Co., Ltd., formerly CSI Co., Ltd., mainly engages in development and sales of medical information systems focused on electronic medical record systems.

PE 12.

7 years revenue CAGR: 9.22%

7 years profit CAGR: 25.88%

Pros:

+high quality business

+dividend paying

Cons:

-low revenue growth and margins not great

XNET Corp (4762)

XNET Corporation is a Japan-based mainly engaged in the operation of XNET service business. In the XNET service, the Company builds its own information system and its own business model of providing multiple customers with monthly service fee. In order to use the XNET service, the Company also conducts the sale of equipment business.

PE 12.

7 years revenue CAGR: 8%

6 years profit CAGR: 7.9%

Pros:

+Fair valuation

Cons:

-profit CAGR below what I expect from Japan

Enigmo Inc (3665)

Enigmo Inc. plans, develops, and operates internet business in Japan. It operates BUYMA, a marketplace for buying fashion items from personal shoppers; BUYMA TRAVEL, a website that provides private local tours to Japanese travelers living abroad; and STYLE HAUS, a platform that offers fashion, lifestyle, and cosmetics recommendations. Enigmo Inc. was incorporated in 2004 and is based in Tokyo, Japan.

.

PE: 9

7 years revenue CAGR: 18.74%

7 years profit CAGR: 16.48%

Pros:

+marketplaces are great businesses

+dividend payer

Cons:

-growth plateauing in 2022

-controversial reviews, counterfeit claims for luxury resale

CYND Co Ltd (4256)

PE 26

Sales CAGR:

100% in 2 years

Profits CAGR: good growth, but 2 years not relevant.

Pros:

+great business

+profitable

Cons:

-valuation not cheap

Hamee Corp (3134)

The Company operates through two business segments. The Commerce segment purchases and sells mobile phone and smartphone peripherals. The Platform segment provides services that support the sales and inventory management of internet shopping operators.

PE 14

7 years revenue CAGR: 13.1%

7 years profit CAGR: 31.42%

Pros:

+margin expansion

+profitable

+dividend

Cons:

-most of the business is ecommerce sales

-Ecommerce products have low moats

Conclusion

Beagle in Manga with fast growth and low valuation (PE 10) is interesting.

Atled Corp in Business software and a PE of 17 and fast growth is interesting.

Hamee Corp in Ecommerce software is interesting.

Enigmo Inc is really cheap for a marketplace (PE 9) but red flags need to be investigated.

CE Holdings in Medical has a bit low growth for its PE of 12 but has a good business.

I believe that Japanese tech companies are a better bet than US tech companies due to some dividends paid out as well as absence of abusive share based compensation.

None of these companies can be bought without a further investigation.

In my last part I will put all the names in a summary table. This will serve as a idea ground for further reviews.

After this work I will return to regular analysis.