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

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/nayuki-holdings" target="_blank" data-smartkarma-citation="entities:32149:1" rel="noopener">Nayuki Holdings (2150 HK)</a> announced the indicative price range to its IPO on 18th June 2021 at HK$17.20-19.80 per share, which implies a market cap and EV range of HK$29.5-34.0bn and HK$24.3-28.1bn respectively.</li>
<li>We want to reiterate the fact that <strong>we continue to dislike Nayuki as a long-term investment</strong> as we think that bubble tea and fruit tea lack the ability to encourage consumers to make regular purchases, making them less profitable.</li>
<li>We have a different opinion on a trading angle. We think Nayuki could provide a decent upside (about 15-20%) on market debut as the bubble tea chain has attracted a lot of interest from retail investors.</li>
<li>This insight is labelled bullish considering the trading opportunity on the long side due to high volumes of retail participation.</li>
</ul>



Nayuki Holdings (2150 HK) announced the indicative price range to its IPO on 18th June 2021 at HK$17.20-19.80 per share, which implies a market cap and EV range of HK$29.5-34.0bn and HK$24.3-28.1bn respectively.
We want to reiterate the fact that we continue to dislike Nayuki as a long-term investment as we think that bubble tea and fruit tea lack the ability to encourage consumers to make regular purchases, making them less profitable.
We have a different opinion on a trading angle. We think Nayuki could provide a decent upside (about 15-20%) on market debut as the bubble tea chain has attracted a lot of interest from retail investors.
This insight is labelled bullish considering the trading opportunity on the long side due to high volumes of retail participation.


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