Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

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Blue Moon IPO: More Expensive than Multinational Household Care Players Even at Low-End of Pricing

Pop Mart IPO: 1H20 Impacted by Covid-19 but New Launches and Online Channels Should Support Earnings

17 Education & Tech IPO: Another Online Education Provider with No Clear Path to Profitability

2021 High Conviction - Rapid User Growth Will Set You Freee From Losses

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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

17 Education & Technology Grou / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/17-education-and-technology-group-inc" target="_blank" data-smartkarma-citation="entities:31033:1" rel="noopener">17 Education and Technology (YQ US)</a>  is a leading education technology company in China with an “in-school + after-school” integrated model which provides offline and online K-12 education products and services in China. The company has set the terms for its IPO and plans to raise net proceeds of US$265.2m at the midpoint of the IPO pricing of US$10.5 per ADS.</p><p>The company plans to use the proceeds from the IPO on improving the operation of after-school tutoring services and student learning experience, enhancing the product offerings and educational content, investing on technology infrastructure, marketing and other related activities.</p><p>In our previous insight on the company’s IPO, we examine the company’s business model and its financials. Find below an extract from our previous insight:</p><div class="content-highlight"><p>It seems that the company does not have a clear path to profitability, and we remain concerned about the growing losses for the business. Given the intense competition in China’s online education market, the companies are forced to spend aggressively on selling and marketing to attract students for their courses/programs. The large growth in the company’s top line during the pandemic had been common across all online education players in China, however, the top line growth comes at the expense of margins. Moreover, with Covid-19 conditions subsiding and the country returning to normalcy, we expect the company’s top line growth to decline over the next few quarters</p></div>

17 Education and Technology (YQ US)  is a leading education technology company in China with an “in-school + after-school” integrated model which provides offline and online K-12 education products and services in China. The company has set the terms for its IPO and plans to raise net proceeds of US$265.2m at the midpoint of the IPO pricing of US$10.5 per ADS.The company plans to use the proceeds from the IPO on improving the operation of after-school tutoring services and student learning experience, enhancing the product offerings and educational content, investing on technology infrastructure, marketing and other related activities.In our previous insight on the company’s IPO, we examine the company’s business model and its financials. Find below an extract from our previous insight:It seems that the company does not have a clear path to profitability, and we remain concerned about the growing losses for the business. Given the intense competition in China’s online education market, the companies are forced to spend aggressively on selling and marketing to attract students for their courses/programs. The large growth in the company’s top line during the pandemic had been common across all online education players in China, however, the top line growth comes at the expense of margins. Moreover, with Covid-19 conditions subsiding and the country returning to normalcy, we expect the company’s top line growth to decline over the next few quarters

17 Edu & Tech IPO Valuation: Fairly Valued at the Lower End of the IPO Pricing