Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Nexon’s 3Q24 earnings report saw its stock dip -17% as revenue missed guidance and foreign exchange losses weighed on the bottom line.</li>
<li>Nexon’s operating profit rose +11% y/y to ¥51 billion, with an operating margin of 38%</li>
<li>The stock is trading at 8.5x EBITDA, which makes it very attractive versus the sector</li>
</ul>


Nexon’s 3Q24 earnings report saw its stock dip -17% as revenue missed guidance and foreign exchange losses weighed on the bottom line.
Nexon’s operating profit rose +11% y/y to ¥51 billion, with an operating margin of 38%
The stock is trading at 8.5x EBITDA, which makes it very attractive versus the sector


Nexon (3659) | Down 17% on Quarterly Miss!

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Nexon is a leader in the video game virtual worlds industry with an enterprise value of $11.4 billion</li><li>The company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenue</li><li>Despite being undervalued by the market compared to its peers, Nexon is poised for significant growth and offers potential for future success for investors</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Nexon is a leader in the video game virtual worlds industry with an enterprise value of $11.4 billionThe company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenueDespite being undervalued by the market compared to its peers, Nexon is poised for significant growth and offers potential for future success for investorsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Nexon (TSE:3659) - Wednesday, Jan 17, 2024

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/shift-up-corp" target="_blank" data-smartkarma-citation="entities:36232:1" rel="noopener">Shift Up (462870 KS)</a> raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.</li>
<li>Shift Up is a South Korean games developer, which as released three games so far for the global markets.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from their lockup soon.
Shift Up is a South Korean games developer, which as released three games so far for the global markets.
In this note, we will talk about the lockup dynamics and possible placement.


Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>US semi-cap names jump as markets delayed pricing in report China restrictions will be tempered.</li>
<li>Shiseido restructuring briefing the numerical targets enough to stem the bleeding?</li>
<li>TGA around the corner should see focus on Japanese game developers, including Nexon which has been heavily sold post earnings.</li>
</ul>


US semi-cap names jump as markets delayed pricing in report China restrictions will be tempered.
Shiseido restructuring briefing the numerical targets enough to stem the bleeding?
TGA around the corner should see focus on Japanese game developers, including Nexon which has been heavily sold post earnings.


Japan Morning Connection: Japan SPE Set for More Upside

<ul>
<li>The Japanese market ended the week on a mixed note, with the Nikkei 225 Index down 2.2%</li>
<li>Stocks moves were largely dictated by earnings. Furukawa's full year upward revision was a standout, while THK surprised the market with a punchy buyback</li>
<li>
Watchlist: ASICS continues to perform well and will upgrade its mid-term outlook this week. Nexon and Appier could be worth a look after recent stock price declines</li>
</ul>


The Japanese market ended the week on a mixed note, with the Nikkei 225 Index down 2.2%
Stocks moves were largely dictated by earnings. Furukawa's full year upward revision was a standout, while THK surprised the market with a punchy buyback

Watchlist: ASICS continues to perform well and will upgrade its mid-term outlook this week. Nexon and Appier could be worth a look after recent stock price declines


Japan Weekly | Mixed Market but Plenty Going On

Japan

Nexon Co., Ltd. mainly develops and services, online games for PC and mobile devices. The company also offers consulting services related to online-games. Nexon operates in Japan.

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Nexon (3659 JP)

Nexon (3659) | Down 17% on Quarterly Miss!

Nexon's 3Q24 earnings dip -17% due to revenue miss and forex losses, but operating profit rises +11% with attractive valuation at 8.5x EBITDA.

Mark Chadwick

Nexon (TSE:3659) - Wednesday, Jan 17, 2024

The company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenue

Value Investors Club

Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from...

Sumeet Singh

Japan Morning Connection: Japan SPE Set for More Upside

US semi-cap stocks jump as China restrictions will be tempered. Will Shiseido's restructuring targets finally push it from lows? Attention on...

Andrew Jackson

Japan Weekly | Mixed Market but Plenty Going On

Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Nexon (3659) | Down 17% on Quarterly Miss!

​Nexon's 3Q24 earnings dip -17% due to revenue miss and forex losses, but operating profit rises +11% with attractive valuation at 8.5x EBITDA.

Mark Chadwick

Nexon (TSE:3659) - Wednesday, Jan 17, 2024

The company has consistently high EBIT margins and a robust portfolio of popular franchises that have generated billions in revenue

Value Investors Club

Shift Up IPO Lockup - US$1.2bn Lockup Release of Strategic, Employees and IPO Investors

Shift Up (462870 KS) raised around US$320m in its South Korean IPO, after pricing at the top. Around US$1.2bn worth of shares will be released from...

Sumeet Singh

Japan Morning Connection: Japan SPE Set for More Upside

US semi-cap stocks jump as China restrictions will be tempered. Will Shiseido's restructuring targets finally push it from lows? Attention on...

Andrew Jackson

Japan Weekly | Mixed Market but Plenty Going On

​Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....

Mark Chadwick

Nexon's 3Q24 earnings dip -17% due to revenue miss and forex losses, but operating profit rises +11% with attractive valuation at 8.5x EBITDA.

Japanese market ends week mixed, Nikkei 225 down 2.2%. Earnings drive stock moves, Furukawa's revision stands out, THK surprises with buyback....