Trend Micro (4704) – Will Japanese Investors Recognize it as a Cyber Security Stock?
In 2011, Sony's (6758) PlayStation Network was hacked, leading to a surge in cyber security stocks, like Check Point Software (CHKP US), one stock market refused to stoop to such thematic investing – Tokyo. While Check Point's shares were headed to new highs, Trend Micro's (4704) were still lower at the end of May than they were in March, just before the hack. Much the same happened in 2014, when PlayStation Network was hacked again – there was broad rally in cyber security stocks, but not a glimmer out of Trend. Although, to be fair to the investing public, if Trend was benefiting from growing awareness of the cyber security threat, it wasn't obvious in day-to-day business performance.
In this report, we look at the changes in Trend’s earnings, as it moves from consumer to enterprise, and highlight the upswing in revenues from Tipping Point – the company’s GenX system that integrates enterprise security across a range of platforms and services. It was therefore something of a surprise when on May 15th, following all the cyber scaring, Trend's shares rose just ¥70 to ¥5,490. Now that there is good reason to think that Trend's business is indeed on the up – rather than just a play on the general theme – it is going to be interesting to see if this time is different, and the shares do start to motor on this story.
Trend Micro is engaged in the development and sale of computer security products. Co. offers security and protection products for data centers, cloud computing, networks, endpoints and gateways, email, webs and SaaS applications for enterprises, small business and governments. Co. also provides enterprise ransomware protection products, regulatory compliance products, healthcare security products and point-of-sale protection products. In addition, Co offers security software and cleanup and other related services for home networks, PCs, tablet computers and smartphones for individual users.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.