(9558) Japanias - New Analyst Report 8/2

◆ Business description
・Japanias is engaged in on-site development support (performed by residing at customer bases) that dispatch engineers to customers centered on the IT/communication industry and manufacturing industries such as electronics and automobiles, and advanced engineering business where contract development is carried out at its own base.

◆ Cumulative period results for the 2nd quarter of the fiscal year ending 2014/11
・Sales for the cumulative period of the second quarter of the 24/11 fiscal year (hereafter, first half) were 5,455 million yen (up 15.2% from the same period last year), and operating profit was 265 million yen (down 32.2% from the same period last year). While sales continued to increase as the number of engineers to be dispatched increased, labor costs and recruitment referral fees increased as new hires proceeded ahead of schedule, resulting in a decline in operating profit.

◆ Earnings forecast for the fiscal year ending 2014/11
・The company plan for the 24/11 period, which has not changed since the beginning of the fiscal year, is sales of 11,800 million yen (up 19.4% from the previous fiscal year) and operating profit of 1,020 million yen (up 22.0% from the same period). Based on the first half results, the plan for the second half is sales of 6,345 million yen (up 23.2% from the same period last year) and operating profit of 755 million yen (up 69.3% from the same period last year).
・The progress rate for the first half of the year's results against the full-year plan remains at a low level, but Japanias sees that it is possible to achieve the second half due to the fact that human resources hired in the first half and promoted strength development are in operation, and that recruitment costs can be suppressed because recruitment proceeded ahead of schedule.
・The Securities Research Center (hereafter, the Center) left sales of 11,747 million yen (up 18.8% from the previous fiscal year) and operating profit of 1,022 million yen (up 22.2% from the same period), as previously anticipated, based on first-half results and company policies.

◆ Future business strategy
・Japanias plans to continue active recruitment activities and expand transactions with client companies in both existing areas such as software and infrastructure, and new areas such as CRM and cloud.
・Our center believes that it is possible for the company to develop customer companies by utilizing sales offices nationwide, and it is anticipated that sales and profit will continue to increase even after the 25/11 fiscal year.