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

Seven & I Looks: The Only Growth Is Overseas

Convenience Stores: First Decline in 50 Years

Ups and Downs in Japanese Big Retail a Year After Covid Hit

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

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

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>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 2QFY22 results yesterday with revenue surpassing consensus estimate by around 9.7%. The company’s 2QFY22 operating income was 8% below consensus.</li>
<li>Although Q2 results seemed a bit weak on profitability with 0.3% YoY growth, we think it was driven mainly by a temporary rise in SG&amp;A costs in the overseas convenience stores business due to the completion of the Speedway acquisition.</li>
<li>The initial price reaction to results was negative. Yet we think it's mostly down to the overall weaknesses in the Japanese market.</li>
<li>Nevertheless, there are many positives to look forward to in the near term as the increase in the Speedway synergies, strong growth in America and the expansion into India could provide an impetus for Seven &amp; I to break the resistance, which is currently at around the ¥5,400 level.</li>
</ul>


Our 2021 High Conviction call, Seven &amp; I Holdings (3382 JP) delivered 2QFY22 results yesterday with revenue surpassing consensus estimate by around 9.7%. The company’s 2QFY22 operating income was 8% below consensus.
Although Q2 results seemed a bit weak on profitability with 0.3% YoY growth, we think it was driven mainly by a temporary rise in SG&amp;A costs in the overseas convenience stores business due to the completion of the Speedway acquisition.
The initial price reaction to results was negative. Yet we think it's mostly down to the overall weaknesses in the Japanese market.
Nevertheless, there are many positives to look forward to in the near term as the increase in the Speedway synergies, strong growth in America and the expansion into India could provide an impetus for Seven &amp; I to break the resistance, which is currently at around the ¥5,400 level.


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