In today’s briefing:
- Calbee – Price Hikes Are Appealing to Institutional Investors
- CyberAgent 4Q: Gaming Deteriorates Further with Absence of New Hit Titles
- CyberAgent (4751) | World Cup Boost for Abema
- Human Capital Investment Is Also Necessary to Remind Valuations of Growth-Based Corporate Value
Calbee – Price Hikes Are Appealing to Institutional Investors
- Japan’s largest snacks maker, Calbee Inc (2229 JP) is raising prices by 10-20% for almost 75% of its product range.
- These price hikes have boded well with institutional investors with a vast most of them deciding to up their stake in the company following the first price hike announcement.
- While institutional-investors bet on earnings growth over long-term through regular price revisions, we think there could also be short and medium-term gains as OP growth turns positive after many years.
CyberAgent 4Q: Gaming Deteriorates Further with Absence of New Hit Titles
- CyberAgent Inc (4751 JP) reported 4QFY09/22 financial results after the market closed on 26th. Revenue for the quarter decreased 1.9% YoY to JPY 176.2bn vs consensus revenue of JPY 175.5bn.
- OP declined 50.8% YoY to JPY 13.2bn vs consensus JPY 16.0bn (miss of 9%) due to decline in profits from gaming business. OPM declined to 7.5% from 14.9% in 4QFY09/21.
- CA’s earnings have come under pressure with absence of new hit game titles. Media segment continues to see strong growth and FIFA World Cup is only a one-off boost.
CyberAgent (4751) | World Cup Boost for Abema
- CyberAgent’s stock price could fall after releasing very weak guidance for the coming fiscal year
- We would buy into any weakness as we see CyberAgent well placed to benefit from the structural growth of the Digital Ad market
- We expect losses in ABEMA TV to shrink further next year and think the whole Media segment can break-even, driven by betting platform, Winticket
Human Capital Investment Is Also Necessary to Remind Valuations of Growth-Based Corporate Value
- Human investment, the engine of medium-to-long-term growth, was burden for companies without high profit margins, and it wasn’t of much interest to investors seeking stock price returns from short-term perspective.
- Today, where people are required to do jobs that machines and robots cannot do and to think about mechanisms for making them work, investing in people is becoming more important.
- The fact that investors have focused more on short-term earnings volatility indicates that they have failed to assume growth-based corporate value in valuations. Growth investing is essential to raising valuations.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
