Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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 Bottom-Up

<ul>
<li>Alibaba sells 100% equities in Intime Department Store to Youngor.</li>
<li>Meituan plans to shorten delivery workers’ work hours due to sudden death cases.</li>
<li>Mixue, the lowest price fresh drink provider, began to raise its prices.</li>
</ul>


Alibaba sells 100% equities in Intime Department Store to Youngor.
Meituan plans to shorten delivery workers’ work hours due to sudden death cases.
Mixue, the lowest price fresh drink provider, began to raise its prices.


China Consumption Weekly (16 Dec 2024): Alibaba, Meituan, Mixue, Green Tea

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<ul>
<li>Green Tea’s future performance growth is uncertain due to increasing competition, changes in consumer tastes, lack of a secondary growth curve, unsatisfactory table turnover rate and the old menu.</li>
<li>Simply opening more restaurants cannot break through development bottlenecks.Whether shares would perform well after IPO depends on if Green Tea is able to deliver persuasive/sustainable growth story to the market.</li>
<li>The moat of Green Tea is still “fragile”. We think the valuation of Green Tea should be between <a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a> and <a href="https://www.smartkarma.com/entities/jiumaojiu-international-holdings-limited" target="_blank" data-smartkarma-citation="entities:28293:1" rel="noopener">Jiumaojiu (9922 HK)</a>, <a href="https://www.smartkarma.com/entities/ajisen-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:990:1" rel="noopener">Ajisen (538 HK)</a>.</li>
</ul>


Green Tea’s future performance growth is uncertain due to increasing competition, changes in consumer tastes, lack of a secondary growth curve, unsatisfactory table turnover rate and the old menu.
Simply opening more restaurants cannot break through development bottlenecks.Whether shares would perform well after IPO depends on if Green Tea is able to deliver persuasive/sustainable growth story to the market.
The moat of Green Tea is still “fragile”. We think the valuation of Green Tea should be between Haidilao (6862 HK) and Jiumaojiu (9922 HK), Ajisen (538 HK).


Pre-IPO Green Tea Group - Lack of an Attractive "Growth Story"

<ul>
<li>Douyin’ GMV increased by 300% YoY in the “June 18” sales season.</li>
<li>The revenue of a pre-IPO restaurant chain, Green Tea, increased by 55% in 2023.</li>
<li>Alibaba’s supermarket chain, Freshippo, opened 12 new stores in June.</li>
</ul>


Douyin’ GMV increased by 300% YoY in the “June 18” sales season.
The revenue of a pre-IPO restaurant chain, Green Tea, increased by 55% in 2023.
Alibaba’s supermarket chain, Freshippo, opened 12 new stores in June.


China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

APAC IPOs & Placements, Aequitas Research

Ethan Aw

APAC IPOs & Placements

Xiaocaiyuan International Holding / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/xiaocaiyuan-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:40688:1" rel="noopener">Xiaocaiyuan International Holding (XCY HK)</a> is looking to raise up to US$200m in its upcoming HK IPO.</li>
<li>Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. </li>
<li>In this note, we talk about the company’s historical performance.</li>
</ul>



Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO.
Xiaocaiyuan is a Chinese home-style cuisine restaurant operator. It prices its menus’ items to achieve average spending per consumer between RMB50 and RMB70 for its dine-in customers at its restaurants. 
In this note, we talk about the company’s historical performance.


Xiaocaiyuan International Holding Pre-IPO - Strong Network Expansion and Same Store Sales Growth

<ul>
<li>Based on effective strategic positioning, Xiaocaiyuan is able to seize the market's demand for cost-effective catering during consumption downgrade and the trend of increasing restaurant chain rate in China.</li>
<li>The key for Xiaocaiyuan to generate increasing profits at low spending-per-consumer is due to its strong supply chain, which will be favored by capital especially when Xiaocaiyuan enters community catering.</li>
<li>
<a href="https://www.smartkarma.com/entities/xiaocaiyuan-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:40688:1" rel="noopener">Xiaocaiyuan International Holding (XCY HK)</a> is better than peers. However, due to poor sentiment in HKEX, it’s not sure if Xiaocaiyuan’s valuation/share price performance could outperform peers as well.</li>
</ul>


Based on effective strategic positioning, Xiaocaiyuan is able to seize the market's demand for cost-effective catering during consumption downgrade and the trend of increasing restaurant chain rate in China.
The key for Xiaocaiyuan to generate increasing profits at low spending-per-consumer is due to its strong supply chain, which will be favored by capital especially when Xiaocaiyuan enters community catering.

Xiaocaiyuan International Holding (XCY HK) is better than peers. However, due to poor sentiment in HKEX, it’s not sure if Xiaocaiyuan’s valuation/share price performance could outperform peers as well.


Pre-IPO Xiaocaiyuan International Holding - A "Dark Horse" In Mass Chinese Cuisine Market

China

Green Tea Group Limited offers chain restaurant investment and operation services. The Company supplies Chinese food, drinks, and pre-prepared dishes. Green Tea Group conducts business in Zhejiang and Hong Kong.

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Green Tea Group (6831 HK)

China Consumption Weekly (16 Dec 2024): Alibaba, Meituan, Mixue, Green Tea

Alibaba sells Intime Department Store to Youngor. Meituan shortens delivery workers’ working hours due to sudden death cases. Mixue, the price...

Ming Lu

Pre-IPO Green Tea Group - Lack of an Attractive "Growth Story"

Green Tea faces uncertain future growth due to competition/changing tastes/operational challenges.Valuation should be between Haidilao and...

Xinyao (Criss) Wang

China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Douyin’ GMV increased by 300% YoY in the “June 18” sales season. Pre-IPO restaurant chain, Green Tea’s revenue increased by 55% in 2023. Alibaba’s...

Ming Lu

Xiaocaiyuan International Holding Pre-IPO - Strong Network Expansion and Same Store Sales Growth

Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO. In this note, we talk about the company’s...

Ethan Aw

Pre-IPO Xiaocaiyuan International Holding - A "Dark Horse" In Mass Chinese Cuisine Market

Xiaocaiyuan’s supply chain advantage/development direction/strategic positioning is favored by capital. In terms of potential/fundamentals,...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Consumption Weekly (16 Dec 2024): Alibaba, Meituan, Mixue, Green Tea

Alibaba sells Intime Department Store to Youngor. Meituan shortens delivery workers’ working hours due to sudden death cases. Mixue, the price...

Ming Lu

Pre-IPO Green Tea Group - Lack of an Attractive "Growth Story"

​Green Tea faces uncertain future growth due to competition/changing tastes/operational challenges.Valuation should be between Haidilao and...

Xinyao (Criss) Wang

China Consumption Weekly (1 Jul 2024): Douyin, Green Tea, Alibaba, Tencent, Haidilao

Douyin’ GMV increased by 300% YoY in the “June 18” sales season. Pre-IPO restaurant chain, Green Tea’s revenue increased by 55% in 2023. Alibaba’s...

Ming Lu

Xiaocaiyuan International Holding Pre-IPO - Strong Network Expansion and Same Store Sales Growth

Xiaocaiyuan International Holding (XCY HK) is looking to raise up to US$200m in its upcoming HK IPO. In this note, we talk about the company’s...

Ethan Aw

Pre-IPO Xiaocaiyuan International Holding - A "Dark Horse" In Mass Chinese Cuisine Market

Xiaocaiyuan’s supply chain advantage/development direction/strategic positioning is favored by capital. In terms of potential/fundamentals,...

Xinyao (Criss) Wang

Green Tea faces uncertain future growth due to competition/changing tastes/operational challenges.Valuation should be between Haidilao and...