TICKER 4674.T
ISIN JP3271100004
Market cap. JPY
68,425,647,969
Shs outstanding 40,512,521

website

Cresco Ltd., together with its subsidiaries, provides various services in the fields of application development, IT infrastructure system architecture, and embedded systems in Japan. The company offers services related to design, development, deployment, and maintenance of IT business systems; and a range of engineering services, including electronic equipment installed in vehicles, networked home electronics appliances, communication equipment terminals, and electronic equipment for the manufacturing industry. It also provides services related to the construction, implementation, and maintenance of IT infrastructural systems that support the fundamental workings of a company; and digital solutions. The company was incorporated in 1948 and is headquartered in Tokyo, Japan.

Strategy:

Return at exit: 13.5%
Margin pressure amid mixed momentum
• Rotated out as other holdings offered stronger combinations of growth and profitability metrics. • Recent market performance shows mixed signals — strong 1-year return of 47% but more modest 6-month gain of just 4.4%, suggesting potentially slowing momentum. • Profitability metrics reflect challenges, with operating margin under 10% and EBITDA growth of 6.9% lagging behind revenue growth of 10%. • Company faces headwinds from yen depreciation and rising procurement costs, with recent impairment losses totaling over 340 million yen affecting bottom-line results. • Maintains several positive attributes, including healthy dividend yield (3.3%) with exceptional dividend growth (78%), and steady revenue expansion. This change reflects portfolio rotation, not a sell signal.
Strategies