In today’s briefing:
- Rakuten Bank (5838 JP) – A Keenly Priced Quality Addition to the Global Neobanks Universe
- Retail Ads: A New Revenue Stream for Seven & I and Rival Convenience Stores
- Adastria Takes on Uniqlo and Muji with New Chain
- As Human Capital Disclosures Increase, Expect to Find More Interesting Relationships for Investment
- Five Days Later
Rakuten Bank (5838 JP) – A Keenly Priced Quality Addition to the Global Neobanks Universe
- Rakuten Bank’s IPO will add an attractively valued Japanese neobank to the globally listed neobank universe; furthermore, the Rakuten Group ecosystem is a powerful tool for customer acquisition and retention
- On efficiency metrics, Rakuten Bank scores well versus its key domestic peers as well as global comparables; Rakuten Group companies act as a key conduit for new clients
- At the announced issue price of ¥1,400, Rakuten Bank’s PBV ratio implies an attractive 25% discount to its core Japanese peer SBI Sumishin Net Bank, for similar ROE
Retail Ads: A New Revenue Stream for Seven & I and Rival Convenience Stores
- Retail media in its traditional sense is nothing new, simply referring to the use of advertising in stores, but in modern terms retail media is something far, far bigger.
- It is not only a trend in the US, but one that is about to explode in Japan – although in a very different format.
- With purchase rates up two-fold in early experiments, the potential for brands advertising through retail stores will be significant with some estimates suggesting a ¥20 trillion market.
Adastria Takes on Uniqlo and Muji with New Chain
- Adastria is on a roll, capturing more market share in both the core apparel market as well as through licensing (Forever 21) and home decoration and other lifestyle markets.
- Until now, it has focused on slightly premium mass markets but a new chain will face Uniqlo and Muji head on in apparel basics.
- It is also adding a new basics chain in home decoration and hoovering up contracts to supply apparel to chain stores.
As Human Capital Disclosures Increase, Expect to Find More Interesting Relationships for Investment
- The items to be disclosed by 300 listed companies with active women are expected to be disclosed in the Human Capital section of the Sustainability section of Annual Securities Report.
- Investors will now decide whether these disclosure items have an impact on their investment or whether they need to seek disclosure of further material factors.
- In Metrical universe, the ratio of female executives is also useful for investment tips, as it has been found to have a significant positive correlation with ROA and Tobin’s q.
Five Days Later
- The memo I shared about Kura Sushi five days ago had two conclusions.
- The fundamentals of the business continue to endure and the company was going to have to raise cash fairly soon.
- I noted that “I believe within the next 6-12 months, we may see Kura issue additional stock or tap into their credit line”.
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