Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

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 Capital Markets

Founded in December 2012 in Roppongi Tokyo, BASE Inc is an e-commerce platform, payment services provider and also a SME funding services provider. The company’s main business “BASE” is an e-commerce platform which allows businesses and individuals to create online shops. BASE is considered to be one of the most user-friendly platforms enabling businesses to go online in a matter of hours. The creation of a net shop using BASE is free of charge and BASE currently has more than 800,000 net shops in their network. BASE is monetised through its payment platform and the network has close to 27,000 online shops using BASE’s payment functions. BASE charges 3.6% of the transaction value + ¥40 per transaction as a settlement fee and another 3.0% as service fee. Apart from the transaction processing revenues, BASE also sells customisable online shop templates and App plugins, however, they only contribute to about 10% of revenues.The company launched its second online payment service “PAY.JP” in September 2015. It provides payment processing services to web-based service providers and online shops (excluding BASE shops). “PAY.JP” is also a simple system like BASE and it can be introduced and maintained easily without any specialised knowledge in web design.“YELL BANK” is the latest service introduced by BASE Inc. It provides funding to BASE online shops. Using store data, BASE Inc forecasts future sales and funding requirements for online shops and by taking future sales of the online stores as collateral, YELL BANK provides the online shops with required funding.The company filed for an IPO to raise ¥600m-680m and it is expected to debut on the Mothers Board of the Tokyo stock exchange towards the end of October 2019.<table class="table table-striped"><tbody>
<tr>
<td>New Shares Issued</td>
<td style="text-align: right;">0.52</td>
<td></td>
</tr>
<tr>
<td>Existing Shareholders</td>
<td style="text-align: right;">6.70</td>
<td></td>
</tr>
<tr>
<td>Overallotment Option</td>
<td style="text-align: right;">1.08</td>
<td></td>
</tr>
<tr>
<td>Total Shares Sold in the IPO</td>
<td style="text-align: right;">8.31</td>
<td></td>
</tr>
<tr>
<td>Book Building End</td>
<td style="text-align: right;">10/16/2019</td>
<td></td>
</tr>
<tr>
<td>Price Range</td>
<td style="text-align: right;">¥1,150</td>
<td style="text-align: right;">¥1,300</td>
</tr>
<tr>
<td>Size of the IPO</td>
<td style="text-align: right;">         9,558</td>
<td style="text-align: right;">       10,805</td>
</tr>
<tr>
<td>EV</td>
<td style="text-align: right;">       16,616</td>
<td style="text-align: right;">       19,517</td>
</tr>
<tr>
<td></td>
<td style="text-align: right;"></td>
<td style="text-align: right;"></td>
</tr>
<tr>
<td>EV/EBIT</td>
<td style="text-align: right;">n.a</td>
<td style="text-align: right;">n.a</td>
</tr>
<tr>
<td>EV/Sales</td>
<td style="text-align: right;">           7.06</td>
<td style="text-align: right;">           8.30</td>
</tr>
</tbody></table><div class="content-caption"> Source: Company disclosures
</div>

Founded in December 2012 in Roppongi Tokyo, BASE Inc is an e-commerce platform, payment services provider and also a SME funding services provider. The company’s main business “BASE” is an e-commerce platform which allows businesses and individuals to create online shops. BASE is considered to be one of the most user-friendly platforms enabling businesses to go online in a matter of hours. The creation of a net shop using BASE is free of charge and BASE currently has more than 800,000 net shops in their network. BASE is monetised through its payment platform and the network has close to 27,000 online shops using BASE’s payment functions. BASE charges 3.6% of the transaction value + ¥40 per transaction as a settlement fee and another 3.0% as service fee. Apart from the transaction processing revenues, BASE also sells customisable online shop templates and App plugins, however, they only contribute to about 10% of revenues.The company launched its second online payment service “PAY.JP” in September 2015. It provides payment processing services to web-based service providers and online shops (excluding BASE shops). “PAY.JP” is also a simple system like BASE and it can be introduced and maintained easily without any specialised knowledge in web design.“YELL BANK” is the latest service introduced by BASE Inc. It provides funding to BASE online shops. Using store data, BASE Inc forecasts future sales and funding requirements for online shops and by taking future sales of the online stores as collateral, YELL BANK provides the online shops with required funding.The company filed for an IPO to raise ¥600m-680m and it is expected to debut on the Mothers Board of the Tokyo stock exchange towards the end of October 2019.

New Shares Issued
0.52



Existing Shareholders
6.70



Overallotment Option
1.08



Total Shares Sold in the IPO
8.31



Book Building End
10/16/2019



Price Range
¥1,150
¥1,300


Size of the IPO
         9,558
       10,805


EV
       16,616
       19,517







EV/EBIT
n.a
n.a


EV/Sales
           7.06
           8.30

 Source: Company disclosures


BASE Inc IPO: Excellent Customer Retention Justifies High Promo Costs

Netherlands

Adyen N.V. provides payment solutions. The Company offers a platform that enable merchants and businesses to process payments online, mobile, and point-of-sale systems with payment methods including card schemes, mobile wallets, and other local methods. Adyen serves customers worldwide.

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

BASE Inc IPO: Excellent Customer Retention Justifies High Promo Costs

Founded in December 2012 in Roppongi Tokyo, BASE Inc is an e-commerce platform, payment services provider and also a SME funding services provider....

Oshadhi Kumarasiri