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

NextAge (3186):  Disruptive Business Model at Massive Discount

Nextage (3186): One Analyst, Two Valuations, Both Wrong

Have the Rules for Bottom Fishing Changed?

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 July 4 upward revision to FY Nov-22 sales and profit guidance appears to have been discounted, but the company's long-term growth potential has not.</li>
<li>Sales could more than double over the next several years as Nextage takes share in Japan's highly fragmented and consolidating used car market. Margins also have room to expand.</li>
<li>Prospective P/E ratio headed down from 18x this fiscal year to 12x and below on a medium-term view. </li>
</ul>


The July 4 upward revision to FY Nov-22 sales and profit guidance appears to have been discounted, but the company's long-term growth potential has not.
Sales could more than double over the next several years as Nextage takes share in Japan's highly fragmented and consolidating used car market. Margins also have room to expand.
Prospective P/E ratio headed down from 18x this fiscal year to 12x and below on a medium-term view. 


Nextage (3186 JP): Long-Term Potential Not Yet Discounted

Nextage Co Ltd

Nextage (3186 JP): Long-Term Potential Not Yet Discounted