Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

Equity Bottom-Up

<ul>
<li>We tend to shy away from the restaurant industry but decided to make an exception for Tam Jai;</li>
<li>The brand has become a household name in Hong Kong and delivers attractive business economics for owners from its home market;</li>
<li>However, we see multiple red/yellow flags when it comes to the management's capital allocation, particularly relating to overseas expansion.</li>
</ul>


We tend to shy away from the restaurant industry but decided to make an exception for Tam Jai;
The brand has become a household name in Hong Kong and delivers attractive business economics for owners from its home market;
However, we see multiple red/yellow flags when it comes to the management's capital allocation, particularly relating to overseas expansion.


Tam Jai International: High-Quality Assets, Low-Quality Capital Allocation

Value Investing

Vladimir Dimitrov, CFA

<ul>
<li>Keurig Dr Pepper share price has been under pressure over the recent months due to higher than expected drop in profitability.</li>
<li>Beverage segments, however, continue to perform well and would most likely offset weaknesses in coffee.</li>
<li>Investors should not expect a quick rebound in the company's free cash flow.</li>
</ul>


Keurig Dr Pepper share price has been under pressure over the recent months due to higher than expected drop in profitability.
Beverage segments, however, continue to perform well and would most likely offset weaknesses in coffee.
Investors should not expect a quick rebound in the company's free cash flow.


Keurig Dr Pepper: The Recent Share Price Drop Might Not Last For Long

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Weilong Delicious / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/weilong-delicious-global-holdings-ltd" target="_blank" data-smartkarma-citation="entities:33378:1" rel="noopener">Weilong Delicious Global (9985 HK)</a> has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.</li>
<li>The company's HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.</li>
<li>Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.</li>
</ul>



Weilong Delicious Global (9985 HK) has priced its IPO at HK$10.56 per share, slightly above the bottom of the IPO price range of HK$10.4-11.4 per share.
The company's HK offering was oversubscribed by 10.53x while the international offering was oversubscribed by 2.6x.
Even at the above price, Weilong’s IPO is still at a significant premium to domestic as well as international peers.


Weilong Delicious IPO: Thoughts on First Day Trading

<ul>
<li>Weilong Delicious has downsized its IPO to raise around HK$942m (US$121.3m). The company also has the flexibility to set its IPO price at a 10% discount to the bottom.</li>
<li>The company’s top line growth has slowed down in 1H2022 and margins have been under pressure with increased S&amp;M spending to further penetrate into online channels.</li>
<li>Weilong’s IPO is priced at a significant premium to domestic as well as multinational peers which do not justify the growth prospects.</li>
</ul>


Weilong Delicious has downsized its IPO to raise around HK$942m (US$121.3m). The company also has the flexibility to set its IPO price at a 10% discount to the bottom.
The company’s top line growth has slowed down in 1H2022 and margins have been under pressure with increased S&amp;M spending to further penetrate into online channels.
Weilong’s IPO is priced at a significant premium to domestic as well as multinational peers which do not justify the growth prospects.


Weilong Delicious IPO: Peer Comparison and Valuation

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, 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.

Event-Driven

<ul>
<li>In Nov 2021, Sapphire Foods Limited (SFL), one of Yum Brand’s franchisees in the Indian subcontinent, raised around US$280m in its Indian IPO. </li>
<li>The lock-up on its shareholders will expire soon, with a number of PE funds on its register</li>
<li>In this note, we will talk about the upcoming lockup expiry.</li>
</ul>


In Nov 2021, Sapphire Foods Limited (SFL), one of Yum Brand’s franchisees in the Indian subcontinent, raised around US$280m in its Indian IPO. 
The lock-up on its shareholders will expire soon, with a number of PE funds on its register
In this note, we will talk about the upcoming lockup expiry.


Sapphire Foods IPO - Smallish Stock with Big (US$550m) Multiple PE Lockup Expiry

United States

PepsiCo, Inc. operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets and sells a variety of grain-based snacks, carbonated and non-carbonated beverages and foods in countries throughout the world.

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Pepsico Inc (PEP US)

Tam Jai International: High-Quality Assets, Low-Quality Capital Allocation

We would have to stay on the sidelines for now but would revisit the investment thesis in case of a drastic shift in the management's capital...

Urbem Capital

Weilong Delicious IPO: Thoughts on First Day Trading

Weilong has set its final IPO price at HK$10.56 per share , which is close to the bottom end of the IPO price range. Still the company's IPO is...

Shifara Samsudeen, FCMA, CGMA

Weilong Delicious IPO: Peer Comparison and Valuation

Weilong's IPO is now downsized to US$121.3m from US$500m earlier. The company's IPO is priced at a huge premium to domestic as well as...

Shifara Samsudeen, FCMA, CGMA

Sapphire Foods IPO - Smallish Stock with Big (US$550m) Multiple PE Lockup Expiry

In Nov 2021, Sapphire Foods Limited, one of Yum Brand’s franchisees in the Indian subcontinent, raised around US$280m in its Indian IPO. In this...

Sumeet Singh

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