Daily Brief Consumer: CyberAgent Inc, GoTo Gojek Tokopedia Tbk PT, Rakuten Group , Soybean Active Contract, TSE Tokyo Price Index TOPIX, GoBuyEazzify India Pvt , Motorist , Wynn Macau Ltd and more

• CyberAgent Inc (4751 JP) reported 1QFY09/2024 results yesterday. Revenue increased 15.2% YoY with OP increasing 12.4% QoQ, and beat consensus estimates by a huge margin.
• All three business segments have shown strong improvement, with newly released gaming title  “Jujutsu Kaisen Phantom Parade” driving growth for Games business.
• CyberAgent’s (CA’s) share price moved up by about 4% following earnings announcement and seems that the worst is over for the company.

• GoTo (GOTO IJ) has legally completed the transaction to sell 75% of Tokopedia to TikTok, paving the way for higher growth and improving profitability, without the need to subsidise growth. 
• The company will continue to benefit from the new Tokopedia’s core GMV growth without having to provide funding, with the benefit of a larger total addressable market. 
• GoTo has achieved positive adjusted EBITDA in 4Q2023 beating expectations but financials should improve further in 2024 although resources will be focused on growing on-demand services, and especially food delivery.

Rakuten Group has launched a USD 1.8 bn 144A/RegS three-year notes offering with a coupon of 11.25% at 97.83, yielding 12.125%. The deal was upsized from USD 1.0 bn. Proceeds from the transaction will be used to fund a concurrent tender offer for the company’s two USD 2024 bonds.

The tender offer is for the 10.25% 2024s (USD 950 mn outstanding) and 3.546% 2024s (USD 800 mn). The tender cap is set at the size of the notes offering, which would be enough to buy back all the outstanding 2024 bonds. The tender consideration is USD 1,006.76 per USD 1,000 principal for the 10.25% ’24s, and USD 956.75 for the 3.546% ’24s. The early tender consideration is USD 30 per USD 1,000 principal.

• Soybean continues to face bearish outlook with supply surplus and lagging demand.
• Soybean price reached a 2-year low this month, with some using the bargain prices as a buying opportunity.
• US exports lag but recent uptick in large export sales suggests the availability of buyers at these prices.

• The fact that only 7% of companies disclosed their cost of capital disappoints investors who had hoped that the “TSE request” would change management’s mindset to become more share-price conscious.
• The average ROE of listed companies declined slightly. This indicates that they haven’t been able to find effective investments to raise business profitability and that shareholder returns have been inadequate.
• The ROE trend does not indicate a significant change in management’s mindset, so this will be a major issue if the stock price moves lower to the June AGM season.

• India’s beauty and personal care market is expected to hit US$30 billion by 2027. While the segment as a whole is thriving, beauty ecommerce penetration in Tier 2 and Tier 3 cities suffers from long delivery periods as well as issues with product authenticity and quality.
• BuyEazzy, a beauty ecommerce platform, aims to solve this by leveraging the trust between neighborhood store owners and consumers.
• The startup has raised over US$4.2 million in a series A round led by Info Edge Ventures, with participation from existing investors Incubate Fund Asia and M Venture Partners.

• Motorist Motorist, a Singapore-based automotive tech firm, has raised a strategic investment from Tokyo Century Leasing (Singapore), a subsidiary of the Japanese auto financing group.
• The startup did not disclose the round’s size but said that it was raised at a US$60 million valuation.
• Founded in 2015, Motorist facilitates vehicle-related transactions, including car valuations, second-hand car listings, and applications for loans and insurance.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

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