QUICK Corp.

Equity Bottom-Up

3Q (cumulative) was an operating loss of JPY60.5bn due to increased logistics costs and upfront investment burden in the Mobile business
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OP of the financial business was JPY63.4bn (+24% YoY) In FY12/20 3Q (cumulative), operating loss was JPY60.5bn from a profit of JPY113bn in the same period of the previous year. This is due to the reaction to the large amount of valuation gains on investment securities recorded in the investment business in the same period of the previous year, the increase in…</li>
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Notes: This is translated from our Japanese report issued on 18 Aug 2020.
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In 1H, operating loss of JPY20.7bn due to increased logistics costs and upfront investment burden in Mobile Business
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Financial business such as credit cards is doing well In 1H FY12/20, operating profit and loss turned to a loss of JPY20.7bn from a profit of JPY111.9bn in 1H FY12/19. After deduction, profit and loss deteriorated by JPY132.6bn. The dropout of valuation gains on investment securities amounting to JPY110.4bn…

Morningstar

Morningstar, Inc.

We raise Rakuten’s fair value estimate to JPY 1,100 from JPY 950 to incorporate the value of gains from the Lyft IPO. Rakuten is the largest shareholder of Lyft, holding 13% of its shares, and the company recorded JPY 110 billion gains in first quarter of 2019 because of Lyft’s IPO on the Nasdaq. Other businesses were in line with our original forecast. While the revenue for the from domestic e-commerce, or EC, increased 14.7% from the previous year, its operating margin dropped to 12.7% from…

We have trimmed our fair value estimate for Rakuten to JPY 950 per share from JPY 1,080 as we now believe the company's operating margin will be lower than our original forecast, owing to larger customer incentives and heavier up-front investment. While we acknowledge the strength of Rakuten’s unique ecosystem, which is a combination of e-commerce and financial businesses and the source of our narrow moat rating, costs necessary to improve the service and retain users in this ecosystem, such as…

Rakuten, the earliest and largest business-to-business-to-customer e-commerce platform, has benefited from the structural shift from offline to online shopping in Japan.
Rakuten’s business model of combining e-commerce and fintech has helped the company build up a network effect, with about 18 million quarterly active buyers at Rakuten Ichiba and 16 million Rakuten Card holders. The company has been building up a one-stop platform--not only for shopping, but also for financial services…

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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