'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

ja research

ja research is an independent research platform focused exclusively on Japanese equities. Leveraging data and graphic analysis provided by Japan Analytics, we provide insights on small and medium-sized companies that have been ignored by the sell-side as well as challenging conventional wisdom on larger companies. We also offer analyst and corporate access, the latter with translation if required. 

Thematic (Sector/Industry)

<div class="content-caption">
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/083/132/original/2019-03-25_18-58-11.png?1553507902" class="editor-image img-responsive" data-smartkarma-image-id="83132"></figure>Source: Japan Analytics
</div>There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33 Information &amp; Communication sub-Sector but is broader in that it encompasses all companies listed on all sections and exchanges but is also narrower in that we have excluded Telecommunications (including <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">S</a><a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">oftbank Group (9984 JP)</a>) and Information Technology companies. We have adopted a 'quantamental' approach which covers the long-term and current trends for Japan's Internet Sector as a whole, as well as eight sub-Sectors or Peer Groups and the Sectors' leading companies by market capitalisation.  Our focus is exclusively on the locally-listed universe and is based on disclosed financial and market data. We do not provide any forecasts, other than the companies' own forecasts and we do not attempt to make any business model or strategic judgments. Our focus is purely on financial and market performance. We do not cover unlisted and defunct companies such as Livedoor and, therefore, there is implicit survivor bias in the data. The broad themes that are developed in DETAIL below are grouped into six topics as follows: - • SUMMARY •  • FUNDAMENTAL OVERVIEW •  • SCORING - RESULTS &amp; REVISIONS / RELATIVE PRICE •  • RESULTS TRENDS •  • VALUATION • • RECOMMENDATIONS •<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/083/206/original/2019-03-25_17-46-58.png?1553565764" class="editor-image img-responsive" data-smartkarma-image-id="83206"></figure><div class="content-caption">Source: Japan Analytics</div>OVERVIEW - As will be covered in greater DETAIL below, Japan has failed to evolve a substantial Internet Sector and, in many business models, has been passed by global competitors including in the home market. Although Internet Sector revenues have grown steadily and now account for close to 1% of the total for all listed companies, operating margins have declined by half in the last seven years and are now only four percentage points higher than the market average. Accordingly, as measured by our Results &amp; Revision Score, the Sector is close to a twelve-year low. The market's response is an unchanged Sector weight in the market composite despite the addition of 111 new companies in the last six years, and a Relative Price Score that has moved in a narrow range over that period. The Sector averages disguise the weak business and market performance of a handful of Sector leaders as well as the overvaluation of the Sector's more successful business models, which is partly a result of a lack of alternatives. Despite the world's most significant Internet investor - <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank Group (9984 JP)</a>'s Vision Fund - being based in Japan, this fund and other global investors in Internet business have been right to give Japan a 'pass'.


Source: Japan Analytics
There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33 Information &amp; Communication sub-Sector but is broader in that it encompasses all companies listed on all sections and exchanges but is also narrower in that we have excluded Telecommunications (including Softbank Group (9984 JP)) and Information Technology companies. We have adopted a 'quantamental' approach which covers the long-term and current trends for Japan's Internet Sector as a whole, as well as eight sub-Sectors or Peer Groups and the Sectors' leading companies by market capitalisation.  Our focus is exclusively on the locally-listed universe and is based on disclosed financial and market data. We do not provide any forecasts, other than the companies' own forecasts and we do not attempt to make any business model or strategic judgments. Our focus is purely on financial and market performance. We do not cover unlisted and defunct companies such as Livedoor and, therefore, there is implicit survivor bias in the data. The broad themes that are developed in DETAIL below are grouped into six topics as follows: - • SUMMARY •  • FUNDAMENTAL OVERVIEW •  • SCORING - RESULTS &amp; REVISIONS / RELATIVE PRICE •  • RESULTS TRENDS •  • VALUATION • • RECOMMENDATIONS •Source: Japan AnalyticsOVERVIEW - As will be covered in greater DETAIL below, Japan has failed to evolve a substantial Internet Sector and, in many business models, has been passed by global competitors including in the home market. Although Internet Sector revenues have grown steadily and now account for close to 1% of the total for all listed companies, operating margins have declined by half in the last seven years and are now only four percentage points higher than the market average. Accordingly, as measured by our Results &amp; Revision Score, the Sector is close to a twelve-year low. The market's response is an unchanged Sector weight in the market composite despite the addition of 111 new companies in the last six years, and a Relative Price Score that has moved in a narrow range over that period. The Sector averages disguise the weak business and market performance of a handful of Sector leaders as well as the overvaluation of the Sector's more successful business models, which is partly a result of a lack of alternatives. Despite the world's most significant Internet investor - Softbank Group (9984 JP)'s Vision Fund - being based in Japan, this fund and other global investors in Internet business have been right to give Japan a 'pass'. 

🇯🇵 Japan • Internet Sector Review - 'Japan Passing'

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul class="">
<li>
Stable Bitcoin price in October - Bitcoin (BTC)'s price has remained surprisingly stable in October. While the global equity markets have been falling sharply with most major equity markets down more than 10% this month, Bitcoin's price is down only 4% this month to US$6,274 (as of October 30th). Bitcoin's ability to beat most global equity indices in October will be viewed positively by many institutional investors, especially as they attempt to diversify their assets that are less correlated with their equity holdings. </li>
<li>
First major blockchain powered smartphone - On October 23rd, Taiwan's HTC launched the world's first major blockchain based smartphone, called Exodus 1, which is based on the blockchain encryption and can only be purchased using Bitcoin or Ethereum. Exodus 1 costs 0.15 Bitcoin (US$964). The Exodus 1 product basically combines a regular smartphone with a cryptocurrency digital wallet so that consumers do not need two separate devices. </li>
<li>
Acquisition of Bitstamp by NXMH - On October 29th, NXMH, a Belgium-based investment company, acquired digital currency exchange Bitstamp, which is the largest digital currency exchange in the European Union by volume, with turnover of $100 million per day. NXMH is the European subsidiary of South Korea-based NXC, which also owns South Korean cryptocurrency exchange Korbit. 
</li>
</ul>



Stable Bitcoin price in October - Bitcoin (BTC)'s price has remained surprisingly stable in October. While the global equity markets have been falling sharply with most major equity markets down more than 10% this month, Bitcoin's price is down only 4% this month to US$6,274 (as of October 30th). Bitcoin's ability to beat most global equity indices in October will be viewed positively by many institutional investors, especially as they attempt to diversify their assets that are less correlated with their equity holdings. 

First major blockchain powered smartphone - On October 23rd, Taiwan's HTC launched the world's first major blockchain based smartphone, called Exodus 1, which is based on the blockchain encryption and can only be purchased using Bitcoin or Ethereum. Exodus 1 costs 0.15 Bitcoin (US$964). The Exodus 1 product basically combines a regular smartphone with a cryptocurrency digital wallet so that consumers do not need two separate devices. 

Acquisition of Bitstamp by NXMH - On October 29th, NXMH, a Belgium-based investment company, acquired digital currency exchange Bitstamp, which is the largest digital currency exchange in the European Union by volume, with turnover of $100 million per day. NXMH is the European subsidiary of South Korea-based NXC, which also owns South Korean cryptocurrency exchange Korbit. 



This Week in Blockchain & Cryptos: Bitcoin Diversification & First Blockchain Powered Smartphone

<ul>
<li>
Google &amp; Facebook allows cryptocurrency related advertising - Google and Facebook announced that they will allow advertising related to cryptocurrency related businesses including major cryptocurrency exchanges starting October. Both Google and Facebook previously banned all advertising related to cryptocurrencies earlier this year. </li>
<li>
Bitmain's New Cryptocurrency Machine - Bitmain announced that it will soon launch its new Antminer with 7nm technology, its best ever cryptocurrency mining machine. Bitmain’s next-gen ASIC chip (a new 7 nm semiconductor called the BM1391) will integrate more than a billion transistors for optimal mining performance. Other competitors such as Canaan, Ebang, and GMO Internet have also announced promising, new cryptocurrency mining machines recently. </li>
<li>
Squire partners with Samsung - Squire, a Canada based crypto mining firm, announced that it will partner with <a href="https://www.smartkarma.com/entities/191" target="_blank" data-smartkarma-citation="entities:191:1">Samsung Electronics (005930 KS)</a> to manufacture ASIC cryptocurrency mining chips. Squire will also partner with Gaonchips as the design house. Samsung will be its foundry partner. This partnership will pose another competitive threat to the partnership between Bitmain and TSMC. </li>
</ul>



Google &amp; Facebook allows cryptocurrency related advertising - Google and Facebook announced that they will allow advertising related to cryptocurrency related businesses including major cryptocurrency exchanges starting October. Both Google and Facebook previously banned all advertising related to cryptocurrencies earlier this year. 

Bitmain's New Cryptocurrency Machine - Bitmain announced that it will soon launch its new Antminer with 7nm technology, its best ever cryptocurrency mining machine. Bitmain’s next-gen ASIC chip (a new 7 nm semiconductor called the BM1391) will integrate more than a billion transistors for optimal mining performance. Other competitors such as Canaan, Ebang, and GMO Internet have also announced promising, new cryptocurrency mining machines recently. 

Squire partners with Samsung - Squire, a Canada based crypto mining firm, announced that it will partner with Samsung Electronics (005930 KS) to manufacture ASIC cryptocurrency mining chips. Squire will also partner with Gaonchips as the design house. Samsung will be its foundry partner. This partnership will pose another competitive threat to the partnership between Bitmain and TSMC. 


This Week in Blockchain & Cryptos: Bitcoin's Vol, Bitmain's New Rig, & Google Allows Crypto Ads

<ul class="">
<li>
Bitcoin's dominance accelerates. As of 14 September 2018, Bitcoin's market cap represented 55.8% of total cryptocurrencies market cap, rising steeply from the low 30% range in the early parts of this year. Despite Bitcoin's resurgence versus other cryptocurrencies, the overall crypto market has been in a deep bear market for much of 2018. As of 14 September, Bitcoin's price was US$6,551. Bitcoin price has been trading in a range bound between US$6,200 and US$7,300 in the past month. </li>
<li>
Insurance company plans to offer insurance coverage for hacking - Hanwha Insurance, which is one of the largest insurance companies in Korea, announced that it will start to provide insurance coverage for  hacking among the major cryptocurrency exchanges including Bithumb, Upbit, Coinone, and Korbit. </li>
<li>
Citigroup plans to trade Bitcoin and Morgan Stanley is getting ready for Bitcoin derivatives trading- Citigroup plans to act as an agent issuing digital asset receipts (DARs) to enable institutional investors to trade major cryptocurrencies such as Bitcoin without direct ownership of those cryptocurrencies. Morgan Stanley is getting ready to provide Bitcoin swaps derivatives for its clients. </li>
</ul>



Bitcoin's dominance accelerates. As of 14 September 2018, Bitcoin's market cap represented 55.8% of total cryptocurrencies market cap, rising steeply from the low 30% range in the early parts of this year. Despite Bitcoin's resurgence versus other cryptocurrencies, the overall crypto market has been in a deep bear market for much of 2018. As of 14 September, Bitcoin's price was US$6,551. Bitcoin price has been trading in a range bound between US$6,200 and US$7,300 in the past month. 

Insurance company plans to offer insurance coverage for hacking - Hanwha Insurance, which is one of the largest insurance companies in Korea, announced that it will start to provide insurance coverage for  hacking among the major cryptocurrency exchanges including Bithumb, Upbit, Coinone, and Korbit. 

Citigroup plans to trade Bitcoin and Morgan Stanley is getting ready for Bitcoin derivatives trading- Citigroup plans to act as an agent issuing digital asset receipts (DARs) to enable institutional investors to trade major cryptocurrencies such as Bitcoin without direct ownership of those cryptocurrencies. Morgan Stanley is getting ready to provide Bitcoin swaps derivatives for its clients. 



This Week in Blockchain & Cryptos: Insurance For Hacking, Bitcoin Swaps Trading, & Bitcoin Dominance

<ul>
<li>
Bitmain's Micree Zhan - The controversial Bitmain IPO continued to receive a lot of spotlight, with continued questions and concerns about its pre-IPO institutional investment and lack of clarity in its recent earnings. Jihan Wu, the co-CEO of Bitmain, has received most of the attention but we now know that the other co-CEO, Micree Zhan, is the largest owner with a 36.58% stake in Bitmain, compared to Jihan Wu's stake of 20.5%. Supposedly, Micree Zhan is the mastermind behind Bitmain's ASIC chips technology.</li>
<li>
Bithumb, one of the largest crypto exchanges in Korea, which has temporarily stopped taking new customers since the US$30 million hacking incident in June, started to take in new customers once again. This has had a positive impact on Bitcoin price.</li>
<li>
"I respect Bitmain, but we will top them." - This quote is from GMO Internet (Japan)'s CEO Masatoshi Kumagi.  The fact that Bitmain made so much money in the past two years, it is bound to attract a lot of major competition, including from GMO Internet which has aggressively expanded its high quality crypto mining machines. GMO Internet also recently mentioned that it will stop mining Bitcoin Cash. </li>
</ul>



Bitmain's Micree Zhan - The controversial Bitmain IPO continued to receive a lot of spotlight, with continued questions and concerns about its pre-IPO institutional investment and lack of clarity in its recent earnings. Jihan Wu, the co-CEO of Bitmain, has received most of the attention but we now know that the other co-CEO, Micree Zhan, is the largest owner with a 36.58% stake in Bitmain, compared to Jihan Wu's stake of 20.5%. Supposedly, Micree Zhan is the mastermind behind Bitmain's ASIC chips technology.

Bithumb, one of the largest crypto exchanges in Korea, which has temporarily stopped taking new customers since the US$30 million hacking incident in June, started to take in new customers once again. This has had a positive impact on Bitcoin price.

"I respect Bitmain, but we will top them." - This quote is from GMO Internet (Japan)'s CEO Masatoshi Kumagi.  The fact that Bitmain made so much money in the past two years, it is bound to attract a lot of major competition, including from GMO Internet which has aggressively expanded its high quality crypto mining machines. GMO Internet also recently mentioned that it will stop mining Bitcoin Cash. 


This Week in Blockchain & Cryptos: Micree Zhan, Bithumb, & "I Respect Bitmain, but We Will Top Them"

Japan

CyberAgent, Inc. operates blog media website, Ameba.  The Company also operates internet advertising agency, foreign exchange trading website, and creates PC and mobile contents such as advertisements and games. CyberAgent invests in companies with internet related business.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

CyberAgent Inc (4751 JP)

🇯🇵 Japan • Internet Sector Review - 'Japan Passing'

There are currently 241 listed Japanese companies that can be categorised as Internet businesses. Our classification overlaps with the TOPIX-33...

Campbell Gunn

This Week in Blockchain & Cryptos: Bitcoin Diversification & First Blockchain Powered Smartphone

Stable Bitcoin price in October - Bitcoin (BTC)'s price has remained surprisingly stable in October. While the global equity markets have been...

Douglas Kim

This Week in Blockchain & Cryptos: Bitcoin's Vol, Bitmain's New Rig, & Google Allows Crypto Ads

Google & Facebook allows cryptocurrency related advertising - Google and Facebook announced that they will allow advertising related to...

Douglas Kim

This Week in Blockchain & Cryptos: Insurance For Hacking, Bitcoin Swaps Trading, & Bitcoin Dominance

Bitcoin's dominance accelerates. As of 14 September 2018, Bitcoin's market cap represented 55.8% of total cryptocurrencies market cap, rising...

Douglas Kim

This Week in Blockchain & Cryptos: Micree Zhan, Bithumb, & "I Respect Bitmain, but We Will Top Them"

Bitmain's Micree Zhan - The controversial Bitmain IPO continued to receive a lot of spotlight, with continued questions and concerns about its...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)