BASE Inc’s share price has gained 26% YTD but is still 90% below its Oct 2020 peak of ¥3,024, ie during the height of the Covid-19 pandemic. Analyst Thao Nguyen identifies the company’s recent positive developments and provides earnings forecasts.
The Japanese stock market is in an interesting phase where the Bank of Japan is supporting the bond market rather than the stock market. While this phase lasts, the dollar should remain above ¥120/$ and perhaps strengthen further against the yen. This report looks at what this phase might mean for the Japanese stock market as a whole, and for stock selection. The PSA Focus List has also been updated.
Although the Japanese economy, politics and stock market seem to be where they were this time last year, there is a seismic shift going on in the way the Japanese stock market behaves that could make investing in Japan in 2022 quite different to previous years. We look at how and why this shift has taken place and what it means for investing in Japan in the coming year.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Since May 2020, the share price of BASE, commonly regarded as Japan’s answer to Shopify, has surged and declined; after reaching a peak of ¥15,930 on Oct 8 – in a 10-fold rise from May 1 – it has now declined, to ¥9,580 currently. Analyst Thao Nguyen discusses prospects for BASE’s business, reviews its competitive landscape, and presents her conclusions.
Boosted by Covid-19, BASE Inc looks to move into the black one year earlier than planned. Thao Nguyen reviews the company's status as of FY20 H1 and expects sales to grow at a double-digit CAGR, OP to rise 4-fold and OPM to be in the high teens in FY22.
BASE has raced up 188% YTD, but it’s not game over yet. PSA Internet analyst Thao Nguyen argues that there is still plenty of upside for the stock thanks to: 1) the push that Covid-19 has given to e-commerce 2) the huge growth potential in Japan, given it lags developed markets in online shopping and cashless payments, and 3) across the ocean in the US, rivals such as Shopify are more than 100x more valuable.
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