Analyst

Steve

Experience in both buy and sell-side in Asia.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/china-feihe-ltd" target="_blank" data-smartkarma-citation="entities:24413:1" rel="noopener">China Feihe (6186 HK)</a> saw major derating (from around 20x PE to the current high-single-digit PE) coupled with sizable earnings drop (-28% yoy in 2022/-25% yoy in 1H23) since 2022. </li>
<li>The investment thesis or trade thesis here is a play on the rise of new born babies in 2024, the year of the dragon in China. </li>
<li>The margin of safety here is also high given a 7% forward dividend yield (Feihe has pledged to increase dividend payout ratio going forward).</li>
</ul>



China Feihe (6186 HK) saw major derating (from around 20x PE to the current high-single-digit PE) coupled with sizable earnings drop (-28% yoy in 2022/-25% yoy in 1H23) since 2022. 
The investment thesis or trade thesis here is a play on the rise of new born babies in 2024, the year of the dragon in China. 
The margin of safety here is also high given a 7% forward dividend yield (Feihe has pledged to increase dividend payout ratio going forward).


China Feihe (6186 HK):  Year-Of-The-Dragon Trade