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.

Equity Bottom-Up

<ul><li>YTD 2023 performance of XBXB and Cou Cou were far below expectation, evidenced by weak SSS recovery rate and margins.</li><li>Just because of its cheap valuation, we maintain BUY and cut TP to HK$ 4.89, based on 15x FY24E P/E.</li><li>1H23 results inline, but demand is still weak. G</li></ul>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.

YTD 2023 performance of XBXB and Cou Cou were far below expectation, evidenced by weak SSS recovery rate and margins.Just because of its cheap valuation, we maintain BUY and cut TP to HK$ 4.89, based on 15x FY24E P/E.1H23 results inline, but demand is still weak. GContent 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.

Xiabu Xiabu (520 HK) – More Time Is Needed to Reform and Recover

Thematic (Sector/Industry)

<ul><li>Numbers for catering sector did rebound strongly YoY, but since SSS/ table turnover recovery rate were not as good as expected, de-rating was massive in 1H23E.</li><li>After a disappointing 2Q23 plus worrying macro outlook, we downgrade the sector to MARKET-PERFORM as we see more downside in earnings.</li><li>However, as valuation turned more attractive, we can start to accumulate industry leaders. </li></ul>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.

Numbers for catering sector did rebound strongly YoY, but since SSS/ table turnover recovery rate were not as good as expected, de-rating was massive in 1H23E.After a disappointing 2Q23 plus worrying macro outlook, we downgrade the sector to MARKET-PERFORM as we see more downside in earnings.However, as valuation turned more attractive, we can start to accumulate industry leaders. 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.

China Catering Sector – Staying cautious after a disappointing 2Q23E

<ul><li>Impressive recovery vs Feb-Apr 2023, while both consumer and investors sentiment should be boosted, the post holidays purchasing power is still important.</li><li>We find the data points during this 5-1 golden week in 2023 slightly better than expectation and encouraging, esp. after the weakening consumption trend post CNY 2023.</li><li>We are highly delighted to see a surge in recovery rate of domestic tourism volume/ spending during this holiday to 119%/ 101%, which is far better than the 83%/ 51% in Qingming Festival and 89%/ 73% in CNY, according to Ministry of Culture and Tourism/文化和旅游部.</li></ul>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.

Impressive recovery vs Feb-Apr 2023, while both consumer and investors sentiment should be boosted, the post holidays purchasing power is still important.We find the data points during this 5-1 golden week in 2023 slightly better than expectation and encouraging, esp. after the weakening consumption trend post CNY 2023.We are highly delighted to see a surge in recovery rate of domestic tourism volume/ spending during this holiday to 119%/ 101%, which is far better than the 83%/ 51% in Qingming Festival and 89%/ 73% in CNY, according to Ministry of Culture and Tourism/文化和旅游部.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.

China Consumer Sector – A Strong Comeback in 5-1 Golden Week

<ul><li>FY22 results inline but margin improved meaningfully in 2H22.</li><li>Sales declined by 23% YoY to RMB 4.7bn and registered net losses of about RMB350mn, implying a -7.5% NP margin, both are inline with profit warning.</li><li>GP margin was at 61.9% (missed CMBI est. of 62.6%) but it was offset by better-than-expected other income and D&amp;A expenses.</li></ul>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.

FY22 results inline but margin improved meaningfully in 2H22.Sales declined by 23% YoY to RMB 4.7bn and registered net losses of about RMB350mn, implying a -7.5% NP margin, both are inline with profit warning.GP margin was at 61.9% (missed CMBI est. of 62.6%) but it was offset by better-than-expected other income and D&amp;A expenses.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.

Xiabu Xiabu (520 HK) – Both sales and margin recovery are on track

<ul><li>XBXB (520 HK) issued a profit warning and expects its sales to fall by 23% YoY to RMB 4.7bn, around 14%/ 19% lower than BBG/ CMBI est..</li><li>It also forecast net losses to be at about RMB 320mn-340mn in FY22E (vs RMB 280mn in FY21), missing BBG/ CMBI est. of about RMB 190mn.</li><li>Management believed the drag was mainly due to temporary suspension of dine-in services and operating deleverage during the pandemic in FY22E.</li></ul>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.

XBXB (520 HK) issued a profit warning and expects its sales to fall by 23% YoY to RMB 4.7bn, around 14%/ 19% lower than BBG/ CMBI est..It also forecast net losses to be at about RMB 320mn-340mn in FY22E (vs RMB 280mn in FY21), missing BBG/ CMBI est. of about RMB 190mn.Management believed the drag was mainly due to temporary suspension of dine-in services and operating deleverage during the pandemic in FY22E.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.

Xiabu Xiabu Catering (520 HK) – Dragged by 4Q22 but FY23E outlook still bright

China

Xiabuxiabu Catering Management China Holdings Co Ltd  owns and operates a chain of restaurants in China. The company allows customers to choose from a selection of vegetables, meats, and seafood to cook in their own individual hot pot in its restaurants.

Xiabuxiabu Catering (520 HK)

Xiabu Xiabu (520 HK) – More Time Is Needed to Reform and Recover

YTD 2023 performance of XBXB and Cou Cou were far below expectation, evidenced by weak SSS recovery rate and margins. Just because of its cheap...

CMB International

China Catering Sector – Staying cautious after a disappointing 2Q23E

Numbers for catering sector did rebound strongly YoY, but since SSS/ table turnover recovery rate were not as good as expected, de-rating was...

CMB International

China Consumer Sector – A Strong Comeback in 5-1 Golden Week

Impressive recovery vs Feb-Apr 2023, while both consumer and investors sentiment should be boosted, the post holidays purchasing power is still...

CMB International

Xiabu Xiabu (520 HK) – Both sales and margin recovery are on track

Supported by robust XBXB and slightly weak Cou Cou performance YTD 2023, the Company is still on track to achieve its FY23E target in our view.

CMB International

Xiabu Xiabu Catering (520 HK) – Dragged by 4Q22 but FY23E outlook still bright

XBXB (520 HK) issued a profit warning and expects its sales to fall by 23% YoY to RMB 4.7bn, around 14%/ 19% lower than BBG/ CMBI est

CMB International