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.

Thematic (Sector/Industry)

<div class="content-highlight">This report was commissioned by iSTOX, a next-generation investing platform designed to lower the barriers to entry to alternative assets like private equity, hedge funds, private debt and more. To learn more, go to <a href="https://istox.com/" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://istox.com/&amp;source=gmail&amp;ust=1610161268151000&amp;usg=AFQjCNGZcpgoAqxNXnyi7YHjo1-AoCkeCQ" rel="noopener">iSTOX.com</a>.</div>China is currently leading the Internet of Things (IoT) race, supported by the efforts of its telco providers, the government, and early adoption of 5G. Estimates by various consultancy and industry bodies expect China’s IoT industry to grow at a stronger rate over the forecast period (c. 27% compound annual growth rate (CAGR) over 2019-2025), surpassing US spending on IoT.A growing focus on Industrial IoT (IIoT) has become a key trend in the Chinese IoT industry. Initially, IoT was mainly adopted by the consumer sector, particularly in developing smart devices and smart homes. Given the country’s large manufacturing base, IIoT is seen as a sector with the highest growth potential for IoT services. IIoT is still in its nascent stage and we believe that China is well-positioned for growth in this sector.We have identified seventeen emerging IoT companies across key IoT application areas: smart device, home, city and building, IoT and cloud platform, manufacturing and IIoT, automotive and transportation systems and other IoT solutions. Based on industry estimates, IoT and cloud platforms are areas which are likely to witness the highest growth rates over the medium term. Over the longer term, however, we believe that manufacturing and IIoT-related companies will enjoy the strongest growth rates as manufacturers start adopting IoT services throughout their production processes. In terms of IoT platform services, the two names of interest are Gizwits and China Mobile IoT. On the manufacturing and IIoT side, we believe that RootCloud and Thingple have attractive potential for growth. In the smart devices and homes application segment, Yeelink and Tuya Smart caught our attention for their continued efforts in developing product technologies to meet growing IoT needs. In the automotive and transportation systems segment, Roadstar.ai, Deeproute.ai and Uhnder have caught our attention for their efforts in developing technologies for autonomous driving.

This report was commissioned by iSTOX, a next-generation investing platform designed to lower the barriers to entry to alternative assets like private equity, hedge funds, private debt and more. To learn more, go to iSTOX.com.China is currently leading the Internet of Things (IoT) race, supported by the efforts of its telco providers, the government, and early adoption of 5G. Estimates by various consultancy and industry bodies expect China’s IoT industry to grow at a stronger rate over the forecast period (c. 27% compound annual growth rate (CAGR) over 2019-2025), surpassing US spending on IoT.A growing focus on Industrial IoT (IIoT) has become a key trend in the Chinese IoT industry. Initially, IoT was mainly adopted by the consumer sector, particularly in developing smart devices and smart homes. Given the country’s large manufacturing base, IIoT is seen as a sector with the highest growth potential for IoT services. IIoT is still in its nascent stage and we believe that China is well-positioned for growth in this sector.We have identified seventeen emerging IoT companies across key IoT application areas: smart device, home, city and building, IoT and cloud platform, manufacturing and IIoT, automotive and transportation systems and other IoT solutions. Based on industry estimates, IoT and cloud platforms are areas which are likely to witness the highest growth rates over the medium term. Over the longer term, however, we believe that manufacturing and IIoT-related companies will enjoy the strongest growth rates as manufacturers start adopting IoT services throughout their production processes. In terms of IoT platform services, the two names of interest are Gizwits and China Mobile IoT. On the manufacturing and IIoT side, we believe that RootCloud and Thingple have attractive potential for growth. In the smart devices and homes application segment, Yeelink and Tuya Smart caught our attention for their continued efforts in developing product technologies to meet growing IoT needs. In the automotive and transportation systems segment, Roadstar.ai, Deeproute.ai and Uhnder have caught our attention for their efforts in developing technologies for autonomous driving.

China

China Telecom Corporation Limited, through its subsidiaries, provides wireline telephone, data, and Internet, as well as leased line services in China.

China Telecom (H) (728 HK)

Emerging IoT Companies in China

China is currently leading the IoT race, supported by the efforts of its telco providers, the government, and early adoption of 5G. In this...

Shifara Samsudeen, ACMA, CGMA