Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

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.

Equity Analyst

GDS Secondary: Quantamental Analysis Reveals Limited Room for Margin Expansion

Chindata IPO Valuation: Fairly Priced; Should Ride a Wave of Investor Interest

KWG Living IPO: Strong Financials and Growth Prospects Justify a Premium

KWG Living IPO: Expansion in Community Value-Added Services Drives Growth

Radiance Holdings IPO Valuation: Too Hard to Ignore The Risk of A Hard Landing

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

GDS Holdings (ADR) / Equity Capital Markets

GDS, the developer and operator of high performance data centers in China has filed for a secondary listing on the Hong Kong Stock Exchange to raise about HK$13.8bn (US$1.8bn) through the issuance of 160m shares at a maximum offer price of HK$86 per share.At the end of yesterday’s trading, GDS closed at US$80.67 per ADS (Each ADS represents eight ordinary shares) and the secondary listing maximum offer price of HK$86 per share implies a 10% premium on the company’s ADS.In our previous insight on the company, we conducted a quantamental study on the company’s key drivers and margins. Find below an extract from our previous insight:<div class="content-highlight">While we remain positive about the company’s future prospects and the demand for data centers, we believe the company’s margins have limited room to expand over the next few years. As we discussed above, the improvement in utilisation rates brings down operating expenses (as a % of revenue), however, it comes at the cost of lower average selling prices that could in turn eat into the company’s margins. Moreover, the company’s flexible contract pricing and contract terms have caused an inflation in OPEX that could limit further expansion in the company’s margins over the next few years.</div>

GDS, the developer and operator of high performance data centers in China has filed for a secondary listing on the Hong Kong Stock Exchange to raise about HK$13.8bn (US$1.8bn) through the issuance of 160m shares at a maximum offer price of HK$86 per share.At the end of yesterday’s trading, GDS closed at US$80.67 per ADS (Each ADS represents eight ordinary shares) and the secondary listing maximum offer price of HK$86 per share implies a 10% premium on the company’s ADS.In our previous insight on the company, we conducted a quantamental study on the company’s key drivers and margins. Find below an extract from our previous insight:While we remain positive about the company’s future prospects and the demand for data centers, we believe the company’s margins have limited room to expand over the next few years. As we discussed above, the improvement in utilisation rates brings down operating expenses (as a % of revenue), however, it comes at the cost of lower average selling prices that could in turn eat into the company’s margins. Moreover, the company’s flexible contract pricing and contract terms have caused an inflation in OPEX that could limit further expansion in the company’s margins over the next few years.

GDS Secondary: Shares Are Slightly Overvalued but Share Price Momentum Should Continue