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

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

Yihai Kerry Arawana Holdin-A / Equity Capital Markets

<ul>
<li>Months after the initial announcement, 99.99%-owned subsidiary of Singapore’s <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a>, <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdings Co Ltd (YKA CH)</a>, filed for an IPO to list on the Shenzhen Stock Exchange's ChiNext Board. The company expects to raise RMB 13.78bn ($1.95bn) through selling up to 542m new shares (10% post-IPO shares of Yihai Kerry). </li>
<li>Yihai Kerry is one of China’s largest processors and distributors of agricultural and consumer products. The company has around 29,000 employees, more than 70 production bases and over 100 production enterprises in China.</li>
<li>The company is mainly involved in industries such as oil seed crushing, edible oil refining, speciality fats, oleochemicals, processing of corn, wheat and soybean, sustainable multi-stage processing of rice, food and beverage, and grain and oil technology R&amp;D.</li>
<li>Its products include edible oil, rice, flour, fine dried noodles, rice noodles, soy milk, special grains and oils, food raw and supplementary materials, oleochemicals and sells them under famous brand names such as "Arawana", "Olivoila", "Orchid", "Wonder Farm", "Neptune", "Fengyuan", "Golden Delicious", "Reyland", and "Jiejin 100".</li>
</ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/144/482/original/image_16851375721594009413975.png?1594009414" class="editor-image img-responsive" data-smartkarma-image-id="144482"></figure><div class="content-caption"><em>Source: Company Disclosures</em></div><ul><li>According to Nielsen, Yihai Kerry is ranked No. 1 in China's packed edible oil, rice, and flour markets.</li></ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/144/485/original/image_97256687431594009644097.png?1594009645" class="editor-image img-responsive" data-smartkarma-image-id="144485"></figure><div class="content-caption"><em>Source: Company Disclosures</em></div><ul><li>The company is also ranks high in the feed raw materials and oil and fat technology industry. In addition, Yihai Kerry is actively developing new products, and has made great progress in the field of noodles, condiments, cosmetics, and other sub-products.</li></ul><p><strong>Use of IPO Proceeds</strong></p><table class="table table-striped"><tbody>
<tr>
<td style="width: 56.3%;"><p><strong>Project Category</strong></p></td>
<td style="width: 43.7%;"><p style="text-align: right;"><strong>Use of Proceeds (In RMB bn)</strong></p></td>
</tr>
<tr>
<td style="width: 56.3%;"><p>Comprehensive Projects -Kitchen Food</p></td>
<td style="width: 43.7%;"><p style="text-align: right;">5.91</p></td>
</tr>
<tr>
<td style="width: 56.3%;"><p>Edible Oil Projects - Kitchen Food</p></td>
<td style="width: 43.7%;"><p style="text-align: right;">3.78</p></td>
</tr>
<tr>
<td style="width: 56.3%;"><p>Flour Projects - Kitchen Food</p></td>
<td style="width: 43.7%;"><p style="text-align: right;">1.96</p></td>
</tr>
<tr>
<td style="width: 56.3%;"><p>Other items - Kitchen Food</p></td>
<td style="width: 43.7%;"><p style="text-align: right;">2.22</p></td>
</tr>
</tbody></table><div class="content-caption">
<strong> </strong><em>Source: Company Disclosures</em>
</div>


Months after the initial announcement, 99.99%-owned subsidiary of Singapore’s Wilmar International (WIL SP), Yihai Kerry Arawana Holdings Co Ltd (YKA CH), filed for an IPO to list on the Shenzhen Stock Exchange's ChiNext Board. The company expects to raise RMB 13.78bn ($1.95bn) through selling up to 542m new shares (10% post-IPO shares of Yihai Kerry). 
Yihai Kerry is one of China’s largest processors and distributors of agricultural and consumer products. The company has around 29,000 employees, more than 70 production bases and over 100 production enterprises in China.
The company is mainly involved in industries such as oil seed crushing, edible oil refining, speciality fats, oleochemicals, processing of corn, wheat and soybean, sustainable multi-stage processing of rice, food and beverage, and grain and oil technology R&amp;D.
Its products include edible oil, rice, flour, fine dried noodles, rice noodles, soy milk, special grains and oils, food raw and supplementary materials, oleochemicals and sells them under famous brand names such as "Arawana", "Olivoila", "Orchid", "Wonder Farm", "Neptune", "Fengyuan", "Golden Delicious", "Reyland", and "Jiejin 100".
Source: Company DisclosuresAccording to Nielsen, Yihai Kerry is ranked No. 1 in China's packed edible oil, rice, and flour markets.Source: Company DisclosuresThe company is also ranks high in the feed raw materials and oil and fat technology industry. In addition, Yihai Kerry is actively developing new products, and has made great progress in the field of noodles, condiments, cosmetics, and other sub-products.Use of IPO Proceeds

Project Category
Use of Proceeds (In RMB bn)


Comprehensive Projects -Kitchen Food
5.91


Edible Oil Projects - Kitchen Food
3.78


Flour Projects - Kitchen Food
1.96


Other items - Kitchen Food
2.22


 Source: Company Disclosures


Yihai Kerry IPO: Shifting Consumer Purchasing Patterns Make Yihai Kerry An Enticing Long-Term Play