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

Sony Acquires a 4.98% Stake in Bilibili to Capture China’s Gen Z Through Mobile Games and Anime

Gaming Drags Down Sony’s FY03/20 Results; PS5 Is on Track for Launch in 2020

Sony to Buy Out Remaining Sony Financial Stake

Tencent Led Consortium Buys 10% of Universal Music Group

Tencent Music Entertainment (TME): Chinese Version of Spotify Shows Strong Growth Prospects

ByteDance Launches Music Streaming App in an Overcrowded Indian Music Streaming Market

Tencent-Backed WeDoctor Prepares for Listing; US$10bn Valuation Seems Too Ambitious

Tencent Backed Little Red Book to Raise US$400-500m in Funding

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>Tencent Music Entertainment (TME) reported its 4Q2019 and full-year 2019 results yesterday after market.</li>
<li>The revenue grew 34% YoY during the year to RMB25.4bn from RMB19bn in 2018. The OP for the quarter grew 20.2% YoY (excluding the one-off expense in 2018) and both revenue and OP for the year were well above consensus estimates.</li>
<li>The growth in revenue was mainly driven by an increase in the company’s paying subscribers for both its Online Music and Social Entertainment Segments.</li>
<li>We discuss the details below.</li>
</ul>


Tencent Music Entertainment (TME) reported its 4Q2019 and full-year 2019 results yesterday after market.
The revenue grew 34% YoY during the year to RMB25.4bn from RMB19bn in 2018. The OP for the quarter grew 20.2% YoY (excluding the one-off expense in 2018) and both revenue and OP for the year were well above consensus estimates.
The growth in revenue was mainly driven by an increase in the company’s paying subscribers for both its Online Music and Social Entertainment Segments.
We discuss the details below.


TME: Paying User Conversions and Reasonable Valuation Make This an Opportune COVID Play