Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Blockchain games are gaining popularity and traction with new players. There are now over 1.4m people playing blockchain games daily  </li>
<li>The economics of blockchain gaming and NFT is driving a flood of new investment into the space, with $4b committed by VCs in 2021. This year will be significantly higher  </li>
<li>Square Enix understands that blockchain games are here to stay despite opposition from “legacy fans.” We expect further announcements on blockchain gaming to drive the stock</li>
</ul>


Blockchain games are gaining popularity and traction with new players. There are now over 1.4m people playing blockchain games daily  
The economics of blockchain gaming and NFT is driving a flood of new investment into the space, with $4b committed by VCs in 2021. This year will be significantly higher  
Square Enix understands that blockchain games are here to stay despite opposition from “legacy fans.” We expect further announcements on blockchain gaming to drive the stock


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.

<ul>
<li>Square Enix rose 7.5% yesterday driven by some New Year commentary on integration of NFTs from President Yosuke Matsuda. </li>
<li>The share price jump stands in contrast to broadly negative and suspicious reactions from consumers. </li>
<li>The handling of the issue could be tricky as Ubisoft is finding out but we believe there is positive potential.</li>
</ul>


Square Enix rose 7.5% yesterday driven by some New Year commentary on integration of NFTs from President Yosuke Matsuda. 
The share price jump stands in contrast to broadly negative and suspicious reactions from consumers. 
The handling of the issue could be tricky as Ubisoft is finding out but we believe there is positive potential.


Square Enix – Is the 7% NFT Bump Sustainable?

<ul>
<li>Spider-Man: No Way Home appears set to more or less match the opening weekend of Avengers: Infinity War. </li>
<li>This is extremely strong performance especially given lingering pandemic impacts. </li>
<li>It also suggests that our call that the Spider-Man IP would step into the MCU void following Avengers: Endgame is likely correct.</li>
</ul>


Spider-Man: No Way Home appears set to more or less match the opening weekend of Avengers: Infinity War. 
This is extremely strong performance especially given lingering pandemic impacts. 
It also suggests that our call that the Spider-Man IP would step into the MCU void following Avengers: Endgame is likely correct.


<ul>
<li>We have been pushing Square Enix on the basis that its Final Fantasy XIV MMO was seeing surging popularity. </li>
<li>With the release of its Endwalker expansion on the 9th that popularity took another leg up. </li>
<li>So much so that Square Enix is being forced to suspend sales to avoid overcrowding servers.</li>
</ul>


We have been pushing Square Enix on the basis that its Final Fantasy XIV MMO was seeing surging popularity. 
With the release of its Endwalker expansion on the 9th that popularity took another leg up. 
So much so that Square Enix is being forced to suspend sales to avoid overcrowding servers.


Square Enix – Endwalker So Popular Sales Are Suspended

<ul>
<li>Square Enix’s MMO expansion, Endwalker, released on Dec 7 and has driven a surge in the player base. </li>
<li>Meanwhile, the release date for Forspoken was just confirmed as 24 May 2022 and Marvel’s Guardians of the Galaxy is winning awards. </li>
<li>We expect momentum to pick up and a big upgrade.</li>
</ul>


Square Enix’s MMO expansion, Endwalker, released on Dec 7 and has driven a surge in the player base. 
Meanwhile, the release date for Forspoken was just confirmed as 24 May 2022 and Marvel’s Guardians of the Galaxy is winning awards. 
We expect momentum to pick up and a big upgrade.


Square Enix – The Endwalker Has Forspoken

Japan

OBIC Business Consultants Co.,Ltd. develops and markets business solution packaged software. The Company's products include software for accounting, banking, wage calculation, sales management, inventory control, and tax calculation. OBIC Business Consultants Co Ltd. also provides support and training services.

FUJI SOFT INCORPORATED is an independent software developer, specializing in communications and machine control software, business application software for bank and insurance companies, and operating system software.  Fuji Soft also installs, manages, and maintains computer systems.  The Company develops and sells word processing packaged software and also provides internet service.

Koei Tecmo Holdings Co.,Ltd. is a holding company which was established through the merger of Koei Co., Ltd. and Tecmo Ltd. The Company develops and distributes video game software for personal computers and home video game consoles. The Company also operates other media business such as marketing of books and CDs and amusement facility operation.

Money Forward, Inc. develops mobile application software. The Company produces automatic household account book softwares, household account book application softwares, and other products. Money Forward also provides personal financial management, cloud based accounting solutions, and other services.

Sansan, Inc. provides mobile application software solutions. The Company offers business card management service by scanning the cards from scanner and smartphone. Sansan provides its services throughout Japan.

NSD CO., LTD is an independent computer software development company. The Company's products include operating systems, business software for financial industry, and process control systems.  NSD also provides computer services including managing computer systems and data entry. The Company also sells computers and its peripheral equipment.

Trend Micro Incorporated develops and markets anti-virus computer software and internet security software.  The Company also sells its products in the United States, Europe, and Asia.

Justsystems Corporation develops and sells computer application software. The Company's products include Ichitaro, a Japanese language word processing program.  Justsystems also develops network software.

GungHo Online Entertainment, Inc. develops and distributes Internet games. The Company also develops applications for smartphones.

Systena Corporation develops firmware for mobile telecommunications. The Company also develops web application software for network systems, computer game software, and systems for financial firms.  Systena provides network consulting services as well.

Kingdee International Software Group Company Limited, through its subsidiaries, develops and sells enterprise management software, e-commerce application software and middleware software.  The Company also provides internet-based services and setting up e-commerce platforms for enterprises. In addition, Kingdee provides solution consulting and technical support services.

Kingsoft Corporation Ltd. develops and markets computer software.  The Company develops role-playing computer games and security, word processing, and spreadsheet software.

Technology One Limited is an Australian-based company that is engaged in the development, marketing, sales, implementation, support, and distribution of financial management and enterprise software solutions. The Company has operations in New Zealand, the United Kingdom, the South Pacific, and Malaysia.

Hundsun Technologies Inc develops application software for security firms, commercial banks, fund management firms, and other industries.  The Company also sells computer hardware and provides system integration services.

Blackbaud, Inc. provides software and related services designed specifically for non-profit organizations. The Company's products and services enable non-profit organizations to increase donations, reduce fundraising costs, improve communication with constituents, manage their finances, and optimize internal operations.

NCSOFT Corporation develops and markets on-line games that enable users to play over the Internet and computer software, such as web editing software.  The Company also designs and constructs databases, Intranet, and commercial Internet access systems.

RingCentral, Inc. is a provider of software-as-a-service, or SaaS, solutions for business communications. The Company offers a multi-user, enterprise-grade communications solution that enables customers and their employees to communicate via voice, text, HD video and web conferencing and fax, on multiple devices, including smartphones, tablets, PCs and desk phones.

ACI Worldwide, Inc. develops, markets, and supports software products for the global electronics funds transfer market.  The Company's products are used to process transactions involving credit cards, debit cards, smartcards, home banking services, checks, and automated clearing and settlement.

China National Software & Service Co., Ltd designs, develops, and integrates application software used for the taxation, railway telecommunication, military, commercial aviation, and financial industries.  The Company also designs Chinasoft Linux operating system and develops language conversion software to support Chinese, English, and Japanese

Workiva Inc. provides cloud-based and mobile-enabled platforms for enterprises. The Company offers software to collect, manage, report and analyze business data in real time.

SQUARE ENIX HOLDINGS CO., LTD. develops and sells entertainment software for home video game consoles including Dragon Quest and Final Fantasy series. The Company also publishes books such as informational guide books for its game software, and comic magazines and books.  Additionally, Square Enix sells character goods and stationery items from its software products.

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Square Enix Holdings (9684 JP)

Square Enix – WAGMI

Blockchain games really took off last year, garnering the attention of both gamers and investors. Square Enix will embrace blockchain games/NFTs...

Mark Chadwick

Square Enix – Is the 7% NFT Bump Sustainable?

Square Enix rose 7.5% yesterday driven by some New Year commentary on integration of NFTs and while the handling of the issue could be tricky as...

Mio Kato

Sony – Spider-Man Is the Holiday Hero

Spider-Man: No Way Home is set to match the opening weekend of Avengers: Infinity War supporting our call that the Spider-Man IP would step into...

Mio Kato

Square Enix – Endwalker So Popular Sales Are Suspended

We have been pushing Square Enix on the basis that its Final Fantasy XIV MMO was seeing surging popularity. So much so that Square Enix is being...

Mio Kato

Square Enix – The Endwalker Has Forspoken

Square Enix’s MMO expansion, Endwalker, released on Dec 7 and has driven a surge in the player base which we expect to drive earnings momentum and...

Mio Kato

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