Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

SOHO China (410 HK): The Tap On The Shoulder

Equity Bottom-Up

<ul>
<li>We have a Negative view of Soho China, despite the stock trading at 0.2x P/B. </li>
<li>The three biggest negative factors for the company include potential write down of assets, CFO being investigated for insider trading, and China's emphasis on zero COVID policy.</li>
<li>Two more significant concerning factors include 0.4 million people in China not able to withdraw their deposits and other large Chinese property developers defaulting on debt.</li>
</ul>


We have a Negative view of Soho China, despite the stock trading at 0.2x P/B. 
The three biggest negative factors for the company include potential write down of assets, CFO being investigated for insider trading, and China's emphasis on zero COVID policy.
Two more significant concerning factors include 0.4 million people in China not able to withdraw their deposits and other large Chinese property developers defaulting on debt.


Will the Chinese Government Rescue Soho China (Potential Write Down of Assets)?