SoftBank Group

Prosus NV- The Tencent Play

Prosus NV is a Dutch technology investment company founded in 2019 through the spin-off from South African media group Naspers. The company focuses on investing in high-growth technology companies, with a particular focus on e-commerce, online classifieds, fintech and education technology.

Historical development

Prosus was born out of Naspers' strategic goal to bundle its international internet holdings into a stand-alone company. The IPO in 2019 on Euronext in Amsterdam catapulted Prosus to become the largest listed technology company in Europe.

Business model and core competencies

Prosus' business model is based on long-term investments in promising technology companies. The company's core competence lies in identifying, supporting and scaling innovative business models. In addition to capital, Prosus also provides its investments with expertise and access to a global network.

The most important investments include

• Tencent: Leading technology company in China
• Delivery Hero: Global provider of food delivery services
• PayU: Fintech company for payment solutions
• OLX Group: International platform for classified ads

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Future prospects and strategic initiatives

Prosus continues to focus on high-growth markets, particularly in Asia and Latin America. The focus is on high-potential sectors such as e-commerce, fintech and edtech. A key strategic measure is the ongoing share buyback program, which aims to reduce the discount between the stock market value and the intrinsic value of the investments.

Market position and competition

As one of the world's largest technology investment companies, Prosus is in direct competition with other global technology giants such as $9984 (-0.2%) . However, the company has a clear competitive advantage due to its strong presence in emerging markets and its broad geographic focus.

Total Addressable Market (TAM)

Prosus' addressable market (TAM) is huge, as the company is active in various industries and regions. The global e-commerce market is expected to reach USD 16.6 trillion by 2027. The fintech industry is forecast to reach a market volume of 699 billion US dollars by 2030.

Share performance

Since its launch, the Prosus share has recorded a volatile but overall positive performance. In the last 12 months, the TR was 45%, while the TR over three years is 17.1%. .

Despite the growth, the share continues to trade at a significant discount to its net asset value. The current market capitalization of around €90 billion is approximately 20% below the value of the holdings, offering a potentially attractive opportunity for value investors.

For the development (company figures), a better view and more, check out the free blog : https://topicswithhead.beehiiv.com/p/prosus-nv-der-tencent-play

$PRX (-0.95%)
$700 (-1.5%)
$DHER (+1.59%)
$NPN

SoftBank ($9984 (-0.2%)) has acquired the British company Graphcore which specializes in AI chips. The M&A transaction is part of SoftBank's strategy to expand its capabilities in the field of artificial intelligence capabilities. Graphcore manufactures specialized chips that are particularly well suited for machine learning and AI applications. SoftBank wants to use this technology to improve its own AI projects.

The financial details of the acquisition were not disclosed, but it is assumed that the purchase price is below the valuation of 2 billion pounds that Graphcore 2020 had reached. The acquisition secures Graphcore's future as the company previously struggled with financial difficulties.

Graphcore's CEO Nigel Toon sees the acquisition as confirmation for the quality of its technology. SoftBank emphasizes the importance of advanced semiconductors for the development of "Artificial General Intelligence" (AGI), i.e. machines that are capable of human-like intelligence intelligence.

What is your current opinion of the SoftBank Group

($9984 (-0.2%) )? I would like to give you a few arguments that currently speak in favor of the SoftBank Group and would then like to hear your opinion!

1) The telecommunications business is very stable and profitable, which creates stability. Research is being conducted on 6G technology and potential market launch.

2) The SoftBank Group owns about 90% of the British chip designer ARM ($ARM (+0.55%) ), but its own market capitalization is only 60% of the ARM shares held (in addition to all other assets).

3) The so-called Vision Fund (VF) was after the collapse of the technology sector in 2022 was not very successful and caused the company losses in the billions. For this reason, a reorientation is taking place and less emphasis is being placed on start-up financing (VC) and parts of VF are now being sold. The focus is now almost entirely on AI and chips which are now being invested in aggressively.

4) The biggest trump card here is the chip company ARMaround which the new strategy will revolve. This year there have been several announcements in connection with ARM. By the spring 2025 ARM is to develop the prototype of an AI chip which will be available from fall of the same year. SoftBank is reportedly in talks with TSMC ($2330 ), which is to produce the specially developed chips. It is widely assumed that the AI chip will be developed by ARM, but that the business will later be spun off and placed under the SoftBank Group.

5) Another vision is the creation of an NVIDIA competitor. There is a new project called "Izanagi" (Japanese God of Creation), a 100 billion dollar start-up for AI chips, all based on ARM chip technology. SoftBank is to invest 30 billion itself and 70 billion from investors, most likely from the Middle East (customer neutrality has always been one of their strengths). NVIDIA, Apple, Amazon, Microsoft, AMD, Google, Samsung (etc.) are all customers of ARM and use their technology (they buy licenses), especially with regard to AI/data centers and ARM's monopoly area of cell phones. SoftBank is now trying to take advantage of this untapped potential of its own technology and instead of just licensing it, take full advantage of it itself. This is also supported by new acquisitions; at the moment, for example, they are trying to acquire the British AI chip start-up Graphcore (often referred to as NVIDIA's European competitor) from England which has recently been in financial difficulties and is therefore an attractive takeover target. It would be perfectly suited to synergies with ARM, which is also based in the UK, and which it may then be placed under.

6) Regardless of this grand vision, there are also many smaller AI projects. For example, they support and invest in the AI search engine Perplexity AIwhich is intended to compete with Google. They are also involved in the start-up Tempus AI with which they have now established a joint venture which will improve the healthcare system into the future with AI data analysis. Another neat AI project is an AI that makes sure that angry customers on the phone are treated with care. customer service sound completely normal, so that they are exposed to less psychological stress. Also recently, a collaboration with Deutsche Telekom and other partners to create an AI specifically for the telecommunications sector. Investments are also to be made in renewable energies to cover the future power requirements of AI data centers. (Etc. Etc. Etc.)

7) Another interesting investment is in the newly founded joint venture Rapidusin which SoftBank and other large Japanese companies (Sony, NTT.....), with the support of the government and IBMhave joined forces to develop state-of-the-art 2nm chips in Japan in the near future. This is an interesting investment, especially in connection with the ambition to produce its own AI chips.

8) Last but not least, it does not hurt to note that the SoftBank Group is heavily invested in India to position itself in the technology sector in this significantly growing economy. In China, they have recently scaled back their investment activities somewhat, for example by selling the majority of their Alibaba shares.

Minus point: Very high debt of ¥15.39 trillion (approx. €90 billion), which is offset by assets worth around €300 billion and in Japan there is also no interest on this debt, or at least microscopically low interest.

ConclusionAs a conglomerate with an incredible number of holdings, it is not easy to understand the structures of the SoftBank Group. Nevertheless, they are not exactly stuck in the past, but are fully embracing the AI age and have set themselves the goal of being at the forefront.

With projects such as "Izanagi", they have big plans that now need to be realized. But with the chip specialist ARM under their control, plenty of cash, contacts in the industry and a good connection to financial backers in the Middle East, the project doesn't seem so unrealistic.

Other activities in the field of chips and AI, such as the Rapidus joint venture, ARM's new AI chip, projects with Tempus AI, Perplexity AI and Deutsche Telekom, are already in the process of being realized.

All in all, there are great opportunities here in the medium to long term, although there is of course a certain residual risk, but I remain positive that they will succeed, and if they do, then they will succeed.

Japanese equities: a promising outlook for 2024

Imagine Japan is a giant sushi bar and the stocks are the nigiri appetizers. For a long time, no one really looked, but now everyone realizes: "Hey, this tastes really good!" This is exactly what is happening with Japanese shares at the moment. Investors are starting to pull out their chopsticks, and for good reason. I'll give you a brief overview of the pros and cons & draw a short conclusion.

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Reasons for optimism:

Monetary policy and reforms:

• The Bank of Japan (BOJ) is gradually moving towards a normalization of monetary policy. In March, the Bank of Japan (BoJ) raised its key interest rate for the first time in 17 years. The interest rate is now in a range between zero and 0.1%, which could further improve the investment climate (Nikko AM, 2024; Asia Fund Managers, 2024).

Strong corporate earnings and share buybacks:

• Japanese companies are showing strong earnings and increasing their dividends and share buybacks. This is partly driven by the Tokyo Stock Exchange (TSE) reforms, which are pushing companies to increase their return on capital and make their business strategies more transparent (Nasdaq, 2023; Nikko AM, 2024).

Growth in the technology sector:

• Demand for semiconductors and other technology products, particularly related to artificial intelligence, is contributing to a positive outlook for Japanese technology companies (Nikko AM, 2024).

Foreign investment:

• International investor interest in Japanese equities is increasing. This is supported by attractive valuations and improved corporate practices. Experts predict that both local and foreign investors will increase their positions in Japanese equities (Asia Fund Managers, 2024; Goldman Sachs, 2024).

Regulatory changes and stock market initiatives:

• The TSE (Tokyo Stock Exchange) is continuously introducing reforms to increase capital market efficiency. These reforms include the unknotting of cross-selling and the promotion of management buyouts (MBOs), which could further improve corporate governance (Trustnet, 2024).

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Challenges and risks

• Despite the positive outlook, there are also challenges. The Japanese economy still shows weaknesses, such as shrinking consumer spending and slow wage growth. These factors could slow down the economic recovery and market growth (Interactive Investor, 2023).

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Conclusion

• The Japanese stock market offers many opportunities for investors in 2024, particularly due to the continued reforms and increasing interest from international investors. However, it remains important to keep a close eye on economic conditions and monetary policy developments.

Right after the sources used, there is a sexy overview of some possible investments!

Sources

• Byrne, M. (2023). EWJ: Japanese Stocks Look Well-Positioned for Gains in 2024, Nasdaq.
• Nikko Asset Management (2024). Japan equity outlook 2024. Nikko AM Insights.
• Trustnet (2024). 5 key themes for Japanese income investors in 2024.
• Goldman Sachs Research (2024). Japan stock market outlook 2024.
• Hobson, R. (2023). Japan stock market outlook 2024: a good time to buy? Interactive Investor.
• CTMfile (2023). US and Japanese stocks to rally in 2024.
• Asia Fund Managers (2024). Japan Outlook 2024.
• Morningstar (2024). Japan Stocks Outlook.
• BlackRock (2024). Japan Equity Themes.
• Yahoo Finance (2024). Best Japanese Stocks to Buy in 2024.

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Toyota Motor Corporation (Ticker: $7203 (+0.8%)
)

• Innovation and technologyToyota is a global leader in the automotive industry and is investing heavily in electric mobility and hydrogen technology.
• Strong financial position: The company has a solid balance sheet and plans significant share buybacks, which should be positive for shareholders.
• Market presence: With a global market presence and continued expansion into new markets, Toyota remains a major player in the global automotive sector.

Sony Group Corporation (Ticker: $6758 (+0.74%)
)

• Diversification: Sony operates in various industries, including consumer electronics, film, music and financial services, which diversifies risk.
• Gaming sector: The success of the PlayStation 5 and expansion into cloud gaming strengthens Sony's position in the lucrative gaming market.
• Technological innovations: Sony continuously invests in research and development to stay at the forefront of technology.

SoftBank Group Corp (Ticker: $9984 (-0.2%)
)

• Technology investmentsSoftBank is known for its strategic investments in technology companies worldwide, including the Vision Funds.
• Telecommunications: As a major player in the telecommunications sector, SoftBank is benefiting from the increasing demand for 5G technologies.
• Risk ManagementDespite some high-risk investments, SoftBank has shown an impressive ability to adapt and continue to grow.

Fast Retailing Co, Ltd (Ticker: $9983 (+1.07%)
)

• Fashion industry: As the parent company of Uniqlo, Fast Retailing is a major player in the global fashion industry.
• Expansion: The company is aggressively expanding into new markets, particularly in Asia and North America.
• E-commerce: The strong online presence and investments in digital platforms strengthen the growth potential.

--> I do not hold any of the stocks mentioned.

Are you invested in Japan? Why yes, why no? What insider tips do you have?

So, this post has been a while in the making. I hope you like it 💕 If any information is out of date, please let me know! The stock market world is big and turns fast. 😉

GG

Share analysis/share presentation ⬇️

Today we are looking at the company SoftBank Grouo: $9984 (-0.2%)
What is SoftBank Group and what does it do anyway?

SoftBank Group is a Japanese company that operates in various fields, including telecommunications, technology, internet services, financial services and more. SoftBank is known for its investments in technology companies around the world, including companies such as Alibaba, Uber, and WeWork. The company also operates the Vision Fund, one of the largest venture capital funds in the world, which invests in innovative technology companies.

Market capitalization:

The SoftBank Group currently has a market capitalization of around 72.6 billion euros.

Strengths of the share:

Some strengths of SoftBank Group:

- Diversified businesses: SoftBank operates in various industries such as telecommunications, technology and financial services, resulting in a broad business base.

- Global network: The company has an extensive international network and is known for its investments in technology companies around the world.

- Innovative investments: SoftBank is a leader in investing in innovative technologies and start-ups, resulting in a diversified portfolio and potentially high returns.

- Financial strength: With a solid financial background and one of the largest venture capital funds, the Vision Fund, SoftBank has the resources to invest in promising companies and foster growth.

- Strategic partnerships: The company has built strong partnerships with leading technology companies, resulting in synergies and competitive advantages.

Share weaknesses:

Some strengthen from SoftBank Group:

- Dependence on individual large investments: SoftBank has invested in some risky and controversial companies in the past, resulting in heavy losses.

- Debt burden: The company has accumulated significant debt, particularly through the Vision Fund, which may lead to financial challenges.

- Management issues: SoftBank has received criticism for its management decisions in the past, which could affect investor confidence.

- Technology sector volatility: As SoftBank is heavily invested in technology companies, the company is vulnerable to the volatility and uncertainty in this sector.

- Regulatory risks: SoftBank Group's global presence brings with it regulatory risks in various countries, which may have a negative impact on its business activities.

A little more about the business model:

SoftBank Group is a Japanese company focused on investing in technology companies. Its business model encompasses a wide range of activities, including investments in start-ups, telecommunications, internet services and the technology sector. A prominent feature of its business model is the Vision Fund, one of the largest technology investment funds in the world. This fund enables the SoftBank Group to invest in promising technology companies and drive innovation.

Another important aspect of the SoftBank Group's business model is its involvement in the mobile phone business. They provide telecommunication services in Japan, contributing to digital networking and communication. Through its investments and holdings, the SoftBank Group strives to promote the growth and development of technology companies and play a leading role in the technology industry.

The SoftBank Group aims to have a positive impact on the technology landscape through its diverse activities. Its business model aims to support innovative companies and help them succeed. Through its investments and involvement in various areas of the technology industry, the SoftBank Group strives to help shape the future of technology and drive innovation.

A little more about the industry:

SoftBank Group is a company that operates in the technology and telecommunications industry. Its focus is on investing in technology companies and innovation. Through its Vision Fund and its investments in various companies, SoftBank plays an important role in promoting technology and digital transformation. The industry in which SoftBank operates is known for its dynamism, innovation and constant change. Technology companies in this sector strive to develop new technologies to change the way we live and work and shape the future.

When and where was the SoftBank Group founded?

SoftBank Group was founded in Japan in 1981 by Masayoshi Son. Originally started as a software distribution company, SoftBank has evolved over the years into a global technology conglomerate investing in various industries including telecommunications, e-commerce, technology and finance. Masayoshi Son is known for his vision and risky yet successful investment decisions that have made SoftBank a major player in the technology industry.

Goal of the SoftBank Group:

SoftBank Group aims to be a major player in the technology industry and drive innovation. Through its Vision Fund, it invests in promising technology companies to diversify its portfolio and promote long-term growth. SoftBank strives to promote digital transformation and technological development worldwide.

Your opinion:

Now I would like to hear your opinion on this stock in the comments.

What do you think of SoftBank Group and were you already familiar with this company?

Do you perhaps already have the share in your portfolio?

Please let me know in the comments.

Of course, this is not investment advice but just my own opinion, which I would like to share with you.

So anyone who still holds ARM ($ARM (+0.55%) ) shares should think twice. Soft Bank ($9984 (-0.2%) ) wants its money back from WeWork ($WE ) back.

$9984 (-0.2%) Hello everyone, unfortunately I haven't been able to find anything concrete about ARM's IPO on the internet yet and would therefore like to ask you the following question: What is your assumption about the process of the IPO, will you as a Softbank Group shareholder participate via spin off or will you "only" benefit indirectly through the pro rata sale proceeds of shares?

Currently, it looks like ARM (from Softbank Group) will be listed on the stock exchange in September or shortly thereafter. Currently, the Softbank Group wants to keep the majority of the shares and several anchor investors like Nvidia or Intel are in talks.

I would like to thank you in advance for a short exchange about this ☺️.

VG