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

Bukalapak: Mitra Won’t Save The Day Any More

Bukalapak: Still Overvalued & Former CEO’s Ownership Is an Overhang

Bukalapak IPO: Revenue Take Rate Moving Up, But Not Fast Enough

Bukalapak IPO: Reaching Hard to Reach Areas but Prospects of Profitability Is Bleak

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 Capital Markets

Bukalapak.com PT Tbk / Equity Capital Markets

Indonesian e-commerce unicorn, <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> is expected to price its IPO at the top end of the offer range, which implies a market cap and EV of $6.0bn and $4.4bn respectively.We like the way Bukalapak has placed itself in a relatively low competitive subsector within the Indonesian e-commerce market. However, it appears that it is extremely difficult to generate sufficient merchant commissions and advertising revenue from Bukalapak’s subsector of e-commerce. Although we are worried about the fact that Bukalapak may not be profitable in the medium term (inability to generate sufficient revenue), there are plenty of investors willing to invest in Bukalapak based on the company’s revenue potential.Having said that, we still don’t anticipate Bukalapak to generate generous gains on its trading debut due to the extremely high IPO valuation. Nevertheless, there could be some upside on trading debut, but we think risks rewards are not sufficiently skewed to the upside trade this IPO with any conviction.

Indonesian e-commerce unicorn, Bukalapak (BUKA IJ) is expected to price its IPO at the top end of the offer range, which implies a market cap and EV of $6.0bn and $4.4bn respectively.We like the way Bukalapak has placed itself in a relatively low competitive subsector within the Indonesian e-commerce market. However, it appears that it is extremely difficult to generate sufficient merchant commissions and advertising revenue from Bukalapak’s subsector of e-commerce. Although we are worried about the fact that Bukalapak may not be profitable in the medium term (inability to generate sufficient revenue), there are plenty of investors willing to invest in Bukalapak based on the company’s revenue potential.Having said that, we still don’t anticipate Bukalapak to generate generous gains on its trading debut due to the extremely high IPO valuation. Nevertheless, there could be some upside on trading debut, but we think risks rewards are not sufficiently skewed to the upside trade this IPO with any conviction.

Bukalapak.com PT Tbk

Bukalapak IPO Valuation