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

Nayuki IPO Valuation: Nayuki to Close Books Early & Pricing Is Likely to Be At The Top End

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

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<a href="https://www.smartkarma.com/entities/nayuki-holdings" target="_blank" data-smartkarma-citation="entities:32149:1" rel="noopener">Nayuki Holdings (NYK HK)</a>, the operator of Nayuki teahouses, has had a successful hearing with the Hong Kong Stock Exchange about proceeding with the proposed US$500m IPO, which could value the company in excess of US$2.0bn. The company was valued at nearly US$2.0bn at its latest funding round in December 2020.</li>
<li>Nayuki is growing rapidly on the back of ‘new style’ tea growth in China, but these bubble and fruit infused teas do not contain sufficient caffeine to produce enough dopamine to cause an addiction <a target="_blank">that could encourage consumers to walk into these ‘new style’ teahouses on a daily basis. </a>We think bubble tea/new style tea is a temporary bubble. Thus, Nayuki’s medium term growth prospects might be weaker than what they appear to be on the surface. </li>
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Nayuki Holdings (NYK HK), the operator of Nayuki teahouses, has had a successful hearing with the Hong Kong Stock Exchange about proceeding with the proposed US$500m IPO, which could value the company in excess of US$2.0bn. The company was valued at nearly US$2.0bn at its latest funding round in December 2020.
Nayuki is growing rapidly on the back of ‘new style’ tea growth in China, but these bubble and fruit infused teas do not contain sufficient caffeine to produce enough dopamine to cause an addiction that could encourage consumers to walk into these ‘new style’ teahouses on a daily basis. We think bubble tea/new style tea is a temporary bubble. Thus, Nayuki’s medium term growth prospects might be weaker than what they appear to be on the surface. 


Nayuki Holdings IPO: ‘New Style’ Teahouses Are Failing to Encourage Customers to Make Regular Visits