Softbank Corp (Buy) - Q1 22 Results Reaction: Largely In-Line with Reduced Expectations

Japan Fintech - Rule Changes Should Benefit Cashless Apps like PayPay

Softbank Corp (Buy) - Q2 22 Results Reaction: PayPay Boost to Guidance and In-Line Results

Z Holdings (Neutral) - PayPay Rebranding of ECommerce; We Remain Cautious in a Rebuilding Year

Softbank Corp Q4 21 Results Reaction: Behind the Headlines, Disappointing Guidance

Z Holdings Q4 21 Results Reaction: Growth Pushed Back a Year; Downgrade to Neutral

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>Softbank and Z Holdings have confirmed the conversion of PayPay preferred equity into common in-line with previous guidance for ownership levels and a revaluation gain</li>
<li>Z Holdings will sell the credit card business to PayPay to align transactional fintech which makes distribution, product development and branding easier</li>
<li>Our outlook has not changed but we are lowering our target price to reflect diminished expectations announced at Q4 results. We remain at Buy but prefer NTT/KDDI in telcos</li>
</ul>


Softbank and Z Holdings have confirmed the conversion of PayPay preferred equity into common in-line with previous guidance for ownership levels and a revaluation gain
Z Holdings will sell the credit card business to PayPay to align transactional fintech which makes distribution, product development and branding easier
Our outlook has not changed but we are lowering our target price to reflect diminished expectations announced at Q4 results. We remain at Buy but prefer NTT/KDDI in telcos


Softbank Corp (Buy) - PayPay Conversion, Re-Valuation Gain Confirmed for Q3