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

Gome's Gamble on Social Commerce Is Unlikely to Generate Sufficient Margins

GOME Retail: No More Going Concern Issues

JD.com Follows Pinduoduo to Inject $100m To Struggling Gome Retail

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

<a href="https://www.smartkarma.com/entities/gome-retail-holdings-ltd" target="_blank" data-smartkarma-citation="entities:170:1" rel="noopener">Gome Electrical Appliances (493 HK)</a> is one of China’s largest electronic retailers with a Gross Merchandise Value (GMV) of CNY 136.1 billion. Revenue has declined at an annual compound rate of 8.1% over the past three years as the company’s traditional retail store model has lost out to E-commerce competition.The company is currently on a restructuring phase, transitioning away from the traditional brick and mortar electronics retail model. The new initiatives are encouraging with over 100% GMV growth across many of the new business models. These growth avenues have captured the eye of the Chinese E-commerce giants, <a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" data-smartkarma-citation="entities:27250:1" rel="noopener">Pinduoduo (PDD US)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>. In April 2020, Pinduoduo invested $200 million in 3-year 5% coupon convertible bonds (CBs) at a conversion price of HKD 1.215 per share. JD.com followed with a $100 million investment in 3-year 5% coupon convertible bonds (CBs) at a conversion price of HKD 1.255 per share.We discuss Gome Retail's new initiatives below.

Gome Electrical Appliances (493 HK) is one of China’s largest electronic retailers with a Gross Merchandise Value (GMV) of CNY 136.1 billion. Revenue has declined at an annual compound rate of 8.1% over the past three years as the company’s traditional retail store model has lost out to E-commerce competition.The company is currently on a restructuring phase, transitioning away from the traditional brick and mortar electronics retail model. The new initiatives are encouraging with over 100% GMV growth across many of the new business models. These growth avenues have captured the eye of the Chinese E-commerce giants, Pinduoduo (PDD US) and JD.com Inc (ADR) (JD US). In April 2020, Pinduoduo invested $200 million in 3-year 5% coupon convertible bonds (CBs) at a conversion price of HKD 1.215 per share. JD.com followed with a $100 million investment in 3-year 5% coupon convertible bonds (CBs) at a conversion price of HKD 1.255 per share.We discuss Gome Retail's new initiatives below. 

Gome Retail: Comprehensive Transformation in Process, Too Early to Call Success/Failure

GOME Retail Holdings

Gome Retail: Comprehensive Transformation in Process, Too Early to Call Success/Failure