Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

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 Bottom-Up

<ul>
<li>Shift offers outsourced software testing services and is the market leader in Japan. Software testing market is estimated at JPY5.5trn in Japan but only 1% of the market is outsourced.</li>
<li>The company has been rebranding itself from software testing provider to digital transformation (DX) and business services provider and this expansion has further potential to drive growth in the long-term.</li>
<li>Though Shift’s valuation multiples look expensive, we think there is further upside given the strong growth in top line alongside further improvement in margins.</li>
</ul>


Shift offers outsourced software testing services and is the market leader in Japan. Software testing market is estimated at JPY5.5trn in Japan but only 1% of the market is outsourced.
The company has been rebranding itself from software testing provider to digital transformation (DX) and business services provider and this expansion has further potential to drive growth in the long-term.
Though Shift’s valuation multiples look expensive, we think there is further upside given the strong growth in top line alongside further improvement in margins.


2023 High Conviction: Shift’s Growth Strategy Starting to Deliver Results

Japan Specialist

Mark Chadwick

<ul>
<li>BayCurrent remains the key beneficiary of the trend towards digital transformation (DX) and Japan's efforts to catch-up with global competitors</li>
<li>Q2 sales growth of 33% highlights continued structural opportunity that should remain in place for at least a decade</li>
<li>We believe that the share price can double over the next few years as the stock prices in the secular growth story</li>
</ul>


BayCurrent remains the key beneficiary of the trend towards digital transformation (DX) and Japan's efforts to catch-up with global competitors
Q2 sales growth of 33% highlights continued structural opportunity that should remain in place for at least a decade
We believe that the share price can double over the next few years as the stock prices in the secular growth story


BayCurrent (6532) | Riding the Wave of Digitization

<ul>
<li>The company will report Q1 earnings today. We think they will beat expectations</li>
<li>The stock has been a poor performer so far this year, despite profitable growth</li>
<li>BayCurrent is THE key beneficiary of Digital Transformation in Japan</li>
</ul>


The company will report Q1 earnings today. We think they will beat expectations
The stock has been a poor performer so far this year, despite profitable growth
BayCurrent is THE key beneficiary of Digital Transformation in Japan


BayCurrent (6532) | Jumping in Ahead of Earnings

<ul>
<li>
<a href="https://www.smartkarma.com/entities/baycurrent-consulting-inc" target="_blank" data-smartkarma-citation="entities:25985:1" rel="noopener">Baycurrent Consulting (6532 JP)</a> reported 4QFY02/2022 results today. Revenue grew 30.9% YoY to JPY16.2bn while OP increased 61.3% YoY to JPY6.8bn.</li>
<li>Full-Year FY02/2022 revenues grew 34.4% YoY to JPY57.6bn and OP increased 58.7% YoY to JPY21.5bn. Both revenue and OP beat guidance by 1.9% and 2.4% respectively.</li>
<li>BayCurrent’s shares are down 30% since its peak in September 2021, and we think current share price offers a good entry point.</li>
</ul>



Baycurrent Consulting (6532 JP) reported 4QFY02/2022 results today. Revenue grew 30.9% YoY to JPY16.2bn while OP increased 61.3% YoY to JPY6.8bn.
Full-Year FY02/2022 revenues grew 34.4% YoY to JPY57.6bn and OP increased 58.7% YoY to JPY21.5bn. Both revenue and OP beat guidance by 1.9% and 2.4% respectively.
BayCurrent’s shares are down 30% since its peak in September 2021, and we think current share price offers a good entry point.


BayCurrent: Strong Results but Guidance Seems Too Conservative

<ul>
<li>Another excellent set of results which supports our bullish view on the stock </li>
<li>BayCurrent is a key enabler of DX in Japan and a beneficiary of the tight labour market </li>
<li>The stock is down around 30% from its all-time high. Growth investors should be picking up stock  </li>
</ul>


Another excellent set of results which supports our bullish view on the stock 
BayCurrent is a key enabler of DX in Japan and a beneficiary of the tight labour market 
The stock is down around 30% from its all-time high. Growth investors should be picking up stock  


BayCurrent (6532) A Consulting Powerhouse Growing in the Double Digits

Japan

Baycurrent Inc. offers comprehensive consulting services in a wide variety of industries. The Company provides business strategy consulting, information technology consulting, information technology integration, and other services. Baycurrent provides its services throughout Japan.

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Baycurrent (6532 JP)

2023 High Conviction: Shift’s Growth Strategy Starting to Deliver Results

Being the market leader and having created a barrier in the enterprise software testing segment, Shift is well positioned to benefit from strong...

Shifara Samsudeen, FCMA, CGMA

BayCurrent (6532) | Riding the Wave of Digitization

BayCurrent remains the key beneficiary of the trend towards digital transformation (DX) and Japan's efforts to catch-up with global competitors....

Mark Chadwick

BayCurrent (6532) | Jumping in Ahead of Earnings

BayCurrent is the best play on Digital Transformation in Japan. We see continued earnings growth in the long-term due to the company's ability to...

Mark Chadwick

BayCurrent: Strong Results but Guidance Seems Too Conservative

BayCurrent reported 4QFY02/2022 results today. Revenue grew 30.9% YoY to JPY16.2bn while OP increased 61.3% YoY to JPY6.8bn. We think the company's...

Shifara Samsudeen, FCMA, CGMA

BayCurrent (6532) A Consulting Powerhouse Growing in the Double Digits

BayCurrent is a key enabler of DX in Japan and a beneficiary of the tight labour market. The stock is down around 30% from its all-time high....

Mark Chadwick

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