Daily BriefsTMT/Internet

TMT: Tokyo Electron, TeamSpirit Inc and more

In today’s briefing:

  • StubWorld: TBS/Tokyo Electron, Intouch/Gulf, Jardines’ Buybacks
  • Japan Small Cap Growth: TeamSpirit (4397) – Expect Brighter Second Half

StubWorld: TBS/Tokyo Electron, Intouch/Gulf, Jardines’ Buybacks

By David Blennerhassett

This week in StubWorld …

Preceding my comments on these holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.

These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold – the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent – of at least 20%.


Japan Small Cap Growth: TeamSpirit (4397) – Expect Brighter Second Half

By Mark Chadwick

Q1 trading update 

TeamSpirit Inc (4397 JP)  released Q1 results on 12 Jan, which were generally in line with previously released guidance for the full year. Covid restrictions continue to be a negative headwind on contracting new clients, which is impacting top line growth rates.  This seems especially true of small and mid-sized companies, where growth has stalled badly, and we believe competition may be heating up in that segment. In response, Team Spirit is shifting its sales focus towards larger enterprises and this mix improvement is a bright spot in the Q1 report, with the number of enterprise licences jumping 44% YoY. The share price remains around 30% below its 52-week high.  

Million Yen
1Q20
2Q20
3Q20
4Q20
1Q21
Sales
552
606
631
654
671
Sales growth 
40%
35%
39%
26%
22%
Operating Profit
44
84
106
50
71
Operating margin
8%
14%
17%
8%
11%
Net Income
14
42
55
142
36

 


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