Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Content-Driven growth: Strong performance in music and gaming supports Sony’s shift toward high-margin content, insulating it from trade and macro headwinds.</li>
<li>Upcoming catalysts: Spin-off of Sony Financial and potential restructuring could unlock value and address the long-standing conglomerate discount.</li>
<li>Attractive valuation: Trading at 14x EV/EBIT with defensive sector exposure, Sony remains undervalued relative to global peers despite YTD outperformance.</li>
</ul>


Content-Driven growth: Strong performance in music and gaming supports Sony’s shift toward high-margin content, insulating it from trade and macro headwinds.
Upcoming catalysts: Spin-off of Sony Financial and potential restructuring could unlock value and address the long-standing conglomerate discount.
Attractive valuation: Trading at 14x EV/EBIT with defensive sector exposure, Sony remains undervalued relative to global peers despite YTD outperformance.


Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Sony Group Corporation's recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights into future strategic direction amid a transitional leadership period.</li><li>The company's revenue and profit saw substantial growth, yet certain challenges remain, reflecting the complexities within its diverse business segments.</li><li>Positive aspects of Sony's financial performance include a 7% year-on-year increase in consolidated sales, excluding its Financial Services segment, reaching JPY 3,695.7 billion for the quarter.</li></ul>

Sony Group Corporation's recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights into future strategic direction amid a transitional leadership period.The company's revenue and profit saw substantial growth, yet certain challenges remain, reflecting the complexities within its diverse business segments.Positive aspects of Sony's financial performance include a 7% year-on-year increase in consolidated sales, excluding its Financial Services segment, reaching JPY 3,695.7 billion for the quarter.

How Is Sony Group Leveraging Synergy in Entertainment & Technology To Up The Ante!

<ul><li>Sony Group Corporation has exhibited a mix of strengths and challenges in its latest financial results, which provide insights into its current business landscape and future outlook.</li><li>Positive aspects of Sony's results are largely attributable to robust performance in key segments like Gaming & Network Services (G&NS) and Music.</li><li>The company reported a 9% increase in consolidated sales, excluding the Financial Services segment, year-on-year, with operating income showing a significant increase of 57% for the quarter.</li></ul>

Sony Group Corporation has exhibited a mix of strengths and challenges in its latest financial results, which provide insights into its current business landscape and future outlook.Positive aspects of Sony's results are largely attributable to robust performance in key segments like Gaming & Network Services (G&NS) and Music.The company reported a 9% increase in consolidated sales, excluding the Financial Services segment, year-on-year, with operating income showing a significant increase of 57% for the quarter.

Sony Group Corporation: Can Its Steady Expansion in Music Segment Up Their Game? - Major Drivers

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hang Seng Index (HSI INDEX)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909" rel="noopener">Nikkei 225 (NKY INDEX)</a> all have elevated implied vols vs their peers and vs historical observations for October.</li>
<li>
<a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617" rel="noopener">NIFTY Index (NIFTY INDEX)</a> , <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>  implied vols are on the low end of what is typically realized in October.</li>
<li>Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.</li>
</ul>



Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.

NIFTY Index (NIFTY INDEX) , S&amp;P 500 INDEX (SPX INDEX) and S&amp;P/ASX 200 (AS51 INDEX)  implied vols are on the low end of what is typically realized in October.
Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.


EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>TSMC begins mass production at Kumamoto fab as plans for third fab expansion remain uncertain.</li><li>Broadcom CEO foresees million-chip clusters as the future of AI investment frenzy.</li><li>Tata Group announces plan to generate 50,000 manufacturing jobs in EMS and semiconductor sectors.</li></ul>

TSMC begins mass production at Kumamoto fab as plans for third fab expansion remain uncertain.Broadcom CEO foresees million-chip clusters as the future of AI investment frenzy.Tata Group announces plan to generate 50,000 manufacturing jobs in EMS and semiconductor sectors.

Tech Supply Chain Tracker (28-Dec-2024): TSMC starts Kumamoto fab amid 3rd fab expansion uncertainty.

Japan

Sony Corporation manufactures audio, home video game consoles, communications, key device and information technology products for the consumer and professional markets.  The Company's other businesses include music, pictures, computer entertainment, and online businesses.

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Sony Corp (6758 JP)

SONY (6758) | Going into Earnings

Sony's focus on high-margin content in music and gaming, upcoming spin-off of Sony Financial, and attractive valuation make it a strong investment...

Mark Chadwick

How Is Sony Group Leveraging Synergy in Entertainment & Technology To Up The Ante!

Sony Group Corporation's recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights...

Baptista Research

Sony Group Corporation: Can Its Steady Expansion in Music Segment Up Their Game? - Major Drivers

Sony Group Corporation has exhibited a mix of strengths and challenges in its latest financial results, which provide insights into its current...

Baptista Research

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Tech Supply Chain Tracker (28-Dec-2024): TSMC starts Kumamoto fab amid 3rd fab expansion uncertainty.

TSMC ramps up production at Kumamoto fab, uncertain on 3rd fab, Broadcom CEO predicts million-chip clusters for AI, Tata Group to create 50,000...

Tech Supply Chain Tracker

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SONY (6758) | Going into Earnings

​Sony's focus on high-margin content in music and gaming, upcoming spin-off of Sony Financial, and attractive valuation make it a strong investment...

Mark Chadwick

How Is Sony Group Leveraging Synergy in Entertainment & Technology To Up The Ante!

Sony Group Corporation's recent earnings highlighted its financial performance for the third quarter of fiscal year 2025 and provided insights...

Baptista Research

Sony Group Corporation: Can Its Steady Expansion in Music Segment Up Their Game? - Major Drivers

Sony Group Corporation has exhibited a mix of strengths and challenges in its latest financial results, which provide insights into its current...

Baptista Research

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

​Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Tech Supply Chain Tracker (28-Dec-2024): TSMC starts Kumamoto fab amid 3rd fab expansion uncertainty.

TSMC ramps up production at Kumamoto fab, uncertain on 3rd fab, Broadcom CEO predicts million-chip clusters for AI, Tata Group to create 50,000...

Tech Supply Chain Tracker

Sony's focus on high-margin content in music and gaming, upcoming spin-off of Sony Financial, and attractive valuation make it a strong investment...

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...