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

Seven & I Parts with Sogo & Seibu and Pockets ¥200bn

2021 & 2022 High Conviction Review: Time’s Up For Seven & I But Japan Tobacco Has More Room to Run

2021 High Conviction Seven & I: Major Headwinds Deflected By The Yen Depreciation, Upside Is Limited

Seven & I: Positives All Around But Upside Is Limited

Seven & I: More Upside as Momentum Turns Positive in the Domestic Market

Seven & I Marches On in the US Despite Headwinds From Inflation

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>With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven &amp; I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.</li>
<li>However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of <a href="https://www.smartkarma.com/entities/seven-i-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:1041:1" rel="noopener">Seven &amp; I Holdings (3382 JP)</a>’s US convenience store business.</li>
<li>In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven &amp; I’s price performance.</li>
</ul>


With OP up by 22% YoY to beat the consensus estimate by ¥2.0bn, Seven &amp; I turned in a strong 2QFY23 along with a considerable upgrade to FY23 guidance.
However, the post-earnings price reaction seems to suggest that the market is a bit worried about the short-term performance of Seven &amp; I Holdings (3382 JP)’s US convenience store business.
In addition, the struggling non-core businesses whose future remains undecided could also be weighing in on Seven &amp; I’s price performance.


Seven & I – The US Is About to Hit the Brakes