In today’s briefing:
- Time to Get Back Into Our 2021 High Conviction Call Seven & I
- Sony – Microsoft’s Activision Blizzard Acquisition Shakes Things Up
- Japan’s Governance: Demae-Can (2484) 1QFY8/2022 Briefing
Time to Get Back Into Our 2021 High Conviction Call Seven & I
- Following a strong third quarter the company has raised the full year revenue and OP outlook by 3.0% and 7.3% respectively due to stronger than expected overseas convenience store performance.
- Moreover, the company continues to raise the Speedway synergies with the new medium-term plan expecting Seven & I Holdings (3382 JP) to double the EBITDA and EPS through 2020-25.
- After rallying 65% in 1H21, shares took a breather during the last seven months. We think the timing is right to start the second half of Seven & I’s rally.
Sony – Microsoft’s Activision Blizzard Acquisition Shakes Things Up
- Microsoft has agreed to acquire Activision Blizzard for $95 per share (+45.3% vs. undisturbed) which values the company at $68.7bn in EV.
- ATVI had been under pressure since the middle of last year facing various sexual harassment allegations, but CEO Bobby Kotick will not be replaced.
- Like with ZeniMax this deal features a demanding valuation for a number of IPs which have seen better days… but there is Call of Duty…
Japan’s Governance: Demae-Can (2484) 1QFY8/2022 Briefing
- On January 14 (Fri.), I attended the 1QFY8/2022 earnings presentation of Demae-Can (2484), followed by the recent accounting scandal and update the profitability of the Company.
- GMV in 1QFY8/2022 slows to grow in QoQ. Also, the take rate in QoQ was flat from 4QFY8/2021, which seems to have risen as much as GMV slightly decreased.
- The focus will still be on when the end of competition will bring promotional expenses to an equilibrium level and allow the E-Commerce Model to return to profitability.
Before it’s here, it’s on Smartkarma
