Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, 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

Hoya: Strong Demand for EUV Blanks/HDD Drives Better Than Expected 4QFY21 Results

GSX TechEdu: China Fines Online Tutoring Apps for Making Misleading Claims; Is GSX Next?

Ximalaya IPO (Part II): Unlikely for Margins to Improve in the Medium-Term (Quantamental)

Meituan Becomes Target for China Antitrust Probe; More Downside Risks than Upside Going Forward

Tencent: Only Fintech Restructuring or Losing the Edge on WeChat User Data?

Tencent Music Announces US$1bn Buyback After Shares Dip Double-Digit

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

We Doctor Pre-IPO: Growing Scale and Expanding Revenues to Help Reach Profits

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

Reuters reported yesterday that the State Administration of Market Regulation (SAMR) in China is preparing a substantial fine for <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>  as part of its ongoing antitrust probe.The SAMR imposed a fine of RMB18.2bn on Alibaba for violating anti-monopoly rules and abusing its market dominant position on 10th April. Reuters states that the fine on Tencent will be less than that which was imposed on Alibaba, but that Tencent should expect a penalty of at least RMB10bn.The antitrust investigation on Tencent is partly focused on its past acquisitions and investments while other areas include anticompetitive practices in some of its businesses with a particular focus on Tencent Music Entertainment (TME).In our previous insight <a href="https://www.smartkarma.com/insights/tencent-only-fintech-restructuring-or-losing-the-edge-on-wechat-user-data" target="_blank" data-smartkarma-citation="insights:50540" rel="noopener">Tencent: Only Fintech Restructuring or Losing the Edge on WeChat User Data?</a> , we highlighted that Tencent’s past M&amp;A deals could attract regulatory scrutiny and in March 2021, the company was fined RMB500k for its investment in online education app Yuanfudao in 2018 for not seeking prior approval for the deal, which was in violation of the country’s anti-monopoly laws. The fines for not properly reporting past M&amp;A deals are capped at RMB500k per case in China.

Reuters reported yesterday that the State Administration of Market Regulation (SAMR) in China is preparing a substantial fine for Tencent Holdings (700 HK)  as part of its ongoing antitrust probe.The SAMR imposed a fine of RMB18.2bn on Alibaba for violating anti-monopoly rules and abusing its market dominant position on 10th April. Reuters states that the fine on Tencent will be less than that which was imposed on Alibaba, but that Tencent should expect a penalty of at least RMB10bn.The antitrust investigation on Tencent is partly focused on its past acquisitions and investments while other areas include anticompetitive practices in some of its businesses with a particular focus on Tencent Music Entertainment (TME).In our previous insight Tencent: Only Fintech Restructuring or Losing the Edge on WeChat User Data? , we highlighted that Tencent’s past M&amp;A deals could attract regulatory scrutiny and in March 2021, the company was fined RMB500k for its investment in online education app Yuanfudao in 2018 for not seeking prior approval for the deal, which was in violation of the country’s anti-monopoly laws. The fines for not properly reporting past M&amp;A deals are capped at RMB500k per case in China.

Tencent: Regulators Probe TME’s Previous Deals; The Battering Has Just Begun