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

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

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

Seven & I Looks: The Only Growth Is Overseas

Activist Investor Requests Seven & I to Focus on 7-Eleven Convenience Store Business

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

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>The awaited closure of the Speedway acquisition was announced on 26<sup>th</sup> June 2021, after clearance was received from the FTC. Before this, there were question marks regarding <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>’s Speedway acquisition, as the acting chairperson Rebecca Kelly Slaughter and Commissioner Rohit Chopra of the US Federal Trade Commission issued a statement on the FTC website on May 14th, 2021, saying that this transaction is illegal as it could impact competition and cause prices to soar at gas stations and convenience stores across the US.</li>
<li>As promised during the previous quarterly results release, Seven &amp; I published its new medium term plan for 2021-25 on the 1<sup>st</sup> of July 2021, after the closure of the Speedway acquisition.</li>
<li>We think the new medium term plan provides plenty of surprises to the upside, providing sufficient support to break the previous all-time high of ¥5,906 per share in the immediate future.</li>
<li>Nonetheless, the ¥5,900-6,000 per share range could offer some resistance for a short while, but we remain bullish on Seven &amp; I and maintain our previous target of an additional 50% upside to the current price, as we think that there is still plenty of room for multiple expansion alongside impending earnings upgrades.</li>
</ul>


The awaited closure of the Speedway acquisition was announced on 26th June 2021, after clearance was received from the FTC. Before this, there were question marks regarding Seven &amp; I Holdings (3382 JP)’s Speedway acquisition, as the acting chairperson Rebecca Kelly Slaughter and Commissioner Rohit Chopra of the US Federal Trade Commission issued a statement on the FTC website on May 14th, 2021, saying that this transaction is illegal as it could impact competition and cause prices to soar at gas stations and convenience stores across the US.
As promised during the previous quarterly results release, Seven &amp; I published its new medium term plan for 2021-25 on the 1st of July 2021, after the closure of the Speedway acquisition.
We think the new medium term plan provides plenty of surprises to the upside, providing sufficient support to break the previous all-time high of ¥5,906 per share in the immediate future.
Nonetheless, the ¥5,900-6,000 per share range could offer some resistance for a short while, but we remain bullish on Seven &amp; I and maintain our previous target of an additional 50% upside to the current price, as we think that there is still plenty of room for multiple expansion alongside impending earnings upgrades.


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