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 Capital Markets

EBeauty Holdings / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/ebeauty-holdings" target="_blank" data-smartkarma-citation="entities:33505:1" rel="noopener">EBeauty Holdings (1894926D HK)</a>, China's largest beauty brand e-commerce enablement service provider (according to the prospectus) or quite simply an operator of Tmall stores for famous cosmetics brands, has passed the listing hearing with the Hong Kong Stock Exchange for its US$400-600m IPO.We have a few concerns about the company:<ul>
<li>eBeauty’s revenue growth through new customer acquisition is unlikely to be sustainable as the company has already captured most of the concentrated Chinese cosmetics business.</li>
<li>The company is highly dependent on a small number of cosmetics brands to generate revenues and a possible loss of one brand could have significant consequences.</li>
<li>It does not have a moat to prevent cosmetics brands from moving in-house after some time.</li>
</ul>For those reasons, we would take a pass, unless the IPO price is reflective of the significant business risks faced by eBeauty Holdings.

EBeauty Holdings (1894926D HK), China's largest beauty brand e-commerce enablement service provider (according to the prospectus) or quite simply an operator of Tmall stores for famous cosmetics brands, has passed the listing hearing with the Hong Kong Stock Exchange for its US$400-600m IPO.We have a few concerns about the company:
eBeauty’s revenue growth through new customer acquisition is unlikely to be sustainable as the company has already captured most of the concentrated Chinese cosmetics business.
The company is highly dependent on a small number of cosmetics brands to generate revenues and a possible loss of one brand could have significant consequences.
It does not have a moat to prevent cosmetics brands from moving in-house after some time.
For those reasons, we would take a pass, unless the IPO price is reflective of the significant business risks faced by eBeauty Holdings.

EBeauty Holdings IPO: A Glorified Tmall Store Operator for Big Cosmetics Names