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

Tencent Share Purchase Rights Makes HUYA Compelling Stock into 2020

Tech Pulse: Virus Drives Traffic to Tencent Games, 'Impossible Meat' Trend Growing in China

Daily Tech Pulse: Smartphone Supply Chain Disruptions and Building Brand Loyalty in Crisis

Douyu IPO: Cost Structure Disadvantage Vs. Huya Implies a Discount Not Premium Is Appropriate

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

<p>While Huya debuted to great hopes at its IPO rising as much as 324% above its IPO price in mid-2018 the stock is now down 64% from its highs. Douyu, which we were negative on only spent parts of two days above its IPO price and is now down 38%. With Tencent having clamped down on poaching of top hosts earlier this year, improvement in game approvals and a still growing esports market, one would assume that there could now be value in these names. We disagree as we believe valuations are still too optimistic and the entry of Kuaishou into the live streaming market makes an already competitive industry that much worse.</p>

While Huya debuted to great hopes at its IPO rising as much as 324% above its IPO price in mid-2018 the stock is now down 64% from its highs. Douyu, which we were negative on only spent parts of two days above its IPO price and is now down 38%. With Tencent having clamped down on poaching of top hosts earlier this year, improvement in game approvals and a still growing esports market, one would assume that there could now be value in these names. We disagree as we believe valuations are still too optimistic and the entry of Kuaishou into the live streaming market makes an already competitive industry that much worse.

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