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Guillemot SA $GUI huge bill of lading registered by the US custom this week:
Weight: 28.384 kg
Quantity: 6.077 pc
Interesting times ahead with
Microsoft Flight Simulator (18 Aug '20)
Project Cars 3 (28 Aug '20)
Next Generation Consoles (Fall '20)
Gran Turismo 7 (Q4'20 or H1'21)
Weight: 28.384 kg
Quantity: 6.077 pc
Interesting times ahead with
Microsoft Flight Simulator (18 Aug '20)
Project Cars 3 (28 Aug '20)
Next Generation Consoles (Fall '20)
Gran Turismo 7 (Q4'20 or H1'21)
Microsoft Flight Simulator is the longest-running series of all time. The sequel in August is released 14 years after the latest edition, so quite a long wait here. In the US alone, 2006 edition sold 1 million copies ~1y later (14y of gaming trend since)
Both GUI and Endor ride on the improved graphic & digitalisation trend of sim racing. Endor being the premium brand & Guillemot the low-end player. A trend very much real prior to Covid-19 as well but accelerated adoption since. US market grew 22% by value and 30% by volume FY'19
On top, Guillemot could probably be seen as "the Endor/Fanatec of flight sim accessories", according to my research, with HOTAS joystick series being best in class and developed with U.S. Air Force. So two verticals, with flight sim and sim racing, firing on all cylinders atm.
Thrustmaster is the joystick market leader, with 73.2% of the market by value FY'19
Some additional trend metrics on Hotas and flight sims
(1) Reddit
(1) Reddit
(2) Google trend
GUI also uses 3d party and physical/wholesaler distributors so improved digital rev mix boost margins and should offset a potential gross margin hit from more expensive air freight (needed due to higher demand and other logistic/shipment problems in times of Covid-19).
GUI trades @ EV/S 0.60x LTM & ~0.50x '20e. EV/EBIT prob. ~5-6x '20e. On top, group holds Ubisoft shares with a fair value ~45% of current MCAP. Ubisoft looking at their greatest lineup so far next year. So a quite rare mix of 'value play'-valuation but three hot growth verticals.
Disclaimer: I'm long Guillemot SA and Endor AG. Genesta published an analysis on Guillemot 2 days ago accessible here: https://www.boursorama.com/bourse/actualites/guillemot-un-t2-2020-largement-superieur-aux-attentes-e73a59dac8de8b997117b7cb83e27070?symbol=1rPGUI
