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>
<a href="https://www.smartkarma.com/entities/tdcx-inc" target="_blank" data-smartkarma-citation="entities:34187:1" rel="noopener">TDCX (TDCX US)</a> offers digital customer experience solutions for innovative technology and blue-chip companies and has global client base including <a href="https://www.smartkarma.com/entities/meta-platforms-inc-class-a-facebook" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Meta Platforms (Facebook) (META US)</a> and <a href="https://www.smartkarma.com/entities/airbnb-inc" target="_blank" data-smartkarma-citation="entities:431:1" rel="noopener">Airbnb Inc (ABNB US)</a> .</li>
<li>The company’s share price has dropped more than 40% since its IPO as its largest clients were negatively impacted due to the Covid-19 outbreak.</li>
<li>TDCX’s 2Q2022 earnings were strong and the company’s client acquisition strategy is paying off and the share price has moved up 60% since then.</li>
</ul>



TDCX (TDCX US) offers digital customer experience solutions for innovative technology and blue-chip companies and has global client base including Meta Platforms (Facebook) (META US) and Airbnb Inc (ABNB US) .
The company’s share price has dropped more than 40% since its IPO as its largest clients were negatively impacted due to the Covid-19 outbreak.
TDCX’s 2Q2022 earnings were strong and the company’s client acquisition strategy is paying off and the share price has moved up 60% since then.


TDCX: Attractive Growth Profile; Drop in Multiples Offer a Good Entry Point

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<ul>
<li>Profitability ready to kick in again as Amazon grows into the overbuilt warehouse capacity and headcount from the past few quarters. 3Q22's guidance clearly conservative based on 2Q22's outperformance.</li>
<li>Revenue reacceleration beginning to play out. 2Q22's 7% leading to 3Q22's 15%, and back to the 20%s by 2023.</li>
<li>AWS continues its indomitable run. $79B TTM revenues are growing 37% with 31% margins.</li>
</ul>


Profitability ready to kick in again as Amazon grows into the overbuilt warehouse capacity and headcount from the past few quarters. 3Q22's guidance clearly conservative based on 2Q22's outperformance.
Revenue reacceleration beginning to play out. 2Q22's 7% leading to 3Q22's 15%, and back to the 20%s by 2023.
AWS continues its indomitable run. $79B TTM revenues are growing 37% with 31% margins.


Amazon 2Q22: Delivering an Inflection Point

Forensic Analyst

Jason Yap, CFA

<ul>
<li>Singapore government introduced a moratorium on new data centres in 2019</li>
<li>As result, incumbent data centre REITs recalibrated their portfolio strategy including to pursue DPU and NAV growth through accretive overseas acquisitions </li>
<li>In Q2 2022, the moratorium is expected to be lifted with conditional approvals for applicants that meet certain sustainability requirements. We discuss the implications for <a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85:1" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> </li>
</ul>


Singapore government introduced a moratorium on new data centres in 2019
As result, incumbent data centre REITs recalibrated their portfolio strategy including to pursue DPU and NAV growth through accretive overseas acquisitions 
In Q2 2022, the moratorium is expected to be lifted with conditional approvals for applicants that meet certain sustainability requirements. We discuss the implications for Keppel DC REIT (KDCREIT SP) 


Keppel DC REIT (KDCREIT SP) - Imminent Lifting of SG Data Centre Moratorium and Its Implications

Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

<ul>
<li>We have been arguing that significant collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. </li>
<li>The recent Matrix Awakens demo starts to reveal some of the possibilities. </li>
<li>And it demonstrates why we believe popular metaverse theme names like Facebook and Roblox have no realistic chance of competing.</li>
</ul>


We have been arguing that significant collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. 
The recent Matrix Awakens demo starts to reveal some of the possibilities. 
And it demonstrates why we believe popular metaverse theme names like Facebook and Roblox have no realistic chance of competing.


<ul>
<li>Roblox is early days in so many new TAMs: advertising, music, commerce, education.</li>
<li>The advertising opportunity is enormous, given the amount of hours spent on the platform, one can easily see Roblox building a $2B+ ad business.</li>
<li>Roblox is still early in building out the infrastructure to support many new forms of monetization, and they are doing so in a thoughtful fashion.</li>
</ul>


Roblox is early days in so many new TAMs: advertising, music, commerce, education.
The advertising opportunity is enormous, given the amount of hours spent on the platform, one can easily see Roblox building a $2B+ ad business.
Roblox is still early in building out the infrastructure to support many new forms of monetization, and they are doing so in a thoughtful fashion.


United States

Meta Platforms Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. meta Platform is also involved in advertisements, augmented and virtual reality.

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Meta Platforms (Facebook) (META US)

TDCX: Attractive Growth Profile; Drop in Multiples Offer a Good Entry Point

Though TDCX's share price has moved up over the last three weeks, there is further upside as the company's client acquisition has started paying...

Shifara Samsudeen, ACMA, CGMA

Amazon 2Q22: Delivering an Inflection Point

Amazon's revenue growth is beginning to reaccelerate. Its cost growth is decelerating. Advertising is the best house in a tough digital...

Aaron Gabin

Keppel DC REIT (KDCREIT SP) - Imminent Lifting of SG Data Centre Moratorium and Its Implications

Singapore introduced a moratorium on new data centres which caused incumbents to recalibrate their strategy. With the moratorium expected to be...

Jason Yap, CFA

Sony – An Epic Partner

We have been arguing that collaboration between Sony and Epic is likely in forming the key infrastructure for the metaverse. The recent Matrix...

Mio Kato

Roblox Analyst Day: TAM Unlimited

We wrote about Roblox after its most recent earnings in early November and our general take was… great quarter, but was it really worth a 30%...

Aaron Gabin

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