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

Kuaishou Technology / Equity Capital Markets

The Chinese short-video and livestreaming platform <a href="https://www.smartkarma.com/entities/beijing-kuaishou-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:29725:1" rel="noopener">Beijing Kuaishou Technology Co Ltd (1496219D CH)</a>  has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise up to US$5bn at a rumoured valuation of over US$50bn.In our previous insights on the company’s IPO, we examined Kuaishou’s business model, industry, segments and its revenues. Refer the extract below from our previous insight on the company’s revenue analysis:<div class="content-highlight">Given the livestreaming and video-based social platforms offer large monetisation opportunities for video content sharing platforms such as Kuaishou, we expect the company’s top line to continue benefit from the positive trend in the industry. The company has already ventured into several other areas to bring in revenues such as online games, e-commerce, creation of learning content, etc. We believe Kuaishou will continue to find new avenues to expand its revenue base and we expect online marketing services, e-commerce and other new businesses to drive Kuaishou’s future revenues.</div>In this insight, we take a look at the company’s cost structure and margins.

The Chinese short-video and livestreaming platform Beijing Kuaishou Technology Co Ltd (1496219D CH)  has filed for an IPO to list its shares on the Hong Kong Stock Exchange. The company aims to raise up to US$5bn at a rumoured valuation of over US$50bn.In our previous insights on the company’s IPO, we examined Kuaishou’s business model, industry, segments and its revenues. Refer the extract below from our previous insight on the company’s revenue analysis:Given the livestreaming and video-based social platforms offer large monetisation opportunities for video content sharing platforms such as Kuaishou, we expect the company’s top line to continue benefit from the positive trend in the industry. The company has already ventured into several other areas to bring in revenues such as online games, e-commerce, creation of learning content, etc. We believe Kuaishou will continue to find new avenues to expand its revenue base and we expect online marketing services, e-commerce and other new businesses to drive Kuaishou’s future revenues.In this insight, we take a look at the company’s cost structure and margins.

Kuaishou IPO: Stable Profits Seem Possible with Cost Discipline and Expanding Revenues

<a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (YID HK)</a>  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange to raise about US$500m.In our previous insight on the company’s IPO, we examined Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins. In this insight, we deep dive into business segments and key performance drivers.Read our previous insight on the company's IPO:<a href="https://www.smartkarma.com/insights/yidu-tech-pre-ipo-first-look" target="_blank" data-smartkarma-citation="insights:46340" rel="noopener">Yidu Tech Pre-IPO: First Look</a>

Yidu Tech Inc (YID HK)  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange to raise about US$500m.In our previous insight on the company’s IPO, we examined Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins. In this insight, we deep dive into business segments and key performance drivers.Read our previous insight on the company's IPO:Yidu Tech Pre-IPO: First Look 

Yidu Tech IPO: Strong Top Line Growth; New Markets and Offerings Should Support Further Growth

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The Hang Seng Indexes Company Limited (HSIL) should announce the results of the March 2021 review of the Hang Seng Family of Indexes on 19 February. The constituent changes will be effective after the close of trading on 5 March.We expect the March 21 review for the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> to have only 1 deletion, though there is a low probability of another set of changes. Post <a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>'s Fast Entry into the index, there needs to be one deletion at the March review. At the current time, the lowest ranked index constituent is <a href="https://www.smartkarma.com/entities/petrochina-co-ltd-h" target="_blank" data-smartkarma-citation="entities:262:1" rel="noopener">Petrochina Co Ltd H (857 HK)</a> and the stock should be deleted at the March review.There was a medium probability of <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> being included in the index. That has now become a low probability event post <a href="https://www.smartkarma.com/entities/jd-health-international" target="_blank" data-smartkarma-citation="entities:29677:1" rel="noopener">JD Health (6618 HK)</a>'s inclusion in the index. If <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a> is included in the index, then <a href="https://www.smartkarma.com/entities/hengan-intl-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan Intl Group (1044 HK)</a> could be deleted.The potential changes to the <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> over the next 6 months will also have serious implications for the dividend futures expiring in 2021, 2022 and beyond.

The Hang Seng Indexes Company Limited (HSIL) should announce the results of the March 2021 review of the Hang Seng Family of Indexes on 19 February. The constituent changes will be effective after the close of trading on 5 March.We expect the March 21 review for the Hang Seng China Enterprises Index (HSCEI INDEX) to have only 1 deletion, though there is a low probability of another set of changes. Post JD Health (6618 HK)'s Fast Entry into the index, there needs to be one deletion at the March review. At the current time, the lowest ranked index constituent is Petrochina Co Ltd H (857 HK) and the stock should be deleted at the March review.There was a medium probability of Country Garden Services Holdings (6098 HK) being included in the index. That has now become a low probability event post JD Health (6618 HK)'s inclusion in the index. If Country Garden Services Holdings (6098 HK) is included in the index, then Hengan Intl Group (1044 HK) could be deleted.The potential changes to the Hang Seng China Enterprises Index (HSCEI INDEX) over the next 6 months will also have serious implications for the dividend futures expiring in 2021, 2022 and beyond.

HSCEI Index Rebalance Preview: One Deletion For Sure, Could Be One More Change

<a href="https://www.smartkarma.com/entities/yidu-tech-inc" target="_blank" data-smartkarma-citation="entities:29245:1" rel="noopener">Yidu Tech Inc (YID HK)</a>  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and the company has not yet set the terms for its IPO.The company generates a majority of its revenues from big data platform and solutions and the company’s revenues have grown significantly over the last three years. Though the company has not yet been able to make any operating profits, we have observed that the company’s operating losses as a % of revenue has declined over the period.China is the world’s second largest healthcare market and the country has been increasingly informatizing the healthcare system in order to improve the efficiency as well as close the huge healthcare resource gap to meet emerging demands for high quality holistic health management.In this insight, we examine Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins.

Yidu Tech Inc (YID HK)  is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare big data solution providers in China in 2019.The company has filed for an IPO to list its shares on the Hong Kong Stock Exchange and the company has not yet set the terms for its IPO.The company generates a majority of its revenues from big data platform and solutions and the company’s revenues have grown significantly over the last three years. Though the company has not yet been able to make any operating profits, we have observed that the company’s operating losses as a % of revenue has declined over the period.China is the world’s second largest healthcare market and the country has been increasingly informatizing the healthcare system in order to improve the efficiency as well as close the huge healthcare resource gap to meet emerging demands for high quality holistic health management.In this insight, we examine Yidu Tech’s business model, business segments, pricing, industry and a quick look at the company’s revenue and margins.

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/netjoy" target="_blank" data-smartkarma-citation="entities:29729:1" rel="noopener">Netjoy (2131 HK)</a> is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. <div class="content-highlight">The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. </div>

Netjoy (2131 HK) is an ad tech company which connects advertising customers and media partners. It is the third-largest online marketing solutions provider in China as measured by gross billing generated from short video advertisements in 2019, with a market share of 3.4%, according to iResearch. Netjoy has launched a Hong Kong IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point of the IPO price range. The IPO performance of Chinese ad tech companies has been mixed. Consequently, backing the winners is crucial to generate investment returns in the Chinese ad tech sector. For investors seeking Chinese adtech exposure, we think Netjoy’s fundamentals are attractive. We will discuss the IPO valuation in our next piece. 

China

Kuaishou Technology operates as a content community and social platform. The Company helps users create, upload and watch short videos on mobile devices. Kuaishou Technology offers services worldwide.

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Kuaishou Technology (1024 HK)

Kuaishou IPO: Stable Profits Seem Possible with Cost Discipline and Expanding Revenues

In this insight, we take a look at the Chinese short-video and livestreaming platform Kuaishou's cost structure and margins.

Shifara Samsudeen, ACMA, CGMA

Yidu Tech IPO: Strong Top Line Growth; New Markets and Offerings Should Support Further Growth

Yidu Tech has filed for an IPO to list its shares on the Hong Kong Stock Exchange to raise about US$500m. In this insight, we deep dive into...

Shifara Samsudeen, ACMA, CGMA

HSCEI Index Rebalance Preview: One Deletion For Sure, Could Be One More Change

Following JD Health's Fast Entry into the HSCEI, PetroChina is a high probability deletion in March. There is a low probability of Country Garden...

Brian Freitas

Yidu Tech Pre-IPO: First Look

Yidu Tech is a big data and AI solutions provider for healthcare sector and the company was ranked no. 1 in terms of revenue among all healthcare...

Shifara Samsudeen, ACMA, CGMA

Netjoy IPO Initiation: Joy Divisions

Netjoy has launched an HK IPO to raise net proceeds of HK$1,166.6 million ($150 million), at the mid-point. For investors seeking Chinese adtech...

Arun George

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