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Equity Analyst, LightStream Research

Supun Walpola

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 Capital Markets

<p><a href="https://www.smartkarma.com/entities/ant-financial-services-group" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial (1051260D CH)</a>’s revenue growth and OP margin look attractive to us in the short-term compared to its global fintech peers. However, we believe Ant’s revenue growth would converge towards the peer average over the next 2-3 years when its robust CreditTech business growth moderates. The consensus estimates also suggest that peer OP margins would catch up to Ant’s in the medium-term.</p>
<p>Nevertheless, we find Ant’s IPO valuation highly attractive versus its global fintech peers, and expect further upside over the next 1-2 years, underpinned by its higher growth and margin profile in the short-term. </p>

Ant Financial (1051260D CH)’s revenue growth and OP margin look attractive to us in the short-term compared to its global fintech peers. However, we believe Ant’s revenue growth would converge towards the peer average over the next 2-3 years when its robust CreditTech business growth moderates. The consensus estimates also suggest that peer OP margins would catch up to Ant’s in the medium-term.
Nevertheless, we find Ant’s IPO valuation highly attractive versus its global fintech peers, and expect further upside over the next 1-2 years, underpinned by its higher growth and margin profile in the short-term. 

Ant Group IPO: A Good Bargain Against Global Fintech Peers with Healthy Short-Term Upside Potential