Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/brainbees-solutions-limited" target="_blank" data-smartkarma-citation="entities:36115:1" rel="noopener">BrainBees Solutions (FIRSTCRY IN)</a> reported marginal decline in 1QFY2025 revenues and GMV (India operations) versus previous quarter, though both were up 17% YoY; fell short of market expectations.</li>
<li>Key operating metrics for India business too were soft with Average Order Value slipping both on a QoQ and YoY basis, impacting GMV growth and segment margins.</li>
<li>With 0% promoter holding, nearly 30%-50% shares could possibly start trading post lock-in expiry and this could test the stock's resilience. <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group(9984 JP)</a>, the biggest stake holder, owns 19.99%.</li>
</ul>



BrainBees Solutions (FIRSTCRY IN) reported marginal decline in 1QFY2025 revenues and GMV (India operations) versus previous quarter, though both were up 17% YoY; fell short of market expectations.
Key operating metrics for India business too were soft with Average Order Value slipping both on a QoQ and YoY basis, impacting GMV growth and segment margins.
With 0% promoter holding, nearly 30%-50% shares could possibly start trading post lock-in expiry and this could test the stock's resilience. Softbank Group(9984 JP), the biggest stake holder, owns 19.99%.


Brainbees (FIRSTCRY IN): First Results Fail to Cheer. Lock-In Expiry May Test Stock Resilience

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

Hamamatsu Photonics Kk / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/toyota-motor-corp" target="_blank" data-smartkarma-citation="entities:73:1" rel="noopener">Toyota Motor (7203 JP)</a> aims to raise around US$190m via selling over a 4% stake in <a href="https://www.smartkarma.com/entities/hamamatsu-photonics-kk" target="_blank" data-smartkarma-citation="entities:14074:1" rel="noopener">Hamamatsu Photonics Kk (6965 JP)</a>.</li>
<li>This is another cross-shareholding unwind and hence, won’t be a huge surprise. Although given the recent share price weakness, the timing appears peculiar.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Toyota Motor (7203 JP) aims to raise around US$190m via selling over a 4% stake in Hamamatsu Photonics Kk (6965 JP).
This is another cross-shareholding unwind and hence, won’t be a huge surprise. Although given the recent share price weakness, the timing appears peculiar.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Hamamatsu Photonics Placement - Peculiar Timing

Global Head of Research & Head of Europe, Lucror Analytics

Felix Fischer

Global Head of Research & Head of Europe

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<h3>Europe High Yield Trade Book</h3>
<p><br>The Europe HY Trade Book for August 2024 includes current trade recommendations drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.  </p>

Europe High Yield Trade Book
 The Europe HY Trade Book for August 2024 includes current trade recommendations drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.  

Europe HY Trade Book - August 2024 - Lucror Analytics

Japanese Equity Specialist, Ortus Advisors

Andrew Jackson

Japanese Equity Specialist

Ortus Advisors

Thematic (Sector/Industry)

<ul>
<li>ARM +5.7% will help lift <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" rel="noopener">9984 Softbank</a> which is lagging some of the other high-beta plays in Japan giving it plenty of room to rebound further.</li>
<li>The market is going to like the news that <a href="https://www.smartkarma.com/entities/sapporo-holdings-ltd" target="_blank" rel="noopener">2501 Sapporo</a> is finally listening to activist investors who have been angling for the firm to divest some of its large R/E holdings.</li>
<li>
<a href="https://www.smartkarma.com/entities/kose-corp" target="_blank" rel="noopener">4922 Kose</a> is looking more interesting after it's failure to rebound looks to have been caused by a negative read from 4911 Shiseido’s poor numbers rather than anything company specific.</li>
</ul>


ARM +5.7% will help lift 9984 Softbank which is lagging some of the other high-beta plays in Japan giving it plenty of room to rebound further.
The market is going to like the news that 2501 Sapporo is finally listening to activist investors who have been angling for the firm to divest some of its large R/E holdings.

4922 Kose is looking more interesting after it's failure to rebound looks to have been caused by a negative read from 4911 Shiseido’s poor numbers rather than anything company specific.


Japan Morning Connection: Softbank, Sapporo, Kose

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>The announcement of JPY500bn share buybacks is a positive for SoftBank group minority shareholders, and confirms the positive impact of the emergence of Elliott as an activist shareholder</li>
<li>The combination of the big weighting of Arm Holdings in the group’s equity value and the impact of the appreciating JPY has driven the NAV discount to very high levels</li>
<li>Much bad news seems priced in following the market turbulence; we remain positive on Softbank shares as they trade at a historically high 57%+ discount to the estimated NAV</li>
</ul>


The announcement of JPY500bn share buybacks is a positive for SoftBank group minority shareholders, and confirms the positive impact of the emergence of Elliott as an activist shareholder
The combination of the big weighting of Arm Holdings in the group’s equity value and the impact of the appreciating JPY has driven the NAV discount to very high levels
Much bad news seems priced in following the market turbulence; we remain positive on Softbank shares as they trade at a historically high 57%+ discount to the estimated NAV


Softbank (9984 JP): The NAV Discount High Offers an Investment Opportunity

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)

Brainbees (FIRSTCRY IN): First Results Fail to Cheer. Lock-In Expiry May Test Stock Resilience

Lock-in expiry may test stock price resilience as company's 0% promoter holding imply 30%-50% shares could start trading. Lack lustre growth and...

Devi Subhakesan

Hamamatsu Photonics Placement - Peculiar Timing

Toyota Motor (7203 JP) aims to raise around US$190m via selling over a 4% stake in Hamamatsu Photonics Kk (6965 JP). The timing of the selldown...

Sumeet Singh

Europe HY Trade Book - August 2024 - Lucror Analytics

The Europe HY Trade Book for August 2024 includes current trade recommendations drawn from our European HY coverage universe, along with...

Lucror Analytics

Japan Morning Connection: Softbank, Sapporo, Kose

Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.

Andrew Jackson

Softbank (9984 JP): The NAV Discount High Offers an Investment Opportunity

The combination of the big weighting of Arm Holdings in the SoftBank group’s equity value and the appreciation of JPY in the market turbulence is...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Brainbees (FIRSTCRY IN): First Results Fail to Cheer. Lock-In Expiry May Test Stock Resilience

Lock-in expiry may test stock price resilience as company's 0% promoter holding imply 30%-50% shares could start trading. Lack lustre growth and...

Devi Subhakesan

Hamamatsu Photonics Placement - Peculiar Timing

Toyota Motor (7203 JP) aims to raise around US$190m via selling over a 4% stake in Hamamatsu Photonics Kk (6965 JP). The timing of the selldown...

Sumeet Singh

Europe HY Trade Book - August 2024 - Lucror Analytics

The Europe HY Trade Book for August 2024 includes current trade recommendations drawn from our European HY coverage universe, along with...

Lucror Analytics

Japan Morning Connection: Softbank, Sapporo, Kose

​Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.

Andrew Jackson

Softbank (9984 JP): The NAV Discount High Offers an Investment Opportunity

The combination of the big weighting of Arm Holdings in the SoftBank group’s equity value and the appreciation of JPY in the market turbulence is...

Victor Galliano

Positive developments for ARM may boost Softbank; Sapporo listens to activist investors; Kose may rebound despite Shiseido's poor performance.