SimpleX Holdings (4373.T): Staying Buy: Leading in AI implementation, with strong long-term operating profit outlook

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SimpleX Holdings (4373.T): Staying Buy: Leading in AI implementation, with strong long-term operating profit outlook

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03 Aug 2026 02:35:48 ET │ 14 pages

Simplex Holdings (4373.T)

Staying Buy: Leading in AI implementation, with strong long-term

operating profit outlook

CITI'S TAKE Buy

Price (31 Jul 26 15:30) ¥1,131.0 While April-June OP ended up in line with consensus, we saw significant

Target price ¥1,400.0↑ progress in Simplex's AI utilization. The company is at the forefront in

system development using AI. Indeed, AI improved the gross margin by from ¥1,200.0

2.3ppt, and we view development framework construction utilizing AI as Expected share price return 23.8%

progressing smoothly. However, what has become apparent while the firm Expected dividend yield 2.1%

moves forward at the AI utilization frontier is high AI usage fees, with costs Expected total return 25.9%

currently offsetting benefits in terms of AI RoI. Nevertheless, we think the Market Cap ¥253,310M

company can fully benefit from AI utilization effects once it achieves AI

US$1,588M usage fee optimization going forward. We maintain our Buy rating on

Simplex in light of its business initiatives related to AI corporate

implementation.

Moriya KoketsuAC

AI implementation — Simplex has been advancing AI application across all system +81-3-6776-8304

development since April of FY3/27, incorporating AI-driven development processes. moriya.koketsu@citi.com

We believe the company is currently the only one conducting AI-driven development

at an enterprise-wide scale, positioning it at the forefront among systems

integrators in development that uses AI. Effects were already materially visible in the

April-June quarter. We saw an approximately ¥300mn positive impact on gross