Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Capital Markets

My recent visits to Hong Kong 's F&amp;B outlets and chat with managers on the ground indicates that headwinds facing Hong Kong's restaurant operators are not over. 
This piece does not cover Tai Hing's financial metrics in-depth, as they are already covered by fellow insight provider <a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" data-smartkarma-citation="accounts:673" rel="noopener">Zhen Zhou, Toh.</a> Instead, I highlight three structural factors within HK's F&amp;B industry such as staff issues and competition that investors must consider before buying into these businesses.

My recent visits to Hong Kong 's F&amp;B outlets and chat with managers on the ground indicates that headwinds facing Hong Kong's restaurant operators are not over. 
This piece does not cover Tai Hing's financial metrics in-depth, as they are already covered by fellow insight provider Zhen Zhou, Toh. Instead, I highlight three structural factors within HK's F&amp;B industry such as staff issues and competition that investors must consider before buying into these businesses.

Tai Hing Pre-IPO Review: HK Restaurants' Margin Pressure Unlikely To Go Away Soon

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/28097" target="_blank" data-smartkarma-citation="entities:28097:1">Tai Hing (1719303D HK)</a> is looking to raise about US$100m in its upcoming IPO. According to media reports, the company will open its books next week.
Tai Hing is a multi-brand casual dining restaurant with presence in Hong Kong, Mainland China, Macau and Taiwan. Revenue and profit grew at a decent 11.5% and 14% CAGR from FY2016 to FY2018 while margins have been fairly stable.
However, Tai Hing's operating margin has been on a decline for the past three years, dragged by higher staff costs and rent related expenses. The company had also paid out about HK$1bn of dividends over the past three years which is almost the entire amount that the company is supposed to raise in its IPO.

Tai Hing (1719303D HK) is looking to raise about US$100m in its upcoming IPO. According to media reports, the company will open its books next week.
Tai Hing is a multi-brand casual dining restaurant with presence in Hong Kong, Mainland China, Macau and Taiwan. Revenue and profit grew at a decent 11.5% and 14% CAGR from FY2016 to FY2018 while margins have been fairly stable.
However, Tai Hing's operating margin has been on a decline for the past three years, dragged by higher staff costs and rent related expenses. The company had also paid out about HK$1bn of dividends over the past three years which is almost the entire amount that the company is supposed to raise in its IPO.

Tai Hing (太興) Pre-IPO Review - Potentially Appetizing

Hong Kong

Hop Hing Group Holdings Limited is a multi-brand quick service chain restaurant operator, currently under the licenses of "Yoshinoya" and "Dairy Queen" in northern China.

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Hop Hing Group Holdings (47 HK)

Tai Hing Pre-IPO Review: HK Restaurants' Margin Pressure Unlikely To Go Away Soon

My recent visits to Hong Kong 's F&B outlets and chat with managers on the ground indicates that headwinds facing Hong Kong's restaurant...

Valerie Law, CFA

Tai Hing (太興) Pre-IPO Review - Potentially Appetizing

Tai Hing (1719303D HK) is looking to raise about US$100m in its upcoming IPO. According to media reports, the company will open its books next...

Zhen Zhou, Toh

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52-week Range

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