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 Bottom-Up

<ul>
<li>Despite the steady growth of Rakuten Ichiba, the Internet Services segment’s overall profitability followed a declining trend due to investments in early stage businesses.</li>
<li>However, the burden on the segment’s profitability from these early stage investments is quickly dissipating alongside the growth in cross use of <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>’s e-commerce platforms.</li>
<li>In addition, the the JV with Japan Post is also starting to improve the efficiency of logistics operations, resulting in quarterly cost savings in the range of ¥3.0-4.0bn.</li>
</ul>


Despite the steady growth of Rakuten Ichiba, the Internet Services segment’s overall profitability followed a declining trend due to investments in early stage businesses.
However, the burden on the segment’s profitability from these early stage investments is quickly dissipating alongside the growth in cross use of Rakuten Inc (4755 JP)’s e-commerce platforms.
In addition, the the JV with Japan Post is also starting to improve the efficiency of logistics operations, resulting in quarterly cost savings in the range of ¥3.0-4.0bn.


Rakuten Internet Services: Getting Back to Growth

Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>Mobile operating losses are likely to expand before an inflection point in Q2 2022</li>
<li>ECommerce growth moderated as it lapped strong results year ago but cost improvements were a pleasant surprise</li>
<li>Management seems enthusiastic on a Rakuten Bank IPO although no plans have been set</li>
</ul>


Mobile operating losses are likely to expand before an inflection point in Q2 2022
ECommerce growth moderated as it lapped strong results year ago but cost improvements were a pleasant surprise
Management seems enthusiastic on a Rakuten Bank IPO although no plans have been set


Rakuten Group (Neutral) - Q3 21 Results Reaction: Record Mobile Losses with Mixed Results Elsewhere

<p>Softbank Corp. results were mixed with revenue in line but operating profit (-7% in Q2) below consensus. Some of that is timing related as it laps a record-high quarter even as H2 comps get easier on tailwinds from ¥50bn in one-time expenses last year. On the telecom side, enterprise revenue growth of 4% including double-digit growth for solutions revenue is encouraging. Management remains confident of meeting full-year targets but as we saw with KDDI last week, mobile price reductions are starting to make their presence felt.</p>

Softbank Corp. results were mixed with revenue in line but operating profit (-7% in Q2) below consensus. Some of that is timing related as it laps a record-high quarter even as H2 comps get easier on tailwinds from ¥50bn in one-time expenses last year. On the telecom side, enterprise revenue growth of 4% including double-digit growth for solutions revenue is encouraging. Management remains confident of meeting full-year targets but as we saw with KDDI last week, mobile price reductions are starting to make their presence felt.

Softbank Corp (Buy) - Q2 21 Results Reaction: Consumer Mobile Weakness Accelerates

<p>Results were for the quarter were mixed with accelerating erosion in consumer mobile outpacing offsetting growth from new services (VAS and corporate sales). The bad news is mobile service revenue declines were modestly steeper than we expected and on a run-rate basis are now higher than management targets for the full year. But business services growth remains healthy and improvements in user retention could provide some support for consumer mobile. KDDI is on track to meet full-year targets although the margin for error has narrowed. We remain at Buy.  </p>

Results were for the quarter were mixed with accelerating erosion in consumer mobile outpacing offsetting growth from new services (VAS and corporate sales). The bad news is mobile service revenue declines were modestly steeper than we expected and on a run-rate basis are now higher than management targets for the full year. But business services growth remains healthy and improvements in user retention could provide some support for consumer mobile. KDDI is on track to meet full-year targets although the margin for error has narrowed. We remain at Buy.  

KDDI (Buy) - Q2 21 Results Reaction: Mobile Declines Outpace New Growth Drivers

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.

Equity Capital Markets

Japan Post Holdings / Equity Capital Markets

<div><p>The Japanese government plans to sell over 26% or US$8bn worth of <a href="https://www.smartkarma.com/entities/japan-post-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:359:1" rel="noopener">Japan Post Holdings (6178 JP).</a> We've covered most most aspects of the deal in our previous note, <a href="https://www.smartkarma.com/insights/japan-post-holdings-placement-the-final-us-8bn-countdown-past-deal-didn-t-do-well" target="_blank" rel="noopener">Japan Post Holdings Placement - The Final US$8bn Countdown - Past Deal Didn’t Do Well</a>. </p></div><div><p>In this note, we will talk about the updates and the share price performance so far.</p></div>

The Japanese government plans to sell over 26% or US$8bn worth of Japan Post Holdings (6178 JP). We've covered most most aspects of the deal in our previous note, Japan Post Holdings Placement - The Final US$8bn Countdown - Past Deal Didn’t Do Well. In this note, we will talk about the updates and the share price performance so far.

Japan Post Holdings Placement - The Final US$8bn Countdown - Shaping up Better than the Last Deal

Japan

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

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

Rakuten (4755 JP)

Rakuten Internet Services: Getting Back to Growth

The burden on Rakuten's Internet Services profitability from investments in early stage investments is quickly dissipating alongside the growth in...

Oshadhi Kumarasiri

Rakuten Group (Neutral) - Q3 21 Results Reaction: Record Mobile Losses with Mixed Results Elsewhere

Accelerating mobile losses, which are unlikely to inflect until Q2 next year, overshadow progress in core segments (eCommerce looked good, fintech...

Kirk Boodry

Softbank Corp (Buy) - Q2 21 Results Reaction: Consumer Mobile Weakness Accelerates

Q2 results were mixed with revenue in line but operating profit weaker despite Yahoo Japan upside. Internet exposure helps but mobile pricing...

Kirk Boodry

KDDI (Buy) - Q2 21 Results Reaction: Mobile Declines Outpace New Growth Drivers

Q2 results were mixed with accelerating erosion in consumer mobile outpacing growth from VAS and corporate sales. But management appears confident...

Kirk Boodry

Japan Post Holdings Placement - The Final US$8bn Countdown - Shaping up Better than the Last Deal

The Japanese government plans to sell over 26% or US$8bn worth of Japan Post Holdings (6178 JP). In this note, we will talk about the updates and...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)