Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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

SHIFT Inc. offers information technology outsourcing services. The Company provides outsourcing software testing services to corporations and individual clients. SHIFT also provides software solutions and consulting services, as well as educational classes and programs.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shift-inc" target="_blank" data-smartkarma-citation="entities:7266:1" rel="noopener">Shift Inc (3697 JP)</a> s share price has been down 65% YTD as the company’s aggressive investment on HR and system reinforcement led to fall in margins which concerned the market.</li>
<li>However, the company has adopted several measures to improve its margins, and we expect the investment in HR and others to generate results going forward.</li>
<li>Though share price has moved up slightly, valuation multiples are at a steep discount, and we would look for building a position.</li>
</ul>



Shift Inc (3697 JP) s share price has been down 65% YTD as the company’s aggressive investment on HR and system reinforcement led to fall in margins which concerned the market.
However, the company has adopted several measures to improve its margins, and we expect the investment in HR and others to generate results going forward.
Though share price has moved up slightly, valuation multiples are at a steep discount, and we would look for building a position.


Oshadhi Kumarasiri

Event-Driven

Seven & i Holdings Co., Ltd. is a holding company which was established through the merger of Ito-Yokado Co., Seven Eleven Japan Co., and Denny's Japan. The Company plans, manages, and operates mainly convenience stores, supermarkets, and department stores.

<ul>
<li>It was reported yesterday that <a href="https://www.smartkarma.com/entities/alimentation-couche-tard-inc" target="_blank" data-smartkarma-citation="entities:25103:1" rel="noopener">Alimentation Couche-Tard (ATD CN)</a> has put forward a bold proposal to acquire <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>.</li>
<li>The offer price remains undisclosed, but the market may be anticipating a significant premium based on the share price movement following the news.</li>
<li>However, we believe the offer price could fall short of market expectations, and it is likely that Seven &amp; i will reject the proposal.</li>
</ul>


It was reported yesterday that Alimentation Couche-Tard (ATD CN) has put forward a bold proposal to acquire Seven &amp; I Holdings (3382 JP).
The offer price remains undisclosed, but the market may be anticipating a significant premium based on the share price movement following the news.
However, we believe the offer price could fall short of market expectations, and it is likely that Seven &amp; i will reject the proposal.


Couche-Tard Targets Seven & I: Seven & I's Pride on the Line

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

SCREEN Holdings Co Ltd.  manufactures and sell semiconductors, FPD devices, commercial printing and printed circuit boards(PCB). The company also provides additional services for its products.

<ul>
<li>Screen has rebounded from its recent low, but strong 1H results, the recent weakening of the Yen and reasonable valuation point to further short-term upside. </li>
<li>However, management is guiding for slightly lower operating profit in 2H, and Intel's capex cuts also support a cautious outlook. </li>
<li>Screen expects slower growth in 2025 wafer fab equipment demand than SEMI, and neither appear to have factored in concern over insufficient return on investment in AI. </li>
</ul>


Screen has rebounded from its recent low, but strong 1H results, the recent weakening of the Yen and reasonable valuation point to further short-term upside. 
However, management is guiding for slightly lower operating profit in 2H, and Intel's capex cuts also support a cautious outlook. 
Screen expects slower growth in 2025 wafer fab equipment demand than SEMI, and neither appear to have factored in concern over insufficient return on investment in AI. 


Screen Holdings (7735 JP): Still a Buy for the Bounce

Istyle Inc. is an E-Commerce company specialised in cosmetic products. The company's business line includes Internet advertising, EC business, and managing retail stores.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/istyle-inc" target="_blank" data-smartkarma-citation="entities:9010:1" rel="noopener">Istyle Inc (3660 JP)</a>’s share price surged 17% after strong FQ4 results, surpassing expectations and signaling a potential turnaround.</li>
<li>Despite past challenges, iStyle’s ambitious mid-term plan promises increased monetization and stronger growth ahead.</li>
<li>With mid-term revenue and profit far exceeding expectations, istyle's future looks brighter, with it's share price potentially rising by more than 200%.</li>
</ul>



Istyle Inc (3660 JP)’s share price surged 17% after strong FQ4 results, surpassing expectations and signaling a potential turnaround.
Despite past challenges, iStyle’s ambitious mid-term plan promises increased monetization and stronger growth ahead.
With mid-term revenue and profit far exceeding expectations, istyle's future looks brighter, with it's share price potentially rising by more than 200%.


Istyle: Mid-Term Success Could Drive 200% Share Price Surge

freee K.K. develops software products. The Company produces cloud based accounting softwares, automatic online accounting systems, and other products. freee provides its services throughout Japan.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">Freee KK (4478 JP)</a> reported 4QFY06/2024 and full-year results today. Earnings were in line with guidance, but operating losses have declined significantly beating consensus by a huge margin.</li>
<li>The company has issued guidance which calls for a break-even or an adj. OPM of 3% for FY06/2025E suggesting freee’s investments in marketing and client acquisition have finally paid off.</li>
<li>Freee’s share price has moved up slightly during the last few weeks, but still trading at a discount to its own multiples and at a steep discount to Money Forward.</li>
</ul>



Freee KK (4478 JP) reported 4QFY06/2024 and full-year results today. Earnings were in line with guidance, but operating losses have declined significantly beating consensus by a huge margin.
The company has issued guidance which calls for a break-even or an adj. OPM of 3% for FY06/2025E suggesting freee’s investments in marketing and client acquisition have finally paid off.
Freee’s share price has moved up slightly during the last few weeks, but still trading at a discount to its own multiples and at a steep discount to Money Forward.


Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable

LightStream Research
Long-Short Analysis on Japan, Asia and the World

Shift: Is It a Good Time to Buy?

Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...

Shifara Samsudeen, ACMA, CGMA

Couche-Tard Targets Seven & I: Seven & I's Pride on the Line

Alimentation Couche-Tard makes bold proposal to acquire Seven & I Holdings, but offer price may fall short of market expectations.

Oshadhi Kumarasiri

Screen Holdings (7735 JP): Still a Buy for the Bounce

A strong 2Q, yen weakness and reasonable valuation point to short-term upside of 15%-plus. But as sales and profits level off in 2H, Intel's capex...

Scott Foster

Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable

Freee's 4Q losses declined significantly, which beat consensus by a wide margin. Guidance for FY06/2025E calls for operating profits as...

Shifara Samsudeen, ACMA, CGMA

Shift: Is It a Good Time to Buy?

​Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...

Shifara Samsudeen, ACMA, CGMA

Couche-Tard Targets Seven & I: Seven & I's Pride on the Line

​Alimentation Couche-Tard makes bold proposal to acquire Seven & I Holdings, but offer price may fall short of market expectations.

Oshadhi Kumarasiri

Screen Holdings (7735 JP): Still a Buy for the Bounce

A strong 2Q, yen weakness and reasonable valuation point to short-term upside of 15%-plus. But as sales and profits level off in 2H, Intel's capex...

Scott Foster

Istyle: Mid-Term Success Could Drive 200% Share Price Surge

With mid-term revenue and profit far exceeding expectations, iStyle's future looks brighter, with its share price potentially rising by more than...

Oshadhi Kumarasiri

Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable

​Freee's 4Q losses declined significantly, which beat consensus by a wide margin. Guidance for FY06/2025E calls for operating profits as...

Shifara Samsudeen, ACMA, CGMA

Shift shares down 65% YTD as investment in aggressive hiring and system reinforcement dragged down margins. Measures are in place to revive...

Alimentation Couche-Tard makes bold proposal to acquire Seven & I Holdings, but offer price may fall short of market expectations.

Freee's 4Q losses declined significantly, which beat consensus by a wide margin. Guidance for FY06/2025E calls for operating profits as...