Equity Analyst, LightStream Research

Supun Walpola

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

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In our previous note, <a href="https://www.smartkarma.com/insights/ihuman-ipo-competition-is-likely-to-eat-into-profits" target="_blank" data-smartkarma-citation="insights:43574" rel="noopener">IHuman IPO: Competition Is Likely to Eat into Profits</a>, we suggested that, while we like iHuman for its robust medium-term growth profile, tight competition in the online edutainment market would prevent this strong growth from being reflected in the bottom-line, and we would only subscribe to the IPO as long as these weaknesses are compensated through the valuation. However, iHuman’s valuation looks expensive to us compared to its Chinese edutech peers, making the risk-reward nowhere near attractive.
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In our previous note, IHuman IPO: Competition Is Likely to Eat into Profits, we suggested that, while we like iHuman for its robust medium-term growth profile, tight competition in the online edutainment market would prevent this strong growth from being reflected in the bottom-line, and we would only subscribe to the IPO as long as these weaknesses are compensated through the valuation. However, iHuman’s valuation looks expensive to us compared to its Chinese edutech peers, making the risk-reward nowhere near attractive.


We have mixed thoughts about <a href="https://www.smartkarma.com/entities/ihuman-inc" target="_blank" data-smartkarma-citation="entities:29280:1" rel="noopener">iHuman Inc. (IH US)</a>’s IPO. iHuman’s medium-term growth profile looks robust, driven by strong demand for online edutainment products in China. However, we believe, iHuman would have to spend heavily on content development and customer acquisition in order to keep up with the competition. This would prevent iHuman’s strong revenue growth from getting reflected in the bottom-line. We would only subscribe to the IPO as long as these weaknesses are rewarded through the valuation.

We have mixed thoughts about iHuman Inc. (IH US)’s IPO. iHuman’s medium-term growth profile looks robust, driven by strong demand for online edutainment products in China. However, we believe, iHuman would have to spend heavily on content development and customer acquisition in order to keep up with the competition. This would prevent iHuman’s strong revenue growth from getting reflected in the bottom-line. We would only subscribe to the IPO as long as these weaknesses are rewarded through the valuation.

IHuman IPO: Competition Is Likely to Eat into Profits

APAC IPOs & Placements

Zhen Zhou, Toh

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.

<a href="https://www.smartkarma.com/entities/ihuman-inc" target="_blank" data-smartkarma-citation="entities:29280:1" rel="noopener">iHuman Inc. (IH US)</a> is looking to raise US$100m in its upcoming IPO in the U.S.iHuman is a childhood edutainment company in China. The company develops products and services that caters to the education demands of children aged between three and eight. The company has developed and now operates the widely popular app, iHuman Chinese. It also operates other apps such as iHuman English World, iHuman Pinyin, and etc. On top of its app business, the company sells offline products that include learning materials, smart reading pens, building blocks, and learning consoles.In this note, we will look at the company’s background, analyze its financials and operating metrics, and share our thoughts.

iHuman Inc. (IH US) is looking to raise US$100m in its upcoming IPO in the U.S.iHuman is a childhood edutainment company in China. The company develops products and services that caters to the education demands of children aged between three and eight. The company has developed and now operates the widely popular app, iHuman Chinese. It also operates other apps such as iHuman English World, iHuman Pinyin, and etc. On top of its app business, the company sells offline products that include learning materials, smart reading pens, building blocks, and learning consoles.In this note, we will look at the company’s background, analyze its financials and operating metrics, and share our thoughts.

IHuman Inc (洪恩) Pre-IPO - Overly Reliant on One App to Generate the Majority of Revenue

China

Human is a childhood edutainment company in China. The company develops products and services that caters to the education demands of children aged between three and eight

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