Japan/Asia Long-Short, LightStream Research

Mio Kato

Over 15 years analysing Japanese and Asian stocks from a long/short perspective

I focus on cyclically driven sectors such as Gaming, Factory Automation and Autos

An eclectic background as a long-short analyst, upper management at a financial data startup through its listing, and as the founder of a team analysing big/alternative data, all of which supports independent and differentiated views... we hope

An appreciation for Mathematics drives the development of a "Micro-Quantamental" process which can provide a data-driven, historically-informed and semi-automated foundation upon which to layer more qualitative and judgemental analysis, thus improving investment decision-making speed and accuracy

Japan/Asia Long-Short

Huya – Nice Results and Why We Favour Huya Over Douyu

Huya – Generous for Douyu and the New Global Streaming Landscape Gets Interesting

Huya – As We Suspected, Huya Shareholders Probably Got a Raw Deal

Huya and Douyu – Three’s a Crowd as Kuaishou Enters Live Streaming

Tencent to Supercharge HUYA's Userbase Growth and Monetization; Raise FV to US$28.2 (+47% Upside)

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.

Event-Driven

<p>As individual entities we were negative on Huya and Douyu due to poor marginal profitability arising from the need to compete for top streamers. The news that Tencent is considering a merger of the two entities changes that dynamic, however and will likely accelerate a trend we believe consensus is yet to factor into their estimates. It also assuages some of our governance concerns for Huya.</p>

As individual entities we were negative on Huya and Douyu due to poor marginal profitability arising from the need to compete for top streamers. The news that Tencent is considering a merger of the two entities changes that dynamic, however and will likely accelerate a trend we believe consensus is yet to factor into their estimates. It also assuages some of our governance concerns for Huya.

Huya and Douyu – Implications for Valuation From the Gross Margin Trend