Financials
Galliano's Financials Research
Victor Galliano upgrades the stock to Buy, arguing that the recent partial disposal of its stake in Nintendo could mark the start of a broader unwind of the bank’s large strategic equity portfolio - its primary source of potential shareholder value creation. The sale generated a ¥75.1bn gain (c.¥90bn proceeds) and reduced Kyoto’s stake from 4.2% to 3.3%, though the remaining holding still represents more than 30% of the bank’s market value. With ¥160bn in gains on stock sales, Kyoto has also been able to crystallise roughly ¥90bn of losses on government bonds, bringing its unrealised losses on the domestic government bonds still on its balance sheet close to zero. Kyoto trades at the lowest PBV among Japan’s top ten banks, while its 4.1% dividend yield also has scope to rise.
Edition: 232
- 20 March, 2026
The state of video gaming in 2025
Communications
Matthew Ball* joined Revelare for a discussion on the outlook for video gaming. He shared his in-depth analysis of waning growth trends for gaming spend and engagement, pricing power for video games, title development issues, Nintendo and the outlook for the Switch 2, as well as the potential impact of GenAI among other topics.
*Matthew is the CEO of Epyllion, which provides investment and strategic advisory services, produces television, films, and video games, and co-operates/owns the Roundhill Ball Metaverse ETF, which was the single largest sector ETF launch of 2021, among various other operating subsidiaries.
Edition: 205
- 21 February, 2025
Communications
Nintendo has been undergoing a transformation from a lower margin hit-driven cyclical hardware manufacturer to a business that generates most of its revenues from multiple higher margin sources. It is also beginning to aggressively monetise its treasure trove of IP and has a number of hidden assets whose true value is massively understated on its balance sheet. Utilising a SOTP valuation approach, Boyar derives an intrinsic value estimate of USD 20.93/share (50% upside). Ongoing corporate reform in Japan can help unlock shareholder value and they would not be surprised to see Nintendo pursue shareholder-friendly initiatives with its over-capitalised balance sheet.
Edition: 186
- 17 May, 2024
Global Funds: Investor positioning insights
EM Unwind - Allocations among active Global managers have taken an aggressive move lower led by China & HK, South Korea and Brazil.
China & HK Style Switch - Value and Yield managers have aggressively reduced underweights, whilst Growth and Aggressive Growth managers have moved to new lows. AIA Group takes the crown as the most widely held stock and largest overweight.
Asia's Communication Services Fall - Ownership breaking new lows led by Tencent, Nintendo, NetEase and Nippon Telegraph.
Energy Conviction Underweight - TotalEnergies is the most widely held stock, but there is little conviction or consensus to suggest managers are concerned over long-term outperformance of Energy vs. sector peers.
Edition: 129
- 18 February, 2022