Z Holdings 1Q Update: Strong GMV Growth Is Not Expected to Last Longer Than COVID-19

Z Holdings: Aggressive Consensus + Expensive Valuation

Z Holdings [Alt Data]: Web Traffic Hints Strong 2Q Shopping Growth but Unlikely to Be Sustainable

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>There was hardly anything positive to take away from <a href="https://www.smartkarma.com/entities/z-holdings-corp" target="_blank" data-smartkarma-citation="entities:19603:1" rel="noopener">Z Holdings (4689 JP)</a>’s 2Q FY03/20 financial results except for maybe a quick recovery in the service e-commerce business. Other than this, Z’s core businesses, Yahoo! Shopping and Yahoo! JAPAN, are gradually moving towards saturation, while its new initiatives, such as PayPay Mall and PayPay (mobile payments), are also falling behind expectations. </p>

There was hardly anything positive to take away from Z Holdings (4689 JP)’s 2Q FY03/20 financial results except for maybe a quick recovery in the service e-commerce business. Other than this, Z’s core businesses, Yahoo! Shopping and Yahoo! JAPAN, are gradually moving towards saturation, while its new initiatives, such as PayPay Mall and PayPay (mobile payments), are also falling behind expectations. 

Z Holdings: Core-Businesses Are Getting Closer to Saturation; New Ones Fail to Impress

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Z Holdings: Core-Businesses Are Getting Closer to Saturation; New Ones Fail to Impress