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

Giftee Inc. is the leader in Japanese e-gifting market with about 1.25m registered members. The company was founded in 2010 and is based out of Tokyo. Giftee strives to simplify the whole gifting process through the introduction of various services to consumers as well as businesses and the company has so far managed to accumulate a total of more than ¥36.4bn worth of e-gift distributions.In essence, Giftee is a service that allows the users to send gift vouchers over the internet and the recipients of the vouchers can redeem them at the relevant merchant stores. Over the years this new service has gained traction as it connects people who live far apart allowing them to exchange gifts without a hassle.However, this process of issuing and redeeming the e-gifts is not always easy and Giftee has taken steps to simplify the process and increase user friendliness.A Quick Glance at Giftee’s Services Giftee offers four main types of services to consumers, members, merchants and businesses.<ul>
<li>Giftee services to individual users – Allows individual users/members to send gifts to anybody they want. The users can select the type of gift they want to send, delivery options, include private messages and also pay for the gifts using credit cards and various other payment options through the Giftee app or from the web browser. Giftee charges a commission from merchants whose products are listed on the app and the website for each sale of an e-gift.</li>
<li>Giftee for businesses – This is a service offered by Giftee for businesses allowing the businesses to give gifts to users during different campaigns/promotions. Furthermore, businesses use this service in various other situations such as rewarding its employees. Giftee charges a commission on the total value of the gifts for providing the service.</li>
<li>E-gift system service – A comprehensive software solution for businesses such as restaurants and retailers allowing them to create and manage their own e-gifting platforms using the business’s own website and app. Giftee charges a usage fee from the companies who use Giftee’s software solution.</li>
<li>Welcome! STAMP – A system by Giftee, which allows the digitisation of regional currencies used in remote islands in Japan. The company charges a usage fee from businesses who use Giftee’s system.</li>
</ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/097/533/original/1.png?1567135931" class="editor-image img-responsive" data-smartkarma-image-id="97533"></figure><div class="content-caption">Source: Company Disclosures</div><table class="table table-striped"><tbody>
<tr>
<td>Ticker</td>
<td style="text-align: center;">TSE:4449</td>
</tr>
<tr>
<td>New Shares Issued</td>
<td style="text-align: center;">0.8m</td>
</tr>
<tr>
<td>Selling Shareholders</td>
<td style="text-align: center;">3.6m</td>
</tr>
<tr>
<td>Shares Outstanding Post IPO</td>
<td style="text-align: center;">24.8m</td>
</tr>
<tr>
<td>Expected Pricing Date</td>
<td style="text-align: center;">8/30/2019</td>
</tr>
<tr>
<td>Book Building Start</td>
<td style="text-align: center;">9/3/2019</td>
</tr>
<tr>
<td>Book Building End</td>
<td style="text-align: center;">9/9/2019</td>
</tr>
<tr>
<td>Offering Starts</td>
<td style="text-align: center;">9/11/2019</td>
</tr>
<tr>
<td>Offering Ends</td>
<td style="text-align: center;">9/17/2019</td>
</tr>
</tbody></table>

Giftee Inc. is the leader in Japanese e-gifting market with about 1.25m registered members. The company was founded in 2010 and is based out of Tokyo. Giftee strives to simplify the whole gifting process through the introduction of various services to consumers as well as businesses and the company has so far managed to accumulate a total of more than ¥36.4bn worth of e-gift distributions.In essence, Giftee is a service that allows the users to send gift vouchers over the internet and the recipients of the vouchers can redeem them at the relevant merchant stores. Over the years this new service has gained traction as it connects people who live far apart allowing them to exchange gifts without a hassle.However, this process of issuing and redeeming the e-gifts is not always easy and Giftee has taken steps to simplify the process and increase user friendliness.A Quick Glance at Giftee’s Services Giftee offers four main types of services to consumers, members, merchants and businesses.
Giftee services to individual users – Allows individual users/members to send gifts to anybody they want. The users can select the type of gift they want to send, delivery options, include private messages and also pay for the gifts using credit cards and various other payment options through the Giftee app or from the web browser. Giftee charges a commission from merchants whose products are listed on the app and the website for each sale of an e-gift.
Giftee for businesses – This is a service offered by Giftee for businesses allowing the businesses to give gifts to users during different campaigns/promotions. Furthermore, businesses use this service in various other situations such as rewarding its employees. Giftee charges a commission on the total value of the gifts for providing the service.
E-gift system service – A comprehensive software solution for businesses such as restaurants and retailers allowing them to create and manage their own e-gifting platforms using the business’s own website and app. Giftee charges a usage fee from the companies who use Giftee’s software solution.
Welcome! STAMP – A system by Giftee, which allows the digitisation of regional currencies used in remote islands in Japan. The company charges a usage fee from businesses who use Giftee’s system.
Source: Company Disclosures

Ticker
TSE:4449


New Shares Issued
0.8m


Selling Shareholders
3.6m


Shares Outstanding Post IPO
24.8m


Expected Pricing Date
8/30/2019


Book Building Start
9/3/2019


Book Building End
9/9/2019


Offering Starts
9/11/2019


Offering Ends
9/17/2019



Giftee Inc: Short-Medium Term Success Story but No Clear Moat to Withstand Competition – Part 1

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.

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giftee Inc (4449 JP)

Giftee Inc: Short-Medium Term Success Story but No Clear Moat to Withstand Competition – Part 1

Giftee Inc. is the leader in Japanese e-gifting market with about 1.25m registered members. The company was founded in 2010 and is based out of...

Oshadhi Kumarasiri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)