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

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

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

CV Vs TME: Improving Financials and Outspending TME on Content Cost - Reason for Absence of Profits

TME: May Have to Giveup Exclusive Rights to Music Labels but Unlikely to Be Ordered to Sell Key Apps

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-music-entertainment" target="_blank" data-smartkarma-citation="entities:27255:1" rel="noopener">Tencent Music (TME US)</a> reported its 2Q2021 results on Monday (16th August) which saw revenues growing 15.5% YoY driven by increases in revenue from both Online Music Services and Social Entertainment Services. The adjusted operating profit for the second quarter dropped 31.3% YoY to RMB760m due to a 39.2% YoY increase in general and administrative expenses during the period.In our previous insight <a href="https://www.smartkarma.com/insights/tencent-all-bets-are-off" target="_blank" data-smartkarma-citation="insights:55269" rel="noopener">Tencent: All Bets Are Off</a> , we discussed about the ongoing regulatory probe on TME and the regulatory order to give-up its exclusive music licensing agreements. Refer the extract below from our previous insight:<div class="content-highlight">TME has been ordered to relinquish its exclusive licensing agreements with world’s leading music labels including Warner Music Group (WMG), Universal Music Group (UMG) and Sony Music. TME is allowed to keep its exclusive deals with independent artists with a period of about 3-years. According to news media outlets, TME is given a period of 30 days to end these deals.</div>In its 2Q2021 earnings announcement, TME has said that the regulatory order above will have some impact on its business operations, but we have observed that the company’s user matrices and ARPPU have already come under pressure.

Tencent Music (TME US) reported its 2Q2021 results on Monday (16th August) which saw revenues growing 15.5% YoY driven by increases in revenue from both Online Music Services and Social Entertainment Services. The adjusted operating profit for the second quarter dropped 31.3% YoY to RMB760m due to a 39.2% YoY increase in general and administrative expenses during the period.In our previous insight Tencent: All Bets Are Off , we discussed about the ongoing regulatory probe on TME and the regulatory order to give-up its exclusive music licensing agreements. Refer the extract below from our previous insight:TME has been ordered to relinquish its exclusive licensing agreements with world’s leading music labels including Warner Music Group (WMG), Universal Music Group (UMG) and Sony Music. TME is allowed to keep its exclusive deals with independent artists with a period of about 3-years. According to news media outlets, TME is given a period of 30 days to end these deals.In its 2Q2021 earnings announcement, TME has said that the regulatory order above will have some impact on its business operations, but we have observed that the company’s user matrices and ARPPU have already come under pressure.

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