Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

A Long & Short Investment Ideas generator for Asian Equities with 10 years experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment thesis. Provides on-the-ground insights in various Asian markets with a sway towards ASEAN. Experienced and survived the Asian Financial Crisis in a family business, as well as the Global Financial Crisis in financial markets where lessons learned. It's all about understanding business drivers and navigating business cycles, which has high applicability in generating investment ideas. 

Investment horizon: Mid to Long term

Asian Insight Provider - Actionable ideas

Benesse Is Not so Bene (It's Italian for Good!)

Benesse Holding: Low Margin Business with Declining Customer

Equity Bottom-Up

Benesse's business model faces multiple challenges from a declining number of customers (Japan is an aging society) to a crowded landscape; competing with the online provider that squeezes out the company's margin.Their other business units - such as elderly care and overseas business - are growing profitably but the size of the business is still small and cannot cover the gap left by Benesse's biggest unit - domestic education.A recent rally in the stock price of 42% off lows - attributed to the strong 1H result, despite warnings from management it merely shifted expenses to a later period - provides an attractive entry point for shorting.

Benesse's business model faces multiple challenges from a declining number of customers (Japan is an aging society) to a crowded landscape; competing with the online provider that squeezes out the company's margin.Their other business units - such as elderly care and overseas business - are growing profitably but the size of the business is still small and cannot cover the gap left by Benesse's biggest unit - domestic education.A recent rally in the stock price of 42% off lows - attributed to the strong 1H result, despite warnings from management it merely shifted expenses to a later period - provides an attractive entry point for shorting.

Benesse Holdings

Another One Bites the Dust?