HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Sa Sa International Hldgs / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sa-sa-international-hldgs" target="_blank" data-smartkarma-citation="entities:20143:1" rel="noopener">Sa Sa International Hldgs (178 HK)</a>'s 1Q FY26 update provides evidence for a business recovery as turnover grew 4.7%, against a YoY drop in the last 5 quarters.  </li>
<li>Resurgence in mainland tourist arrivals is a driver. The start of 2Q FY26 also looks good, as this has increased 21.8% YoY in the last 15 days.</li>
<li>At 1.55x P/B, it is only 7% above the trough since 2020. Also, it traded at a higher multiple in FY20-22 when it was loss-making. </li>
</ul>



Sa Sa International Hldgs (178 HK)'s 1Q FY26 update provides evidence for a business recovery as turnover grew 4.7%, against a YoY drop in the last 5 quarters.  
Resurgence in mainland tourist arrivals is a driver. The start of 2Q FY26 also looks good, as this has increased 21.8% YoY in the last 15 days.
At 1.55x P/B, it is only 7% above the trough since 2020. Also, it traded at a higher multiple in FY20-22 when it was loss-making. 


Sa Sa Intl (178 HK): Looking Better Forward

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhou-liu-fu-jewellery-co-ltd" target="_blank" data-smartkarma-citation="entities:43706:1" rel="noopener">Zhou Liu Fu Jewellery (6168 HK)</a> has an impressive debut, but it is currently expensive, at 4.33x PEG with just a 3-year EPS CAGR of 4.7%.</li>
<li>It is overpriced by ROE vs. P/B, given it stands higher than the best-fit line. Its inferior market position in the industry makes it deserve to trade below.</li>
<li>At 20% discount to <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a>, it should value at HK$27.80. Even at par, it still implies an 8.5% downside. </li>
</ul>



Zhou Liu Fu Jewellery (6168 HK) has an impressive debut, but it is currently expensive, at 4.33x PEG with just a 3-year EPS CAGR of 4.7%.
It is overpriced by ROE vs. P/B, given it stands higher than the best-fit line. Its inferior market position in the industry makes it deserve to trade below.
At 20% discount to Chow Tai Fook Jewellery (1929 HK), it should value at HK$27.80. Even at par, it still implies an 8.5% downside. 


Zhou Liu Fu (6168 HK): Are We or the Market Wrong?

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Zhou Liu Fu Jewellery / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhou-liu-fu-jewellery-co-ltd" target="_blank" data-smartkarma-citation="entities:43706:1" rel="noopener">Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH)</a> is looking to raise up to $143m in its upcoming Hong Kong IPO</li>
<li>It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.</li>
<li>We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.</li>
</ul>



Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.


Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhou-liu-fu-jewellery-co-ltd" target="_blank" data-smartkarma-citation="entities:43706:1" rel="noopener">Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)</a>'s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials. </li>
<li>Its IPO price of HK$24.0 appears to be fair relative to the peers' valuation, leaving limited upside and downside in the secondary market. </li>
<li>We value the stock at HK$22.5-25.7, based on 20-30% discount to <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a>. It is not another <a href="https://www.smartkarma.com/entities/laopu-gold-co-ltd" target="_blank" data-smartkarma-citation="entities:44036:1" rel="noopener">Laopu Gold (6181 HK)</a>. </li>
</ul>



Zhou Liu Fu Jewelery Co., Ltd. (6168 HK)'s IPO does not appeal to us, given deteriorating profitability, smaller size, and inferior financials. 
Its IPO price of HK$24.0 appears to be fair relative to the peers' valuation, leaving limited upside and downside in the secondary market. 
We value the stock at HK$22.5-25.7, based on 20-30% discount to Chow Tai Fook Jewellery (1929 HK). It is not another Laopu Gold (6181 HK). 


Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhou-liu-fu-jewellery-co-ltd" target="_blank" data-smartkarma-citation="entities:43706:1" rel="noopener">Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH)</a> is looking to raise up to $143m in its upcoming Hong Kong IPO.</li>
<li>It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.</li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Zhou Liu Fu Jewellery Co., Ltd. (1716396D CH) is looking to raise up to $143m in its upcoming Hong Kong IPO.
It is a leading and fast growing jewellery franchise in China offering a diverse range of products through offline and online sales channels.
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

Hong Kong

Chow Sang Sang Holdings International Limited manufactures and retails gold and gem-set jewelry products.  The Company also retails watches, wholesales precious metals, invests in real estate, provides securities and commodity brokerage services, and trades in gold bullion.

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Chow Sang Sang Hldg (116 HK)

Sa Sa Intl (178 HK): Looking Better Forward

Sa Sa shows signs of business recovery in 1Q FY26 with 4.7% turnover growth, driven by better mainland tourist arrivals. Trading at 1.55x P/B,...

Osbert Tang, CFA

Zhou Liu Fu (6168 HK): Are We or the Market Wrong?

Zhou Liu Fu's impressive debut is overshadowed by its expensive valuation of 4.33x PEG with a low EPS CAGR. Comparisons to Chow Tai Fook suggest...

Osbert Tang, CFA

Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. We have covered aspects of the deal in our previous note. In this note,...

Nicholas Tan

Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea

Zhou Liu Fu Jewelery's IPO lacks appeal due to declining profitability, smaller size, and weaker financials, with limited upside and downside in...

Osbert Tang, CFA

Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Sa Sa Intl (178 HK): Looking Better Forward

​Sa Sa shows signs of business recovery in 1Q FY26 with 4.7% turnover growth, driven by better mainland tourist arrivals. Trading at 1.55x P/B,...

Osbert Tang, CFA

Zhou Liu Fu (6168 HK): Are We or the Market Wrong?

​Zhou Liu Fu's impressive debut is overshadowed by its expensive valuation of 4.33x PEG with a low EPS CAGR. Comparisons to Chow Tai Fook suggest...

Osbert Tang, CFA

Zhou Liu Fu IPO Trading: Fundamentally Weak but Oversubscribed

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. We have covered aspects of the deal in our previous note. In this note,...

Nicholas Tan

Zhou Liu Fu (6168 HK) IPO: Not Our Cup of Tea

​Zhou Liu Fu Jewelery's IPO lacks appeal due to declining profitability, smaller size, and weaker financials, with limited upside and downside in...

Osbert Tang, CFA

Zhou Liu Fu Pre-IPO: Not Blindingly Cheap but Peer Momentum Is Strong

Zhou Liu Fu is looking to raise up to $143m in its upcoming Hong Kong IPO. In this note, we examine the IPO dynamics, and look at the firm’s...

Nicholas Tan

Sa Sa shows signs of business recovery in 1Q FY26 with 4.7% turnover growth, driven by better mainland tourist arrivals. Trading at 1.55x P/B,...

Zhou Liu Fu's impressive debut is overshadowed by its expensive valuation of 4.33x PEG with a low EPS CAGR. Comparisons to Chow Tai Fook suggest...

Zhou Liu Fu Jewelery's IPO lacks appeal due to declining profitability, smaller size, and weaker financials, with limited upside and downside in...