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....
The independent financial analyst theScreener just slightly lowered the general evaluation of LINE (JP), active in the Internet industry. The title has lost a star(s) at the fundamental level and now shows 2 out of 4 stars. Its exposure to market risk remains nonetheless the same and can be still described as defensive. theScreener slightly downgrades the general evaluation to Slightly Positive for the title on account of the lost star(s). As of the analysis date November 3, 2020, the closing pr...
Our impression of LINE’s March quarter results is mixed. On the positive side, we believe that LINE’s improving indicators suggest the strength of its ecosystem, to which we cannot find any competitors in Japan. On the negative side, the revenue growth of ad business is slightly lower than our expectation. However, we are not concerned about the long-term growth of the company, as we are impressed with LINE’s strategy to expand its ad revenue by leveraging its ecosystem. We thus retain our...
Our impression of LINE’s March quarter results is mixed. On the positive side, we believe that LINE’s improving indicators suggest the strength of its ecosystem, to which we cannot find any competitors in Japan. On the negative side, the revenue growth of ad business is slightly lower than our expectation. However, we are not concerned about the long-term growth of the company, as we are impressed with LINE’s strategy to expand its ad revenue by leveraging its ecosystem. We thus retain our...
We revise Line’s fair value estimate from JPY 5,000 to JPY 5,400 per share, and from $45 to $49 per U.S. ADR, as we consider its revenue growth will exceed our original forecasts. We acknowledge a strong network effect from Line’s ecosystem, which is covering more than 90% of smartphone users in Japan, Taiwan, and Thailand, and because of the impressive progress in user engagement, we are more confident that Line will succeed in monetizing. We view that Line’s share price will be volatile ...
We revise Line’s fair value estimate from JPY 5,000 to JPY 5,400 per share, and from $45 to $49 per U.S. ADR, as we consider its revenue growth will exceed our original forecasts. We acknowledge a strong network effect from Line’s ecosystem, which is covering more than 90% of smartphone users in Japan, Taiwan, and Thailand, and because of the impressive progress in user engagement, we are more confident that Line will succeed in monetizing. We view that Line’s share price will be volatile ...
We revise Line’s fair value estimate from JPY 5,000 to JPY 5,400 per share, and from $45 to $49 per U.S. ADR, as we consider its revenue growth will exceed our original forecasts. We acknowledge a strong network effect from Line’s ecosystem, which is covering more than 90% of smartphone users in Japan, Taiwan, and Thailand, and because of the impressive progress in user engagement, we are more confident that Line will succeed in monetizing. We view that Line’s share price will be volatile ...
We expect the stagnation of Line’s advertisement business to disappoint the market in the short run. Cost per mille, or CPM (advertisement revenue paid over 1,000 impressions) dropped to JPY 380 from JPY 434 in the previous quarter and JPY 491 in the prior-year period, as an increase in overseas ads and the transition to new ad platforms worsened the product mix. As a result, display ad revenue growth in the September quarter was 13%, representing a slowdown from 62% in the June quarter; conse...
We expect the stagnation of Line’s advertisement business to disappoint the market in the short run. Cost per mille, or CPM (advertisement revenue paid over 1,000 impressions) dropped to JPY 380 from JPY 434 in the previous quarter and JPY 491 in the prior-year period, as an increase in overseas ads and the transition to new ad platforms worsened the product mix. As a result, display ad revenue growth in the September quarter was 13%, representing a slowdown from 62% in the June quarter; conse...
We expect the stagnation of Line’s advertisement business to disappoint the market in the short run. Cost per mille, or CPM (advertisement revenue paid over 1,000 impressions) dropped to JPY 380 from JPY 434 in the previous quarter and JPY 491 in the prior-year period, as an increase in overseas ads and the transition to new ad platforms worsened the product mix. As a result, display ad revenue growth in the September quarter was 13%, representing a slowdown from 62% in the June quarter; conse...
Although LINE’s Q2 results exceeded market expectations, the road ahead looks challenging due to severe competition in FinTech and AI – LINE’s two strategic businesses. We therefore revise our earnings forecasts downwards as we expect an increase in investment.
While increasing marketing and personnel costs depress Line's profitability in the short term, we are encouraged by the robust growth of its advertisement business. We view the growth as demonstrating the strength of Line's network effect, which is the source of our narrow moat rating. In particular, 20% increase on ads impressions from the March quarter suggests that ads business in overseas may pick up much faster than we had anticipated, and in fact, overseas revenue proportion in the June qu...
While increasing marketing and personnel costs depress Line's profitability in the short term, we are encouraged by the robust growth of its advertisement business. We view the growth as demonstrating the strength of Line's network effect, which is the source of our narrow moat rating. In particular, 20% increase on ads impressions from the March quarter suggests that ads business in overseas may pick up much faster than we had anticipated, and in fact, overseas revenue proportion in the June qu...
Analyst Thao Nguyen thinks the market has already taken LINE’s aggressive investment plan into account. This report discusses the opportunities ahead and suggests that LINE is better viewed as a growth stock: if there is any company in Japan which can scale new businesses quickly and has a relatively high chance of success, it is LINE.
While Line’s operating income for the March quarter was below our forecast, the revenue growth of the company was in line with our numbers, which we think demonstrates the strength of Line’s network effect, the source of our narrow economic moat rating. Line disclosed that its monthly active users figure in Japan was 75 million in the March quarter, 2 million above the previous quarter, and 7 million up on the year-on-year basis, which suggests that Line’s user base covers more than 90% of...
We raise our fair value estimate for Line to JPY 5,400 per share and $50 per U.S. ADR, from JPY 4,800 and $42 per U.S. ADR, respectively. While the share price dropped approximately 10% after the earnings meeting, in which management indicated it would not focus on improving operating margin and would continue to invest over the next few years, we are encouraged by the strong revenue growth momentum in the December quarter. We therefore believe that Line’s narrow economic moat, which is based ...
Japan Market Comment by Julie Boote, Joel Scheiman, William Nestuk and Thao Nguyen Nikkei ¥22,389.86 (+¥236.23 / +1.07%); Topix ¥1,790.34(+¥15.53 / +0.88%); ¥/$106.89 Tags: Inpex (1605 JP), Apple (AAPL US), Nidec (6594 JP),TDK (6762 JP), Taiyo Yuden (6976 JP), Yaskawa (6506 JP), Wacom (6727 JP), Anritsu (6754 JP), Nextgen (3842 JP), Howa Machinery (6203 JP), Ishikawa Seisakusho (6208 JP), SoftBank (9984 JP), Rakuten (4755 JP), DoCoMo (9437 JP), KDDi (9433 JP), Yahoo Japan (4689 JP), Start T...
PSA Today Feb 1: Japan Market Comment by Julie Boote, Joel Scheiman, William Nestuk and Thao Nguyen Nikkei ¥23,486.11 (+¥387.82 / +1.68%); Topix ¥1,870.44 (+¥33.73 / +1.84%); ¥/$109.61Tags: Fujitsu (6702 JP), Fujifilm (4902 JP), Xerox Corp (XRX US), Nihon M&A Center (2127 JP), VW (VOW GR), BMW (BMW GR), Daimler (DAI GR), Zeon Corp(4205 JP), Sumitomo Chemical (4005 JP), IHI (7013 JP), Airbus (AIR FP), JFE (5411 JP), Hitachi Zosen (7004 JP), MHI (7011 JP), KHI (7012 JP), Start Today (3092 JP), Yam...
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