Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

2021 High Conviction: Seven & I Raises Speedway Synergies & India Expansion Could Break The Deadlock

Seven & I Looks: The Only Growth Is Overseas

Convenience Stores: First Decline in 50 Years

2021 High Conviction Call: Seven & I Completes the Speedway Acquisition, But Not Without Trouble

2021 High Conviction Update: Seven & I Has More Room (Perhaps, Another 50%) To the Upside

2021 High Conviction Update: Raises Speedway Synergies, But Leaves Enough Room For Future Upside

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>Our 2021 High Conviction call, <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a> delivered 1QFY22 results today with revenue surpassing consensus estimate by around 2.0%. The company’s 1QFY22 operating income was 10% below consensus.</p><p>Although Q1 results seemed a bit weak on profitability, we think the weakness is somewhat exaggerated by inflated consensus OP estimates. The consolidated OP increased 8.6% YoY in the quarter and the weak profitability in Superstores was the only real surprise. Weaknesses in superstore and department store business could provoke activists which might even be a good thing for Seven &amp; I’s share price. Hence, there is not a lot to do here unless the shares fall 5-6% tomorrow, which we think could be a good entry point to ride a rally towards Seven &amp; I’s all-time high of ¥5,906 per share in the short term.</p>

Our 2021 High Conviction call, Seven &amp; I Holdings (3382 JP) delivered 1QFY22 results today with revenue surpassing consensus estimate by around 2.0%. The company’s 1QFY22 operating income was 10% below consensus.Although Q1 results seemed a bit weak on profitability, we think the weakness is somewhat exaggerated by inflated consensus OP estimates. The consolidated OP increased 8.6% YoY in the quarter and the weak profitability in Superstores was the only real surprise. Weaknesses in superstore and department store business could provoke activists which might even be a good thing for Seven &amp; I’s share price. Hence, there is not a lot to do here unless the shares fall 5-6% tomorrow, which we think could be a good entry point to ride a rally towards Seven &amp; I’s all-time high of ¥5,906 per share in the short term.

1QFY22 Results: Underperforms Consensus, A Minor Blip Could Be a Good Entry Point