Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>It was reported in Chosun Business Daily that the Phillippine food giant Jollibee Foods (JFC PM) is close to acquiring Norang Tongdak.</li>
<li>The entity to be sold is a 100% stake in Norang Food, the operator of Norang Tongdak. The sales price is expected to be around 150 billion won.</li>
<li>EV/EBITDA multiple ranges from 7.2x to 9.3x if we assume equity value range from 130 billion won to 160 billion won. </li>
</ul>


It was reported in Chosun Business Daily that the Phillippine food giant Jollibee Foods (JFC PM) is close to acquiring Norang Tongdak.
The entity to be sold is a 100% stake in Norang Food, the operator of Norang Tongdak. The sales price is expected to be around 150 billion won.
EV/EBITDA multiple ranges from 7.2x to 9.3x if we assume equity value range from 130 billion won to 160 billion won. 


Jollibee Foods Close to Acquiring Norang Tongdak in Korea

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<ul>
<li>In the US, the March Conference Board consumer confidence index fell to a four-year low of 92.9 (94.0 e / 100.1 revised p).</li>
<li>Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board stated: “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.</li>
<li>Of the Index’s five components, only consumers’ assessment of present labour market conditions improved, albeit slightly.” Separately, February new home sales rose 1.8% m-o-m (3.5% e / -6.9% revised p) to an annualised 676 k units, rebounding slightly from the decline in January amid better weather and generous sales incentives.</li>
</ul>


In the US, the March Conference Board consumer confidence index fell to a four-year low of 92.9 (94.0 e / 100.1 revised p).
Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board stated: “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.
Of the Index’s five components, only consumers’ assessment of present labour market conditions improved, albeit slightly.” Separately, February new home sales rose 1.8% m-o-m (3.5% e / -6.9% revised p) to an annualised 676 k units, rebounding slightly from the decline in January amid better weather and generous sales incentives.


Equity Analyst, Investory

Devi Subhakesan

Equity Analyst

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jollibee-foods-corp" target="_blank" data-smartkarma-citation="entities:987:1" rel="noopener">Jollibee Foods (JFC PM)</a> delivered strong sales and profit growth in 3Q, driven by robust Same Store Sales Growth (SSSG) in its home market and key overseas regions, excluding China.</li>
<li>Jollibee's value-for-money appeal has likely driven its impressive Same Store Sales Growth (SSSG), outpacing industry peers struggling with rising customer price sensitivity and fall in SSSG.</li>
<li>However, in China, Jollibee's delay in adapting to a quickly shifting market landscape has led to EBITDA losses, a sharp reversal from the profitability seen in Q2.</li>
</ul>



Jollibee Foods (JFC PM) delivered strong sales and profit growth in 3Q, driven by robust Same Store Sales Growth (SSSG) in its home market and key overseas regions, excluding China.
Jollibee's value-for-money appeal has likely driven its impressive Same Store Sales Growth (SSSG), outpacing industry peers struggling with rising customer price sensitivity and fall in SSSG.
However, in China, Jollibee's delay in adapting to a quickly shifting market landscape has led to EBITDA losses, a sharp reversal from the profitability seen in Q2.


Jollibee Foods: Sector-Beating Growth Fuelled by Value-For-Money Appeal.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jollibee-foods-corp" target="_blank" data-smartkarma-citation="entities:987:1" rel="noopener">Jollibee Foods (JFC PM)</a> recently acquired Compose Coffee, the second-largest take-out chain in South Korea's competitive value coffee retail segment.</li>
<li>While the acquisition presents growth opportunities for Jollibee, the intense competition and inherent challenges of the value coffee retail segment warrant caution.</li>
<li>With Jollibee's Coffee &amp; Tea business vertical now growing into a meaningful size, we recommend listing it separately to enhance visibility, accountability and unlock shareholder value.</li>
</ul>



Jollibee Foods (JFC PM) recently acquired Compose Coffee, the second-largest take-out chain in South Korea's competitive value coffee retail segment.
While the acquisition presents growth opportunities for Jollibee, the intense competition and inherent challenges of the value coffee retail segment warrant caution.
With Jollibee's Coffee &amp; Tea business vertical now growing into a meaningful size, we recommend listing it separately to enhance visibility, accountability and unlock shareholder value.


Jollibee's (JFC PM) Risky Bet: Compose Coffee Acquisition in a Competitive Market

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Philippines fund ownership shows signs of life after decade long bear market</li>
<li>Asia Ex-Japan funds buy in to BDO Unibank, Bank of the Philippine Islands and Jollibee Foods Corp.</li>
<li>Despite this, The Philippines remains a zero allocation for 50% of the funds in our analysis.</li>
</ul>


Philippines fund ownership shows signs of life after decade long bear market
Asia Ex-Japan funds buy in to BDO Unibank, Bank of the Philippine Islands and Jollibee Foods Corp.
Despite this, The Philippines remains a zero allocation for 50% of the funds in our analysis.


Philippines: Emerging Signs of Investment Recovery

Philippines

Jollibee Foods Corporation owns, franchises and manages a network of fast food restaurants under the trade name Jollibee. The Company was incorporated in 1978.

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Jollibee Foods (JFC PM)

Jollibee Foods Close to Acquiring Norang Tongdak in Korea

It was reported in Chosun Business Daily that the Phillippine food giant Jollibee Foods (JFC PM) is close to acquiring Norang Tongdak.

Douglas Kim

Lucror Analytics - Morning Views Asia

In the US, the March Conference Board consumer confidence index fell to a four-year low of 92.9 (94.0 e / 100.1 revised p).

Lucror Analytics

Jollibee Foods: Sector-Beating Growth Fuelled by Value-For-Money Appeal.

Jollibee's value-for-money appeal has driven impressive Same Store Sales Growth (SSSG) in 3Q, outpacing industry peers struggling with rising...

Devi Subhakesan

Jollibee's (JFC PM) Risky Bet: Compose Coffee Acquisition in a Competitive Market

Cautious on Jollibee's acquisition of Compose coffee. Though it presents growth opportunities, the intense competition and inherent challenges of...

Devi Subhakesan

Philippines: Emerging Signs of Investment Recovery

Philippines fund ownership shows signs of life after decade long bear market. Asia Ex-Japan funds buy in to BDO Unibank and Bank of the Philippine...

Steven Holden

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