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 Bottom-Up

<ul>
<li>GMO PG missed by 4% on top line in 1QFY09/22 but still managed to beat by 2% at the OP level thanks to improved Payment Processing margins. </li>
<li>2Q should be the last quarter where the impact of Zozo’s defection will affect YoY numbers so we expect momentum to keep strengthening. </li>
<li>We see only about 5% upside to consensus OP but multiples are cheap… at least by GMO PG standards.</li>
</ul>


GMO PG missed by 4% on top line in 1QFY09/22 but still managed to beat by 2% at the OP level thanks to improved Payment Processing margins. 
2Q should be the last quarter where the impact of Zozo’s defection will affect YoY numbers so we expect momentum to keep strengthening. 
We see only about 5% upside to consensus OP but multiples are cheap… at least by GMO PG standards.


GMO Payment Gateway – Cheaper Than It’s Been in a While and It’s Accelerating

Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Senior Technology Analyst, Japanese Equities

<ul>
<li>The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.</li>
<li>Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.</li>
<li>Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.</li>
</ul>


The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.
Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.
Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.


GMO Financial Gate (4051 JP): Speculative Buy on Weakness

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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>Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note we will talk about the IPO valuation.</li>
</ul>


Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note we will talk about the IPO valuation.


Net Protections Holdings IPO - Needs a Bit of Hope and Belief

<ul>
<li>Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.</li>
<li>As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.</li>
<li>In this note we undertake a peer comparison and talk about valuations.</li>
</ul>


Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares in its Japan IPO.
As per Yano Research, it had 40% market share in the domestic BNPL market for B2C transactions.
In this note we undertake a peer comparison and talk about valuations.


Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

<ul>
<li>Net Protections Holdings offers Japan’s largest buy now pay later service to both consumers and SMEs. </li>
<li>The company has been growing steadily at a CAGR of just over 25% which should interest investors. </li>
<li>However, there are a variety of issues with the business which make us question the long-term prospects.</li>
</ul>


Net Protections Holdings offers Japan’s largest buy now pay later service to both consumers and SMEs. 
The company has been growing steadily at a CAGR of just over 25% which should interest investors. 
However, there are a variety of issues with the business which make us question the long-term prospects.


Net Protections IPO – If You Buy Now You May Pay Later

Japan

GMO Payment Gateway, Inc. provides credit card transaction services for electronic commerce firms.

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GMO Payment Gateway (3769 JP)

GMO Payment Gateway – Cheaper Than It’s Been in a While and It’s Accelerating

We see only about 5% upside to consensus OP for GMO PG but multiples are cheap… at least by GMO PG standards and the steady compounding is as...

Mio Kato

GMO Financial Gate (4051 JP): Speculative Buy on Weakness

A speculative investment in what could be exponential growth in cashless payments in Japan. Valuations very high, but share price down 25% from...

Scott Foster

Net Protections Holdings IPO - Needs a Bit of Hope and Belief

Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares...

Sumeet Singh

Net Protections Holdings IPO - Peer Comparison and Thoughts on Valuation

Net Protections Holdings (NPH), a buy now pay later service provider, aims to raise up to US$570m via selling a mix of primary and secondary shares...

Sumeet Singh

Net Protections IPO – If You Buy Now You May Pay Later

Net Protections Holdings offers Japan’s largest BNPL service and the company has been growing steadily at a CAGR of just over 25% but we question...

Mio Kato

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