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

Asia Growth Hits The Breaks, KOSE Tumbles 12.2%

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kose-corp" target="_blank" data-smartkarma-citation="entities:18009:1" rel="noopener">Kose Corp (4922 JP)</a>’s share price is up 5.1% today compared to 3.6%, 4.9%, 4.2%, 2.8% and 2.2% for <a href="https://www.smartkarma.com/entities/shiseido-co-ltd" target="_blank" data-smartkarma-citation="entities:5718:1" rel="noopener">Shiseido Company (4911 JP)</a>, <a href="https://www.smartkarma.com/entities/pola-orbis-holdings-inc" target="_blank" data-smartkarma-citation="entities:2287:1" rel="noopener">Pola Orbis Holdings (4927 JP)</a>, <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a>, <a href="https://www.smartkarma.com/entities/kao-corp" target="_blank" data-smartkarma-citation="entities:12933:1" rel="noopener">Kao Corp (4452 JP)</a> and the Topix Index respectively despite an underwhelming quarter ending September 2021 results release on 29<sup>th</sup> October 2021 (aftermarket) with revenue declining 1.7% (adjusted for changes in accounting standards) from the same period of the previous year.</li>
<li>Quarterly revenue increased 9.2% (adjusted) on a QoQ basis. The OP increased 86.2% YoY and 54.3% QoQ (adjusted) on cost controls.</li>
<li>In addition, the company has lowered its revenue and OP guidance for the 9 months from April-December 2021 by ¥14.0bn (5.9%) and ¥4.0bn (20%) respectively to ¥224.0bn revenue and ¥16.0bn OP, which implies a full-year revenue of ¥299.3bn and an OP of ¥18.2bn in CY2021 compared to ¥282.8bn revenue and ¥13.5bn OP in CY2020.</li>
</ul>



Kose Corp (4922 JP)’s share price is up 5.1% today compared to 3.6%, 4.9%, 4.2%, 2.8% and 2.2% for Shiseido Company (4911 JP), Pola Orbis Holdings (4927 JP), Fancl Corp (4921 JP), Kao Corp (4452 JP) and the Topix Index respectively despite an underwhelming quarter ending September 2021 results release on 29th October 2021 (aftermarket) with revenue declining 1.7% (adjusted for changes in accounting standards) from the same period of the previous year.
Quarterly revenue increased 9.2% (adjusted) on a QoQ basis. The OP increased 86.2% YoY and 54.3% QoQ (adjusted) on cost controls.
In addition, the company has lowered its revenue and OP guidance for the 9 months from April-December 2021 by ¥14.0bn (5.9%) and ¥4.0bn (20%) respectively to ¥224.0bn revenue and ¥16.0bn OP, which implies a full-year revenue of ¥299.3bn and an OP of ¥18.2bn in CY2021 compared to ¥282.8bn revenue and ¥13.5bn OP in CY2020.


Further Downside Is Possible As Kose Keeps Losing Ground in Japan