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

FANCL: Conservative Guidance Could Form an Opening on The Long Side

The Market Is Yet to Price Fancl’s China Expansion

FANCL: Lowers FY21 Guidance Amidst Rising COVID Cases, Still Outperforming Peers

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

<p><a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a> shares rose 7.3% upon delivering strong 1QFY22 results, which saw operating profit increase by 23.1% YoY to ¥3.0bn (consensus ¥2.3bn). The company’s revenue rose 3.2% YoY to ¥25.2bn (consensus ¥25.4bn). We think the lack of upward revision to guidance is a sign of conservatism by the management due to uncertain business conditions resulting from the spread of the delta variant of the COVID-19 virus. Nevertheless, FANCL cosmetics and nutritional supplements could continue to boost earnings and generate a substantial earnings beat in FY22.</p>

Fancl Corp (4921 JP) shares rose 7.3% upon delivering strong 1QFY22 results, which saw operating profit increase by 23.1% YoY to ¥3.0bn (consensus ¥2.3bn). The company’s revenue rose 3.2% YoY to ¥25.2bn (consensus ¥25.4bn). We think the lack of upward revision to guidance is a sign of conservatism by the management due to uncertain business conditions resulting from the spread of the delta variant of the COVID-19 virus. Nevertheless, FANCL cosmetics and nutritional supplements could continue to boost earnings and generate a substantial earnings beat in FY22.

Fancl Corp

FANCL: Downplaying Its Success