Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Quality-first, Business-perspective Strategy

Equity Bottom-Up

<ul>
<li>Entrust is one of the major players in the Japanese rent debt guarantee space;</li>
<li>The company possesses a solid track record of developing and growing new adjacent businesses by leveraging its know-how from the core business;</li>
<li>I am hoping for a more visible economic moat (especially from the company's new adjacencies), a higher free cash flow conversion, and/or a lower valuation.</li>
</ul>


Entrust is one of the major players in the Japanese rent debt guarantee space;
The company possesses a solid track record of developing and growing new adjacent businesses by leveraging its know-how from the core business;
I am hoping for a more visible economic moat (especially from the company's new adjacencies), a higher free cash flow conversion, and/or a lower valuation.


Entrust: Emerging Quality but Unattractive Valuation

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On <span id="m_5438784646738093379gmail-210" class="m_5438784646738093379gmail-gr_ m_5438784646738093379gmail-gr_210 m_5438784646738093379gmail-gr-alert m_5438784646738093379gmail-gr_gramm m_5438784646738093379gmail-gr_inline_cards m_5438784646738093379gmail-gr_disable_anim_appear m_5438784646738093379gmail-Punctuation m_5438784646738093379gmail-only-ins m_5438784646738093379gmail-replaceWithoutSep">Wednesday October 24th, <a href="https://www.smartkarma.com/entities/25995" target="_blank" data-smartkarma-citation="entities:25995:1">Casa Inc (7196 JP)</a> <a href="http://www2.tse.or.jp/disc/71960/140120181023421394.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www2.tse.or.jp/disc/71960/140120181023421394.pdf&amp;source=gmail&amp;ust=1540556796661000&amp;usg=AFQjCNFaTnVl7o3VlPnwJa6bCrbbDMpcNw">announced</a> (J-only) that the TSE had approved its application to move from the Second Section to the First Section of the TSE as of the 31st of October 2018.
The company was listed on October 30, 2017, and the company had <a href="http://www2.tse.or.jp/disc/71960/140120180607459758.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www2.tse.or.jp/disc/71960/140120180607459758.pdf&amp;source=gmail&amp;ust=1540556796661000&amp;usg=AFQjCNF3hjNxSPWdJcr2KJSIAvmMhkORUQ">indicated</a> in June 2018 that it was preparing to meet the requirements for a TSE1 listing, then announced in early August that it had actually formally made its application. Unlike many companies which conduct public or tachiaigai bunbai offerings in order to lift shareholder count above the TSE1 reassignment threshold, Casa Inc actually bought back 1.85% of shares in a buyback program which ended in July of this year.
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This is a small company (¥14bn market cap now) TOPIX inclusion. 
<span id="m_5438784646738093379gmail-17" class="m_5438784646738093379gmail-gr_ m_5438784646738093379gmail-gr_17 m_5438784646738093379gmail-gr-alert m_5438784646738093379gmail-gr_gramm m_5438784646738093379gmail-gr_inline_cards m_5438784646738093379gmail-gr_disable_anim_appear m_5438784646738093379gmail-Grammar m_5438784646738093379gmail-only-ins m_5438784646738093379gmail-doubleReplace m_5438784646738093379gmail-replaceWithoutSep">Float is <span id="m_5438784646738093379gmail-18" class="m_5438784646738093379gmail-gr_ m_5438784646738093379gmail-gr_18 m_5438784646738093379gmail-gr-alert m_5438784646738093379gmail-gr_gramm m_5438784646738093379gmail-gr_inline_cards m_5438784646738093379gmail-gr_disable_anim_appear m_5438784646738093379gmail-Grammar m_5438784646738093379gmail-only-ins m_5438784646738093379gmail-replaceWithoutSep">not huge as these things go, but the inclusion is worth about ¥1.3bn.
If this does not float your boat, look away now.
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Casa, Inc. is in the housing rental guarantee business. Generically, the company offers services to young renters without established guarantors, offers services to landlords who want someone else to take the financial and operational risk of dealing with renters without outsourcing everything to a larger property management firm, and then  helps the owners through the re-rental process, which can include finding new renters, dealing with movers, insurance, and even inter-rental renovations. The company is essentially trying to brand the back office of a rental management company and as they create a bigger network of successful renters and landlords, and up-sell them related services.
Its services include Casa Cloud, a platform to match people who are willing to lend money to lenders; Nyukyosha Cafe, which offers information about travel, gourmet, car-sharing, shopping, and life support (for people who have just moved in); and Oya Cafe, an application that allows owners to have access to empty room measurements, rent management, and renovation information through the internet. The company was founded in October 2008 and is headquartered in Tokyo, Japan.

On Wednesday October 24th, Casa Inc (7196 JP) announced (J-only) that the TSE had approved its application to move from the Second Section to the First Section of the TSE as of the 31st of October 2018.
The company was listed on October 30, 2017, and the company had indicated in June 2018 that it was preparing to meet the requirements for a TSE1 listing, then announced in early August that it had actually formally made its application. Unlike many companies which conduct public or tachiaigai bunbai offerings in order to lift shareholder count above the TSE1 reassignment threshold, Casa Inc actually bought back 1.85% of shares in a buyback program which ended in July of this year.




This is a small company (¥14bn market cap now) TOPIX inclusion. 
Float is not huge as these things go, but the inclusion is worth about ¥1.3bn.
If this does not float your boat, look away now.




Casa, Inc. is in the housing rental guarantee business. Generically, the company offers services to young renters without established guarantors, offers services to landlords who want someone else to take the financial and operational risk of dealing with renters without outsourcing everything to a larger property management firm, and then  helps the owners through the re-rental process, which can include finding new renters, dealing with movers, insurance, and even inter-rental renovations. The company is essentially trying to brand the back office of a rental management company and as they create a bigger network of successful renters and landlords, and up-sell them related services.
Its services include Casa Cloud, a platform to match people who are willing to lend money to lenders; Nyukyosha Cafe, which offers information about travel, gourmet, car-sharing, shopping, and life support (for people who have just moved in); and Oya Cafe, an application that allows owners to have access to empty room measurements, rent management, and renovation information through the internet. The company was founded in October 2008 and is headquartered in Tokyo, Japan. 

Japan

Casa Inc. offers rent gurantee and guarantee-related solution services. The Company provides rental guarantee, debt guarantee, and other services. Casa provides its services throughout Japan.

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Casa Inc (7196 JP)

Entrust: Emerging Quality but Unattractive Valuation

The company has constantly been building new growth drivers and enhancing its competitive edge, but I would like to see more evidence and/or a...

Steven Chen

Casa (7196 JP) TOPIX Inclusion

On Wednesday October 24th, Casa Inc (7196 JP) announced (J-only) that the TSE had approved its application to move from the Second Section to the...

Travis Lundy

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