Japan Internet - Fresh Lows for Many with Rakuten the Lowest Since 2010

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

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

Z Holdings (Buy) - FY22 Should Be Brighter

Z Holdings (Buy) Q3 21 Results Reaction: Mostly Positive as Ad Sales Continues to Impress

Z Holdings (Buy) Q2 21 Results Reaction: Mostly Positive but Guidance Unchanged

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>FY22 EBITDA guidance is disappointing as strategic investments accelerate yet again and leaving investors uncertain on whether previous guidance for FY23 can be met</li>
<li>We think ZHD's FY23 target of ¥ 390bn in EBITDA is reachable but a meaningful beat, which is factored into consensus, is less likely</li>
<li>So FY22 is another transition year but without the excitement on the potential for LINE as an alternative theme. It is better to be on the sidelines. </li>
</ul>


FY22 EBITDA guidance is disappointing as strategic investments accelerate yet again and leaving investors uncertain on whether previous guidance for FY23 can be met
We think ZHD's FY23 target of ¥ 390bn in EBITDA is reachable but a meaningful beat, which is factored into consensus, is less likely
So FY22 is another transition year but without the excitement on the potential for LINE as an alternative theme. It is better to be on the sidelines. 


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

LY

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