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.

Equity Capital Markets

<ul>
<li>Yesterday, <a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Group (4755 JP)</a> announced that its consolidated subsidiary, Rakuten Securities, has applied for a listing on the Tokyo Stock Exchange.</li>
<li>Rakuten Securities has long-term growth potential through leveraging Rakuten's ecosystem for steady securities account growth and exploring cross-selling opportunities for related services.</li>
<li>While the business seems promising, there may be concerns regarding its valuation, given its previous high trailing PE of 43.0x.</li>
</ul>


Yesterday, Rakuten Group (4755 JP) announced that its consolidated subsidiary, Rakuten Securities, has applied for a listing on the Tokyo Stock Exchange.
Rakuten Securities has long-term growth potential through leveraging Rakuten's ecosystem for steady securities account growth and exploring cross-selling opportunities for related services.
While the business seems promising, there may be concerns regarding its valuation, given its previous high trailing PE of 43.0x.


Rakuten Securities IPO: Promising Business with Valuation Caveats

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Equity Bottom-Up

<ul>
<li>Loyalty points offer a significant incentive for consumers when deciding where to buy and many surveys confirm that points are a key factor in selection of online store.  </li>
<li>With inflation biting, the big loyalty programmes are promoting points as a way to save on future purchases.</li>
<li>Rakuten is by far the largest provider (10 pts above anyone else) and is enjoying strong growth – which could help adoption of its mobile store.</li>
</ul>


Loyalty points offer a significant incentive for consumers when deciding where to buy and many surveys confirm that points are a key factor in selection of online store.  
With inflation biting, the big loyalty programmes are promoting points as a way to save on future purchases.
Rakuten is by far the largest provider (10 pts above anyone else) and is enjoying strong growth – which could help adoption of its mobile store.


Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Formosa Town in Telangana, India establishes industrial zone for Taiwanese firms, adapting to evolving geopolitical environment.</li><li>AMD CEO Lisa Su builds alliances in China to advance AI and PC tech, highlighting Taiwan's pivotal role in the era of artificial intelligence.</li><li>Arizona governor underscores defense collaboration, TSMC partnership, and the opening of Din Tai Fung in Taiwan during official visit.</li></ul>

Formosa Town in Telangana, India establishes industrial zone for Taiwanese firms, adapting to evolving geopolitical environment.AMD CEO Lisa Su builds alliances in China to advance AI and PC tech, highlighting Taiwan's pivotal role in the era of artificial intelligence.Arizona governor underscores defense collaboration, TSMC partnership, and the opening of Din Tai Fung in Taiwan during official visit.

Tech Supply Chain Tracker (20-Mar-2025): Telangana forms industrial zone for Taiwanese.

<ul>
<li>Amazon’s growing lead in Japan’s e-commerce market looks increasingly inexorable. </li>
<li>While growth in Japan was slower than some other Amazon markets, it still outpaced Rakuten. LY Corp did better but partly in reaction to poor results the year before. </li>
<li>Meanwhile, a recent survey suggests growing interest in brand-operated online stores, particularly to read more in-depth content and use brand-based points.</li>
</ul>


Amazon’s growing lead in Japan’s e-commerce market looks increasingly inexorable. 
While growth in Japan was slower than some other Amazon markets, it still outpaced Rakuten. LY Corp did better but partly in reaction to poor results the year before. 
Meanwhile, a recent survey suggests growing interest in brand-operated online stores, particularly to read more in-depth content and use brand-based points.


The Big 3: Amazon’s Lead Grows as Rakuten Stumbles

<ul><li>Rakuten is utilizing AI and O-RAN to lower telecom costs and broaden its global footprint in the industry, focusing on efficiency and expansion.</li><li>IBM has launched Granite 3.2, an advanced AI platform that incorporates on-demand reasoning and vision-language model to bolster its AI capabilities, fostering innovation in the field of artificial intelligence.</li><li>The GSMA has revealed the four key pillars that will shape the future of 5G technology at MWC 2025, highlighting the importance of advancements in connectivity for the development of mobile networks.</li></ul>

Rakuten is utilizing AI and O-RAN to lower telecom costs and broaden its global footprint in the industry, focusing on efficiency and expansion.IBM has launched Granite 3.2, an advanced AI platform that incorporates on-demand reasoning and vision-language model to bolster its AI capabilities, fostering innovation in the field of artificial intelligence.The GSMA has revealed the four key pillars that will shape the future of 5G technology at MWC 2025, highlighting the importance of advancements in connectivity for the development of mobile networks.

Tech Supply Chain Tracker (05-Mar-2025): Rakuten uses AI and O-RAN to save on telecom costs, targets global growth.

Japan

Rakuten Group, Inc. provides Internet services. The Company offers Internet finance services which including "Rakuten Card" and "Rakuten Bank". Rakuten Group also provides digital content services including electronic book services.

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Rakuten (4755 JP)

Rakuten Securities IPO: Promising Business with Valuation Caveats

Rakuten Securities has long-term growth potential through leveraging Rakuten's ecosystem for steady securities account growth and exploring cross...

Oshadhi Kumarasiri

Rakuten: 17% More Points in 2022

Rakuten;s biggest strength in e-commerce and the wider digital ecosystem is its popular loyalty points programme. Rivals are circling but Rakuten...

Michael Causton

Tech Supply Chain Tracker (20-Mar-2025): Telangana forms industrial zone for Taiwanese.

Formosa Town in Telangana, India establishes industrial zone for Taiwanese companies; AMD CEO Lisa Su strengthens partnerships in China for AI and...

Tech Supply Chain Tracker

The Big 3: Amazon’s Lead Grows as Rakuten Stumbles

Amazon continues to dominate Japan's e-commerce market, outpacing Rakuten in growth despite slower progress compared to other markets.

Michael Causton

Tech Supply Chain Tracker (05-Mar-2025): Rakuten uses AI and O-RAN to save on telecom costs, targets global growth.

Rakuten and IBM leverage AI to drive innovation, while GSMA sets the foundation for 5G's future and Taiwan's electronics industry embraces AI...

Tech Supply Chain Tracker

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Rakuten Securities IPO: Promising Business with Valuation Caveats

Rakuten Securities has long-term growth potential through leveraging Rakuten's ecosystem for steady securities account growth and exploring cross...

Oshadhi Kumarasiri

Rakuten: 17% More Points in 2022

Rakuten;s biggest strength in e-commerce and the wider digital ecosystem is its popular loyalty points programme. Rivals are circling but Rakuten...

Michael Causton

Tech Supply Chain Tracker (20-Mar-2025): Telangana forms industrial zone for Taiwanese.

Formosa Town in Telangana, India establishes industrial zone for Taiwanese companies; AMD CEO Lisa Su strengthens partnerships in China for AI and...

Tech Supply Chain Tracker

The Big 3: Amazon’s Lead Grows as Rakuten Stumbles

​Amazon continues to dominate Japan's e-commerce market, outpacing Rakuten in growth despite slower progress compared to other markets.

Michael Causton

Tech Supply Chain Tracker (05-Mar-2025): Rakuten uses AI and O-RAN to save on telecom costs, targets global growth.

Rakuten and IBM leverage AI to drive innovation, while GSMA sets the foundation for 5G's future and Taiwan's electronics industry embraces AI...

Tech Supply Chain Tracker

Amazon continues to dominate Japan's e-commerce market, outpacing Rakuten in growth despite slower progress compared to other markets.