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

Tam Jai International / Equity Capital Markets

<ul>
<li>Hong Kong based rice noodles restaurant chain, <a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (TJI HK)</a> announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap and EV range of HK$ 4.5-5.6bn and HK$ 3.1-3.9bn respectively.</li>
<li>Tam Jai International will raise HK$ 1.1-1.4bn (US$ 145-182m) via issuing 335m new shares. The parent company, Toridoll has also granted underwriters the right to sell up to an additional 50.2m shares as a part of an overallotment option.</li>
<li>The application period ends on Tuesday (28th September 2021) and the shares are expected to start trading on the Hong Kong Stock Exchange from 7th October 2021.</li>
</ul>


Hong Kong based rice noodles restaurant chain, Tam Jai International (TJI HK) announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap and EV range of HK$ 4.5-5.6bn and HK$ 3.1-3.9bn respectively.
Tam Jai International will raise HK$ 1.1-1.4bn (US$ 145-182m) via issuing 335m new shares. The parent company, Toridoll has also granted underwriters the right to sell up to an additional 50.2m shares as a part of an overallotment option.
The application period ends on Tuesday (28th September 2021) and the shares are expected to start trading on the Hong Kong Stock Exchange from 7th October 2021.


Tam Jai International IPO Valuation: Cheaper Than Noodles

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

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.

Shui on Xintiandi / Equity Capital Markets

Shui on Xintiandi is looking to raise up to US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and UBS.Shui on Xintiandi is a leading investor and manager of commercial properties in the PRC. As per Knight Frank, it is one of the largest private commercial property owners and operators in Shanghai by total gross floor area (GFA). As of Jun 2021, the firm had a portfolio of 13 commercial properties which occupied 2m sqm of GFA, and had a combined valuation of RMB53.1bn. Its properties are spread across Shanghai, Wuhan, Nanjing, Foshan and Chongqing, where Shanghai properties accounted for 52.7% and 71.9% of total GFA and valuation, respectively.

Shui on Xintiandi is looking to raise up to US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and UBS.Shui on Xintiandi is a leading investor and manager of commercial properties in the PRC. As per Knight Frank, it is one of the largest private commercial property owners and operators in Shanghai by total gross floor area (GFA). As of Jun 2021, the firm had a portfolio of 13 commercial properties which occupied 2m sqm of GFA, and had a combined valuation of RMB53.1bn. Its properties are spread across Shanghai, Wuhan, Nanjing, Foshan and Chongqing, where Shanghai properties accounted for 52.7% and 71.9% of total GFA and valuation, respectively.

AIM Vaccine is looking to raise US$1bn in its upcoming Hong Kong IPO. The deal is run by Goldman Sachs, CICC, China Securities, and Macquarie. This is a refiling after its filing in July 2021 was rejected by HKEX.AIM Vaccine is a leading vaccine company covering the full value chain from research to manufacturing and commercialisation. As of the latest practicable date (3 Sept 2021), it had commercialised eight vaccine products against six disease areas. It also has 23 vaccine candidates against 13 disease areas. The firm has four Licensed Manufacturing Facilities in Rong’an Bio, AIM Hanxin, AIM Kanghuai and AIM Weixin, and a total designed annual production capacity of 91.3m doses.

AIM Vaccine is looking to raise US$1bn in its upcoming Hong Kong IPO. The deal is run by Goldman Sachs, CICC, China Securities, and Macquarie. This is a refiling after its filing in July 2021 was rejected by HKEX.AIM Vaccine is a leading vaccine company covering the full value chain from research to manufacturing and commercialisation. As of the latest practicable date (3 Sept 2021), it had commercialised eight vaccine products against six disease areas. It also has 23 vaccine candidates against 13 disease areas. The firm has four Licensed Manufacturing Facilities in Rong’an Bio, AIM Hanxin, AIM Kanghuai and AIM Weixin, and a total designed annual production capacity of 91.3m doses.

AIM Vaccine (艾美疫苗) Pre-IPO Tearsheet (Refiled)

Dongguan Rural Commercial Bank / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/dongguan-rural-commercial-bank" target="_blank" data-smartkarma-citation="entities:34248:1" rel="noopener">Dongguan Rural Commercial Bank (DRCOBZ HK)</a> is looking to raise up to US$1.3bn in its Hong Kong IPO. Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. As of the latest practicable date, the bank has 505 outlets, of which 501 are located in Dongguan city, covering all its administrative districts. The remaining four are located in Guangzhou, Zhuhai, Huizhou and Qingyuan, respectively. Over FY18-20, the bank’s loans had expanded at a CAGR of 26.1%. During the period, net interest income and total income grew at 16.5% and 11% CAGR, respectively.However, margin compression remains an overhang and the IPO valuation is at a premium versus peers, suggesting a huge downside risk potential.

Dongguan Rural Commercial Bank (DRCOBZ HK) is looking to raise up to US$1.3bn in its Hong Kong IPO. Dongguan Rural Commercial Bank (DRCB) is the fifth largest rural commercial bank in China by total assets as of Dec 2020, as per China Banking Association in 2021. As of the latest practicable date, the bank has 505 outlets, of which 501 are located in Dongguan city, covering all its administrative districts. The remaining four are located in Guangzhou, Zhuhai, Huizhou and Qingyuan, respectively. Over FY18-20, the bank’s loans had expanded at a CAGR of 26.1%. During the period, net interest income and total income grew at 16.5% and 11% CAGR, respectively.However, margin compression remains an overhang and the IPO valuation is at a premium versus peers, suggesting a huge downside risk potential.

Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap

Event-Driven

TORIDOLL Holdings Corporation / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/toridoll-holdings-corporation" target="_blank" data-smartkarma-citation="entities:8193:1" rel="noopener">TORIDOLL Holdings Corporation (3397 JP)</a> is one of the largest restaurant chains in Japan with over 1,100 restaurants in the domestic market and another 600+ restaurants in overseas markets.</li>
<li>The company’s fully owned subsidiary, Hong Kong based rice noodle chain operator, <a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (TJI HK)</a> is seeking a listing on the Hong Kong stock exchange. Although Tam Jai’s IPO valuation is still unknown, we think the IPO could get a valuation of around HK$ 11.9bn, which is around 76% and 50% of Toridoll’s current market cap and EV respectively.</li>
<li>Based on the estimated valuation of Tam Jai, Toridoll’s domestic business and other overseas restaurant ventures are trading at cheap implied valuation multiples compared to peers, suggesting that there could be an upside upon completion of the Tam Jai International IPO.</li>
</ul>



TORIDOLL Holdings Corporation (3397 JP) is one of the largest restaurant chains in Japan with over 1,100 restaurants in the domestic market and another 600+ restaurants in overseas markets.
The company’s fully owned subsidiary, Hong Kong based rice noodle chain operator, Tam Jai International (TJI HK) is seeking a listing on the Hong Kong stock exchange. Although Tam Jai’s IPO valuation is still unknown, we think the IPO could get a valuation of around HK$ 11.9bn, which is around 76% and 50% of Toridoll’s current market cap and EV respectively.
Based on the estimated valuation of Tam Jai, Toridoll’s domestic business and other overseas restaurant ventures are trading at cheap implied valuation multiples compared to peers, suggesting that there could be an upside upon completion of the Tam Jai International IPO.


Tam Jai International IPO Could Unlock The Value of Toridoll’s Smaller Business Operations

Hong Kong

Regal Hotels International Holdings Limited owns and operates hotels.  The Company also manages and invests in real estate properties as well as invests in and trades financial instruments and marketable securities.  In addition, Regal hotel operates brewery, operates restaurants, and provides travel and florist and wedding services.

Cafe De Coral Holdings Limited, through its subsidiaries, operates quick service restaurants, fast casual dining, institutional catering and specialty restaurant chains, and food manufacturing business.

Fosun Tourism Group operates as a leisure focused integrated tourism group. The Company provides resorts management, tourism destinations development, and other related services. Fosun Tourism Group offers its services worldwide.

Sino Hotels Holdings Limited, through its subsidiaries, operates hotels and clubs.  The Company also invests in securities and provides hotel management services.

China Star Entertainment Limited, through its subsidiaries, principally engaged in the production and distribution of films and television drama series that are based in Chinese dialect. The Company also invests the gaming promotion business, property and hotel investments.

Fairwood Holdings Limited, through its subsidiaries, operates a chain of fast food restaurants.  The Company also invests in properties.

Ajisen (China) Holdings Limited operates a chain of casual restaurants that offers Japanese ramen and Japanese-style dishes in Hong Kong and People's Republic of China.

China Energy Development Holdings Limited, through its subsidiaries, is engaged in the sale of food and beverages in Hong Kong and exploration and production of natural gas in the People's Republic of China (PRC).

China Energy Development Holdings Ltd (228 HK)

Paradise Entertainment Limited is the holding company of a diverse group of companies that engages in casino management, and development, supply and leasing of game machinery and equipment.

Paliburg Holdings Limited owns and manages hotels.  The Company also invests in, manages and develops properties and provides development consultancy, project management, and construction services.  The Company also invests in and trades financial instruments and marketable securities as well as operates brewery.

Hotel Grand Central Limited owns, operates, and manages hotels. The Company also collects rent, develops properties, and provides marketing and support services.

Berjaya Sports Toto Berhad is an investment holding company. The Company through its subsidiaries, operates a non-four-digit betting games, leases computerized lottery equipment, manufactures and distributes computerized lottery systems, and develops property.

Stamford Land Corporation Limited is an investment holding company.  The Company owns and manages hotels and travel agencies.  Stamford Land Corporation also develops and invests in properties.

GENKI SUSHI CO., LTD. operates revolving sushi bar chain "Genki Sushi", "Sushi Ondo", and "Senryo" in the Kanto area.  The Company also operates in the Tohoku area.

Magnum Berhad is a holding company. The Company, through its subsidiary, focuses on the gaming or numbers forecasting lottery business.

Delta Corp Limited a diversified business group having a presence in the entertainment and gaming, real estate business in India and Kenya. The Company's business includes offshore casinos, and real estate consulting & development.

Centurion Corporation Limited owns, develops and manages quality, purpose-built workers accommodation assets in Singapore and Malaysia, and purpose-built student accommodation assets in Singapore, Australia, the United Kingdom (“UK”), the United States (“US”) and South Korea.

Huatian Hotel Group Co., Ltd. operates a five-star hotel in Changsha, Hunan. The Company also provides related food, entertainment, and other services. Through its subsidiaries, Hunan Huatian develops computer software.

Xi'an Tourism Co., Ltd. operates hotels, providing lodging, catering, and travel services.  The Company also operates in petroleum exploration and extraction businesses.

Berjaya Land Berhad is an investment holding company which provides management services. The Company, through its subsidiaries, operates betting, leases computerized lottery equipment, manufactures and distributes computerized lottery systems. Berjaya Land also develops and invests in properties, operates hotels, resorts, and casinos.

Nayuki Holdings Limited operates as a holding compnay. The Company, through its subsidiaries, produces and retails tea and bakery products. Nayuki serves customers in China.

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Nayuki Holdings (2150 HK)

Tam Jai International IPO Valuation: Cheaper Than Noodles

Hong Kong based rice noodles restaurant chain, Tam Jai announced the price range to its IPO at HK$ 3.33-4.17 per share, which implies a market cap...

Oshadhi Kumarasiri

Shui on Xintiandi Pre-IPO Tearsheet

Shui on Xintiandi is looking to raise up to US$500m in its upcoming Hong Kong IPO. The deal will be run by Morgan Stanley and UBS.

Clarence Chu

AIM Vaccine (艾美疫苗) Pre-IPO Tearsheet (Refiled)

AIM Vaccine is looking to raise US$1bn in its upcoming Hong Kong IPO. The deal is run by Goldman Sachs, CICC, China Securities, and Macquarie.

Clarence Chu

Dongguan Rural Commercial Bank IPO - Mind the Valuation Gap

Dongguan Rural Commercial Bank (DRCOBZ HK) is looking to raise up to US$1.3bn in its Hong Kong IPO. It is the fifth largest rural commercial bank...

Clarence Chu

Tam Jai International IPO Could Unlock The Value of Toridoll’s Smaller Business Operations

Tam Jai international currently remains hidden among Toridoll’s businesses. However, if the upcoming IPO fetches around HK$11.9bn valuation,...

Oshadhi Kumarasiri

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