Quick Thesis Flashcards
Quick Thesis: Tencent
Market Cap: $730B
Ownership: $1.4B
Business Description: One of the largest internet companies in the world. Largest gaming company in the world, largest smartphone community of +1B, WePay, Cloud.
Quick Thesis: SEA
Market Cap: $75B
Ownership: $500M
Business Description: Tencent/BABA of SE Asia. Sea operates via three core segments – digital entertainment (Garena), e-commerce (Shopee), and digital financial services (SeaMoney).
Quick Thesis: Netease
Market Cap: $80B
Ownership: $600M
Business Description: China’s second-largest online games developer is finding its next leg of growth by developing games for the lucrative overseas market. NetEasehasone of the largest R&D teams in the business –about 10,000 in-house developers –and a proven track record developing best-selling PC and mobile games. Its overseas division contributed little more than 10%of games revenue in 2019, but it targets 30-50% in 3-5yearsbased on overseas channel costs 20% below those in China and the chance to gain bargaining power with intellectual property(IP) owners worldwide.
Quick Thesis: BABA
Market Cap: $725B
Ownership: $1.2B
Business Description: Amazon of China: E-commerce gaint, cloud, and multiple investments in every segment
Quick Thesis: Reliance Industries
Market Cap: $170B
Ownership: $600M
Business Description: Early-stage TAM expansion enabled by the transformation from an asset/CAPEX-heavy, cyclical energy business toward a uniquely diversified and durable, end-to-end, consumer-focused, omnichannel platform. Should drive mid-teens LT EBITDA growth with >50% of EBITDA from the non-energy business.
Quick Thesis: Aristocrat Leisure
Market Cap: $15B
Ownership: $200M
Business Description: Leading gaming developer with dominant market share in land-based slot machines and social casino/social gaming company
Quick Thesis: Wuhu Sanqi
Market Cap: 11B
Ownership: 100bps China A
Business Description: Sanqi is the third-largest online game developer and operator in China. The company formerly operated in auto manufacturing and sales but entered the online game market via two separate equity acquisition stakes in Shanghai Sanqi in 2014 and 2015. Geographically China is its largest geography (92% of sales) followed by overseas markets (predominantly ASEAN, particularly Taiwan; 8% of sales).
Quick Thesis: TAL Education
Market Cap: $30B
Ownership: $300M
Business Description: Leading offline and online Chinese Education
Quick Thesis - Tencent Music Entertainment
Market Cap: 18B
Ownership: 200M
Business Description: Largest online music streaming company in China. 85% listeners, +90% revenue share, and 8x more MAUs than the next largest competitor.
Quick Thesis - Shenzhou
Market Cap: $30B
Ownership: 150M
Business Description: Leading vertically-integrated textile manufacturer. Top three clients are Nike, Adidas, Uniqlo, and Puma which make up 70% of revenues. 2.3rds of revenue is generated by sportswear.
Quick Thesis - Naspers
Market Cap: $100B
Ownership: $100M
Business Description: Publicly listed VC - PE - Asset Manager with ownership structure that shields them from shareholders. Naspers is a business builder in the ‘online’ space in sectors such as retail, payments, classifieds, food delivery and media, and across the ownership spectrum from consolidated operations through associates and JVs to investments, public and private. Skeptics will say Naspers is a lucky Tencent investor turned empire-builder.
Quick Thesis - Dino Polska
Market Cap: $7B
Ownership: $85M
Business Description: Poland’s fastest-growing and second-largest proximity retail (small neighborhood stores). Assortment (5K SKU’s > other discounters), in-house meat sourcing, EDLP strategy, and focus on real estate ownership provide competitive advantages. Stores are in smaller cities/towns/villages.
Quick Thesis - MercadoLibre
Market Cap: 86B
Ownership: 500M
Business Description: Largest e-comm ecosystem in Latin America with focus on e-comm, logistics, and payments. Mercado Pago (Fintech business) largest driver of value here.
Quick Thesis - Amazon.com
Market Cap: 1.6T
Ownership: 115M
Business Description: AMZN, the largest disruptive platform company in the US with leading positions in e-comm and could infrastructure.
Quick Thesis - Meituan
Market Cap: 280B
Ownership: 230M
Business Description: Leading chinese online platform for food delivery and local services
