Senior Technology Analyst, Japanese Equities, LightStream Research

Scott Foster

Securities analyst covering electronics, precision equipment & robotics, engineering, construction, transport and other sectors for more than 25 years in Japan and 3 years in Korea. Permanent resident of Japan.

Senior Technology Analyst, Japanese Equities

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Despite the rebound of sales and profits in the three months to April and positive guidance for 2H of FY Oct-21, GA technologies' share price remains more than 50% below its 52-week high. Anticipating legislation allowing digital (online) real estate transactions taking effect in 2022, this looks like an opportunity for long-term investors.Management continues to guide for a 30% increase in operating profit on a 35% increase in revenue in FY Oct-21 as a whole. A potential downward revision appears to be going into the price.The digitalization of the Japanese real estate market and M&amp;A should enable a doubling or tripling of profits by 2025, in our estimation.

Despite the rebound of sales and profits in the three months to April and positive guidance for 2H of FY Oct-21, GA technologies' share price remains more than 50% below its 52-week high. Anticipating legislation allowing digital (online) real estate transactions taking effect in 2022, this looks like an opportunity for long-term investors.Management continues to guide for a 30% increase in operating profit on a 35% increase in revenue in FY Oct-21 as a whole. A potential downward revision appears to be going into the price.The digitalization of the Japanese real estate market and M&amp;A should enable a doubling or tripling of profits by 2025, in our estimation.

GA Technologies (3491 JP): Down 56% Since Last December - Is that Enough?