Analyst

Steve

Equity Bottom-Up

<ul>
<li>Yesterday, <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>, the largest hotpot chain in China, announced that the company will introduce franchise model as a new way to support growth. </li>
<li>Haidilao's move into franchising should directly benefit <a href="https://www.smartkarma.com/entities/yihai-international-holding" target="_blank" data-smartkarma-citation="entities:22803:1" rel="noopener">Yihai Int’L Holding (1579 HK)</a>, the affiliate company that supplies hotpot condiments to Haidilao. </li>
<li>Yihai is trading at an inexpensive 12x 2024 PE compared to a historical average of 32x since listing.</li>
</ul>


Yesterday, Haidilao International Holding (6862 HK), the largest hotpot chain in China, announced that the company will introduce franchise model as a new way to support growth. 
Haidilao's move into franchising should directly benefit Yihai Int’L Holding (1579 HK), the affiliate company that supplies hotpot condiments to Haidilao. 
Yihai is trading at an inexpensive 12x 2024 PE compared to a historical average of 32x since listing.


Yihai International (1579 HK):  Beneficiary Of Haidilao's Adoption Of Franchising Model

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 1st.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for CNOOC, Li Auto, Tencent, China Traditional Chinese Medicine Holdings.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of March 1st.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for CNOOC, Li Auto, Tencent, China Traditional Chinese Medicine Holdings.


Hong Kong Connect Flows (Mar 1st): CNOOC, Li Auto, Tencent

APAC IPOs & Placements, Aequitas Research

Ethan Aw

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

Xiaocaiyuan International Holding / Equity Capital Markets

Xiaocaiyuan International Holding (XCY HK)

<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

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Jiumaojiu International / Equity Bottom-Up

<ul><li>Maintain BUY but cut TP (we now assume a stable SSS recovery rate onwards).</li><li>While we think the introduction of the franchise model for Tai Er is positive to JMJ group, a turnaround in operating numbers is more crucial.</li><li>We are still cautious on the catering sector and on JMJ, but we also think the room for a rebound is meaningful.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Maintain BUY but cut TP (we now assume a stable SSS recovery rate onwards).While we think the introduction of the franchise model for Tai Er is positive to JMJ group, a turnaround in operating numbers is more crucial.We are still cautious on the catering sector and on JMJ, but we also think the room for a rebound is meaningful.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Jiumaojiu (9922 HK) – Introduced the Franchise Model for Tai Er

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 19th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight the weekly Hong Kong connect flows for CCB.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of January 19th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight the weekly Hong Kong connect flows for CCB.


China

Jiumaojiu International manages and operates a portfolio of Chinese cuisine restaurant brands, including Tai Er (known for sauerkraut fish), Song Hot Pot, and Jiu Mao Jiu (offering family-oriented food). The company also engages in food processing, central kitchen operations, and delivery services. It was founded in 1995 and is headquartered in Guangzhou, People's Republic of China.

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Jiumaojiu International (9922 HK)

Yihai International (1579 HK): Beneficiary Of Haidilao's Adoption Of Franchising Model

Haidilao International (6862 HK) introduces franchise model to support growth, benefiting Yihai Int’L Holding (1579 HK) with inexpensive valuation.

Steve

Hong Kong Connect Flows (Mar 1st): CNOOC, Li Auto, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for CNOOC, Li Auto, Tencent, China Traditional Chinese Medicine...

Ke Yan, CFA, FRM

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

Jiumaojiu (9922 HK) – Introduced the Franchise Model for Tai Er

Although the bottom is yet to be reached, we may closely monitor and look for it, as the stock’s valuation is cheap now (13x FY24E P/E).

CMB International

Hong Kong Connect Flows (Jan 19th): CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight southbound Hong Kong connect flows for CCB.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Yihai International (1579 HK): Beneficiary Of Haidilao's Adoption Of Franchising Model

​Haidilao International (6862 HK) introduces franchise model to support growth, benefiting Yihai Int’L Holding (1579 HK) with inexpensive valuation.

Steve

Hong Kong Connect Flows (Mar 1st): CNOOC, Li Auto, Tencent

We analyzed southbound Hong Kong connect flows in the past week and highlight flows for CNOOC, Li Auto, Tencent, China Traditional Chinese Medicine...

Ke Yan, CFA, FRM

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

Jiumaojiu (9922 HK) – Introduced the Franchise Model for Tai Er

Although the bottom is yet to be reached, we may closely monitor and look for it, as the stock’s valuation is cheap now (13x FY24E P/E).

CMB International

Hong Kong Connect Flows (Jan 19th): CCB

We analyzed southbound Hong Kong connect flows in the past week and highlight southbound Hong Kong connect flows for CCB.

Ke Yan, CFA, FRM

Haidilao International (6862 HK) introduces franchise model to support growth, benefiting Yihai Int’L Holding (1579 HK) with inexpensive valuation.