Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

GMO Internet: Steady Growth in Share Price Due to Bitcoin Recovery

GMO Internet’s 2Q2019 Results Prove 1Q Decline Was Temporary; Shares Are Still Undervalued

GMO Internet 3Q Results: Revenue and OP Beat Consensus

GMO Internet Reports Solid FY12/18 Despite Heavy Losses Incurred in Crypto Mining Business

GMO.internet FY2018 Results - The Shareholder's [Re]Turn

GMO Internet Inc. – Limited Downside as Crypto Business Weighs Little on Consolidated Performance

GMO Internet (9447 JP) - Grossly or Modestly Overrated?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/gmo-internet-inc/insights" target="_blank">GMO Internet, Inc. (9449 JP)</a> announced its consolidated financial results for 1QFY12/19 on Thursday (9th May 2019). The company’s revenue for 1QFY12/19 increased by 7.2% YoY while OP declined by 5.1% YoY during the quarter. Both revenue and OP fell below consensus by 0.8% and 8.4% respectively. The strong performance of the Internet Infrastructure segment contributed to the growth in revenue during the quarter which offset declines in Online Advertising &amp; Media and Internet Finance segments.
The cryptocurrency segment which was known to have struggled in the past recorded stellar growth in revenue of 103.8% YoY in 1QFY12/19. Both the Cryptocurrency Exchange and Cryptocurrency Mining businesses reported growth in revenue during the quarter. However, the segment reported a net loss of JPY229m for the quarter compared to a net loss of JPY735m for the same quarter last year.
GMO is currently trading at JPY1,718 per share which we believe is undervalued compared to its combined equity stake in 8 listed subsidiaries. The company’s share price has lost more than 40% since it peaked in June last year due to the negativity surrounding its cryptocurrency and mining segment. However, we believe further downside is limited as the company has closed down a majority of its mining related business which now weigh very little on the consolidated performance of the company. Further, the company’s key businesses, Internet Infrastructure, Online Advertising &amp; Media and Internet Finance generate solid recurring revenues, which should help the company achieve strong growth. Following its earnings announcement, the share price gained 5.2% from the previous days close.

GMO Internet, Inc. (9449 JP) announced its consolidated financial results for 1QFY12/19 on Thursday (9th May 2019). The company’s revenue for 1QFY12/19 increased by 7.2% YoY while OP declined by 5.1% YoY during the quarter. Both revenue and OP fell below consensus by 0.8% and 8.4% respectively. The strong performance of the Internet Infrastructure segment contributed to the growth in revenue during the quarter which offset declines in Online Advertising &amp; Media and Internet Finance segments.
The cryptocurrency segment which was known to have struggled in the past recorded stellar growth in revenue of 103.8% YoY in 1QFY12/19. Both the Cryptocurrency Exchange and Cryptocurrency Mining businesses reported growth in revenue during the quarter. However, the segment reported a net loss of JPY229m for the quarter compared to a net loss of JPY735m for the same quarter last year.
GMO is currently trading at JPY1,718 per share which we believe is undervalued compared to its combined equity stake in 8 listed subsidiaries. The company’s share price has lost more than 40% since it peaked in June last year due to the negativity surrounding its cryptocurrency and mining segment. However, we believe further downside is limited as the company has closed down a majority of its mining related business which now weigh very little on the consolidated performance of the company. Further, the company’s key businesses, Internet Infrastructure, Online Advertising &amp; Media and Internet Finance generate solid recurring revenues, which should help the company achieve strong growth. Following its earnings announcement, the share price gained 5.2% from the previous days close.

GMO Internet: 1QFY12/19 Results Fall Short of Consensus; Our Outlook Remains Positive

GMO Internet Group

GMO Internet: 1QFY12/19 Results Fall Short of Consensus; Our Outlook Remains Positive