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

China Online Marketplaces: Expecting Slow yet Steady Growth

Alibaba Cloud: Faces Nationalization Threat, IPO Prospects Remain Dim

Alibaba: Post Earnings Price Reaction Confirms Investors Are Worried Of a Fading Core-Business

Alibaba: A Mediocre Beat Won't Nullify Escalating US-China Tensions & A Deteriorating Core Business

Alibaba: Buoyed By The Ending Crackdowns, Yet Expensive With No Turnaround in Sight For Cash Cows

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

Alibaba Group Holding  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alibaba-group" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group (9988 HK)</a>'s shares rallied after announcing the business split, with investors believing that the sum of parts could be worth more than the current valuation.</li>
<li>Our analysis shows that NAV is only 12% higher than the current valuation, contrary to the idea of a significantly higher sum of parts value.</li>
<li>Therefore, we would be looking to short <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba (ADR) (BABA US)</a> yet again once this initial excitement settles.</li>
</ul>



Alibaba Group (9988 HK)'s shares rallied after announcing the business split, with investors believing that the sum of parts could be worth more than the current valuation.
Our analysis shows that NAV is only 12% higher than the current valuation, contrary to the idea of a significantly higher sum of parts value.
Therefore, we would be looking to short Alibaba (ADR) (BABA US) yet again once this initial excitement settles.


Alibaba’s Sum of the Parts Valuation:  Why the Initial Excitement May Be Overblown