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

Bilibili: Mobile Games Decline and Losses Expand but Other Verticals Continue to Grow

Tencent: Investees, the Potential for ST Earnings Miss, and an Attractive LT Entry Point

JD Health: Strong Earnings but Regulatory Environment Remains a Concern

TME: Says Order on Music Rights Have Some Impact but User No’s and ARPPU Already Under Pressure

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

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

<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 2Q2021 results yesterday (18th August) which saw revenues grow 20.3% YoY to RMB138.2bn (vs consensus revenue of RMB138.4bn) while operating profit (non-IFRS) for the quarter increased 14% YoY to RMB42.8bn (IFRS OP of RMB52.5bn vs consensus OP of RMB40.5bn).The revenues of Tencent’s largest segment Internet Value-Added Services showed a further slow-down in growth after seeing strong growth in 2020. However, both online advertising and fintech and business services segments continued to see strong growth in revenues.Tencent has been making into headlines over the past few days with its music streaming arm <a href="https://www.smartkarma.com/entities/tencent-music-entertainment" target="_blank" data-smartkarma-citation="entities:27255:1" rel="noopener">Tencent Music (TME US)</a> being ordered to give up exclusive music licensing rights alongside a fine, the company suspending new user registrations on WeChat briefly and regulators increasingly targeting the country’s online games market.

Tencent (700 HK) reported 2Q2021 results yesterday (18th August) which saw revenues grow 20.3% YoY to RMB138.2bn (vs consensus revenue of RMB138.4bn) while operating profit (non-IFRS) for the quarter increased 14% YoY to RMB42.8bn (IFRS OP of RMB52.5bn vs consensus OP of RMB40.5bn).The revenues of Tencent’s largest segment Internet Value-Added Services showed a further slow-down in growth after seeing strong growth in 2020. However, both online advertising and fintech and business services segments continued to see strong growth in revenues.Tencent has been making into headlines over the past few days with its music streaming arm Tencent Music (TME US) being ordered to give up exclusive music licensing rights alongside a fine, the company suspending new user registrations on WeChat briefly and regulators increasingly targeting the country’s online games market.

Tencent: Weakening Online Games; Cautions Investors that More Regulatory Changes Are to Come