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

Asustek (2357 TT) Relatively Low Valuation

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

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<li>
<a href="https://www.smartkarma.com/entities/asustek-computer-inc" target="_blank" data-smartkarma-citation="entities:13002:1" rel="noopener">Asustek Computer (2357 TT)</a> is one of the top three consumer notebook vendors and the number one manufacturer of award-winning motherboards in the world. After rallying around 140% during the March 2020-May 2021 period due to an acceleration in demand during the COVID-19 pandemic, the company’s share price has come down by around 20% during the past four months due to fears of a nearing cycle peak in the PC market, supply shortage, and rising input costs.</li>
<li>We think the PC cycle has around 1.5-2.0 years to run before going into a down turn, and Asus has handled the supply shortage rather well through MOUs and long- term agreements for the supply of components. Thus, we think the recent price reaction is unwarranted.</li>
</ul>



Asustek Computer (2357 TT) is one of the top three consumer notebook vendors and the number one manufacturer of award-winning motherboards in the world. After rallying around 140% during the March 2020-May 2021 period due to an acceleration in demand during the COVID-19 pandemic, the company’s share price has come down by around 20% during the past four months due to fears of a nearing cycle peak in the PC market, supply shortage, and rising input costs.
We think the PC cycle has around 1.5-2.0 years to run before going into a down turn, and Asus has handled the supply shortage rather well through MOUs and long- term agreements for the supply of components. Thus, we think the recent price reaction is unwarranted.


AsusTeK: Too Early to Worry About the PC Cycle Peak