In today’s briefing:
- Appier (4180) | Sustained High-Growth Momentum with Expanding Margins
- Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang
- Business Breakdown: CFF Fluid Control – In the Middle of India’s Naval Indigenization Drive
- Webtoon Entertainment: Secures a Big Contract With Disney
- Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!
- SoftBank Group (9984 JP): Our Last Review of Quarterly Data
- Hikari Tsushin (9435 JP): Q1 FY03/26 flash update
- Roku Boosts User Retention & Revenue With Subscription Bundling Strategy; Will It Work In The Long Term?
- Qb Net Holdings (6571 JP): Full-year FY06/25 flash update
- Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty
Appier (4180) | Sustained High-Growth Momentum with Expanding Margins
- Revenue: JPY 10.3 billion compared to JPY 8.2 billion a year ago, +27% YoY; FX-neutral revenue of JPY 11.0 billion, +35% YoY – fastest growth in eight quarters.
- Gross Margin: 56.1%, up 4.8 percentage points YoY, driven by high-margin products, organic margin improvements, and GenAI-enabled efficiencies.
- Stock continues to offer compelling value at 3.2x revenue – a discount to US peer Braze
Digi Plus Interactive (PLUS PM): Strong Q2 FY25, But Regulatory Cloud A Massive Overhang
- DigiPlus Interactive (PLUS PM) reported robust Q2 FY25 results with revenue/net profits up 30.6%/30.1% YoY, driven by an increase in MAUs to 8.5 million from 7.5 million in Q1FY25.
- Net margins remained flat YoY at 17%, as a decline in franchisee fees and taxes was offset by an increase in A&P spend as marketshare declined to 39% (vs 45%).
- The stock trades at 6.9x FY25e, with multiple expansion catalysts. On the flipside, the regulatory concerns (on restrictions on online gaming) still cloud the sector.
Business Breakdown: CFF Fluid Control – In the Middle of India’s Naval Indigenization Drive
- CFF Fluid Control enters FY25 with a INR 500+ crore order book and expanded manufacturing capacity at Khopoli and upcoming Chakan facility.
- Strategic partnerships, high entry barriers, and preferred supplier status strengthen revenue visibility amid India’s naval indigenization push.
- Robust growth prospects and contract pipeline outweigh concentration risks, reinforcing a positive long-term outlook.
Webtoon Entertainment: Secures a Big Contract With Disney
- Webtoon Entertainment (WBTN US) has secured a big contract with The Walt Disney Co (DIS US) including Avengers and Spider Man to become available in webtoon format.
- We believe Webtoon Entertainment could grab about 20% of the global market for webtoons in 2030 which would be about $4 billion in revenues.
- Assuming a net margin of 10% and a P/E multiple of 20x, it suggests market cap of $8 billion for Webtoon Entertainment by 2030 (264% upside from current levels).
Allegro MicroSystems: Fueling EV & ADAS Growth with Strategic Design Wins!
- When we look at the broader performance of Allegro MicroSystems, the results indicate both positive and challenging aspects of the company’s current situation.
- From a financial perspective, Allegro delivered a solid performance in its first quarter of fiscal year 2026.
- The company reported sales of $203 million and a non-GAAP earnings per share of $0.09, which was above the midpoint of their guidance range.
SoftBank Group (9984 JP): Our Last Review of Quarterly Data
- With this report, we terminate coverage of SoftBank group (SBG) shares; going forward, our coverage will be concentrated on financial and fintech stocks, with a bias towards Emerging Markets
- SBG shares have rallied hard recently, driven by IPOs of portfolio companies, good IPO prospects for other private companies including PayPay and positive market sentiment towards AI investments
- The group NAV’s discount has narrowed sharply to under 30%; we conclude our coverage with a neutral rating, but we stress that high expectations are baked into this narrow discount
Hikari Tsushin (9435 JP): Q1 FY03/26 flash update
- The company reported Q1 FY03/26 revenue of JPY167.2bn (+14.4% YoY) and recurring income of JPY43.5bn (+12% YoY).
- New segmentation in Q1 FY03/25 includes seven reportable segments; revenue and profit figures adjusted retroactively.
- Dividend for Q1 FY03/26 set at JPY181 per share, with total payout of JPY7.9bn, effective September 12, 2025.
Roku Boosts User Retention & Revenue With Subscription Bundling Strategy; Will It Work In The Long Term?
- Roku’s second quarter 2025 earnings call reflected a nuanced picture of both progress and ongoing challenges for the company.
- On the positive side, the quarter was highlighted by an 18% year-over-year growth in platform revenue, driven largely by the expansion and diversification of advertising demand, and a robust performance from the newly launched Roku Ads Manager.
- This growth was fueled by significant gains in video advertising, which outpaced the overall U.S. OTT and digital ad markets, pointing to successful integration strategies and product innovations.
Qb Net Holdings (6571 JP): Full-year FY06/25 flash update
- Revenue rose JPY786mn YoY, driven by growth in Domestic and Overseas Operations, with a +3.2% full-year increase.
- Operating profit declined JPY430mn YoY due to unplanned costs in Domestic Operations and increased talent development investment.
- The company opened 43 new salons, increasing the total salon count by 33 YoY to 724.
Goldiam International: Riding on Lab-Grown Exports Despite Tariff Uncertainty
- Goldiam International reported its highest-ever Q1 results, with sales increasing by 39% year-on-year (YoY) and 17% quarter-on-quarter (QoQ).
- The most standout update from the company is that it has able to pass on additional tariffs to US consumers despite a muted demand environment
- Company is now raising growth capital of close to INR 250 crores via QIP and also expanding its backward integration, which will improve its performance further
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