Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector. 

Equity Research experience of over 20 years. Earlier, Analyst for leading Buy and Sell-side institutions, covering markets in ASEAN, India, and North Asia. Expertise spans various sectors - Consumer Discretionary, Media, Textiles, Oil, Gas, and Coal.
Passionate about mindfulness and meditation.

Investment Research - Asia Consumer Sector

Health & Happiness (1112 HK): 2H2020 -Strong Sales Growth in China Calms Daigou Pain. Stock Upside

China's 3-Child Policy Unlikely to Reverse Trend. Child-Care Stocks Can Derate, Prefer Diverse Plays

Health & Happiness (1112 HK): Zesty Paws Acqsn. In Pursuit of Growth. At a Price.

Pet Care Sector in Asia: Saga Has Just Started. Opportunities Galore.

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.

Equity Bottom-Up

Health And Happiness (H&H) / Equity Bottom-Up

In this insight, we discuss H&amp;H's business outlook, valuations, likely near term stock triggers and upcoming Q42020 results. <a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (H&amp;H) (1112 HK)</a> is currently trading at 14X forward (and 16.5X trailing) P/E at one of its lowest valuation levels after sliding 20% from mid-Feb highs. H&amp;H, which owns leading brands in the premium baby nutrition and adult nutrition segments had announced the acquisition of US-based pet food brand Solid Gold in November 2020. As discussed in our Smartkarma Original <a href="https://www.smartkarma.com/insights/pet-care-sector-in-asia-saga-has-just-started-opportunities-galore" target="_blank" data-smartkarma-citation="insights:47000" rel="noopener">Pet Care Sector in Asia: Saga Has Just Started. Opportunities Galore.</a> demand for pet care products is growing at a robust pace in China. H&amp;H's foray into this segment opens up new avenues for future growth.Expect upcoming Q42020 results (to be announced on 23rd March) to give greater clarity on the pace of growth for its core infant milk and the branded adult nutrition segment led by new product launches and expanding reach. The company is also likely to consolidate the recently acquired petcare business while reporting Q4 financials. Re-rating potential exists; Limited stock downside, given the defensive nature of business and inexpensive valuations.

In this insight, we discuss H&amp;H's business outlook, valuations, likely near term stock triggers and upcoming Q42020 results. Health And Happiness (H&amp;H) (1112 HK) is currently trading at 14X forward (and 16.5X trailing) P/E at one of its lowest valuation levels after sliding 20% from mid-Feb highs. H&amp;H, which owns leading brands in the premium baby nutrition and adult nutrition segments had announced the acquisition of US-based pet food brand Solid Gold in November 2020. As discussed in our Smartkarma Original Pet Care Sector in Asia: Saga Has Just Started. Opportunities Galore. demand for pet care products is growing at a robust pace in China. H&amp;H's foray into this segment opens up new avenues for future growth.Expect upcoming Q42020 results (to be announced on 23rd March) to give greater clarity on the pace of growth for its core infant milk and the branded adult nutrition segment led by new product launches and expanding reach. The company is also likely to consolidate the recently acquired petcare business while reporting Q4 financials. Re-rating potential exists; Limited stock downside, given the defensive nature of business and inexpensive valuations.

Health & Happiness (1112 HK): Upside Potential. Pet Care Adds to NutriPower. Q4 Preview.