<div id="readability-page-1" class="page"><div><p>Otsuka Corporation, established in 1961 and headquartered in Tokyo, Japan, is a leading provider of IT solutions and services. The company has around 10,148 employees and specializes in system integration, offering sales and implementation of computers, communication devices, and software, as well as consigned software development. Otsuka’s business model centers on delivering comprehensive support, including maintenance, supplies, and educational services.</p><p> The company has two reportable segments, namely: System Integration business (70.4% of H1 25 revenue) and Service and<br/>Support business (29.6%). Otsuka Corporation primarily operates in Japan.</p><h2> Solid H1 25 top-line</h2><p> Otsuka Corporation released its H1 25 results on August 1, 2025, and reported solid topline growth of 22.0% y/y, reaching JPY695.1bn, driven by favorable performance in core business segments: 27.8% y/y increase in System Integration business and 10.2% y/y growth in Infrastructure revenue.</p><p> Operating income increased by 26.6% y/y, reaching JPY49.1bn, with margin expanding from 6.8% to 7.1%, fueled by revenue growth and improved gross margins. Net income rose by 26.7% y/y to JPY34.1bn, driven by increased dividend and interest income. The company reported a 26.7% y/y growth in EPS, rising from JPY71.0 to JPY90.0. During H1 25, the company reported cash and cash equivalents at JPY233.3bn rising from JPY228.1bn.</p><h2> Otsuka Corporation updates earnings forecast</h2><p> On August 1,2025, Otsuka Corporation has revised its earnings forecast for FY 25, leveraging its strong half-year financial performance and the moderate recovery trend observed in Japanese market conditions during the H1 25. The company's robust performance surpassed initial expectations, driven by sustained demand for Corporate IT investments. The company anticipates a gradual recovery in the Japanese economy and has accordingly revised its financial forecasts upward.</p><p> Revenue is now expected to grow by 13.8% y/y to JPY1.3tn as compared to 9.5% y/y growth as per initial projections. Likewise, operating profit is expected to grow by 15.9% y/y to JPY86.2bn, and net profit is anticipated to rise by 9.8% y/y to JPY58.7bn as compared to 10.7% y/y growth and 2.8% y/y growth respectively according to initial projections.</p><h2> Improved gearing</h2><p> Otsuka Corporation has demonstrated robust performance over FY 21-24, achieving a revenue CAGR of 9.2%, reaching JPY1.1tn in FY24. This growth was driven by strong expansion of IT services and robust sales of system equipment and software licenses. In addition, the company also benefited from strategic investments in customer support and increased demand for remote work solutions.</p><p> Furthermore, EBIT registered a CAGR of 10.0%, reaching JPY74.2bn. Consequently, margins improved by 15bp to reach 6.7%. Net income rose at a CAGR of 10.2% to JPY53.5bn.</p><p> Over FY 21-24, the company experienced a rise in cash and cash equivalents, increasing from JPY205.0bn to JPY228.0bn. In addition, total debt declined from JPY8.9bn to JPY7.5bn. Consequently, the gearing ratio improved from 2.9% to 2.0% in FY 24.</p><p> In comparison, NS Solutions Corporation, a local peer, reported a revenue CAGR of 7.8% over FY 21-24, reaching JPY338.0bn in FY 25. EBIT grew at CAGR of 11.1% to JPY40.7bn, with margin expansion from 11.0% to 12.0%. In addition, net profit rose at a CAGR of 10.6% to JPY27.1bn in the same period.</p><h2> Positive outlook</h2><p> Otsuka Corporation’ stock delivered negative returns of minus 15.4% over the past year. In comparison, NS Solutions delivered negative returns of minus 8.5%. In addition, the company had a DPS of JPY80.0, with a rate of returns of 2.2% in FY 24. Analysts estimate a dividend yield of 3.0% over the coming years.</p><p> Otsuka Corporation is currently trading at P/E of 19.0x, based on the FY 25 estimated EPS of JPY160.7, which is lower than its 3-year historical average of 22.8x and NS Solutions (22.4x).</p><p> The company is currently trading at an EV/EBIT of 10.3x, based on the FY 25 estimated EBIT of JPY87.5bn, which is lower than its 3-year historical average of 13.4x and that of NS Solutions, which is trading at 11.5x.</p><p> The stock is monitored by eight analysts with seven having ‘Buy’ ratings and one having a ‘Hold’ rating for a target price of JPY3,631.0, implying an 18.7% upside over the current market price.</p><p> Analysts project a revenue CAGR of 5.6% for FY 24-27, reaching JPY1.3tn in FY 27. EBIT is expected to rise at a CAGR of 7.9%, reaching JPY93.4bn, with margin expanding by 45p to 7.2%. Net income is projected to rise at a CAGR of 6.6%, reaching JPY64.8bn, with a margin expansion of 13bp to 5.0%. Likewise, for NS Solutions, the EBIT is estimated to increase at a CAGR of 9.6% and net income is projected to increase at a CAGR of 8.5% over FY 25-28.</p><p> Overall, Otsuka Corporation demonstrated a strong track record with solid growth across its core businesses, driven by robust demand for IT solutions and continual investments in system integration and infrastructure. The company’s upwardly revised outlook underpins management’s confidence in sustained outperformance relative to peers.</p><p>However, risks for the company relate primarily to its exposure to fluctuations in corporate IT investment cycles, evolving technology trends, and competitive pressures in the Japanese IT services market. In addition, margin expansion could be hindered by rising labor costs, supply chain disruptions, or delays in client IT modernization projects.</p></div></div>

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<p>大塚公司（Otsuka Corporation）是日本领先的 IT 解决方案提供商，报告称 2025 财年上半年实现了 22.0% 的同比收入增长，达到 6951 亿日元，营业收入同比增长 26.6%。该公司修订了 2025 财年的盈利预测，预计收入将同比增长 13.8%，达到 1.3 万亿日元。大塚公司的股票目前的市盈率为 19.0 倍，目标价格为 3631.0 日元，显示出 18.7% 的上涨空间。分析师预计 2024-2027 财年的收入年均增长率为 5.6%，这得益于对 IT 解决方案的强劲需求和在系统集成方面的战略投资</p>

大冢公司通过提升指导预期展现积极前景