IR & Research Intelligence, Sessa Investment Research

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IR & Research Intelligence

Sponsored research focusing on Japanese small cap.

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<ul><li>In 1Q FY23/12, CARTA Holdings posted a 23.3% YoY increase in transaction volume for programmatic TV commercial service TELECY, and a 2.8-fold increase in gross sales in the retail domain, showing steady performance in the mass retail domain, which the company has positioned as a priority area in its medium-term management plan.</li><li>On the other hand, the weak macro environment continued to weigh on double-digit sales declines in reservation-based ads, resulting in a 7.7% YoY drop in sales and a 59.3% drop in operating profit overall. </li><li>YoY comparisons will ease off from the next quarter, but with 2Q usually being a slow period for advertising and the lack of activity from advertisers in the new fiscal year from April onward, earnings are expected to recovery smoothly rather than sharply.</li></ul>

In 1Q FY23/12, CARTA Holdings posted a 23.3% YoY increase in transaction volume for programmatic TV commercial service TELECY, and a 2.8-fold increase in gross sales in the retail domain, showing steady performance in the mass retail domain, which the company has positioned as a priority area in its medium-term management plan.On the other hand, the weak macro environment continued to weigh on double-digit sales declines in reservation-based ads, resulting in a 7.7% YoY drop in sales and a 59.3% drop in operating profit overall. YoY comparisons will ease off from the next quarter, but with 2Q usually being a slow period for advertising and the lack of activity from advertisers in the new fiscal year from April onward, earnings are expected to recovery smoothly rather than sharply.

Japan

MarkLines Co., Ltd. is specialized in offering information about automobile industry on the Internet.  The Company also offers consulting and temporary staffing services.

GMO Cloud K.K provides web hosting services and Internet security solution services. The Company also provides electronic commerce solution services.

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.

JIG-SAW INC provides auto managment service by using IoT big data. The business also offers cloud service under the concept of auto sensoring & auto direction.

DATASECTION INC provide social data analysis and social risk management services. The Company also provides consulting service for big data analytics and also builds analysis tools.

UNITED Inc operates Internet related businesses, such as advertising services, e-mail marketing services, and e-commerce services.  The Company also invests in Internet venture companies and provides support and consulting services.

SYSTEM RESEARCH CO., LTD. develops a variety of computer software for businesses.  The Company's products include software to monitor manufacturing, logistics, and sales.  System Research also provides product support services to users.

i-mobile Co., Ltd. provides online advertising services. The Company offers online advertising campaigning, reporting, animation, and median branding services for personal computers, mobile phones, and tablets. i-mobile conducts its business in Japan.

GIGA PRIZE CO., LTD. sets up internet connection service and offers security system. The Company also develops business, security and mobile software.

E-Guardian Inc. provides monitoring services for various internet media such as bulletin boards, blogs, and online games.  The Company also performs analyses on data tendencies and user attributes.  E-Guardian maintains a help desk and temporary support staff as well.

Everyday Network Company Limited operates and markets networks of new houses, second-hand houses, and homes. Also, the Company provides research and consulting businesses. The Company's main products include various types of system software.

Feelingk Co., Ltd. provides end-to-end solutions for the wireless Internet system.  The Company's products includes WAP gateway, Short Messaging Service Center (SMSC), and Push Proxy Gateway (PPG).  Feelingk provides wireless solution to major mobile telecom service providers such as SK and LG telecom.

Tatung System Technologies Inc. distributes computers and servers.  The Company acts as a distributor for Cisco, HP Invent, ADIC Intelligent Storage, Avaya, and others.  TSTI also provides system integration and training services.

Beijing Tianli Mobile Service Integration Inc provides mobile information services. The Company's main products include the MAS business, ICT service platform for business and mobile phone securities business.

Beijing Tianli Mobile Service (300399 CH)

BusinessOn Communication Co., Ltd operates software as a service company. The Company provides electronic tax bill, integrated purchase management, electronic contract, purchase confirmation, and default registration services. BusinessOn Communication also offers online advertising services.

Tucows Inc. provides wholesale digital products to Internet service providers and Web hosting companies.  The Company distributes electronic business services and applications on the Internet.  The Company provides wholesale domain name registration.

Serko Ltd operates as an online corporate travel booking and expense management company.

iomart Group Plc provides managed and cloud computing services in the United Kingdom and internationally. It operates through two segments, Easyspace and Hosting. The Easyspace segment offers a range of domain names, shared, dedicated and virtual servers, and email services to micro and SME companies. The Hosting segment provides managed cloud computing facilities and services through a network of owned datacenters through iomart Hosting, RapidSwitch, Melbourne, iomart cloud services, Redstation, and backup technology. This segment provides its managed hosting services to SME and corporate markets. The company provides Web services. iomart Group plc was founded in 1998 and is headquartered in Glasgow, the United Kingdom.

Sunfun Info Co., Ltd. owns and operates a social networking website. The Company manages iPartment, an Internet community platform.

Xiamen 35.com Technology Co., Ltd. researches and develops application software, provides corporate email hosting services, electronic business homepage building services.  The Company also provides domain name, office automation system (OA), and customer relationship management system (CRM).

Carta Holdings, Inc. provides on-line information retrieval services on a contract or fee basis.

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Carta Holdings, Inc. (3688 JP)

Carta Holdings (3688 JP) - 1Q FOLLOW-UP

Careful review of turnaround indicators and timing is crucial - Share price has underperformed against the advertising sector

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