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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/Freee-kk" target="_blank" data-smartkarma-citation="entities:28424:1" rel="noopener">freee (4478 JP)</a> reported 1QFY06/2023 results yesterday. Revenue increased 34.5% YoY to JPY4.24bn (vs consensus JPY4.18) driven by 23.5% YoY growth in paying customers to 386,655 from 313,206 in 1QFY06/2022.</li>
<li>As expected, operating losses widened to 24.6% of revenue, however, reported losses of JPY1.0bn was well below consensus estimate of JPY1.6bn.</li>
<li>Freee’s share price has moved up by about 5% following earnings announcement which shows that the market is confident over freee’s ability to turn around its profitability.</li>
</ul>



freee (4478 JP) reported 1QFY06/2023 results yesterday. Revenue increased 34.5% YoY to JPY4.24bn (vs consensus JPY4.18) driven by 23.5% YoY growth in paying customers to 386,655 from 313,206 in 1QFY06/2022.
As expected, operating losses widened to 24.6% of revenue, however, reported losses of JPY1.0bn was well below consensus estimate of JPY1.6bn.
Freee’s share price has moved up by about 5% following earnings announcement which shows that the market is confident over freee’s ability to turn around its profitability.


Freee: Earnings Beat and Losses Widen as Freee Focuses on Mid-To-Long Term Plan

<ul>
<li>Money Forward reported 3QFY11/2022 results. Revenue increased 42.2% YoY to JPY5.45bn (vs consensus JPY5.40bn) while adjusted op.losses further widened to JPY2.5bn vs JPY449m in the same period a year ago.</li>
<li>Though top line growth has resumed following a slowdown in 2QFY11/2022, MF’s margins have further worsened with increased investment in advertising, staff and subsidies.</li>
<li>MF’s share price fell almost 8% following earnings announcement as investors are concerned over deteriorating profitability.</li>
</ul>


Money Forward reported 3QFY11/2022 results. Revenue increased 42.2% YoY to JPY5.45bn (vs consensus JPY5.40bn) while adjusted op.losses further widened to JPY2.5bn vs JPY449m in the same period a year ago.
Though top line growth has resumed following a slowdown in 2QFY11/2022, MF’s margins have further worsened with increased investment in advertising, staff and subsidies.
MF’s share price fell almost 8% following earnings announcement as investors are concerned over deteriorating profitability.


Money Forward: Top Line Beats Consensus but Losses Widen Further

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/socionext-inc" target="_blank" data-smartkarma-citation="entities:36351:1" rel="noopener">Socionext (6526 JP)</a> raised around US$463m in its Japan IPO. The IPO consisted of 100% secondary shares.</li>
<li>Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.  </li>
<li>In this note we will talk about the trading dynamics.</li>
</ul>



Socionext (6526 JP) raised around US$463m in its Japan IPO. The IPO consisted of 100% secondary shares.
Socionext is a fabless semiconductor provider which commenced operations after integrating the system on a chip (SoC) businesses of Fujitsu Semiconductor Limited and Panasonic Holding Corporation.  
In this note we will talk about the trading dynamics.


Socionext IPO Trading - Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jmdc-inc" target="_blank" data-smartkarma-citation="entities:28673:1" rel="noopener">JMDC Inc (4483 JP)</a> aims to raise around US$235m, US$150m coming via an international offering and the rest via issuing shares to its largest shareholder, <a href="https://www.smartkarma.com/entities/omron-corp" target="_blank" data-smartkarma-citation="entities:15904:1" rel="noopener">Omron Corp (6645 JP)</a> . </li>
<li>The company plans to use the proceeds to repay some of its debt that was taken on earlier to acquire other companies.</li>
<li>In this note, we will talk about the placement and run the deal through our ECM framework.</li>
</ul>



JMDC Inc (4483 JP) aims to raise around US$235m, US$150m coming via an international offering and the rest via issuing shares to its largest shareholder, Omron Corp (6645 JP) . 
The company plans to use the proceeds to repay some of its debt that was taken on earlier to acquire other companies.
In this note, we will talk about the placement and run the deal through our ECM framework.


JMDC Placement - Lots to like but past Deals Have Been Mixed and It Is Expensive

<ul>
<li>Freee reported 4Q and full-year FY06/2022 results. 4Q revenue increased 31.2% YoY to JPY3.87bn (vs consensus JPY3.9bn) while full-year revenue grew 40.2% YoY to JPY14.4bn beating own guidance by 0.2%.</li>
<li>Operating losses decreased to 18.7% of total revenue from 32.5% of revenue in the same period a year ago. Full-year OP. losses were 15.7% of revenue vs guidance 17.1%.</li>
<li>Improvement in profitability was driven by growth in ARPU from mid-and-large paying users.</li>
</ul>


Freee reported 4Q and full-year FY06/2022 results. 4Q revenue increased 31.2% YoY to JPY3.87bn (vs consensus JPY3.9bn) while full-year revenue grew 40.2% YoY to JPY14.4bn beating own guidance by 0.2%.
Operating losses decreased to 18.7% of total revenue from 32.5% of revenue in the same period a year ago. Full-year OP. losses were 15.7% of revenue vs guidance 17.1%.
Improvement in profitability was driven by growth in ARPU from mid-and-large paying users.


Freee: Medium-Term Plan Seems Attainable but Profits to Delay

Japan

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.

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Freee KK (4478 JP)

Freee: Earnings Beat and Losses Widen as Freee Focuses on Mid-To-Long Term Plan

freee's 1Q earnings beat estimates. As expected, operating losses widened due to focusing on mid-to-long term plan which should eventually help...

Shifara Samsudeen, ACMA, CGMA

Money Forward: Top Line Beats Consensus but Losses Widen Further

Though Money Forward's top line continues to expand, losses have further widened as the company invests heavily on advertising, subsidies and...

Shifara Samsudeen, ACMA, CGMA

Socionext IPO Trading - Upsized IPO with Strong Demand. Peers Inched Downwards, but Upside Remains

Socionext (6526 JP) raised around US$463m in its Japan IPO. The IPO consisted of 100% secondary shares. In this note we will talk about the trading...

Clarence Chu

JMDC Placement - Lots to like but past Deals Have Been Mixed and It Is Expensive

JMDC Inc (4483 JP) aims to raise around US$235m, US$150m coming via an international offering and the rest via issuing shares to its largest...

Sumeet Singh

Freee: Medium-Term Plan Seems Attainable but Profits to Delay

freee's medium/long-term plan is likely to further impact the company's profitability as it seeks for aggressive user growth. We think the plan is...

Shifara Samsudeen, ACMA, CGMA

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