Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>Share buyback, dividend increase to 30 cents, yielding around 7.6% with PBR 1x and 0.4x price to sales are good catalysts to own <a href="https://www.smartkarma.com/entities/cafe-de-coral-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2568:1" rel="noopener">Cafe de Coral (341 HK)</a> .</li>
<li>Greater Bay connectivity provides an opportunity to expand margin as the cost is lower, as well as to capture customer leakage when HK residents travel to China over the weekend. </li>
<li>
<a href="https://www.smartkarma.com/entities/cafe-de-coral-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2568:1" rel="noopener">Cafe de Coral (341 HK)</a> benefits from the economic downturn when customers pull back from premium dining.</li>
</ul>


Share buyback, dividend increase to 30 cents, yielding around 7.6% with PBR 1x and 0.4x price to sales are good catalysts to own Cafe de Coral (341 HK) .
Greater Bay connectivity provides an opportunity to expand margin as the cost is lower, as well as to capture customer leakage when HK residents travel to China over the weekend. 

Cafe de Coral (341 HK) benefits from the economic downturn when customers pull back from premium dining.


<ul>
<li>FY 2025 results were not that great, but 2H numbers are rather encouraging, with net profit rallying 151%.</li>
<li>Despite a rather weak result, Cafe de Coral has no issue with generating operating cash flow and can pay a dividend out of the current balance for 4.4 years.</li>
<li>
<a href="https://www.smartkarma.com/entities/cafe-de-coral-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2568:1" rel="noopener">Cafe de Coral (341 HK)</a> currently trades at 0.8x PBR, 50% lower than the 1.5x in a normal environment, while in an expansionary environment, it traded up to 3x PBR. </li>
</ul>


FY 2025 results were not that great, but 2H numbers are rather encouraging, with net profit rallying 151%.
Despite a rather weak result, Cafe de Coral has no issue with generating operating cash flow and can pay a dividend out of the current balance for 4.4 years.

Cafe de Coral (341 HK) currently trades at 0.8x PBR, 50% lower than the 1.5x in a normal environment, while in an expansionary environment, it traded up to 3x PBR. 


Cafe De Coral (341): Deep Discount and Dividend

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>The materials, healthcare, and tech sectors are leading the Hong Kong market out of its consolidation pattern, with January shaping up to be one of the best in years.</li>
<li>China and Hong Kong ETF flows were the strongest in Asia during 2025 posting significant inflows throughout the year although Korea had the most significant increase at 600%.</li>
<li>
<a href="https://www.smartkarma.com/entities/trip-com-group-ltd-23a341d0-4f63-4175-a8c5-ee990906cacd" target="_blank" data-smartkarma-citation="entities:36424:1" rel="noopener">Trip.com Group (9961 HK)</a> share price plunged after it announced an investigation into its monopolistic business practices. <a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao International Holding (6862 HK)</a> shares jumped after the founder returned as CEO.
</li>
</ul>


The materials, healthcare, and tech sectors are leading the Hong Kong market out of its consolidation pattern, with January shaping up to be one of the best in years.
China and Hong Kong ETF flows were the strongest in Asia during 2025 posting significant inflows throughout the year although Korea had the most significant increase at 600%.

Trip.com Group (9961 HK) share price plunged after it announced an investigation into its monopolistic business practices. Haidilao International Holding (6862 HK) shares jumped after the founder returned as CEO.



The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 14)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/haidilao-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a> is still burdened by heavy opex, while <a target="_blank" rel="noopener">Yihai International (1579 HK)</a> benefits from Haidilao's brand expansion into supermarkets. </li>
<li>Yihai's earnings growth is double-digit, while Haidilao's is single-digit that caused the outperformance by Yihai. </li>
<li>Yihai's ongoing plan is expanding its margin while Haidilao's plan on delivery is operating on a thinner margin. </li>
</ul>



Haidilao (6862 HK) is still burdened by heavy opex, while Yihai International (1579 HK) benefits from Haidilao's brand expansion into supermarkets. 
Yihai's earnings growth is double-digit, while Haidilao's is single-digit that caused the outperformance by Yihai. 
Yihai's ongoing plan is expanding its margin while Haidilao's plan on delivery is operating on a thinner margin. 


(Short) Haidilao Vs (Long) Yihai: Spread to Continue

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jollibee-foods-corp" target="_blank" data-smartkarma-citation="entities:987:1" rel="noopener">Jollibee (JFC PM)</a> will list its international business unit in <a href="https://www.smartkarma.com/entities/hong-kong-exchanges-clearing-ltd-units-thailand-depositery-receipts-repr-0-01-sh" target="_blank" data-smartkarma-citation="entities:52437:1" rel="noopener">Hong Kong Exchanges and Clearing (HKEX23 TB)</a> . </li>
<li>The Philippines business can re-rate as the company masks and subsidizes the lower-margin, capital-intensive expansion phase of foreign acquisitions.</li>
<li>An independent HKEX listing gives autonomy to directly fund future overseas M&amp;A, capital expenditure, and store rollouts without diluting the parent company or taking on Philippine-issued debt. </li>
</ul>



Jollibee (JFC PM) will list its international business unit in Hong Kong Exchanges and Clearing (HKEX23 TB) . 
The Philippines business can re-rate as the company masks and subsidizes the lower-margin, capital-intensive expansion phase of foreign acquisitions.
An independent HKEX listing gives autonomy to directly fund future overseas M&amp;A, capital expenditure, and store rollouts without diluting the parent company or taking on Philippine-issued debt. 


Hong Kong

Cafe de Coral Holdings Ltd. operates quick-service restaurants and casual dining chains, including brands like Café de Coral, Super Super Congee & Noodles, and The Spaghetti House. The company also provides institutional catering services and is involved in food processing and distribution. It was founded in 1968 and is headquartered in Fo Tan, Hong Kong.

Price Gauge
52-week Range	0.00 - 0.00
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P/E	0.00
Dividend (Yield)	0.00

Cafe de Coral (341 HK)

Cafe De Coral (341): Still Value

1x PBR, 7% dividend and 0.4 price-to-sales are good numbers to own Cafe de Coral. The progress for Greater Bay Area is also encouraging and margin...

Henry Soediarko

Cafe De Coral (341): Deep Discount and Dividend

Cafe de Coral's FY 2025 results were weak, but 2H numbers are better, with strong operating cash flow and dividend capacity for 4.4 years. Trading...

Henry Soediarko

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 14)

Trip.com Group (9961 HK) price plunged after it announced an investigation into its monopolistic business practices. Haidilao International Holding...

David Mudd

(Short) Haidilao Vs (Long) Yihai: Spread to Continue

Short Haidilao and Long Yihai on the basis that ongoing expansion for the former is on thinner margin than the existing one while Yihai's operation...

Henry Soediarko

Jollibee: Spin off to HK to Re-Rate

Jollibee will spin off its lower margin, capital expenditure heavy phase of international business to HK Exchange and unearth the domestic PH...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Cafe De Coral (341): Still Value

1x PBR, 7% dividend and 0.4 price-to-sales are good numbers to own Cafe de Coral. The progress for Greater Bay Area is also encouraging and margin...

Henry Soediarko

Cafe De Coral (341): Deep Discount and Dividend

​Cafe de Coral's FY 2025 results were weak, but 2H numbers are better, with strong operating cash flow and dividend capacity for 4.4 years. Trading...

Henry Soediarko

The Heat Is On: News Flow and Sentiment in CHINA / HONG KONG (January 14)

Trip.com Group (9961 HK) price plunged after it announced an investigation into its monopolistic business practices. Haidilao International Holding...

David Mudd

(Short) Haidilao Vs (Long) Yihai: Spread to Continue

Short Haidilao and Long Yihai on the basis that ongoing expansion for the former is on thinner margin than the existing one while Yihai's operation...

Henry Soediarko

Jollibee: Spin off to HK to Re-Rate

Jollibee will spin off its lower margin, capital expenditure heavy phase of international business to HK Exchange and unearth the domestic PH...

Henry Soediarko

Cafe de Coral's FY 2025 results were weak, but 2H numbers are better, with strong operating cash flow and dividend capacity for 4.4 years. Trading...