Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.</li>
<li>Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. </li>
<li>On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.</li>
</ul>


In 2020 and 2021 we had nine conviction calls, four of which returned over 50% within just over a year.
Three more returned close to 40%, one returned 15% and just one was an abject failure returning -39%. 
On average, alpha generation was 24.3% and our 2022 names are off to a good start putting up 14.7% in alpha in just over a month and a half.


A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

<ul>
<li>We have been arguing that significant collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. </li>
<li>The recent Matrix Awakens demo starts to reveal some of the possibilities. </li>
<li>And it demonstrates why we believe popular metaverse theme names like Facebook and Roblox have no realistic chance of competing.</li>
</ul>


We have been arguing that significant collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. 
The recent Matrix Awakens demo starts to reveal some of the possibilities. 
And it demonstrates why we believe popular metaverse theme names like Facebook and Roblox have no realistic chance of competing.


Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

<h2>Executive summary</h2>
<p>Sony is in the early stage of the PlayStation 5 console cycle. The gaming console is likely to become a major success. In addition, several other growth drivers such as demand for camera image sensors and content for music and video streaming services are also positive for Sony’s near- to medium-term outlook.</p>
<p>The longer-term outlook for Sony’s music label and Hollywood studio can be questioned as streaming platforms disintermediate the two industries. You can also question some of Sony’s recent acquisitions, including its foray into the Japanese insurance market.</p>
<p>Nevertheless, the outlook for Sony’s earnings is excellent and I see an upside of +23% to a target price of JPY 13,920/share, assuming a 2024 EV/EBIT multiple of 15x.</p>

Executive summary
Sony is in the early stage of the PlayStation 5 console cycle. The gaming console is likely to become a major success. In addition, several other growth drivers such as demand for camera image sensors and content for music and video streaming services are also positive for Sony’s near- to medium-term outlook.
The longer-term outlook for Sony’s music label and Hollywood studio can be questioned as streaming platforms disintermediate the two industries. You can also question some of Sony’s recent acquisitions, including its foray into the Japanese insurance market.
Nevertheless, the outlook for Sony’s earnings is excellent and I see an upside of +23% to a target price of JPY 13,920/share, assuming a 2024 EV/EBIT multiple of 15x.

Sony (6758 JP): Weighing the Bull and Bear Case

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Sony Group Corporation delivered an all-around beat in the previous quarter.</li><li>However, consolidated operating income fell because the Financial Services segment's operating income fell.</li><li>Software sales for the quarter increased mostly due to the launching of the enticing third-party software and increased PS5 penetration.</li></ul>

Sony Group Corporation delivered an all-around beat in the previous quarter.However, consolidated operating income fell because the Financial Services segment's operating income fell.Software sales for the quarter increased mostly due to the launching of the enticing third-party software and increased PS5 penetration.

Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! - Financial Forecasts

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.

Event-Driven

<ul>
<li>With <a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota (7203 JP)</a> having sold some of its stake in <a href="https://www.smartkarma.com/entities/denso-corp" target="_blank" data-smartkarma-citation="entities:18703:1" rel="noopener">Denso</a>, <a href="https://www.smartkarma.com/entities/kddi-corp" target="_blank" data-smartkarma-citation="entities:639:1" rel="noopener">KDDI</a> and <a href="https://www.smartkarma.com/entities/harmonic-drive-systems-inc" target="_blank" data-smartkarma-citation="entities:10238:1" rel="noopener">Harmonic Drive</a> this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.</li>
<li>Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.</li>
<li>In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.</li>
</ul>


With Toyota (7203 JP) having sold some of its stake in Denso, KDDI and Harmonic Drive this year, it has firmly set the ball rolling for unwinding some of its cross-shareholding.
Toyota has a shareholding in around 60 listed companies, with its combined disposable stake worth over US$26bn.
In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.


Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

Japan

Sony Corporation manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets.  The Company's other businesses include music, pictures, computer entertainment, and online businesses.

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Sony Corp (6758 JP)

A Belated Look Back at Our 2020 and 2021 Conviction Calls and a Look Ahead to 2022

We take a look back at our conviction calls from 2020 and 2021 to assess performance and put the strong start to our 2022 names in context.

Mio Kato

Sony – An Epic Partner

We have been arguing that collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. The recent Matrix...

Mio Kato

Sony (6758 JP): Weighing the Bull and Bear Case

Sony is in the early stage of the PlayStation 5 console cycle. The gaming console is likely to become a major success. In addition, several other...

Asian Century Stocks

Sony Group Corporation: 3 Must-Know Drivers Responsible For Its Growth! - Financial Forecasts

Sony Group Corporation delivered an all-around beat in the previous quarter. However, consolidated operating income fell because the Financial...

Baptista Research

Toyota Cross-Shareholding - To Say a Whole Lot Is Left Would Be a US$26bn Understatement

KDDI has just announced that it will conduct a buyback at JPY3,896/share in which Toyota Motors plans to tender 49.8m shares or just around 2.3% of...

Sumeet Singh

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