In today’s briefing:
- Beenos: Big Buybacks Forthcoming
- To Make the TSE Prime Market in Line with the Original Concept of the Market
Beenos: Big Buybacks Forthcoming
- Beenos Inc (3328 JP) is currently one of the cheapest stocks in the Japanese e-commerce sector with a consensus FY+2 EV/OP of 4.5x with an OP CAGR of around 130%.
- In addition, the relatively cheap-looking valuation multiple excludes the current valuation of Beenos’ incubation program investments.
- We think Beenos can sell its stake in GoTo in the short-term to conduct a big share buyback as the management thinks that Beenos is unfairly valued by the market.
To Make the TSE Prime Market in Line with the Original Concept of the Market
- As for “liquidity,” one of the problems of TSE market restructuring, if the selection criteria for TOPIX components are raised, fewer companies will be forced to cling to prime market.
- Regarding “engagement” challenge, a solution is reducing the number of TOPIX components, since low fees and many portfolio companies of passive funds prevent investment managers from devoting resources to engagements.
- Regarding “sustainable growth” challenge, inflation would be a catalyst for learning from history, where an environment that forced all companies to change caused a change in the mindset of managers.
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