Research Coverage of Japanese Listed Companies, Shared Research Inc

Shared Research

Research Coverage of Japanese Listed Companies

Shared Research Inc

Pioneering research coverage of Japanese listed companies. Now customizable and interactive for global institutional investors. Corporate access reimagined.

Equity Bottom-Up

Raccoon Holdings, Inc. / Equity Bottom-Up

<ul><li>Revenue increased by 8.3% YoY, with the EC business rising 7.0% and the Financial business 10.0%.</li><li>Operating profit rose 89.9% YoY, driven by reduced advertising expenses and a decline in SG&A expenses.</li><li>Financial business segment profit increased 48.9% YoY, with external payments handled growing 13.0% YoY to JPY20.1bn.</li></ul>

Revenue increased by 8.3% YoY, with the EC business rising 7.0% and the Financial business 10.0%.Operating profit rose 89.9% YoY, driven by reduced advertising expenses and a decline in SG&A expenses.Financial business segment profit increased 48.9% YoY, with external payments handled growing 13.0% YoY to JPY20.1bn.

Raccoon Holdings, Inc. (3031 JP): 1H FY04/25 flash update

<ul><li>Revenue increased by 9.6% YoY to JPY1.5bn, with operating profit up 7.6% YoY to JPY300mn.</li><li>EC business revenue rose 8.6% YoY to JPY866mn, while segment profit decreased 2.7% YoY to JPY299mn.</li><li>Financial business revenue grew 11.0% YoY to JPY658mn, with segment profit down 44.7% YoY to JPY183mn.</li></ul>

Revenue increased by 9.6% YoY to JPY1.5bn, with operating profit up 7.6% YoY to JPY300mn.EC business revenue rose 8.6% YoY to JPY866mn, while segment profit decreased 2.7% YoY to JPY299mn.Financial business revenue grew 11.0% YoY to JPY658mn, with segment profit down 44.7% YoY to JPY183mn.

Raccoon Holdings, Inc. (3031 JP): Q1 FY04/25 flash update

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

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.

<ul>
<li>While its peers in Japanese e-commerce are losing momentum, Tokyo-listed B2B e-commerce company, <a href="https://www.smartkarma.com/entities/raccoon-holdings-inc" target="_blank" data-smartkarma-citation="entities:4223:1" rel="noopener">Raccoon Holdings, Inc. (3031 JP)</a> continues to march forward from the COVID elevated levels.</li>
<li>With the advertising cost no longer growing at the same rate as before, we expect around 60% upside to Raccoon’s FY+2 consensus OP of ¥1.6bn.</li>
<li>This would put Raccoon on 9.5x FY+2 OP with an OP CAGR of close to 50% and seems reasonably cheap in our opinion.</li>
</ul>


While its peers in Japanese e-commerce are losing momentum, Tokyo-listed B2B e-commerce company, Raccoon Holdings, Inc. (3031 JP) continues to march forward from the COVID elevated levels.
With the advertising cost no longer growing at the same rate as before, we expect around 60% upside to Raccoon’s FY+2 consensus OP of ¥1.6bn.
This would put Raccoon on 9.5x FY+2 OP with an OP CAGR of close to 50% and seems reasonably cheap in our opinion.


<ul>
<li>
<a href="https://www.smartkarma.com/entities/raccoon-holdings-inc" target="_blank" data-smartkarma-citation="entities:4223:1" rel="noopener">Raccoon Holdings, Inc. (3031 JP)</a> is currently maintaining the COVID growth momentum while all others in Japanese e-commerce are face a significant drop-off in demand conditions.</li>
<li>If this outperformance continues, valuation multiples that look somewhat decent today could look cheap beyond any reasonable doubts in a few years.</li>
<li>In addition, if Raccoon succeeds in bringing down advertising spending to the pre-COVID level, the share price could rise above the previous peak of ¥3,300.</li>
</ul>



Raccoon Holdings, Inc. (3031 JP) is currently maintaining the COVID growth momentum while all others in Japanese e-commerce are face a significant drop-off in demand conditions.
If this outperformance continues, valuation multiples that look somewhat decent today could look cheap beyond any reasonable doubts in a few years.
In addition, if Raccoon succeeds in bringing down advertising spending to the pre-COVID level, the share price could rise above the previous peak of ¥3,300.


Raccoon: Valuation Has Come Down but The Growth Momentum Remains Strong

<p>After a stellar rally (share price is up 861%), <a href="https://www.smartkarma.com/entities/raccoon-holdings-inc" target="_blank" data-smartkarma-citation="entities:4223:1" rel="noopener">Raccoon Holdings, Inc. (3031 JP)</a> is currently trading at a new all-time high FY+2 EV/Sales and FY+2 EV/EBIT of 13.1x and 40.9x respectively. These multiples are 40-50% above the previous peak multiples.</p>
<p>We think Raccoon’s valuation could course correct very soon as the company’s impressive performance during COVID was mostly driven by temporary factors like demand for masks and sterilization products.</p>

After a stellar rally (share price is up 861%), Raccoon Holdings, Inc. (3031 JP) is currently trading at a new all-time high FY+2 EV/Sales and FY+2 EV/EBIT of 13.1x and 40.9x respectively. These multiples are 40-50% above the previous peak multiples.
We think Raccoon’s valuation could course correct very soon as the company’s impressive performance during COVID was mostly driven by temporary factors like demand for masks and sterilization products.

Raccoon: Downside Risks Mount As EV/​Sales Peak

Japan

RACCOON HOLDINGS, Inc. operates online retailing platform businesses. The Company provides super delivery, cloud-based ordering system, payment, assurance, and matching service between manufacturers and brands. RACCOON HOLDINGS retails apparels and other accessories.

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Raccoon Holdings, Inc. (3031 JP)