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

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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

<ul>
<li>Apple reported its 3QFY03/2020 results on Thursday (30<sup>th</sup> July 2020) which saw revenues and operating income growing 10.9% and 13.4% YoY respectively. The reported revenue and operating income were well above consensus estimates by 13.6% and 26.1% respectively.</li>
<li>The growth in revenue was driven by increases in both product and services revenue which grew 9.9% and 14.8% YoY respectively during the quarter. It is noteworthy that all five segments’ revenue grew YoY during the quarter with iPads clocking the highest growth among the segments followed by Mac.</li>
<li>During the company’s 2QFY03/2020 results, Apple did not provide guidance for third quarter citing uncertainty due to the Covid-19 outbreak. Perhaps, Apple expected the demand for iPhones and wearables to be impacted due to the virus outbreak in the June quarter.</li>
<li>At the same time, the revenue from all five reportable segments grew YoY during the quarter with Japan reporting the highest growth in revenue followed by the Europe.</li>
<li>The gross margin for the quarter improved by 41bps to 38% driven by services segment which helped offset the decrease in product segment. During the quarter, the services segment’s gross margin increased to 67.2% from 64.1% a year ago whereas the product segment’s gross margin dropped to 29.7% compared to 30.4%in 3QFY03/2019.</li>
<li>Apple also announced a 4-1 stock split which will be effective 24<sup>th</sup> August 2020 in order to make the company’s shares more affordable to a broader base of investors. Apple’s shares hit an all-time high of US$425.04 per share at the end of Friday’s trading where shares gained 10.5% following the earnings announcement.</li>
</ul>


Apple reported its 3QFY03/2020 results on Thursday (30th July 2020) which saw revenues and operating income growing 10.9% and 13.4% YoY respectively. The reported revenue and operating income were well above consensus estimates by 13.6% and 26.1% respectively.
The growth in revenue was driven by increases in both product and services revenue which grew 9.9% and 14.8% YoY respectively during the quarter. It is noteworthy that all five segments’ revenue grew YoY during the quarter with iPads clocking the highest growth among the segments followed by Mac.
During the company’s 2QFY03/2020 results, Apple did not provide guidance for third quarter citing uncertainty due to the Covid-19 outbreak. Perhaps, Apple expected the demand for iPhones and wearables to be impacted due to the virus outbreak in the June quarter.
At the same time, the revenue from all five reportable segments grew YoY during the quarter with Japan reporting the highest growth in revenue followed by the Europe.
The gross margin for the quarter improved by 41bps to 38% driven by services segment which helped offset the decrease in product segment. During the quarter, the services segment’s gross margin increased to 67.2% from 64.1% a year ago whereas the product segment’s gross margin dropped to 29.7% compared to 30.4%in 3QFY03/2019.
Apple also announced a 4-1 stock split which will be effective 24th August 2020 in order to make the company’s shares more affordable to a broader base of investors. Apple’s shares hit an all-time high of US$425.04 per share at the end of Friday’s trading where shares gained 10.5% following the earnings announcement.


アップルの収益は不確実性にも耐えうることを証明、1対4の株式分割を発表