| SAKURA Internet (3778) |
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Company |
SAKURA Internet |
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Code No. |
3778 |
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Exchange |
Tokyo Stock Exchange Mothers |
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Industry |
Information and communication |
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President |
Kunihiro Tanaka |
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HQ |
Sakaisuji Honmachi Bldg. 1-8-14 Minami-Honmachi, Chuo-ku, Osaka |
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Year-end |
March |
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URL |
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* Stock price as of the close on 4/26. Number of shares at the end of the most recent quarter excluding treasury shares.
ROE, BPS based on previous term's results. |
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* Estimates are those of the company. In October 2011 a stock was divided into 200 stocks.
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| Company Overview |
 Business overview   Characteristics and strength Leading IT infrastructure base on a domestic scale
SAKURA Internet has the largest domestic backbone network (network nucleus part) with an external connection of 269Gbps.
By connecting to leading IXs in Japan (a connection point to interconnect networks from different internet service providers and academic networks etc.) and multiple major ISPs (internet service provider) in Tokyo and Osaka, the company manages to lower the risk of network failure to nearly zero and achieve high availability (low risk of system failure) and overwhelming traffic transmission capabilities.
A consistent system from development to operation and support (in-house data centers and internal value chains)
While many hosting service companies depend on external infrastructures (data center facilities), the company maintains its own infrastructures and by using these infrastructures for housing service, which helps to raise the utilization rate and reduce the risk of fixed costs (infrastructure possession risk).
Top-class customer base and brand value in Japan with successful risk diversification
The company is highly recognized among IT engineers for operating high quality data center with low costs and its data centers are utilized widely from individuals to companies (unlike rival companies which are highly dependent on limited number of large customers, the company's customer base is mainly comprised of small customers, which enables them to diversify risks).
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| New Mid-term Business Plan (FY3/13 - FY3/15) |
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| Fiscal Year March 2013 Earnings Results |
 3.5% increase in revenue compared to previous term and 0.5% increase in ordinary profit
The sales increased 3.5% compared to the previous term to 9,482 million yen. The housing sales have gone up 3.3% after the influence from the cancellation of a big contract during the first half was absorbed by the operation of a new big project. The hosting sales have also increased 3.5%, as the decrease in dedicated servers has been absorbed by the increase in rental servers, VPS etc.On the profit side, the gross profit margin dropped slightly due to increased depreciation expenses (1,263 million yen  1,466 million yen), but the company achieved operating profit almost the same level as last term on the back of the revenue expansion, despite of SG&A increase (mainly personnel costs) due to the expansion of business content and the start of full operation of Ishikari data center. Although the non-operating income has improved due to the additional tax refund and income from facilities, due to an increase in special loss and an increase in tax burden, net profit has decreased by 13,9% to 479 million yen.
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| Fiscal Year March 2014 Earnings Estimates |
 16.0% increase in sales compared to previous term and 0.9% increase in ordinary profit
The sales expanded 16.0% compared to the previous term to 11,000 million yen. Considering the order trend of the fourth quarter of FY3/13, the utilization rate of Ishikari data center building 1 is expected to be high and the building 2 which will start operation during this term should also contribute, and the sales are likely to show strong growth. When it comes to the service, sales of both housing and rental server are expected to grow by more than 200 million yen, with VPS sales growth by more than 500 million yen, cloud sales by about 300 million yen.On the profit side, the increased cost for the construction of Ishikari data center building 2 should be absorbed by the increase in marginal income by higher utilization rate of building 1, and the operating profit is expected to increase 15.3 %. The non-operating income will decrease due to an increase in financial costs etc., while the net income is expected to increase by 4.4% to 500 million yen due to improvement of the special profit and loss. Capital investment is planned at a total amount of 5,000 million yen; 3,000 million at the data center in Ishikari and 2,000 million at existing data centers. The depreciation costs are expected to increase by approximately 300 million yen to 1,850 million yen. During this term, the electricity supply will be available in all zones at Ishikari data center building 1 and the construction on the site of building 2 is scheduled to be completed. |
| Conclusions |
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Disclaimer
This report is intended solely for information purposes, and is not intended as a solicitation to invest in the shares of this company. The information and opinions contained within this report are based on data made publicly available by the Company, and comes from sources that we judge to be reliable. However we cannot guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness or validity of said information and or opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co., Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should be made only after proper consideration.Copyright(C) 2013 Investment Bridge Co., Ltd. All Rights Reserved. |
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