Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

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>Tencent Music reported 1Q2023 results. Revenue increased 5.4% YoY to RMB7.0bn (vs consensus RMB6.9bn) while adj. OP more than doubled to RMB1.09bn (vs consensus RMB1.13bn) vs RMB518m in 1Q2022.</li>
<li>Online music services revenue grew 33.8% driven by strong growth in both paying users and monthly ARPU. Social Entertainment further declined during the quarter.</li>
<li>1Q2023 earnings were primarily driven by Online music services and we do not expect a recovery in social entertainment segment’s earnings in the short-term.</li>
</ul>


Tencent Music reported 1Q2023 results. Revenue increased 5.4% YoY to RMB7.0bn (vs consensus RMB6.9bn) while adj. OP more than doubled to RMB1.09bn (vs consensus RMB1.13bn) vs RMB518m in 1Q2022.
Online music services revenue grew 33.8% driven by strong growth in both paying users and monthly ARPU. Social Entertainment further declined during the quarter.
1Q2023 earnings were primarily driven by Online music services and we do not expect a recovery in social entertainment segment’s earnings in the short-term.


TME: Online Music Drives Earnings; No Recovery in Sight for Social Entertainment Yet

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.</li><li>Non-IFRS net income grew by 57% YoY to RMB1.4bn in 1Q23, beating consensus/CMBI estimate by 11/9%, mainly due to strong growth of core music business (+34% YoY) and effective expense control.</li><li>Music business delivered a record-high net addition of 5.9mn subscribers in 1Q23, with 11% YoY APPRU growth, which demonstrates TME’s successful execution of its quality growth strategy. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.Non-IFRS net income grew by 57% YoY to RMB1.4bn in 1Q23, beating consensus/CMBI estimate by 11/9%, mainly due to strong growth of core music business (+34% YoY) and effective expense control.Music business delivered a record-high net addition of 5.9mn subscribers in 1Q23, with 11% YoY APPRU growth, which demonstrates TME’s successful execution of its quality growth strategy. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

TME (TME US) – Strong core music business supports 1Q23 earnings beat

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Growatt Technology / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/growatt-new-energy-technology" target="_blank" data-smartkarma-citation="entities:36103:1" rel="noopener">Growatt Technology (1833969D CH)</a> is looking to raise about US$400m in its upcoming Hong Kong IPO, after downsizing from an earlier US$1bn float in Nov 2022.</li>
<li>Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization. </li>
<li>Previously, we looked at the company’s past performance, peer comparison and shared our earlier thoughts on valuation. In this note, we will provide our latest thoughts on valuation.</li>
</ul>



Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO, after downsizing from an earlier US$1bn float in Nov 2022.
Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization. 
Previously, we looked at the company’s past performance, peer comparison and shared our earlier thoughts on valuation. In this note, we will provide our latest thoughts on valuation.


Growatt Technology Pre-IPO - Latest Thoughts on Valuation

Horizon Construction Development / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/horizon-construction-development" target="_blank" data-smartkarma-citation="entities:35117:1" rel="noopener">Horizon Construction Development (1887128D HK)</a> is looking to raise US$223m in its upcoming Hong Kong IPO.</li>
<li>HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.</li>
<li>In our previous notes, we looked at the company’s past performance and refiled PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.</li>
</ul>



Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO.
HCD is an equipment operation service provider in China. It provides services covering the full cycle of projects.
In our previous notes, we looked at the company’s past performance and refiled PHIP updates. In this note, we undertake a quick peer comparison and share our thoughts on valuation.


Horizon Construction Development IPO - Peer Comparison & Thoughts on Valuation

<ul>
<li>
<a href="https://www.smartkarma.com/entities/growatt-new-energy-technology" target="_blank" data-smartkarma-citation="entities:36103:1" rel="noopener">Growatt Technology (1833969D CH)</a> is looking to raise about US$400m in its upcoming Hong Kong IPO, after downsizing from an earlier US$1bn float in Nov 2022.</li>
<li>Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization. </li>
<li>In this note, we will provide a quick peer comparison update and our latest thoughts on valuation.</li>
</ul>



Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO, after downsizing from an earlier US$1bn float in Nov 2022.
Growatt Technology is a global distributed energy solution provider, specializing in sustainable energy generation, storage and consumption, as well as energy digitalization. 
In this note, we will provide a quick peer comparison update and our latest thoughts on valuation.


Growatt Technology Pre-IPO - Revised Peer Comparison and Thoughts on Valuation

China

Tencent Music Entertainment operates an online music entertainment platform in China. The Company offers platform that comprises of online music, recording, music-centric live streaming enabling users to discover, listen, sing, watch, perform, and socialize music.

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Tencent Music (TME US)

TME (TME US) – Strong core music business supports 1Q23 earnings beat

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.

CMB International

Growatt Technology Pre-IPO - Latest Thoughts on Valuation

Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO. In this note, we will provide our latest thoughts...

Ethan Aw

Horizon Construction Development IPO - Peer Comparison & Thoughts on Valuation

Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO. In this note, we undertake a quick peer...

Ethan Aw

Growatt Technology Pre-IPO - Revised Peer Comparison and Thoughts on Valuation

Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO. In this note, we will provide a quick peer...

Ethan Aw

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TME: Online Music Drives Earnings; No Recovery in Sight for Social Entertainment Yet

1Q23 earnings were driven by online music services. Social entertainment biz's prospects remain bleak which still account for 50% of revenues. We...

Shifara Samsudeen, ACMA, CGMA

TME (TME US) – Strong core music business supports 1Q23 earnings beat

TME reported 1Q23 results on 16 May. Total revenue increased by 5% YoY to RMB7.0bn in 1Q23 and was in line with consensus/CMBI estimate.

CMB International

Growatt Technology Pre-IPO - Latest Thoughts on Valuation

Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO. In this note, we will provide our latest thoughts...

Ethan Aw

Horizon Construction Development IPO - Peer Comparison & Thoughts on Valuation

Horizon Construction Development (1887128D HK) is looking to raise US$223m in its upcoming Hong Kong IPO. In this note, we undertake a quick peer...

Ethan Aw

Growatt Technology Pre-IPO - Revised Peer Comparison and Thoughts on Valuation

Growatt Technology (1833969D CH) is looking to raise about US$400m in its upcoming Hong Kong IPO. In this note, we will provide a quick peer...

Ethan Aw