HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/tao-heung" target="_blank" data-smartkarma-citation="entities:2668:1" rel="noopener">Tao Heung (573 HK)</a>, a Chinese cuisine restaurant operator, has lost significant shop-days in 1H22 due to the pandemic. However, this is behind us and 2H22 outlook is better.</li>
<li>The recovery of Hong Kong operations will be supported by further relaxation of social distancing measures while, for mainland China, business has rebounded following removal of lockdowns.   </li>
<li>Its Chairman has upped his stake, signaling a vote of confidence. The stock's valuations are not expensive, but given low turnover, there will be potential share price volatility.</li>
</ul>



Tao Heung (573 HK), a Chinese cuisine restaurant operator, has lost significant shop-days in 1H22 due to the pandemic. However, this is behind us and 2H22 outlook is better.
The recovery of Hong Kong operations will be supported by further relaxation of social distancing measures while, for mainland China, business has rebounded following removal of lockdowns.   
Its Chairman has upped his stake, signaling a vote of confidence. The stock's valuations are not expensive, but given low turnover, there will be potential share price volatility.


Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

<ul>
<li>HK F&amp;B is set to have a reprieve as dine-in services at catering businesses can now remain open from 6 pm-10 pm ( max seating up to 4 people).</li>
<li>We provide a list of 34 names that will benefit from the removal of restrictions ( some with further catalysts down the road as they are exposed to China)</li>
<li>Our favorite pick remains <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet Group (8371 HK)</a> which we have written about in our insight <a href="https://www.smartkarma.com/insights/taste-gourmet-multibagger-reopening-play" target="_blank" data-smartkarma-citation="insights:67297" rel="noopener">Taste Gourmet: Multibagger Reopening Play</a>.</li>
</ul>


HK F&amp;B is set to have a reprieve as dine-in services at catering businesses can now remain open from 6 pm-10 pm ( max seating up to 4 people).
We provide a list of 34 names that will benefit from the removal of restrictions ( some with further catalysts down the road as they are exposed to China)
Our favorite pick remains Taste Gourmet Group (8371 HK) which we have written about in our insight Taste Gourmet: Multibagger Reopening Play.


A Comprehensive List of Hong Kong F&B Names to Play the Reopening

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Hong Kong's hospitality industry has endured three years of upheaval, first with the democracy protestors in 2019, which slowed inbound, followed by the onset of Covid in early 2020.</li>
<li>Beginning today, 21 April, the Government commenced the relaxation of most social distancing measures, to be eased over three phases.</li>
<li>This evolving dynamic is welcome, yet the progress and recovery for many operators may be gradual.</li>
</ul>


Hong Kong's hospitality industry has endured three years of upheaval, first with the democracy protestors in 2019, which slowed inbound, followed by the onset of Covid in early 2020.
Beginning today, 21 April, the Government commenced the relaxation of most social distancing measures, to be eased over three phases.
This evolving dynamic is welcome, yet the progress and recovery for many operators may be gradual.


Hong Kong F&B: Stock Screening As Social-Distancing Curbs Ease

APAC IPOs & Placements, Aequitas Research

Clarence Chu

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

<ul>
<li>
<a href="https://www.smartkarma.com/entities/green-tea-group" target="_blank" data-smartkarma-citation="entities:34599:1" rel="noopener">Green Tea Group (GT HK)</a> is looking to raise about US$150m in its upcoming Hong Kong IPO. </li>
<li>Green Tea Group is a restaurant chain operator for fusion cuisine in China. </li>
<li>As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.</li>
</ul>



Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. 
Green Tea Group is a restaurant chain operator for fusion cuisine in China. 
As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC.


Green Tea Group Pre-IPO - Growing for the Sake of Growth

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gushengtang-cayman-ltd" target="_blank" data-smartkarma-citation="entities:33503:1" rel="noopener">Gushengtang (GUS HK)</a> is looking to raise US$150m in its Hong Kong IPO.</li>
<li>Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.</li>
<li>As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.</li>
</ul>



Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO.
Gushengtang is a traditional chinese medicine (TCM) healthcare service provider in China. It provides TCM healthcare services and products via its offline medical institutions and online healthcare platforms.
As of the LPD, the firm provided services to customers across 31 provinces via its medical service network, and had 19,203 physicians practicing as of Jun 2021.


Gushengtang Pre-IPO - The Negatives - Small Player in a Fragmented Market

Hong Kong

Tam Jai International is a fast-casual restaurant chain based in Hong Kong, specializing in Yunnan-style rice noodles (mixian) through its "TamJai Yunnan Mixian" and "TamJai SamGor Mixian" brands. The company offers customizable noodle dishes with various soup bases and toppings, and also operates Japanese dining brands Marugame Seimen and Yakiniku Yamagyu under franchise in Hong Kong. It was founded in 1996 and is headquartered in Cheung Sha Wan, Hong Kong.

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Tam Jai International (2217 HK)

Tao Heung (573 HK): Bon Appetit

Tao Heung should have a better 2H22 given recovery of Hong Kong operations as consumer spending improves. Also, mainland China market is not...

Osbert Tang, CFA

A Comprehensive List of Hong Kong F&B Names to Play the Reopening

We list 34 names that will benefit from the easing of dine-in restrictions in Hong Kong. Our favorite pick remains Taste Gourmet Group (8371 HK).

Sameer Taneja

Green Tea Group Pre-IPO - Growing for the Sake of Growth

Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. Green Tea Group is a restaurant chain operator for fusion...

Clarence Chu

Gushengtang Pre-IPO - The Negatives - Small Player in a Fragmented Market

Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO. The firm provides TCM healthcare services and products via its offline...

Clarence Chu

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tao Heung (573 HK): Bon Appetit

Tao Heung should have a better 2H22 given recovery of Hong Kong operations as consumer spending improves. Also, mainland China market is not...

Osbert Tang, CFA

A Comprehensive List of Hong Kong F&B Names to Play the Reopening

We list 34 names that will benefit from the easing of dine-in restrictions in Hong Kong. Our favorite pick remains Taste Gourmet Group (8371 HK).

Sameer Taneja

Hong Kong F&B: Stock Screening As Social-Distancing Curbs Ease

I'm inclined to pursue pure-restaurant outlet/venue companies, as oppsed to those with hotel operations, the latter of which remains highly...

David Blennerhassett

Green Tea Group Pre-IPO - Growing for the Sake of Growth

Green Tea Group (GT HK) is looking to raise about US$150m in its upcoming Hong Kong IPO. Green Tea Group is a restaurant chain operator for fusion...

Clarence Chu

Gushengtang Pre-IPO - The Negatives - Small Player in a Fragmented Market

Gushengtang (GUS HK) is looking to raise US$150m in its Hong Kong IPO. The firm provides TCM healthcare services and products via its offline...

Clarence Chu