Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

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Equity Bottom-Up

Softbank reported in line third-quarter fiscal 2016 (quarter ending December 2016) results with revenue down 0.6%, operating profit up 71% and net income up 285%, compared with negative 0.2%, positive 3.5% and 80% rises in the first half respectively. No management guidance was provided for fiscal 2016 and we broadly maintain our existing forecasts with our fair value estimate growing to JPY 7,500 per share from JPY 6,800 per share due mainly to our increased fair value of <a href="https://www.smartkarma.com/entities/787" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding</a>…

Softbank reported in line third-quarter fiscal 2016 (quarter ending December 2016) results with revenue down 0.6%, operating profit up 71% and net income up 285%, compared with negative 0.2%, positive 3.5% and 80% rises in the first half respectively. No management guidance was provided for fiscal 2016 and we broadly maintain our existing forecasts with our fair value estimate growing to JPY 7,500 per share from JPY 6,800 per share due mainly to our increased fair value of Alibaba Group Holding…

Softbank Result in Line; FVE Raised to JPY 7,500 Due to Increased Alibaba Value

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Our friends at <a href="https://www.smartkarma.com/profiles/273" target="_blank" data-smartkarma-citation="accounts:273">Morningstar</a> have already produced a note on the recent 3Q17 results from <a href="https://www.smartkarma.com/entities/639" target="_blank" data-smartkarma-citation="entities:639:1">KDDI (9433 JP)</a> . We see the results as being in line with expectations, although the share price has been quite weak this week (along with the sector). These results and the ones from <a href="https://www.smartkarma.com/entities/1089" target="_blank" data-smartkarma-citation="entities:1089:1">DoCoMo (9437 JP)</a> last week should ease concerns over revenue erosion from new Ultra plans (20GB) and competition in the mid to high-end of the mobile market. At the low-end, MVNOs continue to take share but this appears…

Our friends at Morningstar have already produced a note on the recent 3Q17 results from KDDI (9433 JP) . We see the results as being in line with expectations, although the share price has been quite weak this week (along with the sector). These results and the ones from DoCoMo (9437 JP) last week should ease concerns over revenue erosion from new Ultra plans (20GB) and competition in the mid to high-end of the mobile market. At the low-end, MVNOs continue to take share but this appears…

KDDI 3Q17 Results Mostly Positive and Support Our BUY Call. Japanese Telcos Offer Reasonable Value.

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

I said in my previous insight that Samsung is still far from having a robust business foundation in the semiconductor area, which can "structurally" generate a certain amount of profits on a consistent basis. This is exactly what has worried me and still worrying me. Samsung is still having a high degree of uncertainty even in its currently largest profit-contributing area (semiconductor). Then, what should Samsung do with its memory chip business? Similarly to Intel's strategy, Samsung should also develop a next gen memory chip technology that can effectively address the current limitations of DRAM and NAND technologies. But more importantly, Samsung should also build a strong business presence in the opposite area (processor market segment) in an effort to build a "structurally" robust business presence by bundling memory and processor products (this form of product is called "SoC (System on Chip)".

I said in my previous insight that Samsung is still far from having a robust business foundation in the semiconductor area, which can "structurally" generate a certain amount of profits on a consistent basis. This is exactly what has worried me and still worrying me. Samsung is still having a high degree of uncertainty even in its currently largest profit-contributing area (semiconductor). Then, what should Samsung do with its memory chip business? Similarly to Intel's strategy, Samsung should also develop a next gen memory chip technology that can effectively address the current limitations of DRAM and NAND technologies. But more importantly, Samsung should also build a strong business presence in the opposite area (processor market segment) in an effort to build a "structurally" robust business presence by bundling memory and processor products (this form of product is called "SoC (System on Chip)".

Samsung's Long-Term Survival Plan for Semiconductor Business - Focus on Foundry Rather Than SoC

It is not really surprising to see a quick recovery (in terms of financial performance) in IM given the fact that SEC took a big bath in the previous quarter for Note 7 disaster. Nonetheless, I'm little concerned about IM sales figures. Apparently, SEC is still having a setback in the actual smartphone market due to Note 7 incident. This might be due to a deteriorated brand power and reputation, or it might be because SEC did not really have a strong flagship smartphone during 4Q16. Regardless of what really caused it, SEC still seems to need some more time to fully recover from Note 7 incident in terms of smartphone sales figures. SEC had still sold about 90 million smartphones during 4Q16, so smartphone sales volume isn't the problem. Rather, SEC needs to sell more high-end smartphones. This is why GS8 is so important!

It is not really surprising to see a quick recovery (in terms of financial performance) in IM given the fact that SEC took a big bath in the previous quarter for Note 7 disaster. Nonetheless, I'm little concerned about IM sales figures. Apparently, SEC is still having a setback in the actual smartphone market due to Note 7 incident. This might be due to a deteriorated brand power and reputation, or it might be because SEC did not really have a strong flagship smartphone during 4Q16. Regardless of what really caused it, SEC still seems to need some more time to fully recover from Note 7 incident in terms of smartphone sales figures. SEC had still sold about 90 million smartphones during 4Q16, so smartphone sales volume isn't the problem. Rather, SEC needs to sell more high-end smartphones. This is why GS8 is so important!

Samsung's Heavy Dependance on Memory Chip Is Worrying Me - 4Q16 Results Review

Event-Driven

New Street Research has spent a lot of time looking at a possible merger of <a href="https://www.smartkarma.com/entities/921" target="_blank" data-smartkarma-citation="entities:921:1">Sprint (S US)</a> and <a href="https://www.smartkarma.com/entities/922" target="_blank" data-smartkarma-citation="entities:922:1">T-Mobile (TMUS US)</a> .  We recently upped our target prices for both Sprint and TMUS to reflect the heightened likelihood of a bid. This also feeds through into our view on <a href="https://www.smartkarma.com/entities/315" target="_blank" data-smartkarma-citation="entities:315:1">Softbank (9984 JP)</a>. We already had a BUY recommendation on Softbank but have now upped our target price to ¥12,300 (probability weighted). If a deal eventuates, that target price could rise to ¥14,000.Our US team believes that the…

New Street Research has spent a lot of time looking at a possible merger of Sprint (S US) and T-Mobile (TMUS US) .  We recently upped our target prices for both Sprint and TMUS to reflect the heightened likelihood of a bid. This also feeds through into our view on Softbank (9984 JP). We already had a BUY recommendation on Softbank but have now upped our target price to ¥12,300 (probability weighted). If a deal eventuates, that target price could rise to ¥14,000.Our US team believes that the…

Softbank: Will Sprint Bid for T-Mobile? If They Do, the Merger Synergies Could Be Massive.

Japan

SoftBank Group Corp provides telecommunication services.  The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (ADR) (SFTBY US)

Softbank Result in Line; FVE Raised to JPY 7,500 Due to Increased Alibaba Value

Softbank reported in line third-quarter fiscal 2016 (quarter ending December 2016) results with revenue down 0.6%, operating profit up 71% and net...

Morningstar, Inc.

KDDI 3Q17 Results Mostly Positive and Support Our BUY Call. Japanese Telcos Offer Reasonable Value.

Our friends at Morningstar have already produced a note on the recent 3Q17 results from KDDI (9433 JP) . We see the results as being in line with...

New Street Research

Samsung's Long-Term Survival Plan for Semiconductor Business - Focus on Foundry Rather Than SoC

I said in my previous insight that Samsung is still far from having a robust business foundation in the semiconductor area, which can...

Sanghyun Park

Samsung's Heavy Dependance on Memory Chip Is Worrying Me - 4Q16 Results Review

It is not really surprising to see a quick recovery (in terms of financial performance) in IM given the fact that SEC took a big bath in the...

Sanghyun Park

Softbank: Will Sprint Bid for T-Mobile? If They Do, the Merger Synergies Could Be Massive.

New Street Research has spent a lot of time looking at a possible merger of Sprint (S US) and T-Mobile (TMUS US) . We recently upped our target...

New Street Research

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