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

Kose: China and E-Commerce Propels Kose’s Performance Towards the Pre-Pandemic Level

Asia Growth Hits The Breaks, KOSE Tumbles 12.2%

Japan Cosmetics Pair Trade: Long Fancl/Short Kose

Long Fancl/Short Kose: Kose’s Q2 Results As Expected, Now Waiting For Fancl to Come Through

Japan Cosmetics Pair Trade: Long Kose/​Short Shiseido

KOSÉ 1QFY21 Earnings Preview: China Recovery Overlooked

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.

Event-Driven

<ul>
<li>Corona virus is rampaging across Japan again. There were 1,591 new COVID cases in Tokyo and over 6,000 nationwide yesterday. Earlier this week, the Japanese government said that they are considering declaring a state of emergency in and around the Tokyo area.</li>
<li>Japanese cosmetics underperformed Topix by 10 percentage points during last year as the cosmetics sector earnings declined by 68% due to the ongoing COVID-19 crisis.</li>
<li>Following the first round of restrictions in April 2020, <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 underperformed <a href="https://www.smartkarma.com/entities/fancl-corp" target="_blank" data-smartkarma-citation="entities:15862:1" rel="noopener">Fancl Corp (4921 JP)</a> and <a href="https://www.smartkarma.com/entities/kao-corp" target="_blank" data-smartkarma-citation="entities:12933:1" rel="noopener">Kao Corp (4452 JP)</a> by 49% and 9% respectively in the April-July 2020 period. Since then Kose has outperformed Fancl 31% and Kao by 56%.</li>
<li>As Japan prepares for a second round of “soft lockdowns”, we would recommend investors to reposition their investments in Japanese cosmetics to <strong>Short Kose</strong> and <strong>Long Fancl and Kao</strong>.</li>
</ul>


Corona virus is rampaging across Japan again. There were 1,591 new COVID cases in Tokyo and over 6,000 nationwide yesterday. Earlier this week, the Japanese government said that they are considering declaring a state of emergency in and around the Tokyo area.
Japanese cosmetics underperformed Topix by 10 percentage points during last year as the cosmetics sector earnings declined by 68% due to the ongoing COVID-19 crisis.
Following the first round of restrictions in April 2020, Kose Corp (4922 JP)’s share price underperformed Fancl Corp (4921 JP) and Kao Corp (4452 JP) by 49% and 9% respectively in the April-July 2020 period. Since then Kose has outperformed Fancl 31% and Kao by 56%.
As Japan prepares for a second round of “soft lockdowns”, we would recommend investors to reposition their investments in Japanese cosmetics to Short Kose and Long Fancl and Kao.


Japanese Cosmetics Pair Trade Opportunities As Japan Prepares to Declare a State of Emergency