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

Kirin: An End to Troubles in Myanmar JV Could Unwind the Multi-Year Low Holdco Discount

Kirin: Holdco Discount Is Starting to Unwind Alongside The Return of Institutional Investors

Kirin: Off of Myanmar & Off to a Good Start

Bega Cheese to Acquire Kirin’s Lion Dairy & Drinks at a 13% Discount

Kirin: An Asset Write-Down/Disposal Could Be Pending for the Military Linked Myanmar JV

Norges Bank Puts Kirin On a Watchlist Over Ties with Myanmar Military Linked JV

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>
<a href="https://www.smartkarma.com/entities/kirin-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:16977:1" rel="noopener">Kirin Holdings (2503 JP)</a> reported its 1Q21 results last week, with revenue and operating profit falling broadly in line with consensus estimates.</li>
<li>The company’s revenue declined by 3.6% YoY to ¥409.3bn, compared to 2.3%, 9.6%, 4.1% and 2.7% YoY in 1Q20, 2Q20, 3Q20, and 4Q20 respectively.</li>
<li>The operating profit increased by 7.5% YoY to ¥28.1bn, compared to ¥26.1bn, ¥23.4bn, ¥54.9bn, and ¥-1.4bn in 1Q20, 2Q20, 3QY20, and 4Q20 respectively. This was mainly due to lower SG&amp;A and other operating expenses.</li>
<li>The full year revenue and profit guidance remained unchanged at a revenue of ¥1,880bn and an operating profit of ¥151bn compared to consensus revenue and OP of ¥1,856bn and ¥151.4bn respectively. However, the company is still evaluating options regarding its Myanmar JV, which could lead to a significant impact on Kirin’s 2021 guidance.</li>
</ul>



Kirin Holdings (2503 JP) reported its 1Q21 results last week, with revenue and operating profit falling broadly in line with consensus estimates.
The company’s revenue declined by 3.6% YoY to ¥409.3bn, compared to 2.3%, 9.6%, 4.1% and 2.7% YoY in 1Q20, 2Q20, 3Q20, and 4Q20 respectively.
The operating profit increased by 7.5% YoY to ¥28.1bn, compared to ¥26.1bn, ¥23.4bn, ¥54.9bn, and ¥-1.4bn in 1Q20, 2Q20, 3QY20, and 4Q20 respectively. This was mainly due to lower SG&amp;A and other operating expenses.
The full year revenue and profit guidance remained unchanged at a revenue of ¥1,880bn and an operating profit of ¥151bn compared to consensus revenue and OP of ¥1,856bn and ¥151.4bn respectively. However, the company is still evaluating options regarding its Myanmar JV, which could lead to a significant impact on Kirin’s 2021 guidance.


Kirin Seems Enticing from a Holdco Perspective, but Myanmar JV Still Poses Reputational & ESG Risks