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

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

Anheuser Busch Inbev Sa/Nv / Equity Bottom-Up

<div>Following <a href="https://www.smartkarma.com/entities/anheuser-busch-inbev-sa-nv" target="_blank" data-smartkarma-citation="entities:865:1" rel="noopener">Anheuser Busch Inbev Sa/Nv (ABI BB)</a>’s leveraged acquisition of <a href="https://www.smartkarma.com/entities/abi-sab-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:818:1" rel="noopener">Sabmiller Plc (SAB LN) </a>in 2016, ABI’s shares declined by 50% to bottom at  EUR 57.37 in 2018. The company disposed of some core assets, including <a href="https://www.smartkarma.com/entities/budweiser-brewing-co-apac-ltd" target="_blank" data-smartkarma-citation="entities:28077:1" rel="noopener">Budweiser Brewing Company APAC (1876 HK)</a>, paid down about $10.0bn of its long-term debt in 2019, refinanced $16.3bn of the debt and extended maturity periods from 2021-2026 to 2025-2059. The shares recovered to EUR 72.71 in December; however, with China contributing 10% of revenues, the impact of the COVID-19 virus has resulted in a further 58% decline in the share price to EUR 30.97 - a level last seen in 2009. The shares have since recovered to EUR 41.25, nevertheless, concerns remain about the volatility in ABI’s earnings and the company's ability to service its debt which represents 106% of the company’s EUR 83 billion market capitalisation.</div>
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<div class="content-caption">Source: Cap IQ</div>

Following Anheuser Busch Inbev Sa/Nv (ABI BB)’s leveraged acquisition of Sabmiller Plc (SAB LN) in 2016, ABI’s shares declined by 50% to bottom at  EUR 57.37 in 2018. The company disposed of some core assets, including Budweiser Brewing Company APAC (1876 HK), paid down about $10.0bn of its long-term debt in 2019, refinanced $16.3bn of the debt and extended maturity periods from 2021-2026 to 2025-2059. The shares recovered to EUR 72.71 in December; however, with China contributing 10% of revenues, the impact of the COVID-19 virus has resulted in a further 58% decline in the share price to EUR 30.97 - a level last seen in 2009. The shares have since recovered to EUR 41.25, nevertheless, concerns remain about the volatility in ABI’s earnings and the company's ability to service its debt which represents 106% of the company’s EUR 83 billion market capitalisation.


 
Source: Cap IQ

AB InBev: Not Short of Liquidity, Share Price Reaction Is Unjustified