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

Urbem Capital

Quality-first, Business-perspective, Long-term

Thematic (Sector/Industry)

<ul>
<li>Founder-led businesses are supposed to receive more appreciation among investors;</li>
<li>It would be intriguing to explore how Chinese founders and business owners pay themselves, as executive compensation is a significant part of corporate governance, a common weakness among most Chinese public companies;</li>
<li>We examine a pool of selected value-generative, founder-led, Chinese businesses across industries, and market caps to demonstrate the similarity and any dissimilarity.</li>
</ul>


Founder-led businesses are supposed to receive more appreciation among investors;
It would be intriguing to explore how Chinese founders and business owners pay themselves, as executive compensation is a significant part of corporate governance, a common weakness among most Chinese public companies;
We examine a pool of selected value-generative, founder-led, Chinese businesses across industries, and market caps to demonstrate the similarity and any dissimilarity.


<ul>
<li>Warren Buffett's dream business, well exemplified by Berkshire's See's Candies, is the one that can deliver a sizable increase in earnings power through minimal capital reinvested;</li>
<li>The quality above is what exactly is missing among most Chinese companies these days, in our opinion;</li>
<li>Nonetheless, we managed to land on three businesses that share such a rare characteristic.</li>
</ul>


Warren Buffett's dream business, well exemplified by Berkshire's See's Candies, is the one that can deliver a sizable increase in earnings power through minimal capital reinvested;
The quality above is what exactly is missing among most Chinese companies these days, in our opinion;
Nonetheless, we managed to land on three businesses that share such a rare characteristic.


Three Chinese Stocks that Meet Warren Buffett's Definition Of "Dream Business"

<ul class="">
<li>In this episode of "Valuation Check-up," we take a look at another victim group of the pandemic - the restaurants - in China;</li>
<li>Although the restaurant space in China is generally not so investor-friendly, we manage to dig out a few names that have demonstrated an above-average quality;</li>
<li>Again, we would assume the year 2020 to be entirely written off for these businesses and gauge the valuation based on the pre-COVID fundamental level.</li>
</ul>


In this episode of "Valuation Check-up," we take a look at another victim group of the pandemic - the restaurants - in China;
Although the restaurant space in China is generally not so investor-friendly, we manage to dig out a few names that have demonstrated an above-average quality;
Again, we would assume the year 2020 to be entirely written off for these businesses and gauge the valuation based on the pre-COVID fundamental level.


Valuation Check-Up: High-ROIC, Cash-Rich Restaurants in China

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

Equity Bottom-Up

<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

<ul>
<li>I am reluctant to own a restaurant business;</li>
<li>But Snack Empire can be an exceptional hidden gem in this challenging space;</li>
<li>Given the high-quality fundamentals and attractive pricing, the stock can be a decent candidate for multi-bagger collectors.</li>
</ul>


I am reluctant to own a restaurant business;
But Snack Empire can be an exceptional hidden gem in this challenging space;
Given the high-quality fundamentals and attractive pricing, the stock can be a decent candidate for multi-bagger collectors.


Snack Empire: One of The Few Restaurant Businesses That I Would Own

Hong Kong

Tang Palace is an investment holding company primarily engaged in restaurant operations and food production, offering a diverse portfolio of multi-brand dining concepts including Chinese, Japanese, and Malaysian cuisines. The company also provides wedding venue and catering services. It is headquartered in Kowloon, Hong Kong, and was founded in 1992.

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Tang Palace (1181 HK)

How Chinese Founders Pay Themselves

Take a look at how Chinese founders and business owners pay themselves and gauge the soundness of corporate governance among founder-operated and...

Urbem Capital

Three Chinese Stocks that Meet Warren Buffett's Definition Of "Dream Business"

We have developed two primary metrics to gauge the "dream business" quality of business: i.e., the return on retained earnings and the incremental...

Urbem Capital

Valuation Check-Up: High-ROIC, Cash-Rich Restaurants in China

Following our last episode of "Valuation Check-up" related to China's travel industry, we take a look at another victim group of the pandemic - the...

Urbem Capital

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

Snack Empire: One of The Few Restaurant Businesses That I Would Own

Given the high-quality fundamentals and attractive pricing, the stock can be a decent candidate for multi-bagger collectors.

Urbem Capital

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