15

April2021

Vitarka

ANTYA’s views on investing markets, economy, and more

Latest Insights

Tencent Music:We Estimate Value at USD 3.77 Per Share; Lower Than Many Expect – $11.7 B for TME

In ANTYA’s view, TME is another IPO where investors need to pay attention to the valuation because like the online lending boom in China which fizzled out pretty quickly, live-streaming of entertainment content is a me-too business model employed by TME fighting for the same eyeballs and advertising dollars that other more established players such as Momo Inc (MOMO US), YY Inc ADR (YY US), HUYA Inc (HUYA US),…

Tencent Music: Part 3 – Reverse Merger with China Music Corporation; Idiosyncratic Data Disclosures

Tencent Music Entertainment (TME US) was created via a reverse merger whereby Tencent Holdings (700 HK) combined its music apps with those of China Music Corporation to create an online music behemoth. While subscription-based online music is still in its infancy in China, live video streaming appears to be a part of the mainstream. The question that investors need to answer is that given that TME is not really…

Tencent Music Entertainment Group – Much Ado Nah Music About Nothing!

Tencent Music Entertainment (TME US) (“TM”) is the latest family member to grow up under the Tencent Holdings (700 HK) umbrella and is now looking to spread its wings further afield by standing on its own. We believe investors will be disappointed with what they see and will quickly come to the conclusion that TM neither offers unique growth prospects nor a defensible business model. In our view, this…

Tesla Inc.-Undermining Naysayers and Nabobs of Negativity ; Q3-18 Will Again Surprise to the Upside

As outlined in its release today, with the inventory of Model S and Model X stable, and that of Model 3 declining 28% QoQ, accompanied with a 100% increase in deliveries to customers; ANTYA believes that gross margins, cash flow from operations and free cash flow of Tesla Motors (TSLA US) will surprise to the upside when it reports Q3-18. That needs to be weighed against management’s commentary related…

Tesla Inc. – SEC Overreaching to Pin Musk; Unlikely to Succeed

Tesla Motors (TSLA US) is in the news once again for all the wrong reasons. This time it is the SEC that has filed a civil complaint against Musk alleging recklessness on part of Musk, and hence wants a jury to bar Musk from acting as an officer and director of a publicly traded company. The saga began with the going private tweet of August 7, 2018.

Niu Technologies – Another EV Upstart From China; This One Has Zest

f NIO is for the Braveheart and Tesla is for the Warrior in You, then Niu Technologies is for the investor that is looking for growth investing but only wants to put money to work with those that have already delivered. Niu Technologies (NIU US) is making and delivering e-scooters from its own manufacturing facility. Financials for 2016, 2017 and YTD 2018 are respectable and highlight progress with each…

Tencent Holdings: China’s “One Foot, One Punch, One Inch” Initiative Undermines Tencent.

Tencent Holdings (700 HK) along with Alibaba Group Holding (BABA US) has been a leading light in the emergence of China as a formidable Internet economy. Investors have been handsomely rewarded for their faith in both. Nonetheless, in ANTYA’s view, BABA will outperform Tencent going forward, given the changes implemented by the Chinese authorities to rein in online video games. These significant changes will have a bigger detrimental effect…

Meituan Dianping– As Good As It Gets?

Duopolies are generally good for profits in an industry. However, a central aspect of a duopolistic framework is market equilibrium. If China is headed to a duopoly in the food delivery and lifestyle services sector, then Meituan Dianping (3690 HK) will have to cede ground to Alibaba Group Holding (BABA US), before the two can regain pricing power to maximise the opportunity. With MD twice the size of BABA,…

NXP Semiconductor N.V. – Riding the Autonomy Wave

Although Nxp Semiconductors Nv (NXPI US) was left at the altar by Qualcomm Inc (QCOM US), the jilted bride has enough oomph left to attract other suitors, especially long-term value-oriented investors. We believe that at current levels the stock is undervalued and expect a 15% upward move within the next twelve months.
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