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

Thoughts on Amazon –What Does Its Valuation Tells Us?

Netflix & Amazon Expand in Korea – Not a Coincidence

Okja: The Fight Between Netflix Vs. CJ CGV

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 class="">
<li>Japanese sporting goods company <a href="https://www.smartkarma.com/entities/asics-corp" target="_blank" rel="noopener">Asics (7936 JP)</a> released its first-quarter results on Friday, May 22nd after a two-week delay due to COVID-19.</li>
<li>Revenue declined by 13.5% year-on-year due to store closures in multiple regions.</li>
</ul>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 112.25pt;"></td>
<td style="width: 99.45pt;">
<p>Share of Total Revenue</p>
</td>
<td style="width: 103.5pt;">
<p>Revenue Growth/Decline</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Japan</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">36%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-8.3%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>North America</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">18%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-21.1%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Europe</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">25%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-12.1%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Greater China</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">8%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-17.2%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Oceanian Region</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">6%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">4.9%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Southeast and South Asia</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">3%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-8.4%</p>
</td>
</tr>
<tr>
<td style="width: 112.25pt;">
<p>Others</p>
</td>
<td style="width: 99.45pt;">
<p style="text-align: right;">4%</p>
</td>
<td style="width: 103.5pt;">
<p style="text-align: right;">-29.0%</p>
</td>
</tr>
</tbody>
</table>
<div class="content-caption">Source: Company Disclosures</div>
<div>
<div>
<ul>
<li>Q1 Operating Income fell by ¥7 billion year-on-year to an operating loss of ¥882 million. The first quarter has been Asics’s most profitable quarter over the past five years, generated 65% of the annual OP.</li>
<li>The company withdrew its initial forecasts for the year which were made in February which called for sales of ¥400 billion and operating profits of ¥9 billion.</li>
<li>ASICS also withdrew its previously-issued forecast of a ¥30 per share dividend.</li>
</ul>
</div>
</div>


Japanese sporting goods company Asics (7936 JP) released its first-quarter results on Friday, May 22nd after a two-week delay due to COVID-19.
Revenue declined by 13.5% year-on-year due to store closures in multiple regions.






Share of Total Revenue


Revenue Growth/Decline




Japan


36%


-8.3%




North America


18%


-21.1%




Europe


25%


-12.1%




Greater China


8%


-17.2%




Oceanian Region


6%


4.9%




Southeast and South Asia


3%


-8.4%




Others


4%


-29.0%




Source: Company Disclosures



Q1 Operating Income fell by ¥7 billion year-on-year to an operating loss of ¥882 million. The first quarter has been Asics’s most profitable quarter over the past five years, generated 65% of the annual OP.
The company withdrew its initial forecasts for the year which were made in February which called for sales of ¥400 billion and operating profits of ¥9 billion.
ASICS also withdrew its previously-issued forecast of a ¥30 per share dividend.




ASICS Withholds Guidance: Possibility of Full-Term Loss

ASICS Corp

ASICS Withholds Guidance: Possibility of Full-Term Loss