Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Nexon is our top pick within the Japanese Gaming Sector </li>
<li>We see continued strong growth in revenue driven by existing game franchises in addition to new pipeline opportunities</li>
<li>Nexon is cash rich, debt free and is returning more and more money back to shareholders</li>
</ul>


Nexon is our top pick within the Japanese Gaming Sector 
We see continued strong growth in revenue driven by existing game franchises in addition to new pipeline opportunities
Nexon is cash rich, debt free and is returning more and more money back to shareholders


Nexon (3659) | More Buybacks in the Pipeline

China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>We expect that Tencent's 2Q23’s rev./non-IFRS net income to be 0.2%/5.2% vs cons. </li>
<li>We raise Tencent's ads growth in 2Q23 from 18.2% to 28.4% YoY per our recent checks with ads agencies. </li>
<li>There is an increasing possibility that "DNF Mobile" could be launched in the next several quarters. We raise the TP to $450, which implies 20.1X PE in 2023.</li>
</ul>


We expect that Tencent's 2Q23’s rev./non-IFRS net income to be 0.2%/5.2% vs cons. 
We raise Tencent's ads growth in 2Q23 from 18.2% to 28.4% YoY per our recent checks with ads agencies. 
There is an increasing possibility that "DNF Mobile" could be launched in the next several quarters. We raise the TP to $450, which implies 20.1X PE in 2023.


[Tencent (700 HK, BUY, TP HK$450) TP Change]: "DNF Mobile" And Strong Ads Are Two Catalysts

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Event-Driven

<ul>
<li>The late Nexon founder Kim Jung-Ju's family recently paid nearly 4.7 trillion won worth of inheritance taxes to the Korean government by handing over 29.3% stake (paid-in-kind) in NXC Corp.</li>
<li>We view this handing over the 29.3% stake to the Korean government to be positive overall on Nexon in the near term.</li>
<li>However, we do not expect this could bring about change in controlling ownership of the Nexon Group in the near term to result in re-rating of the Nexon Group shares. </li>
</ul>


The late Nexon founder Kim Jung-Ju's family recently paid nearly 4.7 trillion won worth of inheritance taxes to the Korean government by handing over 29.3% stake (paid-in-kind) in NXC Corp.
We view this handing over the 29.3% stake to the Korean government to be positive overall on Nexon in the near term.
However, we do not expect this could bring about change in controlling ownership of the Nexon Group in the near term to result in re-rating of the Nexon Group shares. 


Nexon Founder Family Hands Over 4.7 Trillion Won Worth of NXC to Korean Government

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>As reported by a local news outlet (YTN), the Korean government will soon list the NXC stake on Onbid, the government's online auction system (www.onbid.co.kr).</li>
<li>If the right buyer acquires the 30% stake in NXC, the family members may also sell their stake, leading to an unexpected price impact for Nexon (3659 JP).</li>
<li>Timing is critical, and the Korean government must aim to list the stake on Onbid as soon as possible, given its current revenue shortfall issue.</li>
</ul>


As reported by a local news outlet (YTN), the Korean government will soon list the NXC stake on Onbid, the government's online auction system (www.onbid.co.kr).
If the right buyer acquires the 30% stake in NXC, the family members may also sell their stake, leading to an unexpected price impact for Nexon (3659 JP).
Timing is critical, and the Korean government must aim to list the stake on Onbid as soon as possible, given its current revenue shortfall issue.


Heads Up: Selling Event of a 30% Stake in NXC (Nexon Parent Company) Is Coming Soon

<ul>
<li>On 11 January, it was announced that Kakao Entertainment (103260 KS) has attracted large scale investments from Saudi Arabia's Sovereign Fund (Public Investment Fund - PIF) and GIC (Singapore).</li>
<li>Maekyung Business Daily reported that PIF and GIC combined invested about 1.1 trillion won to 1.2 trillion won in Kakao Entertainment, valuing the company at about 10 trillion won.</li>
<li>This major investment in Kakao Entertainment by PIF and GIC should have a positive impact on Kakao Corp (035720 KS), the controlling shareholder of the company.</li>
</ul>


On 11 January, it was announced that Kakao Entertainment (103260 KS) has attracted large scale investments from Saudi Arabia's Sovereign Fund (Public Investment Fund - PIF) and GIC (Singapore).
Maekyung Business Daily reported that PIF and GIC combined invested about 1.1 trillion won to 1.2 trillion won in Kakao Entertainment, valuing the company at about 10 trillion won.
This major investment in Kakao Entertainment by PIF and GIC should have a positive impact on Kakao Corp (035720 KS), the controlling shareholder of the company.


PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment

Japan

Nexon Co., Ltd. mainly develops and services, online games for PC and mobile devices. The company also offers consulting services related to online-games. Nexon operates in Japan.

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Nexon (3659 JP)

Nexon (3659) | More Buybacks in the Pipeline

[EARNINGS] NEXON CO LTD(3659) Q2 FY12/2023 Operating Profit 27.614 billion yen,21.7%YoY inline with Consensus 27 billion yen. 3Q OP guidance...

Mark Chadwick

[Tencent (700 HK, BUY, TP HK$450) TP Change]: "DNF Mobile" And Strong Ads Are Two Catalysts

We expect that Tencent's 2Q23’s rev./non-IFRS net income to be 0.2%/5.2% vs cons. We raise the TP to $450, which implies 20.1X PE in 2023.

Blue Lotus Research Institute

Nexon Founder Family Hands Over 4.7 Trillion Won Worth of NXC to Korean Government

The late Nexon founder Kim Jung-Ju's family recently paid nearly 4.7 trillion won worth of inheritance taxes to the Korean government by handing...

Douglas Kim

Heads Up: Selling Event of a 30% Stake in NXC (Nexon Parent Company) Is Coming Soon

This post delivers today's news that the South Korean Ministry of Strategy and Finance is entering the process of selling its 30% stake in NXC...

Sanghyun Park

PIF and GIC Combined Invest About 1.2 Trillion Won in Kakao Entertainment

Maekyung Business Daily reported on 11 January that PIF (Saudi Arabia) and GIC combined invested about 1.2 trillion won in Kakao Entertainment,...

Douglas Kim

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