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

Istyle High Conviction Update: Up 90% on Partnership With Amazon

IStyle's @Cosme Gets a Boost from Amazon Investment

IStyle Growth Following Amazon Shareholding

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><a href="https://www.smartkarma.com/entities/istyle-inc" target="_blank" data-smartkarma-citation="entities:9010:1" rel="noopener">Istyle Inc (3660 JP)</a> operates the @cosme platform, which is dedicated to reviews of cosmetic products. After declining about 70% of the market cap during the COVID-19 sell-off, iStyle’s share price has rallied 135% and trades at ¥484 per share, compared to the 52-week high/low of ¥804/176 per share. Even though iStyle significantly underperformed the Japanese cosmetics sector in the period leading up to and during the COVID-19 sell-off, during the post-sell-off recovery period, iStyle outperformed Kose and Shiseido by about 15% and 20% respectively.</p>
<p>However, iStyle’s share price has failed to react to positive vaccine news, even though domestic cosmetic manufacturers have risen about 5-10% following the vaccine news.</p>
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<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/176/702/original/Picture1.png?1607270762" class="editor-image img-responsive" data-smartkarma-image-id="176702"></figure>
<div class="content-caption">Source: Cap IQ</div>
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<p>Moreover, iStyle’s current share price is 75% lower than the past five-year peak (in March 2018) and fails to value the importance and the immense potential of the “Brand Official” business.</p>

Istyle Inc (3660 JP) operates the @cosme platform, which is dedicated to reviews of cosmetic products. After declining about 70% of the market cap during the COVID-19 sell-off, iStyle’s share price has rallied 135% and trades at ¥484 per share, compared to the 52-week high/low of ¥804/176 per share. Even though iStyle significantly underperformed the Japanese cosmetics sector in the period leading up to and during the COVID-19 sell-off, during the post-sell-off recovery period, iStyle outperformed Kose and Shiseido by about 15% and 20% respectively.
However, iStyle’s share price has failed to react to positive vaccine news, even though domestic cosmetic manufacturers have risen about 5-10% following the vaccine news.


Source: Cap IQ

Moreover, iStyle’s current share price is 75% lower than the past five-year peak (in March 2018) and fails to value the importance and the immense potential of the “Brand Official” business.

2021 High Conviction - IStyle: For How Long Can The Market Snub “Brand Official”?