Softbank G, investment value of Chinese shells 4.7 times – Reactivation of the “eyes” of Mr. Son-Bloomberg

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Masayoshi Son, president of Softbank Group, appears to be regaining his sight and fame as a start-up investor. Chinese online real estate trading platform company Bake investedKE Holdings) has started to show some successful cases, such as the investment value of the new share price (IPO) which has multiplied by 4.7. It appears to be a stepping stone to recovery in business performance.

Softbank GThe Vision Fund invested $ 1.35 billion in Bake last November. Listed on the US market in August, the value of the Depository Shares (ADSs) held reached 6.4 billion dollars at the end of September, an increase of 375%.

Softbank G will announce its financial results for the period July-September (second quarter) on the 9th. In the briefing, we can mention these recent cases of successful investments.

Mr. son has beenAlibaba Group HoldingHe has managed to discover Internet startups such as Yahoo and has earned a reputation for being an excellent investor. However, the shared office operated riceWhen Wework’s management stumbled and posted a record loss on its 2019 financial results, the market was skeptical of President Son’s vision.

Shinji Moriyuki, an analyst at SBI Securities, analyzed that Softbank G’s investment business is “coming back from the worst.” Investing in Internet-related companies said: “If you win one, you will get a great return, and for Softbank G, you should find a company like Alibaba.”

On October 29, President Son of a national telecommunications subsidiaryHe spoke at an online event hosted by Softbank, introduced several startups from Vision Fund’s 100 investees, and highlighted Bake as one of the promising companies.

“It is a tremendous company that is publicly traded this year and it is growing enormously. It is already making huge profits,” he explained. Most of the real estate agencies in China are registering and accessing it using artificial intelligence (AI), and he enthusiastically said that “the database already contains 230 million homes.”

SBI Certificate’s Mr. Moriyuki assesses that he “found successful” the investment in Bake. Softbank G’s strategy is to create a large network, and if it is large, there is a high probability that promising companies will get involved in the network, and it thinks that “it could not have been done without creating a vision fund.”

According to forecasts by the three analysts compiled by Bloomberg, Softbank G’s net profit and loss for the July-September period averaged 150.3 billion yen. The same period last year was a deficit of 700.2 billion yen.

Softbank G has suffered a drop in the value of the Vision Fund’s investees in recent quarters. In August, it announced that it would stop disclosing operating income and would begin disclosing “investment gains and losses.” So far, operating income has not included realized gains / losses from the sale of investment securities and dividends of investees, and has been deemed not useful in properly displaying consolidated business results as an investment portfolio company. strategic.

The company, which was hit by poor business performance and a sharp drop in share prices, sold subsidiary shares at the yen-scale of $ 4.5 trillion, such as Semiconductor Design Arms and Softbank, in addition to restricting investment activities of the Vision Fund, and used a portion of them in total. Announced a 2.5 trillion yen purchase of treasury stock. Investor confidence has rebounded and share prices have hit a 20-year high since 2000.

Yoshio Ando, ​​an analyst at Daiwa Securities, noted that “today, investors are used to the new crown and the share prices of unicorn companies are rising.” “Investors expect Softbank Group to guide the unknown world,” he said, as the sale of defensive assets has run its course.

Softbank G has surprised the market several times in recent months. In October, Vision Fund CEO Rajiv Misra announced a special takeover company called “Blank Check Company.”SPAC establishment plan revealed). SPAC’s primary goal is to acquire promising undisclosed companies and list them in the future.

Too,Amazon.com andZoom Video Communications, a manufacturer of electric vehicles (EV)It was also revealed that, as of the end of June, it had invested around $ 3.9 billion in 25 US-listed tech-related companies like Tesla. Bloomberg estimates that the subsequent rise in share prices generated an unrealized gain of $ 570 million in the July-September quarter, up 15%, which is higher than the Nasdaq Comprehensive Index of 11%.

“It’s a waste to keep the cash asleep,” said Moriyuki, an SBI certified, who says that investing in highly liquid, low-risk products has lower returns than investing in unicorns, but is rational. ..

On the Japanese stock market on the 9th, Softbank G shares temporarily rallied sharply to 7110 yen, up 5.8% from the previous weekend. The rate of increase during the day was the highest in about two months since September 14 (11%).

(Added Softbank Group stock price and chart to last paragraph)