IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Yum China Holdings  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China Holdings, Inc (YUMC US)</a> has launched a $2.5 billion secondary listing in Hong Kong. <a href="https://www.smartkarma.com/profiles/rickin-thakrar" target="_blank" data-smartkarma-citation="accounts:1486" rel="noopener">Rickin Thakrar</a> has outlined his views on Yum China’s fundamentals and valuation in <a href="https://www.smartkarma.com/insights/yum-china-secondary-listing-do-the-fundamentals-stack-up-post-2q20-earnings" target="_blank" data-smartkarma-citation="insights:42814" rel="noopener">Yum China Secondary Listing: Do the Fundamentals Stack up Post 2Q20 Earnings?</a>. The H shares will be priced on Friday and are scheduled for listing on 10 September.  Like <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, Hong Kong will be a meaningful trading venue for <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings Inc (9987 HK)</a>, driving conversion demand, in our view. Notably, Alibaba’s HK freefloat shares as a percentage of HK-registered shares have risen at an increasing pace and currently stands at 55.9% (vs 11.1% at listing).<div class="content-highlight">In this note, we examine Yum China’s potential HK-ADS premium/(discount). Yum China will likely price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Yum China pricing its H-shares around a 3.0% discount to its ADSs will be reasonable.</div>

Yum China Holdings, Inc (YUMC US) has launched a $2.5 billion secondary listing in Hong Kong. Rickin Thakrar has outlined his views on Yum China’s fundamentals and valuation in Yum China Secondary Listing: Do the Fundamentals Stack up Post 2Q20 Earnings?. The H shares will be priced on Friday and are scheduled for listing on 10 September.  Like Alibaba Group (BABA US) and JD.com Inc (ADR) (JD US), Hong Kong will be a meaningful trading venue for Yum China Holdings Inc (9987 HK), driving conversion demand, in our view. Notably, Alibaba’s HK freefloat shares as a percentage of HK-registered shares have risen at an increasing pace and currently stands at 55.9% (vs 11.1% at listing).In this note, we examine Yum China’s potential HK-ADS premium/(discount). Yum China will likely price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Yum China pricing its H-shares around a 3.0% discount to its ADSs will be reasonable.

Yum China Secondary Listing: HK-ADS Premium/(Discount) Views

Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings Inc (9987 HK)</a>, the largest restaurant company in China, is set to trade on the Hong Kong stock exchange on September 10th after the ongoing secondary issue is completed. We believe this secondary listing at HK could lead to improved visibility and valuations and also mitigate possible political risks. <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China (YUMC US)</a> has been our preferred stock in the Asia Restaurant investment space; we believe it is well-positioned to ride through the multiple headwinds facing the sector currently.
As detailed in our recent sector report <a href="https://www.smartkarma.com/insights/asia-restaurant-sector-disrupted-opportunities-challenges-ahead-time-to-pivot-persist" target="_blank" data-smartkarma-citation="insights:41346" rel="noopener">Asia Restaurant Sector: Disrupted. Opportunities/Challenges Ahead -Time to Pivot &amp; Persist</a>, established players that are able to pivot and persist during the difficult/shifting operating circumstances stand to benefit both in terms of market share and likely cost advantages from sector consolidation. With its wide network, well-recognized brands, value-for-money positioning, quick/casual dining model and digital/delivery capabilities <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings Inc (9987 HK)</a> is better positioned than most of its peers to recover faster from sector disruptions and consolidation. 
In the detailed note below we update the issue details, analyze post-money valuations, and potential upside from proposed (max) issue price based on a range of target EV/EBITDA. Finally, we share our views on why <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China'</a> is our preferred pick in the Asia restaurant space.

Yum China Holdings Inc (9987 HK), the largest restaurant company in China, is set to trade on the Hong Kong stock exchange on September 10th after the ongoing secondary issue is completed. We believe this secondary listing at HK could lead to improved visibility and valuations and also mitigate possible political risks. Yum China (YUMC US) has been our preferred stock in the Asia Restaurant investment space; we believe it is well-positioned to ride through the multiple headwinds facing the sector currently.
As detailed in our recent sector report Asia Restaurant Sector: Disrupted. Opportunities/Challenges Ahead -Time to Pivot &amp; Persist, established players that are able to pivot and persist during the difficult/shifting operating circumstances stand to benefit both in terms of market share and likely cost advantages from sector consolidation. With its wide network, well-recognized brands, value-for-money positioning, quick/casual dining model and digital/delivery capabilities Yum China Holdings Inc (9987 HK) is better positioned than most of its peers to recover faster from sector disruptions and consolidation. 
In the detailed note below we update the issue details, analyze post-money valuations, and potential upside from proposed (max) issue price based on a range of target EV/EBITDA. Finally, we share our views on why Yum China' is our preferred pick in the Asia restaurant space.

Yum China: HK Listing - Hit Two Birds with One Stone; Bon Appetit

China

Yum China Holdings, Inc. operates chain restaurants. The Company offers pizza, entrees, pasta, rice dishes, appetizers, soups, vegetables, beverages, and desserts. Yum China Holding conducts its business worldwide.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Yum China Holdings (9987 HK)

Yum China Secondary Listing: HK-ADS Premium/(Discount) Views

$yum china has launched a $2.5 billion secondary listing in Hong Kong. Rickin was outlined his views on Yum China’s fundamentals and valuation in...

Arun George

Yum China: HK Listing - Hit Two Birds with One Stone; Bon Appetit

Yum China Holdings Inc (9987 HK), the largest restaurant company in China, is set to trade on the Hong Kong stock exchange on September 10th after...

Devi Subhakesan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)