Financial Performance of $3679 (+0,66 %)

Revenue: ¥6,759M (+9% YoY, record Q1)

EBITDA: ¥1,801M (+1% YoY)

Operating Income: ¥1,416M (-2% YoY) – impacted by one-off M&A costs (~¥35M)

EPS: ¥9.69 (+2% YoY)

All major indicators at 24% progress toward FY forecast; guidance unchanged.

Segment Trends

Vertical HR: ¥2,929M revenue (+10% YoY) – strong growth in “Ties” and M&A additions.

Living Tech: ¥1,694M (+29% YoY) – boosted by insurance & reuse acquisitions, cross-selling gains.

Life Service: ¥2,136M (-3% YoY) – travel sector strong in business travel, leisure moderated; non-core businesses still a drag.

Strategic & M&A Progress

Achieved “Z Core” (¥10B revenue) in Vertical HR ahead of schedule via multiple M&As.

Recent deals:

AnyCareer (Pharma HR) – ¥2.92B acquisition (Sep 2025).

USAEL (Travel DX) – ¥325M acquisition (Jun 2025).

URG (RPO & job placement) – ¥400M acquisition (May 2025).

14 M&A deals in 2nd mid-term plan (~¥6.6B invested); larger deals (Ties, TSD) made biggest impact.

Shareholder Returns

Buyback: Up to ¥700M (1.49% of shares); ~¥400M already repurchased.

Dividend: Increase to ¥11/share (prev. 10.5).

Treasury stock cancellation: 1.7M shares (1.52% of shares) in May 2025.

Shareholder benefit program: Up to 4.03% yield in benefits; total potential yield ~6.38%.

Financial Position

Equity ratio: 56.5%; goodwill-to-equity: 0.6x.

Cash & equivalents: ¥10.6B; total loans down to ¥2.8B.

Operational Initiatives

AI adoption across divisions to improve efficiency (resume/job post automation, scouting optimization, AI quotes in travel).

Portfolio rationalization: downsizing/combining low-margin businesses (e.g., Sanko Ad, MIRAxS).

Outlook & Risks

Inflation and weak yen affecting renovation, leisure travel, overseas real estate.

Tariff concerns in some HR clients but manageable.

Continued M&A focus across multiple domains with “roll-up” strategy in Vertical HR.

As the intention for this 🦆is to hold long-term, its natural to wonder if these are good results…

Yes — these are solid results overall, though not without some caution flags.

Why they’re good:

Record Q1 revenue & EBITDA despite some headwinds.

Revenue growth +9% YoY with strong momentum in Vertical HR (+10%) and Living Tech (+29%).

EPS growth (+2%) and steady margins suggest operational stability.

Guidance unchanged with 24% of annual targets already achieved in Q1 (on track).

Healthy balance sheet – low debt, strong equity ratio (56.5%), good cash reserves.

Active capital returns (buyback, dividend hike, benefit program) show confidence in future performance.

Continued M&A success — “Z Core” milestone reached ahead of plan in Vertical HR.

Caution points:

Operating income down (-2%) due to one-off M&A costs — not a structural issue, but worth tracking if integration expenses pile up.

Life Service segment still struggling (-3% revenue) due to non-core drag and macro headwinds (weak yen, inflation).

Inflation is weighing on renovations, leisure travel, and overseas real estate demand.

Heavy reliance on M&A for growth — organic growth needs to keep pace to avoid overdependence.

Bottom line:

✅ Strong top-line growth, healthy margins, and aggressive shareholder returns make this a good set of results.

⚠️ The main watchpoints are Life Service recovery, inflation impacts, and ensuring M&A integration delivers sustained profitability.

The market reacted with a -4% though…

That reaction isn’t too surprising — even “good” results can trigger a drop if:

1. Expectations vs. Reality

The market may have been pricing in stronger growth (especially in operating income and margins).

Operating income was down 2% YoY, and Life Service is still in decline — this can sour sentiment even if revenue is at record levels.

Heavy M&A focus can make investors cautious if they worry about integration risk or overpaying.

2. Forward-looking Concerns

Guidance was unchanged, not raised — so while results are on track, there’s no upside surprise.

Macro commentary mentioned inflation, weak yen, and demand declines in some areas — investors might see a risk to hitting full-year targets.

3. Profitability Mix

Growth is being driven heavily by acquisitions (Vertical HR, Living Tech), but organic growth may be less exciting.

Margins in Living Tech are around 25% (below target 30%), which might make analysts cautious.

4. Technical/Market Factors

The stock may have been overbought into earnings — a “sell the news” move is common if traders were front-running a beat.

Broader market conditions (sector sentiment, macro jitters) can magnify the drop.

Patito’s Take:

Fundamentally, this was a healthy quarter, but not a “blowout” quarter. The lack of a guidance raise + soft spots in Life Service + one-off costs likely made investors lock in profits.

Since we are holding for the long-term, the growth strategy (especially M&A in Vertical HR) still looks intact — but if we were to be trading short-term, this drop could continue until the price finds support, especially if volume is heavy.

For now Zigexn $3679 (+0,66 %) is still boasting a Patito Score of 97 and a WB score of 9A ranking it in the top of our~3200 scored stocks and staying in the nest.

ps. Yes its fiscal year 2026 for Zigexn uses a March year-end 💡

📆 July 2025 PatitosFortune Portfolio Recap in:

The sun’s out, dividends are dripping, and some of our high-conviction picks are flying . ☀️💸

The top 7 now make up 34% of the portfolio — a slight reduction from 37.33% in June — and the focus remains: stock-picking with Patito Score + WB Score at the core.

🐣 Top Gainers of the Month:

• $WCP (-0,77 %) (Canada): Monthly dividend darling surges to the top with +16.3%, now the biggest holding at 8.13%. 🍁💵
• $3679 (+0,66 %) (Japan): Our trusted performer stays strong with +15.7%, now at 7.16% weight.
• $EVO (-3,6 %) (Sweden): Gaming momentum continued — +13.8%. 🎮

💼 New or climbing contenders:

• $GRLA (Denmark): quietly compounding — a clean +10.0%, holding 6.36% of the nest
• $2330 (Taiwan): tech titan with +6.02%, pushing past the 6% line
• $HME (-1,62 %) (Canada): small cap, big potential — +6.15%
• $4GLD (+0,87 %) : the lone ETF survivor keeps its glimmer with +5.79%

💾 Holdover Stars from June:

✅ $3679 and $E3G1 stay strong

✅ $4GLD returns to the top 7 after a month away

✅ $WCP rockets to the top spot — a new leader with a familiar dividend drip

$BETS B (-0,55 %) fell hard from the short term rally it has been showing but this is a marathon and not a sprint. While the fundamentals remain solid we will patiently wait for recovery.

Ironically the inspirer behind the Patito Scoring system, has $BRK.B (+0,78 %) as the worst scoring of our current portfolio and one of the heaviest laggers. Holding with conviction still.

🔍 Strategy Update:

Patito’s conviction nest is now ~35% concentrated in the highest-performing 7 stocks.

These aren’t lucky ducks — they’re Elite and Excellent scorers, with high WB conviction and real returns to match.

From Canada to Japan to Denmark, the feathers are globally diversified but always fluff-optimized. 🪶🌍

See you in August (where changes to the portfolio are already taking place) — and of course don’t forget to check the dividend mailbox. 📬🤑

🪿📈 Monthly update – June 2025 in #PatitosFortune: the nest is taking shape!

After a strong May, June brought a changing of the feathers.

The new top 7 now make up 37.33% of the portfolio (vs 42% in May), and the 🦆 is now fully embracing stock-picking conviction powered by the Patito Score + WB Score.

🚫 Most ETFs have flown the coop — only $4GLD (+0,87 %) remains, but it didn’t make this month’s highlight reel.

🧹 Even $NDA FI (-0,59 %) (Nordea) was let go — a stock we like, but others showed stronger fundamentals. If numbers improve we’d be happy to get it back, for now it gave a 4.85% profit we welcome.

On to current standings!

🎮 Gaming stocks are thriving:

• $BETS B (-0,55 %) (V72) holds the crown again (+14.6%, 6.71% of portfolio)
• $6460 (-1,64 %) (RYU) enters the top ranks with +7.8%
• $EVO (-3,6 %) (E3G1) debuts with a strong +10.6%
• 
  $2660 brings Hong Kong twist

Covering roughly 20% of the nest thanks to their fundamentals and some personal conviction, all four are part of our interactive entertainment exposure — and Patito’s loving the 🎰 + 📱 combo.

🏠 $PAG (-3,13 %) adds steady UK-based growth

🌋 $MAU (-0,54 %) returns from May — still bringing energy to the nest

💼 $3679 (+0,66 %) solidly held its ground from May and now leads the entire portfolio by weight at 7.02%, surpassing $BRK-B thanks to it’s value appreciation and Berkshire’s recent (but hopefully not lasting) underperformance. Zigexn quietly compounding into leadership. ➡️🦆

🔁 $V72, $MAU, and $3679 all held firm from May and strengthened their standing. That’s conviction in motion. 💪

🧠 Conviction Strategy Update:

This portfolio is no longer passively feathered. We’re leaning into high-quality stocks:

✅ ~60% Elite

✅ Nearly 38% scored 9+

✅ Majority of gains from top-rated stocks identified by Patito Score and WB Score system.

It’s not just about quick profit — it’s about picking moaty, efficient, and #undervalued businesses to grow the nest long-term. 🥚🧠

We are waiting for the US picks to catch up, even with solid fundamentals with the exception of $PRDO (-0,35 %) for now they are dragging a bit behind. We are looking at you $CINF (+0,23 %)
$WRB (+0,64 %)
$BRK.B (+0,78 %)

Stay tuned — July’s looking game-ready.

Just added 100 more shares of ZIGExN to the portfolio 🇯🇵🦆

This Japanese digital platform gem scored Elite on the Patito system — strong ROE, low debt, growing earnings, and trading at a value multiple.

It also holds a solid WB Grade B for business quality and capital efficiency. Undervalued by most, but not by Patito.

Long-term digital tailwinds in Japan make this a quiet compounding candidate. As it performed well in May and numbers still look promising, we will keep adding.

🦆📈 Monthly update in #PatitosFortune: the nest is thriving!

The top 7 performers make up for 42% of my young portfolio:

$BETS leads the flock with a stellar +15.9%, proving that small caps can shine when picked with care.

$EXX1 (-0,3 %) & $IDVY (-0,3 %) are pulling weight in the dividend ETF squad — reliable yield with sweet upside.

Gold play $4GLD (+0,87 %) stays golden in these 2025 markets where 🍊man treats tariffs like a 🪀

$MAU (-0,54 %) & $3679 (+0,66 %) reflect our value picks finally getting noticed.

And $NDA FI (-0,59 %) reliable steady compounder.

Patito’s beak is up — and the feathers? Funded. 🤑

see you in June 💰🦆💰

Today we added a small starter position in ZIGExN Co., Ltd., a Japanese company specializing in matching platforms across HR, real estate, and lifestyle services.

Although ZIGExN’s recent growth looks mediocre on the surface, our Simulated WB2025 (“Warren Buffett 2025”) scoring system focuses heavily on business quality over short-term numbers.

1. Strong Financial Health

• Negative net debt → A fortress balance sheet with more cash than debt.
• Positive free cash flow → Even with soft earnings, they are still generating cash.
• Decent return on equity (ROE ~20%) → Shows internal capital is efficiently managed.

2. Business Quality Metrics

• High Gross Profit Margin (82%) → Strong pricing power or an efficient business model.
• Strong Book Value vs. Market Price → Safety cushion if things go wrong.
• Cash reserves → Critical for surviving downturns and reinvesting opportunistically.

• Attractive Valuation

• PFCF Ratio of 5.47 → “Buffett-style” cheapness relative to cash generation.
• Low PEG Ratio (0.25) → Valuation remains cheap compared to growth expectations.

4.

Management & Ownership

• Inside Ownership is strong (shows alignment).
• Founder involvement — ZIGExN still has significant founder influence, a big plus in WB2025 scoring.

🧠 In Short:

✅ Business Model = Scalable and high-margin

✅ Financial Health = No debt, strong cash flows

✅ Valuation = Cheap relative to cash generation

✅ Management = Aligned with shareholders

🔔 Warning: Growth is not “exciting” right now, so position sizing small is crucial — we treat this as a “wait and see” investment, not a “full conviction” one yet.

No financial advice, testing the company and our valuation scoring system 🦆