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

Priced At a Premium, But Preferred Over Peers As a Thematic Investment

China Youran Dairy IPO: A Secular Bet on China’s Upstream Dairy Market Consolidation

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

China Youran Dairy Group Ltd / Equity Capital Markets

According to Reuters, <a href="https://www.smartkarma.com/entities/china-youran-dairy-group-ltd" target="_blank" data-smartkarma-citation="entities:31075:1" rel="noopener">China Youran Dairy Group Ltd (9858 HK)</a> has priced its IPO at HK$6.98 per share, at the lower end of the proposed price range. The offer price will be officially announced on 17th June 2021 and shares will commence trading on the Hong Kong stock exchange on the following day.An analysis of past upstream dairy IPOs on the Hong Kong and Mainland China stock exchanges shows that none of the previous IPOs had strong openings, despite offering huge earnings growth potential.Weak investor demand for the Youran IPO could be due to its pricing premium over peers and the lack of interest shown by investors towards the dairy sector in general. We think shares could have a weak opening on 18th June 2021. Nevertheless, it could lead to an opportunity to buy Youran, a company at the forefront of China’s upstream dairy market consolidation, at a bargain.

According to Reuters, China Youran Dairy Group Ltd (9858 HK) has priced its IPO at HK$6.98 per share, at the lower end of the proposed price range. The offer price will be officially announced on 17th June 2021 and shares will commence trading on the Hong Kong stock exchange on the following day.An analysis of past upstream dairy IPOs on the Hong Kong and Mainland China stock exchanges shows that none of the previous IPOs had strong openings, despite offering huge earnings growth potential.Weak investor demand for the Youran IPO could be due to its pricing premium over peers and the lack of interest shown by investors towards the dairy sector in general. We think shares could have a weak opening on 18th June 2021. Nevertheless, it could lead to an opportunity to buy Youran, a company at the forefront of China’s upstream dairy market consolidation, at a bargain.

China Youran Dairy IPO: First Day Trading