In this quarterly strategy report, we look to evaluate where we are with regards the bull market conditions, and where those indicators might be headed, factoring in the downside risks, from Trump tariffs and the US economy, BoJ actions, Japanese earnings and valuations.
What’s new: TME’s reported 4Q24 results that were above consensus and our expectations. Online music revs could remain resilient partly driven by subscription and ads. Margins could see further upside in FY25 partly driven by better rev mix and continued cost controls. We up our PT from USD14 to USD17 on resiliency of the online music segment. Our updated PT of USD17 implies 20.5x FY25E P/E. We maintain our BUY rating. Analysts: Jin Yoon
Tags: Nidec (6594 JT), Makino Milling (6135 JT), Fanuc (6954 JT), Harmonic Drive (6324 JT), Honeywell (HON US), Apple (AAPL US), Alphabet (GOOGL US), Microsoft (MSFT US), Omron (6645 JT), Azbil (6845 JT), Yokogawa Electric (6841 JT), Hioki EE (6866 JT), Sysmex (6869 JT), Accenture (ACN US), Sewtec Automation (pvt), Ebay (EBAY US), GTRIC (pvt), Murata (6981 JT), Internet Initiative Japan (3774 JT), Recruit (6098 JT), Monotaro (3064 JT) Despite high valuations and a dull share price performance o...
Following the recent results season where several leading semiconductor and SPE companies globally produced either disappointing results or guidance, we look at where the semiconductor industry is at present, where it looks to be headed in 2025 and identify opportunities in the Japanese IC / SPE space.
What’s new: TME’s reported 3Q24 top-line results that were largely in-line with consensus and our expectations. Subscription revs could remain resilient partly driven by stable quarterly net adds and higher monthly ARPPU. Margins could see further upside in 4Q24 and into FY25 partly driven by better rev mix and continued cost controls. We maintain our PT at USD14. Analysts: Jin Yoon
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
What’s new: TME’s reported 2Q24 top-line results that were largely in-line with consensus and our expectations. TME is taking a proactive approach to focus on ARPU to drive subscription revs going forward. While mid-term paying subscriber target remains intact, the pace of net adds could be slower than our initial expectations. We lower our PT from USD17 to USD14 on lowered outlook. Our revised PT of USD14 implies a 18.2x FY25 P/E. We maintain our BUY rating. Analysts: Jin Yoon
What’s new: TME’s 1Q24 results were above consensus and our expectations. Margins could see further upside in FY24 partly driven by better rev mix and continued cost controls. We up our PT from USD13 to USD17 on an improving margin outlook. Our revised PT of USD17 implies a 21.3x FY25 P/E. We maintain our BUY rating. Analysts: Jin Yoon
TME will report 2Q23 results on August 15th before the markets open with an 8am ET conference call. We are positive on TME’s performance in 2Q23 and outlook for 2023. The long-awaited economic stimulus policies have started to come out since late July 2023. On June 25th, the State Think Tank CMF released its paper “Solidifying Foundation for Recovery, China’s Macroeconomy in 2023”. The paper not only pointed out 5 main issues but also emphasized that these issues cannot be resolved by themselves...
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...
The independent financial analyst theScreener just lowered the general evaluation of TENCENT MUSIC ENTER (US), active in the Broadcasting & Entertainment industry. As regards its fundamental valuation, the title now shows 2 out of 4 stars while market behaviour can be considered risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Negative. As of the analysis date January 21, 2022, the closing price was USD 6.39 a...
The independent financial analyst theScreener just lowered the general evaluation of KEYENCE (JP), active in the Electronic Equipment industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date January 18, 2022, the closing price was JPY 63,500...
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.
The independent financial analyst theScreener just lowered the general evaluation of HARMONIC DRIVE SYS. (JP), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date November 9, 2021, t...
TME will report 3Q21 results on November 8th after the close of the markets followed by an 8pm EST conference call. As 3Q21 was a period of intensive policies, TME was negatively impacted. The impact is likely to wear out in 2H2022. Therefore, for 3Q21, we expect the company’s subscription business to continue to do relatively better while its live streaming business can be lagging.
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....
TME will report 1Q21 results on May 17th after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be better than consensus expectation at RMB7,737M driven by the growth of its music services. New paying subscribers are likely to be higher than 5M as long form audio is popular in China.
TME will report 4Q20 results on March 22nd after the close of the markets followed by an 8pm EST conference call. Based on our data, we estimate that total revenue is likely to be better than consensus at RMB8,332M. In 4Q20, the music subscription business was still in high growth driven by higher paying members and flat ARPU; social entertainment showed recovery in ARPU with stable users. In 4Q20, TME announced that it has been expanding its independent music portfolio by signing new licensing ...
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