Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

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 Capital Markets

<p>Visional’s financials are a little difficult to unentangle as it combines Bizreach, which looks to be very profitable, with a number of growing and loss-making businesses, we believe that close scrutiny should reveal the excellent value on offer here.</p>

Visional’s financials are a little difficult to unentangle as it combines Bizreach, which looks to be very profitable, with a number of growing and loss-making businesses, we believe that close scrutiny should reveal the excellent value on offer here.

Visional IPO – Can the Valuation Bizreach ¥8,000 a Share?

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/visional-inc" target="_blank" data-smartkarma-citation="entities:32977:1" rel="noopener">Visional Inc (4194 JP)</a> is looking to raise up to US$609m in its Japan IPO.</p><p>Visional Inc. is a human resources (HR) technology company based in Japan. The company operates BizReach, an online recruiting platform that helps to connect professional job seekers to direct employers and third-party recruiters. It also offers HRMOS, which is a cloud-based human capital management (HCM) platform.</p><p>In this note, we share our thoughts on assumptions, valuation, and deal dynamics.</p>

Visional Inc (4194 JP) is looking to raise up to US$609m in its Japan IPO.Visional Inc. is a human resources (HR) technology company based in Japan. The company operates BizReach, an online recruiting platform that helps to connect professional job seekers to direct employers and third-party recruiters. It also offers HRMOS, which is a cloud-based human capital management (HCM) platform.In this note, we share our thoughts on assumptions, valuation, and deal dynamics.

<p>Visional, parent company of Japan’s high class job seeker database Bizreach is scheduled to IPO on the 22<sup>nd</sup> of April on the Mothers market. We examine the company’s business model and financials below.</p>

Visional, parent company of Japan’s high class job seeker database Bizreach is scheduled to IPO on the 22nd of April on the Mothers market. We examine the company’s business model and financials below.

Visional IPO – VCs Bizreaching for the Exit but We Like This Anyway

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Thematic (Sector/Industry)

<p style="text-align: center;"><strong>• RESULTS &amp; REVISIONS SUMMARY - 15th FEBRUARY •</strong></p><div><p>Of Monday's 135 results announcements, 62% scored positively for earnings momentum despite trailing revenues falling by 6.3% on average and a 5.0 percentage point decline in operating margins. 26% of companies were in the red for the quarter.  60% of the 78 annual forecasts/revision announcements scored positively, and the average Forecast/Revision score was +5.5 points.</p></div><div><p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p></div><div>
<p>Thursday's 'best' large-cap announcement was from <a href="https://www.smartkarma.com/entities/kubota-corp" target="_blank" data-smartkarma-citation="entities:12926:1" rel="noopener">Kubota (6326 JP)</a>; while <a href="https://www.smartkarma.com/entities/dentsu-inc" target="_blank" data-smartkarma-citation="entities:12434:1" rel="noopener">Dentsu (4324 JP)</a> was the clear 'worst'. We would also not the uninspiring revision by <a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit (6098 JP)</a>. </p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/188/841/original/2021-02-16_06-23-17.png?1613424209" class="editor-image img-responsive" data-smartkarma-image-id="188841"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/188/842/original/2021-02-16_06-27-02.png?1613424434" class="editor-image img-responsive" data-smartkarma-image-id="188842"></figure></section>
</div><div class="content-caption">  <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/188/845/original/2021-02-16_06-31-09.png?1613424679" class="editor-image img-responsive" data-smartkarma-image-id="188845"></figure></section><p>   Source for all charts &amp; tables: Japan Analytics</p>
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• RESULTS &amp; REVISIONS SUMMARY - 15th FEBRUARY •Of Monday's 135 results announcements, 62% scored positively for earnings momentum despite trailing revenues falling by 6.3% on average and a 5.0 percentage point decline in operating margins. 26% of companies were in the red for the quarter.  60% of the 78 annual forecasts/revision announcements scored positively, and the average Forecast/Revision score was +5.5 points.• BEST &amp; WORST •
Thursday's 'best' large-cap announcement was from Kubota (6326 JP); while Dentsu (4324 JP) was the clear 'worst'. We would also not the uninspiring revision by Recruit (6098 JP). 

     Source for all charts &amp; tables: Japan Analytics


🇯🇵 JAPAN • Results & Revisions 02/​15 - Kubota, Dentsu & Recruit

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p><em>This week in StubWorld ...</em></p>
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<ul>
<li>
<a href="https://www.smartkarma.com/entities/tokyo-electron-ltd" target="_blank" data-smartkarma-citation="entities:280:1" rel="noopener">Tokyo Electron (8035 JP)</a> outperforms as global carmakers face a chip shortage;</li>
<li>
<a href="https://www.smartkarma.com/entities/gulf-energy-development-public-company-limited" target="_blank" data-smartkarma-citation="entities:26038:1" rel="noopener">Gulf Energy Development Public Company (GULF TB)</a> increases its questionable stake in <a href="https://www.smartkarma.com/entities/intouch-holdings-pcl" target="_blank" data-smartkarma-citation="entities:17638:1" rel="noopener">Intouch Holdings (INTUCH TB)</a>; and</li>
<li>
<a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a>'s ramps up its buybacks.</li>
</ul>
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<hr>
<div>
<p>Preceding my comments on these holdcos are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
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<p>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%.</p>
</div>


This week in StubWorld ...




Tokyo Electron (8035 JP) outperforms as global carmakers face a chip shortage;

Gulf Energy Development Public Company (GULF TB) increases its questionable stake in Intouch Holdings (INTUCH TB); and

Jardine Matheson Holdings (JM SP)'s ramps up its buybacks.




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%.


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

Japan

Recruit Holdings Co. Ltd. operates information providing services in human resource, housing, bridal, travel, restaurants, beauty, automobiles, and education and more. The company also operate staffing services and advertising business.

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Recruit Holdings (6098 JP)

Visional Inc IPO - Pricey Hire

Visional Inc (4194 JP) is looking to raise up to US$609m in its Japan IPO. Visional Inc. is a human resources (HR) technology company based in Japan.

Zhen Zhou, Toh

Visional IPO – VCs Bizreaching for the Exit but We Like This Anyway

Visional offers investors to the opportunity to gain exposure to a domestically-focused mini-Recruit but with potentially higher margins for its...

Mio Kato

🇯🇵 JAPAN • Results & Revisions 02/15 - Kubota, Dentsu & Recruit

Of Monday's 135 results announcements, 62% scored positively for earnings momentum despite trailing revenues falling by 6.3% on average and a 5.0...

Campbell Gunn

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

Tokyo Electron (8035 JP) outperforms as global carmakers face a chip shortage; Gulf Energy increases its questionable stake in Intouch; and Jardine...

David Blennerhassett

Price Gauge

52-week Range

Market Cap (USDm)

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Dividend (Yield)

Visional IPO – Can the Valuation Bizreach ¥8,000 a Share?

Superficially, Visional looks expensive relative to peers but a close examination of its Bizreach business reveals a highly profitable unit that is...

Mio Kato

Visional Inc IPO - Pricey Hire

Visional Inc (4194 JP) is looking to raise up to US$609m in its Japan IPO. Visional Inc. is a human resources (HR) technology company based in Japan.

Zhen Zhou, Toh

Visional IPO – VCs Bizreaching for the Exit but We Like This Anyway

Visional offers investors to the opportunity to gain exposure to a domestically-focused mini-Recruit but with potentially higher margins for its...

Mio Kato

🇯🇵 JAPAN • Results & Revisions 02/​15 - Kubota, Dentsu & Recruit

Of Monday's 135 results announcements, 62% scored positively for earnings momentum despite trailing revenues falling by 6.3% on average and a 5.0...

Campbell Gunn

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

Tokyo Electron (8035 JP) outperforms as global carmakers face a chip shortage; Gulf Energy increases its questionable stake in Intouch; and Jardine...

David Blennerhassett

🇯🇵 JAPAN • Results & Revisions 02/15 - Kubota, Dentsu & Recruit