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 Capital Markets

<a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> reported 1Q2021 results on Wednesday (26th May) after market. The company’s revenues grew 54.7% YoY during the quarter to RMB76.9bn (vs consensus revenue of RMB75.1bn) while reported operating profit for the quarter grew 251.1% to RMB8.2bn (vs consensus OP of RMB4.5bn). The adjusted operating profit for the quarter (excluding fair value adjustments and profit/loss from equity investment) increased 230.0% YoY during the quarter.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/209/315/original/image_89988038521622059340756.png?1622059342" class="editor-image img-responsive" data-smartkarma-image-id="209315"></figure>During 1Q21, Xiaomi was ranked no.3 in the global smartphone market with a market share of 14.1% which was only 1.0% below the no. 2 player <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple Inc (AAPL US)</a>  who had a share of 15.1% of the global smartphone shipments in 1Q21. In the previous quarter (4Q2020), Xiaomi’s global smartphone shipments accounted for 12.1% of the worldwide shipments and the company’s smartphone shipments grew 61.9% YoY in 1Q20, the highest among all players in the market.Xiaomi was ranked no. 4 in China smartphone market in 1Q21 with a market share of 14.6% beating iPhone maker Apple to the fifth position. During 4Q2020, Apple had a market share of 18.2% in China and ranked no. 4, however, Apple’s share of smartphone shipment in China lessened to 12.7% in 1Q21.

Xiaomi Corp (1810 HK) reported 1Q2021 results on Wednesday (26th May) after market. The company’s revenues grew 54.7% YoY during the quarter to RMB76.9bn (vs consensus revenue of RMB75.1bn) while reported operating profit for the quarter grew 251.1% to RMB8.2bn (vs consensus OP of RMB4.5bn). The adjusted operating profit for the quarter (excluding fair value adjustments and profit/loss from equity investment) increased 230.0% YoY during the quarter.During 1Q21, Xiaomi was ranked no.3 in the global smartphone market with a market share of 14.1% which was only 1.0% below the no. 2 player Apple Inc (AAPL US)  who had a share of 15.1% of the global smartphone shipments in 1Q21. In the previous quarter (4Q2020), Xiaomi’s global smartphone shipments accounted for 12.1% of the worldwide shipments and the company’s smartphone shipments grew 61.9% YoY in 1Q20, the highest among all players in the market.Xiaomi was ranked no. 4 in China smartphone market in 1Q21 with a market share of 14.6% beating iPhone maker Apple to the fifth position. During 4Q2020, Apple had a market share of 18.2% in China and ranked no. 4, however, Apple’s share of smartphone shipment in China lessened to 12.7% in 1Q21.

Xiaomi: Strong Earnings; Narrows Gap with No. 2 Player Apple Globally While Beats Apple in China

Telco/Internet specialist

Kirk Boodry

Redex Research

Thematic (Sector/Industry)

Kyodo News reports that Apple is asking the Ministry of Industry Affairs and Communications (MIC, the regulator) to allow higher subsidies for iPhones to help promote the spread of 5G services. To be clear, it is the mobile operators that would offer these subsidies which were capped last year by the regulator at ¥20,000/device even as handset/service pricing was unbundled. We thought this would be a good opportunity to highlight how Apple has grown in Japan especially compared to the mobile operators.

Kyodo News reports that Apple is asking the Ministry of Industry Affairs and Communications (MIC, the regulator) to allow higher subsidies for iPhones to help promote the spread of 5G services. To be clear, it is the mobile operators that would offer these subsidies which were capped last year by the regulator at ¥20,000/device even as handset/service pricing was unbundled. We thought this would be a good opportunity to highlight how Apple has grown in Japan especially compared to the mobile operators.

Apple (Japan) Is Asking the Regulator to Allow Higher Subsidies for IPhone

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul class="">
<li>In game industry, distribution channels have lost bargaining power over developers.</li>
<li>All BILI's video related businesses grew strongly in 1Q21.</li>
<li>We do not see any signs that the company will break even in the near future.</li>
<li>We set a downside of 17% and a price target of HK$80.</li>
<li>Also see the business change last year at <a href="https://www.smartkarma.com/insights/bilibili-bili-business-breakout-an-story-of-what-bili-was-and-will-be" target="_blank" data-smartkarma-citation="insights:48902" rel="noopener">Bilibili (BILI): Business Breakout, An Story of What BILI Was and Will Be</a>.</li>
</ul>


In game industry, distribution channels have lost bargaining power over developers.
All BILI's video related businesses grew strongly in 1Q21.
We do not see any signs that the company will break even in the near future.
We set a downside of 17% and a price target of HK$80.
Also see the business change last year at Bilibili (BILI): Business Breakout, An Story of What BILI Was and Will Be.


Bilibili (BILI): 1Q21, Weak Game, Strong Video, and Endless Loss

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<a href="https://www.smartkarma.com/entities/ximalaya-inc" target="_blank" data-smartkarma-citation="entities:33232:1" rel="noopener">Ximalaya (XIMA US), which</a> is backed by <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a>, is getting ready to complete its IPO in the United States in the next several weeks. Ximalaya is the largest online audio platform in China in terms of MAU. <a href="https://www.reuters.com/technology/chinese-podcast-startup-ximalaya-files-us-ipo-2021-04-30/" target="_blank" rel="noopener">Ximalaya</a> was last valued at $3.7 billion in July 2018. The main underwriters of the IPO include Goldman Sachs, Morgan Stanley, BofA Securities, and CICC. The company generated sales of 4.1 billion RMB (up 51.3% YoY) and gross profit of 2.0 billion RMB (up 70.3% YoY). From 2018 to 2020, the company's sales increased by 65.7% CAGR. The company's sales continued to accelerate by 65.2% YoY in 1Q 2021. The increasing sales growth has been accompanied by improving profit margins.

Ximalaya (XIMA US), which is backed by Tencent (700 HK), is getting ready to complete its IPO in the United States in the next several weeks. Ximalaya is the largest online audio platform in China in terms of MAU. Ximalaya was last valued at $3.7 billion in July 2018. The main underwriters of the IPO include Goldman Sachs, Morgan Stanley, BofA Securities, and CICC. The company generated sales of 4.1 billion RMB (up 51.3% YoY) and gross profit of 2.0 billion RMB (up 70.3% YoY). From 2018 to 2020, the company's sales increased by 65.7% CAGR. The company's sales continued to accelerate by 65.2% YoY in 1Q 2021. The increasing sales growth has been accompanied by improving profit margins.

Ximalaya IPO Preview - Creating the Joe Rogans of China

Latest News from the World’s Leading Innovators

Granite Bay Capital

An innovation focussed investment company

Granite Bay Capital is an innovation focussed investment company with a deep focus on the companies at the leading edge of innovation across major themes such as AI, ubiquitous computing, sustainability, automation and longevity.

Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a nutshell, will ask whether Apple is acting fairly by charging developers a 15-30% fee for all revenues made via subscriptions and in-app purchases.

Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a nutshell, will ask whether Apple is acting fairly by charging developers a 15-30% fee for all revenues made via subscriptions and in-app purchases.

United States

Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related accessories. The Company also offers payment, digital content, cloud and advertising services. Apple Inc.'s customers are primarily in consumer, small & mid-sized business, education, enterprise and government markets worldwide.

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Apple (AAPL US)

Xiaomi: Strong Earnings; Narrows Gap with No. 2 Player Apple Globally While Beats Apple in China

Xiaomi was ranked no.3 in the global smartphone market with a market share of 14.1% which was only 1.0% below the no. 2 player Apple who had a...

Shifara Samsudeen, ACMA, CGMA

Apple (Japan) Is Asking the Regulator to Allow Higher Subsidies for IPhone

Apple Japan is asking the regulator to allow higher smartphone subsidies so it can sell more handsets. That's after 49% growth in Q4 and where it...

Kirk Boodry

Bilibili (BILI): 1Q21, Weak Game, Strong Video, and Endless Loss

In game industry, distribution channels have lost bargaining power over developers. All BILI's video related businesses grew strongly in 1Q21. We...

Ming Lu

Ximalaya IPO Preview - Creating the Joe Rogans of China

Ximalaya is the largest online audio platform in China which is getting ready to complete its IPO in the next several weeks.

Douglas Kim

Weekly Innovation Review (WIRE) #30

Headline Developments The battle is on between Fortnite developer Epic Games (private) and Apple (AAPL) - a David and Goliath case which, in a...

Granite Bay Capital

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