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

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<a href="https://www.smartkarma.com/entities/baycurrent-consulting-inc" target="_blank" data-smartkarma-citation="entities:25985:1" rel="noopener">Baycurrent Consulting (6532 JP)</a> reported 3QFY02/2022 results last week. Revenue for the quarter increased 39.0% YoY to JPY15.0bn while OP increased 57.5% YoY to JPY3.7bn.</li>
<li>The company has revised both its revenue and OP guidance upwards for full-year FY02/2022E to JPY56.5bn and JPY21bn respectively.</li>
<li>The company has already met 73.5% and 72.7% of its revenue and OP target, we expect earnings beat for the full-year as fourth quarter is the strongest.</li>
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Baycurrent Consulting (6532 JP) reported 3QFY02/2022 results last week. Revenue for the quarter increased 39.0% YoY to JPY15.0bn while OP increased 57.5% YoY to JPY3.7bn.
The company has revised both its revenue and OP guidance upwards for full-year FY02/2022E to JPY56.5bn and JPY21bn respectively.
The company has already met 73.5% and 72.7% of its revenue and OP target, we expect earnings beat for the full-year as fourth quarter is the strongest.


BayCurrent: Strong Earnings and an Upgrade to Guidance; Drop in Multiples Offers a Good Entry Point

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<a href="https://www.smartkarma.com/entities/nihon-m-a-center-inc" target="_blank" data-smartkarma-citation="entities:17616:1" rel="noopener">Nihon M&amp;A Center (2127 JP)</a> , Japan’s largest M&amp;A center, offers various M&amp;A related services. Japan is actively looking to counter the issue of lack of successors in SMEs.</li>
<li>M&amp;As have been identified as a solution which offers Nihon with strong growth opportunity. Nihon is also part of the M&amp;A Intermediaries Association which seeks to improve Japan’s M&amp;A process.</li>
<li>In this insight, we examine the company’s business model, key drivers, outlook, financials and valuation.</li>
</ul>



Nihon M&amp;A Center (2127 JP) , Japan’s largest M&amp;A center, offers various M&amp;A related services. Japan is actively looking to counter the issue of lack of successors in SMEs.
M&amp;As have been identified as a solution which offers Nihon with strong growth opportunity. Nihon is also part of the M&amp;A Intermediaries Association which seeks to improve Japan’s M&amp;A process.
In this insight, we examine the company’s business model, key drivers, outlook, financials and valuation.


Nihon M&A Center: Kishida’s New Initiatives Towards SMEs to Accelerate Growth

<a href="https://www.smartkarma.com/entities/baycurrent-consulting-inc" target="_blank" data-smartkarma-citation="entities:25985:1" rel="noopener">Baycurrent Consulting (6532 JP)</a> reported its 1HFY02/2022 results on Monday (25th October) which saw revenues increasing 34.6% YoY to JPY26.6bn while operating profit for the quarter grew 76.0% YoY to JPY9.5bn. The company’s full-year guidance for FY02/2022E called for JPY51bn and JPY16bn in revenue and OP respectively, and BayCurent has already met 52.1% and 59.4% of its revenue and OP target respectively.On a quarterly basis, BayCurrent’s 2QFY02/2022 revenues grew 37.5% YoY while operating profit for the quarter more than doubled to JPY4.8bn vs JPY2.2bn in the same quarter a year ago.Read our previous insight on the company:<a href="https://www.smartkarma.com/insights/baycurrent-consulting-strong-fundamentals-up-almost-200-and-further-upside-likely" target="_blank" data-smartkarma-citation="insights:58912" rel="noopener">Baycurrent Consulting: Strong Fundamentals; Up Almost 200% and Further Upside Likely</a>

Baycurrent Consulting (6532 JP) reported its 1HFY02/2022 results on Monday (25th October) which saw revenues increasing 34.6% YoY to JPY26.6bn while operating profit for the quarter grew 76.0% YoY to JPY9.5bn. The company’s full-year guidance for FY02/2022E called for JPY51bn and JPY16bn in revenue and OP respectively, and BayCurent has already met 52.1% and 59.4% of its revenue and OP target respectively.On a quarterly basis, BayCurrent’s 2QFY02/2022 revenues grew 37.5% YoY while operating profit for the quarter more than doubled to JPY4.8bn vs JPY2.2bn in the same quarter a year ago.Read our previous insight on the company:Baycurrent Consulting: Strong Fundamentals; Up Almost 200% and Further Upside Likely 

BayCurrent Consulting: Strong Earnings Momentum Continues

<a href="https://www.smartkarma.com/entities/baycurrent-consulting-inc" target="_blank" data-smartkarma-citation="entities:25985:1" rel="noopener">Baycurrent Consulting (6532 JP)</a>  offers a range of consultancy services in Japan including development and formulation of business strategy, digital transformation, M&amp;A and JV, improvement in operational capabilities and IT Services. The Covid-19 outbreak has accelerated the digital transformation in Japan which has led to increased requirements for consulting services in the country.BayCurrent’s share price has rallied almost 200% over the last 12-months to JPY46,250 per share from JPY15,740 per share a year ago. In this insight, we examine the company’s business model, key drivers, outlook, financials and valuation.

Baycurrent Consulting (6532 JP)  offers a range of consultancy services in Japan including development and formulation of business strategy, digital transformation, M&amp;A and JV, improvement in operational capabilities and IT Services. The Covid-19 outbreak has accelerated the digital transformation in Japan which has led to increased requirements for consulting services in the country.BayCurrent’s share price has rallied almost 200% over the last 12-months to JPY46,250 per share from JPY15,740 per share a year ago. In this insight, we examine the company’s business model, key drivers, outlook, financials and valuation.

Baycurrent Consulting: Strong Fundamentals; Up Almost 200% and Further Upside Likely

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

The shares are down 28% from their 52-week high, but still selling at 75x management's EPS guidance for FY Mar-22. Is it time to buy into the decline? Over the past month, the shares have rebounded by 8%.Nihon M&amp;A Center is more expensive than listed competitors M&amp;A Capital Partners and Strike, but much larger in terms of sales and many times larger in terms of market cap. If you want a liquid play on M&amp;A, this is it.Annual revenue growth has remained above 12% through the COVID-19 pandemic and margins have remained stable. The number of new M&amp;A mandates increased by 15.5% in FY Mar-21 to a level 24% greater than the number of transactions completed.Management's guidance is usually conservative and looks to be so again this year. On a 3-year view, we expect revenues and profits to rise by about 40%. On a 6-year view, they could double.All in all, we think the M&amp;A opportunity in Japan outweighs the risks, which include another wave of COVID infections and macro-economic difficulties.

The shares are down 28% from their 52-week high, but still selling at 75x management's EPS guidance for FY Mar-22. Is it time to buy into the decline? Over the past month, the shares have rebounded by 8%.Nihon M&amp;A Center is more expensive than listed competitors M&amp;A Capital Partners and Strike, but much larger in terms of sales and many times larger in terms of market cap. If you want a liquid play on M&amp;A, this is it.Annual revenue growth has remained above 12% through the COVID-19 pandemic and margins have remained stable. The number of new M&amp;A mandates increased by 15.5% in FY Mar-21 to a level 24% greater than the number of transactions completed.Management's guidance is usually conservative and looks to be so again this year. On a 3-year view, we expect revenues and profits to rise by about 40%. On a 6-year view, they could double.All in all, we think the M&amp;A opportunity in Japan outweighs the risks, which include another wave of COVID infections and macro-economic difficulties.

Nihon M&A (2127 JP): The Most Liquid Way to Play Japan's Structural M&A Opportunity

Japan

Nihon M&A Center Inc. provides M&A advisory services to small and medium-sized enterprises. The Company, established by certified public accountants and tax accountants, offers M&A related services such as reorganization and MBO (Management Buy-Out) as well.

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Nihon M&A Center (2127 JP)

BayCurrent: Strong Earnings and an Upgrade to Guidance; Drop in Multiples Offers a Good Entry Point

BayCurrent reported strong 3QFY02/2022 earnings which has led to an upgrade to the company's full-year guidance. The company's valuation multiples...

Shifara Samsudeen, FCMA, CGMA

Nihon M&A Center: Kishida’s New Initiatives Towards SMEs to Accelerate Growth

Nihon M&A Center is Japan’s largest M&A center. Ageing of business owners and lack of succession is a key issue faced by SMEs in Japan. Kishida's...

Shifara Samsudeen, FCMA, CGMA

BayCurrent Consulting: Strong Earnings Momentum Continues

BayCurrent's revenue and OP saw stellar growth in 1HFY02/2022 driven by by growth in the number of consultants, projects with high-value added...

Shifara Samsudeen, FCMA, CGMA

Baycurrent Consulting: Strong Fundamentals; Up Almost 200% and Further Upside Likely

BayCurrent offers consultancy services in Japan and stock price has been up almost 200% over the last 12-months. Covid-19 has accelerated DX in...

Shifara Samsudeen, FCMA, CGMA

Nihon M&A (2127 JP): The Most Liquid Way to Play Japan's Structural M&A Opportunity

The most liquid play on Japan's structural M&A opportunity. Share price down 28% from its 52-week high. Not cheap, but sales and profits could rise...

Scott Foster

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