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

Yukiguni Maitake IPO Valuation: Bain Capital Is Out and Leaving Little Upside for IPO Investors

Yukiguni Maitake IPO: Bain’s Remaining 6.65% Ownership Is an Overhang

Yukiguni Maitake: Stable Maitake Mushrooms Business With Limited Growth Opportunities

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

<p>In 2QFY21, <a href="https://www.smartkarma.com/entities/yukiguni-maitake-co-ltd" target="_blank" data-smartkarma-citation="entities:19900:1" rel="noopener">Yukiguni Maitake (1378 JP)</a>’s cumulative revenue increased by 4.3% year-on-year whereas adjusted OP increased by 19.1% (OPM improvement of 2.7 percentage points). Yukiguni Maitake has issued guidance to generate revenue of ¥35,632 million and an OP of ¥8,324 million. Although tough, we believe revenue guidance could be achievable. On the other hand, annual OP guidance seems too optimistic. The company is also targeting a 7% OP CAGR through FY20-23 by improving existing businesses, expanding overseas businesses, and optimising the business portfolio through M&amp;As.</p>

In 2QFY21, Yukiguni Maitake (1378 JP)’s cumulative revenue increased by 4.3% year-on-year whereas adjusted OP increased by 19.1% (OPM improvement of 2.7 percentage points). Yukiguni Maitake has issued guidance to generate revenue of ¥35,632 million and an OP of ¥8,324 million. Although tough, we believe revenue guidance could be achievable. On the other hand, annual OP guidance seems too optimistic. The company is also targeting a 7% OP CAGR through FY20-23 by improving existing businesses, expanding overseas businesses, and optimising the business portfolio through M&amp;As.

Yukiguni Maitake: A Plan Alone Is Insufficient to Justify a Long Position