Japan Specialist

Mark Chadwick

Thematic (Sector/Industry)

<ul>
<li>OVERSEAS. SPX new 52W highs on Bank earnings, AI (thx to MSFT), and Resilient Retail print; MSFT prices Copilot at high end; US bank CEOs showing optimism. </li>
<li>JAPAN. NKY Futures +0.8% vs Cash; USDJPY 138.8; Look for continued follow through in Japan equity bid; Bank bid thematic gaining more traction on BOJ tweak view;   Kishida cabinet reshuffle?</li>
<li>NUGGET. Isuzu(7202) - Big EV Spending but Still looks Cheap at 1x PBR. A 15% FY3/26 ROE as per mid term plan makes this look interesting for LT investors here.</li>
</ul>


OVERSEAS. SPX new 52W highs on Bank earnings, AI (thx to MSFT), and Resilient Retail print; MSFT prices Copilot at high end; US bank CEOs showing optimism. 
JAPAN. NKY Futures +0.8% vs Cash; USDJPY 138.8; Look for continued follow through in Japan equity bid; Bank bid thematic gaining more traction on BOJ tweak view;   Kishida cabinet reshuffle?
NUGGET. Isuzu(7202) - Big EV Spending but Still looks Cheap at 1x PBR. A 15% FY3/26 ROE as per mid term plan makes this look interesting for LT investors here.


Ohayo Japan | Bullish Banks, Ai , US Consumer; NUGGET: Isuzu(7202) - EV Outlook Better for Trucks

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<ul>
<li>The gift market has contracted in recent years as corporate and formal gift giving has declined, but companies and individuals are enthusiastic adopters of digital gifting thanks to the convenience. </li>
<li>Businesses, in particular, are using eGifts as marketing and promotion tools and Giftee is one of the biggest beneficiaries of this trend. </li>
<li>The convenience and low cost of these services suggests considerable potential for expansion going forward, even if the consumer online gift market will increasingly be owned by LINE.</li>
</ul>


The gift market has contracted in recent years as corporate and formal gift giving has declined, but companies and individuals are enthusiastic adopters of digital gifting thanks to the convenience. 
Businesses, in particular, are using eGifts as marketing and promotion tools and Giftee is one of the biggest beneficiaries of this trend. 
The convenience and low cost of these services suggests considerable potential for expansion going forward, even if the consumer online gift market will increasingly be owned by LINE.


Giftee: Digital Gifting Surges for Consumer Businesses

<div><ul>
<li>
Giftee's stock price rose 20 percent after strong 1Q results were announced in mid-May. Since then, the stock has fallen back to its 200-day moving average. Now is a good time to revisit the name. 
</li>
<li>Giftee for Business remains the primary revenue generator as record numbers of companies join the platform, resulting in a 50% growth in the number of marketing campaigns. </li>
<li>
Giftee is a leading distributor of e-gifts for individuals, corporations, and local governments in Japan. As offline activities move online, e-gifts are likely to see continued growth.  
</li>
</ul></div>



Giftee's stock price rose 20 percent after strong 1Q results were announced in mid-May. Since then, the stock has fallen back to its 200-day moving average. Now is a good time to revisit the name. 

Giftee for Business remains the primary revenue generator as record numbers of companies join the platform, resulting in a 50% growth in the number of marketing campaigns. 

Giftee is a leading distributor of e-gifts for individuals, corporations, and local governments in Japan. As offline activities move online, e-gifts are likely to see continued growth.  



Japan Small Cap Growth: Giftee (4449) - Q1 Wrap

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

In my insight <a href="https://www.smartkarma.com/insights/topix-inclusion-trade-summary-sep-2020" target="_blank" data-smartkarma-citation="insights:43700" rel="noopener">TOPIX Inclusion Trade Summary: Sep 2020</a>, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: <a href="https://www.smartkarma.com/entities/giftee-inc" target="_blank" data-smartkarma-citation="entities:28280:1" rel="noopener">giftee Inc (4449 JP)</a> and <a href="https://www.smartkarma.com/entities/odk-solutions-co-ltd" target="_blank" data-smartkarma-citation="entities:7143:1" rel="noopener">ODK Solutions (3839 JP)</a>. Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> announced they had received approval (<a href="https://global-assets.irdirect.jp/pdf/tdnet/batch/140120210205457098.pdf" target="_blank" rel="noopener">J-only</a>) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on <a href="https://www.smartkarma.com/entities/faithnetwork-co-ltd" target="_blank" data-smartkarma-citation="entities:29132:1" rel="noopener">FaithNetwork Co Ltd (3489 JP)</a> on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event.

In my insight TOPIX Inclusion Trade Summary: Sep 2020, I discussed how the newly introduced Section Transfer requirements were going to impact the fate of some pre-event candidates for TOPIX Inclusion Events. In that insight, I picked four names from Quiddity's TOPIX Inclusions Pre-event Watchlist which could potentially try to apply before 1st November 2020 to avoid having to face the new (and more stringent) section transfer requirements. Since then, two out of our four picks have already confirmed their moves: giftee Inc (4449 JP) and ODK Solutions (3839 JP). Friday after market-close, we had another candidate from this list confirm their move; Japanese real estate investment and construction company FaithNetwork Co Ltd (3489 JP) announced they had received approval (J-only) to move from the Mothers Market to the First Section of the Tokyo Stock Exchange as of 12th February 2021. Since we turned Bullish on FaithNetwork Co Ltd (3489 JP) on 29th September 2020, the stock has gained +23.5% (¥ 1,190 to ¥1,470). TSE1 reassignment triggers inclusion into the TOPIX Index and the Inclusion Event can be expected to be at the close of trading 30th March 2021.In this insight, we take a look at the Index Inclusion Parameters and the Fundamentals of the company to evaluate the upside potential of the TOPIX Inclusion Event. 

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with <a href="https://www.smartkarma.com/entities/sansan-inc" target="_blank" data-smartkarma-citation="entities:28112:1" rel="noopener">Sansan Inc (4443 JP)</a> - another larger-than-usual candidate - and two other super-high-impact names <a href="https://www.smartkarma.com/entities/bull-dog-sauce-co-ltd" target="_blank" data-smartkarma-citation="entities:16235:1" rel="noopener">Bull Dog Sauce (2804 JP)</a> and <a href="https://www.smartkarma.com/entities/alps-logistics-co-ltd" target="_blank" data-smartkarma-citation="entities:3935:1" rel="noopener">Alps Logistics (9055 JP)</a>. There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future.

In the month of January 2021, one of the most anticipated TOPIX Inclusion candidates, Toshiba Corp (6502 JP) announced its move to TSE1 triggering what could potentially be one of the largest TOPIX Inclusion events in recent memory. The stock could see its TOPIX Inclusion take place at the end of February, along with Sansan Inc (4443 JP) - another larger-than-usual candidate - and two other super-high-impact names Bull Dog Sauce (2804 JP) and Alps Logistics (9055 JP). There is plenty to look forward to. In this insight, I have provided performance updates for 6 "Live" event stocks (including the names mentioned above) which are expected to have Inclusion Events at the end of February 2021 and 14 "Post" event stocks that completed their Inclusion Events at the end of December 2020 and January 2021 (on 28 January 2021).Furthermore, I have also highlighted some interesting Pre-event situations involving stocks that are likely to become TSE1-promotion candidates in the near future. 

Japan

giftee, Inc. provides electronic gift services. The Company gives electronic gifts for free from online with small thanks. giftee also provides gift tickets from shops to customers.

giftee Inc (4449 JP)

Ohayo Japan | Bullish Banks, Ai , US Consumer; NUGGET: Isuzu(7202) - EV Outlook Better for Trucks

US equities hit new highs on bank and AI optimism; NKY Futures +0.8% vs Cash; USDJPY 138.8; Bank bid thematic gaining more traction on BOJ tweak...

Mark Chadwick

Giftee: Digital Gifting Surges for Consumer Businesses

Online gift giving by businesses and consumers has increased rapidly in recent years and should expand further with Giftee one of the main...

Michael Causton

Japan Small Cap Growth: Giftee (4449) - Q1 Wrap

Giftee is a leading distributor of e-gifts for individuals, corporations, and local governments in Japan. As offline activities move online, e...

Mark Chadwick

TOPIX Inclusion: FaithNetwork (3489 JP)

Faith Network was a TOPIX Inclusion Pre-Event Trade from late September. It has gained 23.5% since then. It is a Small Size Large Impact trade at...

Janaghan Jeyakumar, CFA

TOPIX Inclusion Trade Summary: Jan 2021

TOPIX Inclusion Monthly Summary for December inclusions and how they did in January (badly), how January inclusions did vs TOPIX (on average well)...

Janaghan Jeyakumar, CFA