• Confidence in fundamentals – Multiple positives in Simplex’s Q1-2 FY3/26 results highlighted management’s solid growth execution, resulting in high double-digit growth YoY for sales and OP. Most notable are continued strength in Strategic/DX Consulting, and a marked increase in the Enterprise DX business area; we believe this illustrates their model of providing upstream consulting and technology services is winning new business, improving the sales mix, and achieving customer diversification to non-financials. Record-high quarterly orders and backlog in Q2 FY3/26 underpin a strong demand environment, and this backdrop has also enabled the company to implement positive pricing revisions. FY3/26 guidance has been raised, reflecting management confidence.
