Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/net-protections-holdings-inc" target="_blank" data-smartkarma-citation="entities:35162:1" rel="noopener">Net Protections (7383 JP)</a>, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.</li>
</ul>



Net Protections (7383 JP), a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in Dec 2021.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note, we will talk about the upcoming lock-up expiry on 9th Dec 2022.


Net Protections Holding IPO Lock-Up - PE Owner Is Free to Shed Its Remaining Stake

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>
<a href="https://www.smartkarma.com/entities/Freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">freee (4478 JP)</a> reported 1QFY06/2023 results yesterday. Revenue increased 34.5% YoY to JPY4.24bn (vs consensus JPY4.18) driven by 23.5% YoY growth in paying customers to 386,655 from 313,206 in 1QFY06/2022.</li>
<li>As expected, operating losses widened to 24.6% of revenue, however, reported losses of JPY1.0bn was well below consensus estimate of JPY1.6bn.</li>
<li>Freee’s share price has moved up by about 5% following earnings announcement which shows that the market is confident over freee’s ability to turn around its profitability.</li>
</ul>



freee (4478 JP) reported 1QFY06/2023 results yesterday. Revenue increased 34.5% YoY to JPY4.24bn (vs consensus JPY4.18) driven by 23.5% YoY growth in paying customers to 386,655 from 313,206 in 1QFY06/2022.
As expected, operating losses widened to 24.6% of revenue, however, reported losses of JPY1.0bn was well below consensus estimate of JPY1.6bn.
Freee’s share price has moved up by about 5% following earnings announcement which shows that the market is confident over freee’s ability to turn around its profitability.


Freee: Earnings Beat and Losses Widen as Freee Focuses on Mid-To-Long Term Plan

<ul>
<li>Money Forward reported 3QFY11/2022 results. Revenue increased 42.2% YoY to JPY5.45bn (vs consensus JPY5.40bn) while adjusted op.losses further widened to JPY2.5bn vs JPY449m in the same period a year ago.</li>
<li>Though top line growth has resumed following a slowdown in 2QFY11/2022, MF’s margins have further worsened with increased investment in advertising, staff and subsidies.</li>
<li>MF’s share price fell almost 8% following earnings announcement as investors are concerned over deteriorating profitability.</li>
</ul>


Money Forward reported 3QFY11/2022 results. Revenue increased 42.2% YoY to JPY5.45bn (vs consensus JPY5.40bn) while adjusted op.losses further widened to JPY2.5bn vs JPY449m in the same period a year ago.
Though top line growth has resumed following a slowdown in 2QFY11/2022, MF’s margins have further worsened with increased investment in advertising, staff and subsidies.
MF’s share price fell almost 8% following earnings announcement as investors are concerned over deteriorating profitability.


Money Forward: Top Line Beats Consensus but Losses Widen Further

Japan Specialist

Mark Chadwick

<ul>
<li>Money Forward Q3 sales rose +42% YoY to Y5.5bn driven by corporate ARR (+54% YoY)</li>
<li>Net sales, ARR, and EBITDA loss of -Y1.9bn all in line with company guidance</li>
<li>Growth investment starting to pay off as Corporate Client acquisition rate DOUBLES</li>
</ul>


Money Forward Q3 sales rose +42% YoY to Y5.5bn driven by corporate ARR (+54% YoY)
Net sales, ARR, and EBITDA loss of -Y1.9bn all in line with company guidance
Growth investment starting to pay off as Corporate Client acquisition rate DOUBLES


Money Forward (3994) | Major Improvement in Corporate Client Acquisition

Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>Revenue growth rebounded in Q4 and was the best in six quarters as corporate sales accelerated, particularly in the medium business segment</li>
<li>But EBITDA losses accelerated and whilst management says this is the peak quarter, this is the first time since 2019 that EBITDA excluding advertising costs was negative</li>
<li>Guidance for Q4 is mixed with a conservative revenue target and a only a modest reduction in EBITDA losses</li>
</ul>


Revenue growth rebounded in Q4 and was the best in six quarters as corporate sales accelerated, particularly in the medium business segment
But EBITDA losses accelerated and whilst management says this is the peak quarter, this is the first time since 2019 that EBITDA excluding advertising costs was negative
Guidance for Q4 is mixed with a conservative revenue target and a only a modest reduction in EBITDA losses


Money Forward - Q3 22 Results Reaction: Revenue Is Growing but so Are EBITDA Losses

Japan

Money Forward, Inc. develops mobile application software. The Company produces automatic household account book softwares, household account book application softwares, and other products. Money Forward also provides personal financial management, cloud based accounting solutions, and other services.

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

Money Forward (3994 JP)

Net Protections Holding IPO Lock-Up - PE Owner Is Free to Shed Its Remaining Stake

Net Protections, a buy now pay later service provider, raised around US$570m via selling a mix of primary and secondary shares in its Japan IPO in...

Sumeet Singh

Freee: Earnings Beat and Losses Widen as Freee Focuses on Mid-To-Long Term Plan

freee's 1Q earnings beat estimates. As expected, operating losses widened due to focusing on mid-to-long term plan which should eventually help...

Shifara Samsudeen, FCMA, CGMA

Money Forward: Top Line Beats Consensus but Losses Widen Further

Though Money Forward's top line continues to expand, losses have further widened as the company invests heavily on advertising, subsidies and...

Shifara Samsudeen, FCMA, CGMA

Money Forward (3994) | Major Improvement in Corporate Client Acquisition

Money Forward Q3 sales rose +42% YoY to Y5.5bn driven by corporate ARR (+54% YoY). Market may dislike the EBITDA loss, but that is backward...

Mark Chadwick

Money Forward - Q3 22 Results Reaction: Revenue Is Growing but so Are EBITDA Losses

Revenue growth rebounded in Q3 helped by robust sales to medium-sized businesses and record new corporate customer adds but EBITDA losses remain a...

Kirk Boodry

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)