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

Alibaba Health: New Digital Healthcare Policy to Have Less Impact but Tumbling Margins Is Worrying

CyberAgent 3Q: Revenue and OP Miss Consensus as Game Titles Struggle

M3: Revenue and OP Beat Consensus but Don’t Rush to Make an Entry

Pop Mart IPO Valuation: Rich Multiples but Superior Growth Profile Justifies the Premium

SenseTime: Shares Fall with Lock-Up Expiry; Further Downside with More Selling at the Next Expiry

Are Didi’s Regulatory Troubles Finally Over with a US$1.2bn Fine?

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 Bottom-Up

Pop Mart International Group L / Equity Bottom-Up

<ul>
<li>Pop Mart’s share price has lost more than 50% YTD as resurgence of Covid in China has severely impacted the company’s operations including closure of physical stores and robo shops.</li>
<li>The company also issued a profit warning last week for 1H2022 that was severely impacted by the spread of Covid-19 as well as business expansion related costs.</li>
<li>We expect the company’s aggressive overseas expansion strategy to continue to impact the company's profitability and there is further downside.</li>
</ul>


Pop Mart’s share price has lost more than 50% YTD as resurgence of Covid in China has severely impacted the company’s operations including closure of physical stores and robo shops.
The company also issued a profit warning last week for 1H2022 that was severely impacted by the spread of Covid-19 as well as business expansion related costs.
We expect the company’s aggressive overseas expansion strategy to continue to impact the company's profitability and there is further downside.


Pop Mart: Aggressive Overseas Expansion to Hurt Profitability