Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Melco International Development / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digital-garage-inc" target="_blank" data-smartkarma-citation="entities:13747:1" rel="noopener">Digital Garage (4819 JP)</a> is coming up "cheap" versus <a href="https://www.smartkarma.com/entities/kakaku-com-inc" target="_blank" data-smartkarma-citation="entities:7408:1" rel="noopener">Kakaku.com Inc (2371 JP)</a>; and <a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International Development (200 HK)</a> is trading "rich" to <a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a>.</li>
<li>Preceding my comments on DG and Melco are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>



Digital Garage (4819 JP) is coming up "cheap" versus Kakaku.com Inc (2371 JP); and Melco International Development (200 HK) is trading "rich" to Melco Resorts &amp; Entertainment (MLCO US).
Preceding my comments on DG and Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


StubWorld: Digital Garage Looking "Cheap". Melco's Consensus-Missing Results

Equity Analyst, LightStream Research

Supun Walpola

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

<a href="https://www.smartkarma.com/entities/22772" target="_blank" data-smartkarma-citation="entities:22772:1">LINE Corp (3938 JP)</a> is one of the top Japanese names in our "Watchlist" of listed companies in Japan and South Korea that are adopting blockchain technologies or have exposure to cryptocurrencies. 
Since being added to the "Watchlist" in May last year (2018), LINE has launched a cryptocurrency, a cryptocurrency exchange, and a blockchain venture fund. In this note, we revisit LINE's blockchain and cryptocurrency plans.
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In our opinion, potential synergies between LINE’s cryptocurrency business and its other business ventures are quite enticing. LINE could very well lure “millions” of its existing messaging and LINE Pay users to be a part of its blockchain eco-system. 
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LINE Corp (3938 JP) is one of the top Japanese names in our "Watchlist" of listed companies in Japan and South Korea that are adopting blockchain technologies or have exposure to cryptocurrencies. 
Since being added to the "Watchlist" in May last year (2018), LINE has launched a cryptocurrency, a cryptocurrency exchange, and a blockchain venture fund. In this note, we revisit LINE's blockchain and cryptocurrency plans.

In our opinion, potential synergies between LINE’s cryptocurrency business and its other business ventures are quite enticing. LINE could very well lure “millions” of its existing messaging and LINE Pay users to be a part of its blockchain eco-system. 


This Week in Blockchain & Cryptos: Revisiting LINE's Crypto Plans

Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Up until now, we have viewed the key opportunity set for SBI Ripple Asia, the 60% owned subsidiary of <a href="https://www.smartkarma.com/entities/10928" target="_blank" data-smartkarma-citation="entities:10928:1">SBI Holdings (8473 JP)</a>, as the credit card foreign exchange market, where execution / settlement costs in Japan can hit 60bp (according to sources at <a href="https://www.smartkarma.com/entities/13631" target="_blank" data-smartkarma-citation="entities:13631:1">GMO Internet (9449 JP)</a>. However, a suite of products announced for the banking industry shows that this industry’s forex business is also in SBI Ripple Asia’s sights. Last week SBI Ripple Asia introduced two new Ripple initiatives, xRapid and xVia…

Up until now, we have viewed the key opportunity set for SBI Ripple Asia, the 60% owned subsidiary of SBI Holdings (8473 JP), as the credit card foreign exchange market, where execution / settlement costs in Japan can hit 60bp (according to sources at GMO Internet (9449 JP). However, a suite of products announced for the banking industry shows that this industry’s forex business is also in SBI Ripple Asia’s sights. Last week SBI Ripple Asia introduced two new Ripple initiatives, xRapid and xVia…

Blockchain in Japan Moves Further Forward

The decision by Seoul to put a bill before its parliament banning Bitcoin trading while at the same time investigating exchanges for tax evasion (not necessarily by the exchanges, as it could be by their customers), sent the price of Bitcoin down below US$14,000, but also led to a sell-off in Japan in stocks involved in Bitcoin trading. The latter move is somewhat ironic given that these exchanges are likely winners if Koreans are forced to trade Bitcoin on overseas exchanges, having been a beneficiary of a similar move by Beijing a year earlier. This, though, underscores the big problem in the Japanese stock market, which is the tangling up of the Bitcoin boom, with the overall digital currency story and the development of Blockchain. The stock market appears to view the three as perfectly fungible, which is an understandable error, but one all the more ironic given the likely role of digital currencies and, especially, Blockchain, in Japan's financial industry future.

The decision by Seoul to put a bill before its parliament banning Bitcoin trading while at the same time investigating exchanges for tax evasion (not necessarily by the exchanges, as it could be by their customers), sent the price of Bitcoin down below US$14,000, but also led to a sell-off in Japan in stocks involved in Bitcoin trading. The latter move is somewhat ironic given that these exchanges are likely winners if Koreans are forced to trade Bitcoin on overseas exchanges, having been a beneficiary of a similar move by Beijing a year earlier. This, though, underscores the big problem in the Japanese stock market, which is the tangling up of the Bitcoin boom, with the overall digital currency story and the development of Blockchain. The stock market appears to view the three as perfectly fungible, which is an understandable error, but one all the more ironic given the likely role of digital currencies and, especially, Blockchain, in Japan's financial industry future.

Japanese Equities - Separating the Crypto Theme from Bitcoin Froth and the Blockchain Opportunity

It was always likely to be just a matter of time before the three main players in the Japanese ePayment market, <a href="https://www.smartkarma.com/entities/10928" target="_blank" data-smartkarma-citation="entities:10928:1">SBI Holdings (8473 JP)</a>, <a href="https://www.smartkarma.com/entities/13747" target="_blank" data-smartkarma-citation="entities:13747:1">Digital Garage (4819 JP)</a> and <a href="https://www.smartkarma.com/entities/13631" target="_blank" data-smartkarma-citation="entities:13631:1">GMO Internet (9449 JP)</a>, started to clarify their involvement in Blockchain. GMO Internet outlined their strategy earlier in the year, when they launched the GMO Blockchain Open Source Software Project, a system that allows users to develop programs using blockchain as open source. This move follows on from the establishment in 2016…

It was always likely to be just a matter of time before the three main players in the Japanese ePayment market, SBI Holdings (8473 JP), Digital Garage (4819 JP) and GMO Internet (9449 JP), started to clarify their involvement in Blockchain. GMO Internet outlined their strategy earlier in the year, when they launched the GMO Blockchain Open Source Software Project, a system that allows users to develop programs using blockchain as open source. This move follows on from the establishment in 2016…

Japan Fintech - Digital Garage (4819) Getting in On the Act

Japan

Digital Garage, Inc. is a web solution provider and a business incubator.  The Company provides Internet communications and strategy planning, electronic commerce solution tools, web creation and enhancement, and Internet advertising consulting services.

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Digital Garage (4819 JP)

StubWorld: Digital Garage Looking "Cheap". Melco's Consensus-Missing Results

I see Melco's discount to NAV at 22% versus a 12-month average of 38%. The NAV discount and implied stub have narrowed nicely since mid-July. For...

David Blennerhassett

This Week in Blockchain & Cryptos: Revisiting LINE's Crypto Plans

LINE Corp (3938 JP) is one of the top Japanese names in our "Watchlist" of listed companies in Japan and South Korea that are adopting blockchain...

Supun Walpola

Blockchain in Japan Moves Further Forward

Up until now, we have viewed the key opportunity set for SBI Ripple Asia, the 60% owned subsidiary of SBI Holdings (8473 JP), as the credit card...

Pelham Smithers Associates

Japanese Equities - Separating the Crypto Theme from Bitcoin Froth and the Blockchain Opportunity

The decision by Seoul to put a bill before its parliament banning Bitcoin trading while at the same time investigating exchanges for tax evasion...

Pelham Smithers Associates

Japan Fintech - Digital Garage (4819) Getting in On the Act

It was always likely to be just a matter of time before the three main players in the Japanese ePayment market, SBI Holdings (8473 JP), Digital...

Pelham Smithers Associates

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