OBIC (4684.T): Raising GSe/TP: Strong growth continues on new ERP customer acquisitions and wider development margins, but largely priced into valuation; Neutral

Research evidence excerpt

Equity Research

20 August 2026 | 3:31PM JST

OBIC (4684.T)

Raising GSe/TP: Strong growth continues on new ERP customer acquisitions and

wider development margins, but largely priced into valuation; Neutral

4684.T

12m Price Target: ¥4,800

Price: ¥4,606

Upside: 4.2%

We update our estimates based on 1Q3/27 (April-June) earnings

(see our 1Q report). We raise our FY3/27E-FY3/29E operating profit

estimates by 2%/3%/4% to reflect faster-than-expected progress in

new ERP customer acquisitions and improved development

productivity. With our profit estimates higher, we lift our DCF-based

12-month target price to ¥4,800, from ¥4,500.

We expect FY3/27E operating profits to beat guidance (¥98 bn),

driven mainly by the SI and SS businesses, and top the ¥100 bn

mark for the first time. In addition to robust new customer

acquisitions among large corporate groups, labor productivity

on projects is improving, including through the use of AI, and we

expect profit growth accompanied by margin improvement to

continue. That said, we maintain our Neutral rating, as we think

factors such as earnings stability and profit growth that outpace

competitors are largely priced into the shares (P/E is above the

sector average).

We believe a re-rating for the shares will require further margin

improvement through AI-driven development, higher unit prices

from the addition of AI features, and enhanced shareholder returns

utilizing abundant cash.

NEUTRAL

Chikai Tanaka, CFA

Goldman Sachs Japan Co., Ltd.

Yuki Sato

Goldman Sachs Japan Co., Ltd.

Key Data _____________________________________

Market cap: ¥2.0tr / $12.6bn

Enterprise value: ¥1.8tr / $11.3bn

3m ADTV: ¥7.1bn / $44.0mn

Japan

Japan IT Services & Telcos

M&A Rank: 3

Leases incl. in net debt & EV?: No

GS Forecast __________________________________

3/26

3/27E

3/28E

3/29E

Revenue (¥ bn)

135.2

151.9

166.7

180.4

Op. profit (¥ bn) New

88.8

101.3

112.2

122.3

Op. profit (¥ bn) Old

88.8

99.3

108.8

118.0

Op. profit CoE (¥ bn)

98.0

EPS (¥) New

171.6

200.0

225.0

248.4

EPS (¥) Old

171.6

194.2

216.2

237.5

P/E (X)

28.7

23.0

20.5

18.5

P/B (X)

4.1

3.8

3.6

3.5

CROCI (%)

21.9

23.6

25.4

27.7

6/26

9/26E

12/26E

3/27E

53.0

47.6

51.1

50.0

EPS (¥)

…