AsiaQuest Co.,Ltd. (4261) AI Stock Analysis

• Market Cap: ¥3.68B
• Dividend Yield: N/A
• Average Volume (3M): 7.42K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.25
• Revenue Growth: 31.99%
• EPS Growth: 35.59%
• Country: JP
• Employees: 480
• Sector: Technology
• Sector Strength: 93
• Industry: Information Technology Services
• EPS (TTM): 42.44
• Shares Outstanding: 1,473,600
• 10 Day Avg. Volume: 8,140
• 30 Day Avg. Volume: 7,423
• PEG Ratio: -1.94
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,531.00
• Price Target Upside: 0.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥2,909.00 ▲(15.21%Upside)

AsiaQuest Co.,Ltd. scores high on financial performance due to strong revenue growth, profitability, and cash management. Technical analysis suggests bullish momentum but warns of overbought conditions. Valuation is fair, but the absence of a dividend yield may affect attractiveness to some investors. No additional impact from earnings calls or corporate events.

AsiaQuest Co.,Ltd. Business Overview & Revenue Model

Company Description

AsiaQuest Co., Ltd. (4261) is a technology solutions provider specializing in digital transformation services and IT consulting. The company operates primarily in the information technology sector, offering a range of services including system integration, software development, and IT infrastructure management. It caters to various industries, including manufacturing, finance, and retail, helping businesses enhance their operational efficiency and competitiveness through innovative technology solutions.

How the Company Makes Money

AsiaQuest Co., Ltd. generates revenue primarily through its service offerings in digital transformation and IT consulting. The company earns money by providing system integration services, where it designs and implements technology solutions tailored to the specific needs of its clients. Additionally, it engages in custom software development projects, which include designing, developing, and maintaining software applications for businesses across different sectors. AsiaQuest also provides IT infrastructure management services, ensuring that clients' IT systems are efficient and secure. The company may form strategic partnerships with technology vendors, allowing it to offer comprehensive solutions that include both products and services, thereby enhancing its service portfolio and revenue potential.

AsiaQuest Co.,Ltd. Financial Statement Overview

Summary

AsiaQuest Co.,Ltd. demonstrates strong financial health across income, balance sheet, and cash flow statements. The company shows impressive revenue and profitability growth, robust equity position, and efficient cash generation. While the financials are strong, the sustainability of high growth rates and the use of excess cash should be monitored for long-term strategic planning.

Income Statement

The company exhibits strong revenue growth with a 29.4% increase from 2023 to 2024 and consistent improvement over the past years. Gross profit margin remains healthy at 48.1% for 2024, indicating efficient cost management. Net profit margin improved to 7.3%, reflecting enhanced profitability. EBIT and EBITDA margins are solid at 11.3% and 12.9%, respectively, showcasing good operational efficiency. However, maintaining these high growth rates could be challenging in a competitive industry.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.10, indicating prudent leverage management. The equity ratio stands at 61.1%, reflecting a solid capital structure. Return on equity is impressive at 17.5%, showing strong profitability relative to shareholder equity. The company has consistently improved its equity position, enhancing financial stability. However, the high cash position compared to debt suggests potential underutilization of capital.

Cash Flow

The cash flow statement reveals strong free cash flow growth, up 232.3% from 2023 to 2024. Operating cash flow to net income ratio is excellent at 1.77, indicating efficient cash generation from operations. The free cash flow to net income ratio of 1.05 suggests good cash retention capabilities. Despite these strengths, past fluctuations in free cash flow highlight potential volatility in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	3.14B	2.61B	2.24B	1.80B
Gross Profit	1.95B	1.51B	1.27B	1.02B	772.87M
EBITDA	527.62M	351.00M	405.66M	329.28M	125.99M
Net Income	295.40M	198.00M	232.45M	195.83M	62.86M
Balance Sheet
Total Assets	2.76B	2.26B	2.15B	1.97B	1.28B
Cash, Cash Equivalents and Short-Term Investments	1.52B	1.52B	1.56B	1.49B	791.45M
Total Debt	178.66M	324.00M	469.39M	599.49M	719.19M
Total Liabilities	1.08B	865.00M	958.47M	1.06B	1.08B
Stockholders Equity	1.69B	1.40B	1.19B	911.08M	196.08M
Cash Flow
Free Cash Flow	308.29M	93.00M	170.09M	277.30M	155.87M
Operating Cash Flow	521.18M	126.00M	197.70M	301.91M	189.57M
Investing Cash Flow	-373.76M	-34.00M	-27.84M	3.93M	-29.00M
Financing Cash Flow	-149.44M	-142.00M	-101.42M	385.92M	348.29M

AsiaQuest Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2525.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4261, the sentiment is Positive. The current price of 2525 is above the 20-day moving average (MA) of 2381.20, above the 50-day MA of 2314.48, and above the 200-day MA of 2271.16, indicating a bullish trend. The MACD of 65.63 indicates Negative momentum. The RSI at 67.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4261.

AsiaQuest Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5868	82 Outperform	¥3.48B	10.17		1.07%	―	―
4261	76 Outperform	¥3.68B	13.49		―	31.99%	35.59%
7072	70 Neutral	¥2.77B	29.03		―	3.72%	79.49%
4736	67 Neutral	¥3.91B	9.36		1.36%	9.32%	25.46%
Sector *	57 Neutral	HK$14.14B	5.06	-5.75%	5.40%	9.34%	-42.23%
5618	55 Neutral	¥3.89B	―		―	―	―
5597	54 Neutral	¥7.33B	―		―	―	―