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

Home Credit IPO Valuation: Pricing Is Likely to Be Towards the Lower End of Our Target Valuation

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

Home Credit N.V. is an emerging market consumer finance company and they are planning to list its shares on the Hong Kong stock exchange with various media reports suggesting that the company could raise more than $1.0bn through the IPO.The Home Credit IPO raised a lot of interest among Smartkarma analysts as there are about 10 insights on the topic already. Therefore, rather than repeating what has already been said with a coverage initiation on the stock, I will focus on a few points that I consider important which others may have overlooked.In a fresh insight, we will follow up with a comprehensive valuation of the company, using a blend of valuation methodologies including a SOTP based on geographical locations of business operations. Furthermore, we think it is also important to run bear and bull case scenarios as similar companies in the industry are exposed to macro factors/risks more than most of the other industries.

Home Credit N.V. is an emerging market consumer finance company and they are planning to list its shares on the Hong Kong stock exchange with various media reports suggesting that the company could raise more than $1.0bn through the IPO.The Home Credit IPO raised a lot of interest among Smartkarma analysts as there are about 10 insights on the topic already. Therefore, rather than repeating what has already been said with a coverage initiation on the stock, I will focus on a few points that I consider important which others may have overlooked.In a fresh insight, we will follow up with a comprehensive valuation of the company, using a blend of valuation methodologies including a SOTP based on geographical locations of business operations. Furthermore, we think it is also important to run bear and bull case scenarios as similar companies in the industry are exposed to macro factors/risks more than most of the other industries.

Home Credit IPO: NIM Improvement Driven by Mismatch in Maturity of Assets and Liabilities