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...
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.
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...
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.
2021 saw the video game industry delivery unlikely hits, several using new concepts such as NFTs and metaverse tropes. Meanwhile, the latest versions of Call of Duty, Battlefield and eFootball (Pro Evolution Soccer) looked dated and underwhelmed the public. The PS5 kicks off a new era for console gaming but the timing of its release also coincides with a new era for the broader industry. This report discusses those changes and which companies look best placed to benefit.
Having not been rewarded for producing what was the biggest game in Japan in 2021 – the stock was up just 7.6% in 2021 – CyberAgent is now facing market concerns over overcoming last year's high hurdles. The share price has lost 22% so far this year and in our view valuations look attractive.
The independent financial analyst theScreener just awarded an improved star rating to CYBERAGENT (JP), active in the Media Agencies industry. As regards its fundamental valuation, the title receives an improved star rating and now shows 1 out of 4 possible stars. Given its market behaviour as moderately risky, theScreener considers that these elements allowing slightly upgrading its general evaluation to Neutral; the title, however, remains unattractive. As of the analysis date February 8, 2022,...
Tags: Nintendo (7974 JT), Niantic, Mixi (2121 JT), GungHo Online Entertainment (3765 JT), NetEase (NTES US), DeNA (2432 JT), GREE (3632 JT), Netflix (NFLX US), TV Asahi (9409 JT) Ahead of CyberAgent's FY22 Q1 announcement on 26 Jan, analyst Thao Nguyen reviews its different businesses and provides her estimates.
Following the recent weakness of CyberAgent’s share price post the Sep quarter results, analyst Thao Nguyen reviews the company’s different businesses. While consolidated OP may stay flat in the near term, the firm will likely have succeeded in turning ABEMA into its third earnings pillar by FY23. This will mitigate the company’s reliance on the volatile Game business, and in the meantime, the Internet Ad business remains firm. The stock is on undemanding valuations; EV/OP on our FY23 OP estimat...
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....
Growth Sectors Continue To Improve -- Add Exposure Risk-on signals continue to pile up, which continues to support our constructive outlook. Building off of last week's report, growth Sectors such as Technology and Communications continue to improve and we recommend adding exposure (e.g., Bilibili BILI-US/9626-HK). Index Overviews. Things remain status quo at the index level. The MSCI ACWI, ACWI ex-US, and EAFE indexes remain in uptrends, with the latter two testing uptrend support. The MSCI E...
Pelham Smithers presents his strategy for Q3 2021 and the changes to PSA's stock Focus List Table of Contents Overview 3 Background 4 Valuations & Value 5 The Case for “Muddle Through” 6 Consumer Spending 7 The Labour Market 7 The Currency and the Carry Trade 8 The BoJ and Policy 9 Japan’s Stuttering Economy 10 Stock Performance and Earnings Expectations 12 Catalysts: Digital Transformation, Semiconductors, Price Hikes ...
Global Equities Flirting With A Breakout Major support levels we pointed to in last Thursday's Int'l Compass held strong, leading to a strong bounce so far this week. The MSCI ACWI, ACWI ex-US, EAFE, and EM indexes have had such a strong bounce that the concern of lower highs has been removed. If fact, several indexes and countries are showing signs of breaking out (MSCI ACWI, MSCI EM, and Japan to name a few). No matter how you look at it this is a positive sign, however we need to see these l...
PSA CyberAgent analyst Thao Nguyen has been positive about the company's business prospects ever since the launch of Abema TV as a third pillar of earnings alongside internet advertising and gaming. In this update report Thao explains why she continues to like the company, which is now cheap.
Analyst Thao Nguyen does not see fundamental weakness at CA and remains confident that the long-term growth story remains intact. Thao models for OP to more than double from FY19 through to FY21. The recent 17% sell-off since May 28 presents a good opportunity to consider the shares
Analyst Thao Nguyen liked the AbemaTV story since Day 1 and finds it reassuring that the service is progressing in line with her expectations. The 48% sell off since the July 18 peak provides an opportunity to accumulate the shares as we remain confident that CyberAgent will see a sharp earnings recovery by FY21.
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