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 Bottom-Up

<ul>
<li>Rakuten Cards has increased its market share by 5.0 percentage points over the last 18 months to reach 21.4%.</li>
<li>Although new customers are not as attractive as Rakuten Cards’ old customers, they still offer significant GTV growth potential.</li>
<li>The segment will likely hit the medium term target for cards issued before 3Q23. However, it might take an additional year or two to reach the GTV target.</li>
</ul>


Rakuten Cards has increased its market share by 5.0 percentage points over the last 18 months to reach 21.4%.
Although new customers are not as attractive as Rakuten Cards’ old customers, they still offer significant GTV growth potential.
The segment will likely hit the medium term target for cards issued before 3Q23. However, it might take an additional year or two to reach the GTV target.


Rakuten Cards: Chipping Away Market Share From Rivals

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. 

<ul>
<li>The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.</li>
<li>The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.</li>
<li>As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.</li>
</ul>


The Matsumotokiyoshi and Cocokara Fine merger is now complete following almost two years of dealing, planning and company bonding.
The combined business creates the single biggest drugstore group in Japan, although the Tokyo-based partners have lost ground in the past year while others have grown strongly.
As a result, the lead is smaller than they previously expected – and will likely get smaller still. The good news is that profits should soar.


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 positive and negative aspects of the deal</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 positive and negative aspects of the deal


Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

<ul>
<li>Zozo opens its first popup physical store and starts a new platform service to make it easy for retailers’ shop staff to sell and communicate with Zozo customers.</li>
<li>Other big platforms are following suit, including arch rival Rakuten as the online fashion space sees intensifying competition and platforms seek to tie merchants closer to them.</li>
<li>Zozo is also launching a new measuring service shortly, this time for hands, tying with Bulgari no less, demonstrating again its ability to bind consumers and merchants to the platform.</li>
</ul>


Zozo opens its first popup physical store and starts a new platform service to make it easy for retailers’ shop staff to sell and communicate with Zozo customers.
Other big platforms are following suit, including arch rival Rakuten as the online fashion space sees intensifying competition and platforms seek to tie merchants closer to them.
Zozo is also launching a new measuring service shortly, this time for hands, tying with Bulgari no less, demonstrating again its ability to bind consumers and merchants to the platform.


Zozo Gets Physical: Launches OMO Platform, Opens First Pop-Up Store

<ul>
<li>Despite the steady growth of Rakuten Ichiba, the Internet Services segment’s overall profitability followed a declining trend due to investments in early stage businesses.</li>
<li>However, the burden on the segment’s profitability from these early stage investments is quickly dissipating alongside the growth in cross use of <a href="https://www.smartkarma.com/entities/rakuten-inc" target="_blank" data-smartkarma-citation="entities:31:1" rel="noopener">Rakuten Inc (4755 JP)</a>’s e-commerce platforms.</li>
<li>In addition, the the JV with Japan Post is also starting to improve the efficiency of logistics operations, resulting in quarterly cost savings in the range of ¥3.0-4.0bn.</li>
</ul>


Despite the steady growth of Rakuten Ichiba, the Internet Services segment’s overall profitability followed a declining trend due to investments in early stage businesses.
However, the burden on the segment’s profitability from these early stage investments is quickly dissipating alongside the growth in cross use of Rakuten Inc (4755 JP)’s e-commerce platforms.
In addition, the the JV with Japan Post is also starting to improve the efficiency of logistics operations, resulting in quarterly cost savings in the range of ¥3.0-4.0bn.


Rakuten Internet Services: Getting Back to 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)

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

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

Zozo Gets Physical: Launches OMO Platform, Opens First Pop-Up Store

Zozo remains a solid bet. Yes the big surge to online during Covid will wane but Zozo is demonstrating renewed capacity to bind merchants and...

Michael Causton

Rakuten Internet Services: Getting Back to Growth

The burden on Rakuten's Internet Services profitability from investments in early stage investments is quickly dissipating alongside the growth in...

Oshadhi Kumarasiri

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Rakuten Cards: Chipping Away Market Share From Rivals

With zero annual fees and cash back programs, Rakuten has managed to capture a significant portion of the cards market in Japan. These benefits...

Oshadhi Kumarasiri

Matsukiyo Cocokara: Together at Last

MatsukiyoCocokara may top the drugstore ranking post-merger but Welcia and Tsuruha have grown much faster and may take the lead again soon given...

Michael Causton

Net Protections Holdings IPO - Mixed Bag of Positives and Negatives

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

Zozo Gets Physical: Launches OMO Platform, Opens First Pop-Up Store

Zozo remains a solid bet. Yes the big surge to online during Covid will wane but Zozo is demonstrating renewed capacity to bind merchants and...

Michael Causton

Rakuten Internet Services: Getting Back to Growth

The burden on Rakuten's Internet Services profitability from investments in early stage investments is quickly dissipating alongside the growth in...

Oshadhi Kumarasiri