Daily BriefsJapan

Japan: NTT Docomo Inc, Japan Airlines, Nexon, Shiseido Company, Rakuten Inc, Cyber Security Cloud Inc and more

In today’s briefing:

  • Surprising NTT Docomo Tender Result Accelerates Squeezeout, Great Re-Allocation, Nikkei 225 Change
  • JAL – Cheap Valuation Makes This an Easier Decision
  • Nexon: Speculation Checking & Valuation Level for Building a Position
  • How Livestreaming, The Latest Trend in E-Commerce Is Revolutionising Cosmetics Retail
  • Rakuten: E-Commerce Monetisation Is Improving, Logistics and Mobile Losses Aside
  • Small Cap Growth: Cyber Security Cloud (4493) –Another Strong Quarter

Surprising NTT Docomo Tender Result Accelerates Squeezeout, Great Re-Allocation, Nikkei 225 Change

By Travis Lundy

This morning NTT (Nippon Telegraph & Telephone) (9432 JP) and NTT Docomo Inc (9437 JP) announced the results of NTT’s Tender Offer for NTT Docomo, noting that NTT had purchased 815mm shares and as a result their position would be 91.46% upon settlement. 

This is surprising. 

That clears the way for an acceleration of the Great Docomo Re-Allocation Trade. 

Details below.


JAL – Cheap Valuation Makes This an Easier Decision

By Mio Kato

With JAL’s pricing of its secondary offering to take place tomorrow we update our valuation analysis and examine the company’s likely long-term prospects below. While the outlook for the sector remains highly uncertain, even with announcements regarding promising vaccines, we continue to favour JAL compared to its peers.


Nexon: Speculation Checking & Valuation Level for Building a Position

By Sanghyun Park

Nexon GT hit nearly 10x 30D DTV last Friday. It eventually wrapped up the day with a 9% gain.

It was attributable to the market rumor that Nexon KJJ may give it another try.

Yes, selling the company.

Item Value
Name Nexon GT Co Ltd
Ticker 041140
MC (₩B) 468.7
PE (x) 17.58
RSI (14) 14.02
52WH -38.00%
– Date 8/10/20
52WL 316.93%
– Date 3/19/20
20D SMA 3.68%
20D EMA -0.09%
1M Δ -0.75%
1M SD 4.84%
3M Δ -28.88%
3M SD 15.25%
6M Δ 64.40%
6M SD 24.89%
Source: Google Finance

How Livestreaming, The Latest Trend in E-Commerce Is Revolutionising Cosmetics Retail

By Oshadhi Kumarasiri

By using a tool usually associated with social media influencers, Japanese cosmetics makers have put a twist on advertising, especially for China’s largest shopping event of the year.

Shiseido Company (4911 JP) has been livestreaming almost every day since late October, when marketing campaigns for China’s Singles’ Day sale held every year on November 11 accelerated. More than 400,000 viewers tuned in to Shiseido’s livestreams from its Tokyo headquarters and a studio in the Chinese city of Hangzhou.

In Japan, such advertising campaigns were usually carried out by social media influencers. However, Shiseido is relying on its own employees instead of social media influencers to promote its products. Shiseido started using “Miss SHISEIDO” to promote its products as early as 1934, which later evolved to beauty consultants. The consultants have been trained to use technology advancements, and c. 7,400 people have enrolled at the Shiseido Digital Academy. We believe that the trend towards live e-commerce and livestreaming events will continue to accelerate post-pandemic, not just with Shiseido but also with other Japanese cosmetic companies.


Rakuten: E-Commerce Monetisation Is Improving, Logistics and Mobile Losses Aside

By Supun Walpola

Rakuten’s 3Q FY20 financial results did not carry any major surprises. We continue to prefer Rakuten among other Japanese e-commerce names, as we believe its strategy of improving monetisation of its existing users and increasing penetration into untapped markets through logistics expansion, better suits the maturing Japanese e-commerce market.

We believe Rakuten, excluding its mobile and logistics businesses, is undervalued, however, we do not see any short term catalysts that would drive Rakuten’s share price up, especially as we expect Rakuten to continue making operating losses in the next two years as the company continues to invest heavily on its mobile and logistics operations. However, we like Rakuten for its long-term potential and expect further upside once investments in mobile and logistics operations start making meaningful contributions.  


Small Cap Growth: Cyber Security Cloud (4493) –Another Strong Quarter

By Mark Chadwick

Cyber Security Cloud Inc (4493 JP)  (CSC) a fast-growing web security company that provides B2B Web Application FireWall (WAF) security, primarily to Japanese companies. The company uses AI to help detect and respond to threats, delivered through its three product offerings: Shadankun, WAF Charm, and AWS Managed Service. 

This note looks at the Q3 results, where sales rose 44% YoY.  

For a more detailed view of the company, market, moat and management, please take a quick look at the following:  Small Cap Growth: Cyber Security Cloud (4493) – Japan’s Security Patch 


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