reports
- Chris Hoare
LY Corp (Buy, TP: ¥585, +25%) Q3 FY23 Quick Take: Strong EBITDA beat;...
LY delivered a strong EBITDA beat today, ahead consensus by 9% and upgraded EBITDA guidance for the full year, from +10% to +17%. We observed strong momentum in Commerce and Strategic. Beginning from this quarter onwards, the company had reallocated its costs, mostly to its Media and Commerce business and a smaller proportion to Strategic., thus retroactive revisions were made.
- Pelham Smithers
PSA Media & Entertainment: Global Video Game Industry Update
The global video games market has improved since the start of the year and 2023 now looks like being an "up" year, after the retrenchment in 2022. However, recent quarterly results suggested Japanese video games companies are struggling to take advantage of this. We look at why conditions are improving, and which Japanese firms are keeping pace and which aren't.
- Chris Hoare
LY Corp (Buy, TP: ¥585, +33%) Q2 FY23 Quick Take: Better trends and a...
LY (previously “Z Holdings”) delivered a strong set of results today. EBITDA outperformed and was 15% ahead of expectations, led by increased efficiency in sales promotion and reduction of commissions. Trends in Media and Commerce improved, while PayPay’s EBITDA stayed positive for the second quarter. The company is also seeing good traction from its Yahoo and Line ID linkage.
- Jo Yee Ng
- Shirley Wang Xueyi
- Stella Guo Yuting
China Home Appliance: Overseas recovery underway; maintain MARKET WEIG...
We believe the capital market focus has shifted to overseas market recovery instead of domestic AC sales after the peak season. In our view, the overseas market recovery is underway with normalised inventories and improved enddemand. We now turn more optimistic on China white goods exports in 4Q23, supported by overseas retailers?re-stocking for the upcoming holiday season. We maintain MARKET WEIGHT on the sector and prefer Haier-H to Midea.
- Thao Nguyen
- Chris Hoare
- Pelham Smithers
PSA Consumer Electronics / Entertainment: Video Game Industry Update
With global console game sales rising, analyst Pelham Smithers discusses whether we are in a new video game industry upswing. Moreover, sales of the PS5 are starting to generate clear water between those of the Xbox X/S in the Americas region – Microsoft’s backyard – so, if the gap becomes even more significant, there will certainly be implications for the X/S.
- Chris Hoare
- David Lopes
Japanese e-Commerce A slower quarter; CY 1Q23 review
Q1 was a slower quarter for the Japanese e-Commerce space. GMV growth slowed, it is still growing double digit though, take rates were mixed and pure B2C e-Commerce revenue slowed as a result. Z Holdings had a weak Q4 (CYQ1) but we think FY23 may be the turning point. Rakuten’s performance in e-Commerce/Fintech was decent again but we remain concerned by the mobile business.
- Thao Nguyen
PSA Internet / eCommerce: Z Holdings (4689 JT) – Feeling a Sense of Ur...
Since Mar 2021, when LINE was integrated, Z Holdings has done little more than scratching the surface in terms of realising group synergies. Analyst Thao Nguyen reviews the FY22 results and FY23 outlook, and reinstates her neutral stance regarding the company’s business prospects.
- Chris Hoare
Z Holdings (Buy, PT: ¥585 from ¥940, +58%) Q4 22: Weak quarter, possi...
Z Holdings reported lower than expected Q4 results, driven by the declining EC GMV trend. Q4 22 revenue was 7% lighter than consensus while adjusted EBITDA was 5% behind. However, we think FY23 may be the turning point for Z Holdings.
- Thao Nguyen
- Chris Hoare
- David Lopes
- Kirk Boodry
- Chris Hoare
Z Holdings (Buy, TP: ¥940, +250%) Q3 22: Weak advertising and GMV, gu...
Z Holdings has reported a disappointing set of Q3 results with improving profitability but deteriorating trends on Media and EC GMV that are being impacted by the weaker macro economy. Revenue guidance has been maintained (though will be challenging we think), but EBITDA guidance for the full year has been cut to the low end of the previous range (¥331.5bn from range ¥331.5 - ¥340bn), despite a decent performance this quarter.
- Pelham Smithers
PSA Market Strategy: Japan Perspective for 2023
At the beginning of every year we publish our PSA Perspective, a report intended as a long shelf-life look at the year ahead. This year Pelham Smithers discusses Japan's economy, the outlook for the stock market, and some stand-out themes and developments for the year. These include the digital yen and the demise of live action entertainment in Japan. We also update our noted PSA Focus List of stocks. Table of Contents Overview 3 Background: 4 Japan’s Economic Outlook 5 Ja...
005930 SAMSUNG ELECTRONICS CO. LTD.
V VISA INC. CLASS A
ATVI ACTIVISION BLIZZARD INC.
LLOY LLOYDS BANKING GROUP PLC
9020 EAST JAPAN RAILWAY COMPANY
9684 SQUARE ENIX HOLDINGS CO. LTD.
9983 FAST RETAILING CO. LTD.
6861 KEYENCE CORPORATION
8411 MIZUHO FINANCIAL GROUP INC.
3349 COSMOS PHARMACEUTICAL CORPORATION
4188 MITSUBISHI CHEMICAL HOLDINGS CORPORATION
9468 KADOKAWA CORPORATION
8306 MITSUBISHI UFJ FINANCIAL GROUP INC.
6301 KOMATSU LTD.
8058 MITSUBISHI CORPORATION
7011 MITSUBISHI HEAVY INDUSTRIES LTD.
7211 MITSUBISHI MOTORS CORPORATION
6981 MURATA MANUFACTURING CO. LTD.
6902 DENSO CORPORATION
6594 NIDEC CORPORATION
7201 NISSAN MOTOR CO. LTD.
9984 SOFTBANK GROUP CORP.
6758 SONY CORPORATION
4005 SUMITOMO CHEMICAL CO. LTD.
8053 SUMITOMO CORPORATION
6762 TDK CORPORATION
4502 TAKEDA PHARMACEUTICAL CO. LTD.
7203 TOYOTA MOTOR CORP.
9021 WEST JAPAN RAILWAY COMPANY
2413 M3 INC.
7270 SUBARU CORP
6506 YASKAWA ELECTRIC CORPORATION
AAPL APPLE INC.
MSFT MICROSOFT CORPORATION
9434 SOFTBANK CORP.
78320 BANDAI NAMCO
36350 KOEI TECMO
9988 ALIBABA (9988 HK)
3394 JT MONEY FOWARD
4051 JT GMO FINANCIAL GATE (4051 JT)
TSE:4477 BASE INC
4259 JT EXAWIZARDS INC
- Chris Hoare
- David Lopes
- Thao Nguyen
- Thao Nguyen
PSA Internet: A Review of Selected Smartphone Game Companies
Despite having been labelled as lockdown stocks, smartphone game companies have not been sold off to the same extent as have other Covid beneficiaries, such as EC companies, against the backdrop of the reopening of the economy. That smartphone game stocks have been relatively resilient suggests that the services they provide have become a part of people’s daily lives. The fact that restrictions to movement have been lifted does not mean that people will stop playing smartphone games or reduce th...
- Chris Hoare
New Street: Z Holdings (Buy, TP: ¥940, +137%) Q2 22: Mixed quarter, g...
Z Holdings has reported a mixed set of Q2 results with improving trends on the Commerce and Strategic but deteriorating trends on the Media side which is still being impacted by the weaker macro economy. Guidance for the full year has been maintained; the company will optimise costs to offset the negative impact on Adj.EBITDA from the consolidation of PayPay and tougher trends from the Media business.
- Chris Hoare
- David Lopes
New Street: Japan e-Commerce A sequentially stable quarter; CY 2Q22 r...
Q2 was a stable quarter when compared to Q1 overall. Market GMV grew by c.10% YoY, like in Q1 and market share were broadly stable too. We continue to think that the fundamentals are strong but the short-term is likely to remain challenging.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.