Report

PSA Communications / Internet: Demae-can (2484 JT) – Operating Losses to Contract Post FY22?

The share price of Demae-can has been on a good run since its FY22 Q3 earnings release on 15 Jul, up 50%, as investors cheered a narrower guided operating loss despite a more modest top-line growth target. The stock, however, is still 84% below its recent 17 Dec 2020 peak. It is one of the Covid-related beneficiaries sold off when we passed the Covid-19 pandemic, with investors believing the expansion rates would decelerate. In this report, we review the company’s business models, assess how things have changed, and discuss its prospects for profitability.
Underlying
Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Thao Nguyen

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