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>
<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> reported substantial Q1 2023 numbers, with profits coming in at 16 mn HKD up 42 YoY(%) (-65 YoY(%) netting out the subsidies).</li>
<li>Despite losing 21 days in April, this is a solid result as cash levels burgeoned to 95 mn HKD from 65 mn HKD (Mar FY22). </li>
<li>The stock is cheap, trading at 5.1x FY23 PE and a 11.7% dividend yield ( at a 60% payout ratio), making this extremely attractive to own.</li>
</ul>



Taste Gourmet Group (8371 HK) reported substantial Q1 2023 numbers, with profits coming in at 16 mn HKD up 42 YoY(%) (-65 YoY(%) netting out the subsidies).
Despite losing 21 days in April, this is a solid result as cash levels burgeoned to 95 mn HKD from 65 mn HKD (Mar FY22). 
The stock is cheap, trading at 5.1x FY23 PE and a 11.7% dividend yield ( at a 60% payout ratio), making this extremely attractive to own.


Taste Gourmet: Good Q1 2023 In the Bag, Momentum Getting Stronger

<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>
<a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet Group Ltd (8371 HK)</a> represents a great opportunity to capture growth and value.  With 8% net margins, the company outperformed its peers in a depressed environment.</li>
<li>Trading at a 5.8x FY22 PE with 29% of the market capitalization in cash, the company has a significant margin of safety. Reopening could easily result in the stock doubling.</li>
<li>The company paid 0.04 HKD/share of dividend for H1 2022, representing a 9% dividend yield annualized. With seasonally higher earnings, we believe dividends can be higher.</li>
</ul>



Taste Gourmet Group Ltd (8371 HK) represents a great opportunity to capture growth and value.  With 8% net margins, the company outperformed its peers in a depressed environment.
Trading at a 5.8x FY22 PE with 29% of the market capitalization in cash, the company has a significant margin of safety. Reopening could easily result in the stock doubling.
The company paid 0.04 HKD/share of dividend for H1 2022, representing a 9% dividend yield annualized. With seasonally higher earnings, we believe dividends can be higher.


<p><a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet Group Ltd (8371 HK)</a> continued its solid execution in challenging times. With the overhang of dining restrictions past us for the time being, we believe that <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet Group Ltd (8371 HK)</a> presents a fabulous opportunity to invest in. For more details on the company, refer to my past insights:</p><ul>
<li>
<a href="https://www.smartkarma.com/insights/taste-gourmet-small-is-beautiful" target="_blank" data-smartkarma-citation="insights:34128" rel="noopener">Taste Gourmet - Small Is Beautiful</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/taste-gourmet-and-the-game-changing-joint-venture" target="_blank" data-smartkarma-citation="insights:40860" rel="noopener">Taste Gourmet and the Game-Changing Joint Venture</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/taste-gourmet-executing-well-in-a-tough-environment" target="_blank" data-smartkarma-citation="insights:37378" rel="noopener">Taste Gourmet: Executing Well in a Tough Environment</a> </li>
</ul><p>We continue to like the company as it :</p><ol>
<li>Represents a high growth opportunity in the restaurant space with a foray into China.</li>
<li>Cheap on PE with trading at 7.0x PE FY22 and 5.7x FY23. Net Cash of 80 mn HKD representing 18% of market capitalization.</li>
<li>Despite the challenging environment, it increased its dividend from 3 cents to 4 cents. This represents a trailing yield of 3.3%. Adjusted for the listing expenses, the payout ratio is 42.7%. If the company maintains its payout ratio in the 40% range, then stock trades at yields of 5.7%/7% for FY22/23.</li>
</ol>

Taste Gourmet Group Ltd (8371 HK) continued its solid execution in challenging times. With the overhang of dining restrictions past us for the time being, we believe that Taste Gourmet Group Ltd (8371 HK) presents a fabulous opportunity to invest in. For more details on the company, refer to my past insights:

Taste Gourmet - Small Is Beautiful 

Taste Gourmet and the Game-Changing Joint Venture 

Taste Gourmet: Executing Well in a Tough Environment 
We continue to like the company as it :
Represents a high growth opportunity in the restaurant space with a foray into China.
Cheap on PE with trading at 7.0x PE FY22 and 5.7x FY23. Net Cash of 80 mn HKD representing 18% of market capitalization.
Despite the challenging environment, it increased its dividend from 3 cents to 4 cents. This represents a trailing yield of 3.3%. Adjusted for the listing expenses, the payout ratio is 42.7%. If the company maintains its payout ratio in the 40% range, then stock trades at yields of 5.7%/7% for FY22/23.


Taste Gourmet: Solid Execution in Challenging Times

<ul>
<li>We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.</li>
<li>Our top picks: <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>, <a href="https://www.smartkarma.com/entities/water-oasis-group-ltd" target="_blank" data-smartkarma-citation="entities:17348:1" rel="noopener">Water Oasis (1161 HK)</a>, <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet (8371 HK)</a>, <a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a>, and <a href="https://www.smartkarma.com/entities/the-keepers-holdings-inc" target="_blank" data-smartkarma-citation="entities:23003:1" rel="noopener">The Keepers Holdings (KEEPR PM)</a>.</li>
<li>We recently added <a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> to our list of companies under coverage. We believe there are some excellent near-term catalysts in the name. </li>
</ul>


We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
Our top picks: Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and The Keepers Holdings (KEEPR PM).
We recently added Plover Bay Technologies (1523 HK) to our list of companies under coverage. We believe there are some excellent near-term catalysts in the name. 


Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety - January 2024

Hong Kong

Taste Gourmet Group Limited operates as a holding company. The Company, through its subsidiaries, manages a chain of restaurants. Taste Gourmet Group serves clients worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Taste Gourmet (8371 HK)

Taste Gourmet: Good Q1 2023 In the Bag, Momentum Getting Stronger

Taste Gourmet is an HK-based restaurant operator trading at 5.1x FY23e PE with around 25% of the market cap in cash. It is a great recovery play...

Sameer Taneja

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

Taste Gourmet: Great Reopening Play

Taste Gourmet is a restaurant operator trading at 5.8x FY22 PE (4x PE ex-cash) with 29% of the market capitalization cash and a 9% dividend yield....

Sameer Taneja

Taste Gourmet: Solid Execution in Challenging Times

Trading at 7.0xFY22/5.7x FY23 PE with net Cash of 80 mn HKD representing 18% of market capitalization, Taste Gourmet is a great investment with...

Sameer Taneja

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety - January 2024

We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety. We...

Sameer Taneja

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)