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

<ul>
<li>The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.</li>
<li>Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.</li>
<li>Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.</li>
</ul>


The shares have dropped back 25% from their November 15 peak, offering a buying opportunity for long-term investors anticipating exponential growth in Japanese cashless payments.
Guidance for FY Sep-22 looks conservative, but current valuations are extremely high.
Rapid growth in payment terminal sales has reduced margins but built a larger base for more profitable service revenues.


GMO Financial Gate (4051 JP): Speculative Buy on Weakness