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Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

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

<p>We believe it is likely for <a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> to reach its full-year EBITDA guidance for FY03/20. However, we remain bearish, as we expect Recruit to feel the full impact of COVID-19 from 1Q FY03/21 onwards. Both global and domestic labour markets have weakened since March and the demand for online advertising remains low with the disruption of economic activities.</p>

We believe it is likely for Recruit Holdings (6098 JP) to reach its full-year EBITDA guidance for FY03/20. However, we remain bearish, as we expect Recruit to feel the full impact of COVID-19 from 1Q FY03/21 onwards. Both global and domestic labour markets have weakened since March and the demand for online advertising remains low with the disruption of economic activities.

Recruit Holdings: Likely to Reach Full-Year Guidance but Bad News Could Be on the Way