Equity Analyst

Steve Zhou, CFA

Over 13 years of professional experience covering mainly Asian consumer companies in sell-side and buy-side.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/want-want-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:355:1" rel="noopener">Want Want (151 HK)</a> and <a href="https://www.smartkarma.com/entities/china-mengniu-dairy-co" target="_blank" data-smartkarma-citation="entities:354:1" rel="noopener">China Mengniu Dairy Co (2319 HK)</a> are both fairly liquid names in the China consumer staples sector. </li>
<li>Both companies trade at virtually the same forward PE of 14x.  However, I expect Want Want's near term sales growth to be lower than market expectations.  </li>
<li>The upside risk for Want Want could be its overseas expansion efforts, as overseas sales now account for mid to high-single-digit of sales and grew high-teens yoy in FY1H24. </li>
</ul>



Want Want (151 HK) and China Mengniu Dairy Co (2319 HK) are both fairly liquid names in the China consumer staples sector. 
Both companies trade at virtually the same forward PE of 14x.  However, I expect Want Want's near term sales growth to be lower than market expectations.  
The upside risk for Want Want could be its overseas expansion efforts, as overseas sales now account for mid to high-single-digit of sales and grew high-teens yoy in FY1H24. 


Pair Trade:  Want Want (151 HK) And Mengniu (2319 HK)