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

Nikkei 225 Sep 2023 Rebalance Gets Interestinger - Possible Fast Retailing Cap and Zozo Stretch

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The Fast Retailing (9983) Selldown Conundrum - Not Now, But Soon... Then For A Long Time

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>Consensus estimates suggest that <a href="https://www.smartkarma.com/entities/nitori-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20386:1" rel="noopener">Nitori Holdings (9843 JP)</a>'s gross margin will experience a sudden change affecting profitability for a few quarters, before returning to 6-8% below the long-term trend.</li>
<li>We see no apparent reason for a drastic change in Nitori's profitability and expect it to remain slightly below trend, in line with guidance.</li>
<li>Nitori is expected to reach ¥140bn and ¥150bn OP for FY24 and FY25, with valuation at 13.3x and 12.4x OP. This is reasonable given Nitori's rare history of low multiples.</li>
</ul>


Consensus estimates suggest that Nitori Holdings (9843 JP)'s gross margin will experience a sudden change affecting profitability for a few quarters, before returning to 6-8% below the long-term trend.
We see no apparent reason for a drastic change in Nitori's profitability and expect it to remain slightly below trend, in line with guidance.
Nitori is expected to reach ¥140bn and ¥150bn OP for FY24 and FY25, with valuation at 13.3x and 12.4x OP. This is reasonable given Nitori's rare history of low multiples.


Nitori: Low Valuation Multiples and A Strong Potential to an Earnings Beat