Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Helens International Holdings / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/helen-s-international-holding" target="_blank" data-smartkarma-citation="entities:34113:1" rel="noopener">Helen's International Holding (9869 HK)</a> is the largest pub chain in China with around 528 pubs across a number of cities in the Eastern part of China. The company intends to raise around US$ 315-347m from the proposed Hong Kong IPO by selling 135m primary shares at an offer price range of HK$ 18.82-20.72 per share.</li>
<li>We think the IPO price range is rather expensive as it indicates a trailing EV/Sales of 21.1-23.2x. Although the growth prospects of Helens International seems excellent, the company may need to increase its revenue by around 6.0-7.0x to even remotely justify its IPO multiple.</li>
</ul>



Helen's International Holding (9869 HK) is the largest pub chain in China with around 528 pubs across a number of cities in the Eastern part of China. The company intends to raise around US$ 315-347m from the proposed Hong Kong IPO by selling 135m primary shares at an offer price range of HK$ 18.82-20.72 per share.
We think the IPO price range is rather expensive as it indicates a trailing EV/Sales of 21.1-23.2x. Although the growth prospects of Helens International seems excellent, the company may need to increase its revenue by around 6.0-7.0x to even remotely justify its IPO multiple.


Helens International Holdings IPO: Valuation Takes The Steam Out of Encouraging Growth Prospects

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<a href="https://www.smartkarma.com/entities/helen-s-international-holding" target="_blank" data-smartkarma-citation="entities:34113:1" rel="noopener">Helen's International Holding (9869 HK)</a> (HIH) is looking to raise up to US$358m in its Hong Kong IPO. Helens International Holdings (HIH) is the operator of a bar chain called “Helen’s”. The company was the largest bar chain in China in 2018 -  March 2021, in terms of the number of bars, according to Frost and Sullivan (F&amp;S).In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.Our previous coverage of the IPO:<ul>
<li>
<a href="https://www.smartkarma.com/insights/helens-intl-pre-ipo-largest-bar-chain-targeted-at-youths" target="_blank" data-smartkarma-citation="insights:56817" rel="noopener">Helens Intl (海伦司国际) Pre-IPO - Largest Bar Chain Targeted at Youths</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/helens-intl-pre-ipo-peer-comparison" target="_blank" data-smartkarma-citation="insights:56939" rel="noopener">Helens Intl (海伦司国际) Pre-IPO - Peer Comparison</a> </li>
</ul>

Helen's International Holding (9869 HK) (HIH) is looking to raise up to US$358m in its Hong Kong IPO. Helens International Holdings (HIH) is the operator of a bar chain called “Helen’s”. The company was the largest bar chain in China in 2018 -  March 2021, in terms of the number of bars, according to Frost and Sullivan (F&amp;S).In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.Our previous coverage of the IPO:

Helens Intl (海伦司国际) Pre-IPO - Largest Bar Chain Targeted at Youths 

Helens Intl (海伦司国际) Pre-IPO - Peer Comparison 


Helens Intl (海伦司国际) IPO - Cheap Drinks, Expensive Valuation

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

There are many reasons to like <a href="https://www.smartkarma.com/entities/vitasoy-intl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2807:1" rel="noopener">Vitasoy Intl Holdings (345 HK)</a> as the go-to consumer stock in Hong Kong with a China expansion as the growth catalyst, healthy product that caters to plenty of Asians particularly those who are lactose intolerant.Like a lot of Hong Kong-originated companies, <a href="https://www.smartkarma.com/entities/vitasoy-intl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2807:1" rel="noopener">Vitasoy Intl Holdings (345 HK)</a> has been expanding its presence in Mainland China due to the sheer population size and Vitasoy has conquered the Hong Kong market. The question is in which market segment they are trying to compete - the plant-based drink or the dairy milk market? Both are filled with innovative competitors and customers who understand that dairy milk has a higher protein and calcium content. As China makes up more than 60% of the business, the performance in China matters more than the stable business in HK. I am less positive about this and there are more downside rather than upside for the time being.

There are many reasons to like Vitasoy Intl Holdings (345 HK) as the go-to consumer stock in Hong Kong with a China expansion as the growth catalyst, healthy product that caters to plenty of Asians particularly those who are lactose intolerant.Like a lot of Hong Kong-originated companies, Vitasoy Intl Holdings (345 HK) has been expanding its presence in Mainland China due to the sheer population size and Vitasoy has conquered the Hong Kong market. The question is in which market segment they are trying to compete - the plant-based drink or the dairy milk market? Both are filled with innovative competitors and customers who understand that dairy milk has a higher protein and calcium content. As China makes up more than 60% of the business, the performance in China matters more than the stable business in HK. I am less positive about this and there are more downside rather than upside for the time being. 

Vitasoy (345): Does the Chinese like Soymilk?

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

Quantitative Analysis

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Geely Automobile Holdings Limited (175 HK), Xiaomi Corporation (1810 HK), Haidilao International Holding Ltd. (6862 HK), as well as outflows from Tencent Holdings Limited (700 HK), and Meituan (3690 HK).

In our weekly HK Connect Flow series, we aim to highlight key stocks and sectors which the mainland investors traded via the southbound Hong Kong Connect, as analyzed by our proprietary data engine.Since the opening of Hong Kong Connect scheme in 2014, southbound Chinese money started to play an increasingly important role in the Hong Kong stock market. In a Hong Kong exchange report released in July 2019, the exchange highlighted that flows from mainland China accounted for 12% of the total trading volume in the market and is ahead of the US investors' 10% and UK investors' 7% share respectively. We split the stocks eligible for the Hong Kong Connect trade into three groups: HSCEI component stocks, stocks with a market capitalization between USD 1 billion and USD 5 billion, and stocks with a market capitalization between USD 500 million and USD 1 billion.In this insight, we will highlight inflows into Geely Automobile Holdings Limited (175 HK), Xiaomi Corporation (1810 HK), Haidilao International Holding Ltd. (6862 HK), as well as outflows from Tencent Holdings Limited (700 HK), and Meituan (3690 HK).

Hong Kong Connect Flows: Geely & Xiaomi Inflows

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Devyani International  / Equity Capital Markets

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a mix of primary and secondary shares. DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a mix of primary and secondary shares. DIL operates a chain of quick service restaurants (QSRs) in India. Its core business is to operate KFC, Pizza Hut and Costa Coffee in India. It operated 655 stores across 155 cities in India, as of Mar 2021. These include 264 KFC stores, 297 Pizza Hut stores and 44 Costa Coffee stores. It also operates stores in Nepal and Nigeria for KFC and Pizza Hut. In addition, it also runs its own brands Vaango, Food Street, Masala Twist, Ile Bar, Amreli, and Ckrussh Juice Bar in India. Yum owns over 4% stake in the company.

Devyani Pre-IPO - Might Not Do Another Burger King India but Should Be Good

China

Haidilao International Holding Ltd. operates Chinese cuisine restaurant brand focusing on hot pot cuisine. The Company provides hot pots, soup bases, dipping sauces, drinks, prepared food, and other products. Haidilao International Holding opens restaurants in Taiwan, Hong Kong, Singapore, South Korea, Japan, and the United States.

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Haidilao International Holding (6862 HK)

Helens International Holdings IPO: Valuation Takes The Steam Out of Encouraging Growth Prospects

Helen’s needs more than an enticing growth story to get investors to back its IPO at these elevated valuation multiples. The company needs to...

Oshadhi Kumarasiri

Helens Intl (海伦司国际) IPO - Cheap Drinks, Expensive Valuation

Helen's International Holding (9869 HK) (HIH) is looking to raise up to US$358m in its Hong Kong IPO. Helens International Holdings (HIH) is the...

Zhen Zhou, Toh

Vitasoy (345): Does the Chinese like Soymilk?

The question is in which market segment they are trying to compete - the plant-based drink or the dairy milk market. Vitasoy may want to be clearer...

Henry Soediarko

Hong Kong Connect Flows: Geely & Xiaomi Inflows

We highlight Hong Kong Connect inflows into Geely Automobile Holdings Limited (175 HK), and Xiaomi Corporation (1810 HK) in the past week.

Ke Yan, CFA, FRM

Devyani Pre-IPO - Might Not Do Another Burger King India but Should Be Good

Devyani International Limited (DIL), Yum Brand’s largest franchisor in India, aims to raise around US$200m via its Indian IPO. The IPO will be a...

Sumeet Singh

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