Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Energy Absolute Public Company Limited engages in the research, development, and production of biodiesel products in Thailand.

<ul>
<li>Countries across the ASEAN region continue to invest on developing their respective EV markets with governments introducing new initiatives and offering further incentives.</li>
<li>The price war among Chinese EV players has escalated in recent month, causing pressure on non-Chinese players. European and Japanese EV makers are increasingly looking at ASEAN for cost advantage.</li>
<li>The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.</li>
</ul>


Countries across the ASEAN region continue to invest on developing their respective EV markets with governments introducing new initiatives and offering further incentives.
The price war among Chinese EV players has escalated in recent month, causing pressure on non-Chinese players. European and Japanese EV makers are increasingly looking at ASEAN for cost advantage.
The four companies we looked at have reported earnings and we have discussed their latest results and our investment thesis.


ASEAN EV Ecosystem Update: Initiatives to Build a Regional EV Ecosystem Continues

Recruit Holdings Co. Ltd. operates information providing services in human resource, housing, bridal, travel, restaurants, beauty, automobiles, and education and more. The company also operate staffing services and advertising business.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/recruit-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:15070:1" rel="noopener">Recruit Holdings (6098 JP)</a> reported 4Q and full-year FY03/2024 results today. Earnings beat own guidance as well as consensus estimates.</li>
<li>Weakening labour markets have negatively impacted all business segments and new pricing model for Indeed has not really been successful.</li>
<li>Recruit expects a recovery in 2HFY03/2025, but at the rate at which job openings are going down, we remain cautious.</li>
</ul>



Recruit Holdings (6098 JP) reported 4Q and full-year FY03/2024 results today. Earnings beat own guidance as well as consensus estimates.
Weakening labour markets have negatively impacted all business segments and new pricing model for Indeed has not really been successful.
Recruit expects a recovery in 2HFY03/2025, but at the rate at which job openings are going down, we remain cautious.


Recruit: As We Said… Weakening Earnings

Tencent Holdings Limited operates as an investment holding company. The Company, through its subsidiaries, provides Internet and mobile value-added services (VAS), online advertising, and e-commerce transactions. Tencent Holdings offers services to users worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> reported 1Q2024 results today. Both revenues and OP grew 6.3% and 30.0% YoY respectively and beat consensus estimates.</li>
<li>Though domestic games revenues declined YoY, there were signs of recovery in Tencent’s gaming business. Online advertising saw strong growth despite 1Q being a seasonally weak quarter for Tencent.</li>
<li>Tencent’s investments in high-margin products have helped boost the company’s margins across all business segments.</li>
</ul>



Tencent (700 HK) reported 1Q2024 results today. Both revenues and OP grew 6.3% and 30.0% YoY respectively and beat consensus estimates.
Though domestic games revenues declined YoY, there were signs of recovery in Tencent’s gaming business. Online advertising saw strong growth despite 1Q being a seasonally weak quarter for Tencent.
Tencent’s investments in high-margin products have helped boost the company’s margins across all business segments.


Tencent: Online Advertising and High-Margin Businesses Support Earnings

Equity Capital Markets

Lalatech Holdings Co Ltd / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/lalatech-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:36848:1" rel="noopener">Lalatech Holdings Co Ltd (LALA HK)</a> , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.</li>
<li>The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech's profitability.</li>
<li>Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.</li>
</ul>



Lalatech Holdings Co Ltd (LALA HK) , a technology driven logistics transportation platform has refiled for IPO in April and this insight focuses on data points from the latest filing.
The company has disclosed full-year 2023 results which shows significant improvement to the company’s financials, particularly Lalatech's profitability.
Lalatech has continued to cutdown its operating costs, which has helped reach profits, and the company has managed to maintain growth despite spending cuts on incentives and promotions.


Lalatech Refiles for IPO: Further Improvement in Profitability

M3, Inc. supplies medical information services for doctors through the Internet. The Company also supports marketing of pharmaceutical companies and medical equipment manufacturers.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/m3-inc" target="_blank" data-smartkarma-citation="entities:13316:1" rel="noopener">M3 Inc (2413 JP)</a> reported 4Q and Full-year FY03/2024 results. Earnings missed both guidance as well as consensus due to slowdown in Medical Platform and Overseas businesses.</li>
<li>Medical Platform’s earnings declined further in 4Q with spending cuts by pharma companies, and it seems that the segment’s earnings will further decline going forward.</li>
<li>M3’s share price is down 18% YTD, and we do not see many catalysts to drive a rally in the company’s share price.</li>
</ul>



M3 Inc (2413 JP) reported 4Q and Full-year FY03/2024 results. Earnings missed both guidance as well as consensus due to slowdown in Medical Platform and Overseas businesses.
Medical Platform’s earnings declined further in 4Q with spending cuts by pharma companies, and it seems that the segment’s earnings will further decline going forward.
M3’s share price is down 18% YTD, and we do not see many catalysts to drive a rally in the company’s share price.


M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Shifara Samsudeen, ACMA, CGMA
Equity Analyst
• LightStream Research

ASEAN EV Ecosystem Update: Initiatives to Build a Regional EV Ecosystem Continues

ASEAN countries continue to invest on developing the EV markets. The price war among Chinese EV players has escalated, and European and Japanese...

Shifara Samsudeen, ACMA, CGMA

Recruit: As We Said… Weakening Earnings

Recruit's earnings beat consensus, but all three segments are expected to see further slowdown with weakening labor markets. As expected new...

Shifara Samsudeen, ACMA, CGMA

Tencent: Online Advertising and High-Margin Businesses Support Earnings

Tencent's 1Q earnings beat consensus. Though online games declined there were signs of recovery. Online ad saw strong growth despite 1Q being...

Shifara Samsudeen, ACMA, CGMA

Lalatech Refiles for IPO: Further Improvement in Profitability

Lalatech's latest IPO filing shows that the company's earnings have improved significantly, particularly its profitability. Company has managed to...

Shifara Samsudeen, ACMA, CGMA

M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

As we expected, m3 missed its own guidance as well as consensus estimates. Medical Platform's earnings growth has decelerated, and the completion...

Shifara Samsudeen, ACMA, CGMA

ASEAN EV Ecosystem Update: Initiatives to Build a Regional EV Ecosystem Continues

​ASEAN countries continue to invest on developing the EV markets. The price war among Chinese EV players has escalated, and European and Japanese...

Shifara Samsudeen, ACMA, CGMA

Recruit: As We Said… Weakening Earnings

​Recruit's earnings beat consensus, but all three segments are expected to see further slowdown with weakening labor markets. As expected new...

Shifara Samsudeen, ACMA, CGMA

Tencent: Online Advertising and High-Margin Businesses Support Earnings

Tencent's 1Q earnings beat consensus. Though online games declined there were signs of recovery. Online ad saw strong growth despite 1Q being...

Shifara Samsudeen, ACMA, CGMA

Lalatech Refiles for IPO: Further Improvement in Profitability

Lalatech's latest IPO filing shows that the company's earnings have improved significantly, particularly its profitability. Company has managed to...

Shifara Samsudeen, ACMA, CGMA

M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

As we expected, m3 missed its own guidance as well as consensus estimates. Medical Platform's earnings growth has decelerated, and the completion...

Shifara Samsudeen, ACMA, CGMA

ASEAN countries continue to invest on developing the EV markets. The price war among Chinese EV players has escalated, and European and Japanese...

Recruit's earnings beat consensus, but all three segments are expected to see further slowdown with weakening labor markets. As expected new...