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Equity Analyst, LightStream Research

Farha Sabri

Equity Analyst

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

<p>Nintendo released 1QFY03/20 results on Tuesday, which revealed that 1QFY03/20 revenue grew by 2.4% to JPY172.1bn while OP fell by 10.2% YoY to JPY27.4bn. In spite of subdued revenue growth and a fall in OP growth, we believe that the release of the Switch Lite towards the end of this year would help the company outperform its full year guidance. On our estimates, Nintendo is currently trading at an FY1 PE multiple of 22.6x, almost on par with its 12-month average median of 23.1x and Nintendo seems fairly valued to us given the company’s future prospects.</p>

Nintendo released 1QFY03/20 results on Tuesday, which revealed that 1QFY03/20 revenue grew by 2.4% to JPY172.1bn while OP fell by 10.2% YoY to JPY27.4bn. In spite of subdued revenue growth and a fall in OP growth, we believe that the release of the Switch Lite towards the end of this year would help the company outperform its full year guidance. On our estimates, Nintendo is currently trading at an FY1 PE multiple of 22.6x, almost on par with its 12-month average median of 23.1x and Nintendo seems fairly valued to us given the company’s future prospects.

Switch Sales Show Modest Increase in 1Q as Nintendo Plans Foray into China with Upgraded Version