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

Smartkarma Webinar | Asia Restaurant Sector: Disrupted

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 Capital Markets

<a href="https://www.smartkarma.com/entities/jiumaojiu-international-holdings" target="_blank" data-smartkarma-citation="entities:28293:1" rel="noopener">Jiumaojiu (9922 HK)</a>, the Southern China-based speciality cuisine restaurant operator, has launched Rmb 2.2 bn (USD 283 mn) IPO that has reportedly been heavily oversubscribed. If so, investors are unlikely to get a sizeable allocation to benefit much from a likely attractive debut pop. IPO's relatively fair pricing/valuation, small size and <a href="https://www.smartkarma.com/entities/jiumaojiu-international-holdings" target="_blank" data-smartkarma-citation="entities:28293:1" rel="noopener">Jiumaojiu (9922 HK)</a> 's brand visibility, as well as high growth plans, could be factors driving investor interest, apart from pent up investor demand for equity issues in a market that didn't offer many options over the past 6 months marked by trade tensions and street protests. However, we do not rate Jiumaojiu's business/operating model highly.From a long term investment perspective, we do not view  <a href="https://www.smartkarma.com/entities/jiumaojiu-international-holdings" target="_blank" data-smartkarma-citation="entities:28293:1" rel="noopener">Jiumaojiu (9922 HK)</a> attractively given it doesn't have a mass popular brand nor a unique offering/operating model or competitive advantage. Its growth strategy appears less convincing given it is mostly hinged on a single brand (- Tai Er, a spicy fish soup restaurant chain), even as its original Jiu Mao Jiu brand's growth has stagnated and the newer pickup store format, Double Eggs, is yet to establish scale-up potential. In the note below we (1) take a quick look at the investment highlights - <a href="https://www.smartkarma.com/entities/jiumaojiu-international-holdings" target="_blank" data-smartkarma-citation="entities:28293:1" rel="noopener">Jiumaojiu (9922 HK)</a>'s expansion plans led near term earnings growth potential vs. investment concerns/risks - lack competitive strengths, strong brands (2) briefly analyze the financials and valuation before we summarise our investment view.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/112/670/original/Jiumaojiu%20IPO%20spec.png?1578276469" class="editor-image img-responsive" data-smartkarma-image-id="112670"></figure><div class="content-caption">Source: SmartKarma</div>

Jiumaojiu (9922 HK), the Southern China-based speciality cuisine restaurant operator, has launched Rmb 2.2 bn (USD 283 mn) IPO that has reportedly been heavily oversubscribed. If so, investors are unlikely to get a sizeable allocation to benefit much from a likely attractive debut pop. IPO's relatively fair pricing/valuation, small size and Jiumaojiu (9922 HK) 's brand visibility, as well as high growth plans, could be factors driving investor interest, apart from pent up investor demand for equity issues in a market that didn't offer many options over the past 6 months marked by trade tensions and street protests. However, we do not rate Jiumaojiu's business/operating model highly.From a long term investment perspective, we do not view  Jiumaojiu (9922 HK) attractively given it doesn't have a mass popular brand nor a unique offering/operating model or competitive advantage. Its growth strategy appears less convincing given it is mostly hinged on a single brand (- Tai Er, a spicy fish soup restaurant chain), even as its original Jiu Mao Jiu brand's growth has stagnated and the newer pickup store format, Double Eggs, is yet to establish scale-up potential. In the note below we (1) take a quick look at the investment highlights - Jiumaojiu (9922 HK)'s expansion plans led near term earnings growth potential vs. investment concerns/risks - lack competitive strengths, strong brands (2) briefly analyze the financials and valuation before we summarise our investment view.Source: SmartKarma

Jiumaojiu: IPO Pricing Is Appetising, but Business Model Is Not