Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Index Rebalance

<ul>
<li>The Nikkei 225 Rebal for The Next Rebal is, by the nature of its algorithm, basically 93.3% decided for the DELETEs when the previous rebal is announced. </li>
<li>The decision on the ADDs is somewhere between 60-80% complete at that time, dependent on future frothy volume of "young" stocks.  </li>
<li>The parameters of the new Info &amp; Comms classification labels have been applied to a number of Nikkei indices. Still 3 IN, 3 OUT for March 2027.</li>
</ul>


The Nikkei 225 Rebal for The Next Rebal is, by the nature of its algorithm, basically 93.3% decided for the DELETEs when the previous rebal is announced. 
The decision on the ADDs is somewhere between 60-80% complete at that time, dependent on future frothy volume of "young" stocks.  
The parameters of the new Info &amp; Comms classification labels have been applied to a number of Nikkei indices. Still 3 IN, 3 OUT for March 2027.


[Quiddity Index] Nikkei 225 Mar27 Rebal; 3 Tech DELETEs, 2 Info & Comms ADDs, One Consumer Goods

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

INFRONEER Holdings  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/infroneer-holdings-inc" target="_blank" data-smartkarma-citation="entities:35785:1" rel="noopener">INFRONEER Holdings (5076 JP)</a>  aims to raise around US$800m to fund the acquisition of Swing Corporation.</li>
<li>The acquisition was announced earlier this year, with the company revising its earnings guidance a few months ago. The stock has corrected significantly since the deal was announced.</li>
<li>We had a look at the deal background in our previous note. In this note, we talk about the updates and past large deals performance.</li>
</ul>



INFRONEER Holdings (5076 JP)  aims to raise around US$800m to fund the acquisition of Swing Corporation.
The acquisition was announced earlier this year, with the company revising its earnings guidance a few months ago. The stock has corrected significantly since the deal was announced.
We had a look at the deal background in our previous note. In this note, we talk about the updates and past large deals performance.


Aequitas:Infroneer Holding Placement Updates- Correction Done, past Large Primary Deals Have Done Ok

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<ul>
<li>Competition among the big three e-commerce platforms and the wider sector continues. </li>
<li>All three big firms (Rakuten, Amazon and LY) are leveraging investment in AI, ecosystem capture, and improved customer service to grow market share. </li>
<li>However, last year only Amazon Japan outperformed the sector by a significant margin and has consistently outperformed Rakuten in the past five years too.</li>
</ul>


Competition among the big three e-commerce platforms and the wider sector continues. 
All three big firms (Rakuten, Amazon and LY) are leveraging investment in AI, ecosystem capture, and improved customer service to grow market share. 
However, last year only Amazon Japan outperformed the sector by a significant margin and has consistently outperformed Rakuten in the past five years too.


Rakuten Continues Fight to Hold Share Against Amazon and LY but Amazon Is Ahead

Event-Driven

<ul>
<li>A couple of years ago, <a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten (4755 JP)</a> - burning through cash to start its mobile business - announced it would its Bank and Securities units. Bank listed. Securities didn't.</li>
<li>Mizuho ended up buying 49% of Securities. Today, it was announced there would be discussions to put Bank, Securities, Card, and Insurance in a new listed Holdco.</li>
<li>How this works will end up being complicated. More complicated than it should be. But the complexity would make this more of a win-win for everyone. </li>
</ul>


A couple of years ago, Rakuten (4755 JP) - burning through cash to start its mobile business - announced it would its Bank and Securities units. Bank listed. Securities didn't.
Mizuho ended up buying 49% of Securities. Today, it was announced there would be discussions to put Bank, Securities, Card, and Insurance in a new listed Holdco.
How this works will end up being complicated. More complicated than it should be. But the complexity would make this more of a win-win for everyone. 


If Rakuten (4755) Combines Financial Units... Who Wins and How? Well... It's Complicated

<ul>
<li>Rakuten and Yahoo Shopping continued to outperform the e-commerce sector overall in the past six months – Amazon data is due early next year – so market share is rising.</li>
<li>However, a good chunk of recent growth was thanks to a now banned points scheme for tax offsets which led to a surge in sales pre-ban.</li>
<li>This means revenues may now dip again without that incentive but the longer term outlook remains clear: the big malls continue to increase market share in Japanese e-commerce.</li>
</ul>


Rakuten and Yahoo Shopping continued to outperform the e-commerce sector overall in the past six months – Amazon data is due early next year – so market share is rising.
However, a good chunk of recent growth was thanks to a now banned points scheme for tax offsets which led to a surge in sales pre-ban.
This means revenues may now dip again without that incentive but the longer term outlook remains clear: the big malls continue to increase market share in Japanese e-commerce.


Rakuten and Yahoo (And Zozo) Take More Share in Japanese E-Commerce Market

Japan

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

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Rakuten (4755 JP)

[Quiddity Index] Nikkei 225 Mar27 Rebal; 3 Tech DELETEs, 2 Info & Comms ADDs, One Consumer Goods

After the updates to the Nikkei 225, Nikkei 500, and JPX Nikkei 400 classifications, we have a better idea of what is "Info & Comms" and what...

Travis Lundy

Aequitas:Infroneer Holding Placement Updates- Correction Done, past Large Primary Deals Have Done Ok

INFRONEER Holdings (5076 JP) aims to raise around US$800m to fund the acquisition of Swing Corporation. In this note, we look at the deal updates.

Sumeet Singh

If Rakuten (4755) Combines Financial Units... Who Wins and How? Well... It's Complicated

18mos after Rakuten Bank/Rakuten halted discussions about creating a "Fintech" Group, the discussions are now going to recommence. Since then,...

Travis Lundy

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

[Quiddity Index] Nikkei 225 Mar27 Rebal; 3 Tech DELETEs, 2 Info & Comms ADDs, One Consumer Goods

After the updates to the Nikkei 225, Nikkei 500, and JPX Nikkei 400 classifications, we have a better idea of what is "Info & Comms" and what...

Travis Lundy

Aequitas:Infroneer Holding Placement Updates- Correction Done, past Large Primary Deals Have Done Ok

INFRONEER Holdings (5076 JP) aims to raise around US$800m to fund the acquisition of Swing Corporation. In this note, we look at the deal updates.

Sumeet Singh

Rakuten Continues Fight to Hold Share Against Amazon and LY but Amazon Is Ahead

​Competition in e-commerce sector intensifies as big three firms invest in AI, ecosystem capture, and customer service, with Amazon Japan leading...

Michael Causton

If Rakuten (4755) Combines Financial Units... Who Wins and How? Well... It's Complicated

18mos after Rakuten Bank/Rakuten halted discussions about creating a "Fintech" Group, the discussions are now going to recommence. Since then,...

Travis Lundy

Rakuten and Yahoo (And Zozo) Take More Share in Japanese E-Commerce Market

​Rakuten and Yahoo Shopping lead in growth, but recent surge in sales was partly due to now banned points scheme. Revenues may dip but big malls...

Michael Causton

Competition in e-commerce sector intensifies as big three firms invest in AI, ecosystem capture, and customer service, with Amazon Japan leading...

Rakuten and Yahoo Shopping lead in growth, but recent surge in sales was partly due to now banned points scheme. Revenues may dip but big malls...