Taste Gourmet and the Game-Changing Joint Venture

A lot has happened since my last update on Taste Gourmet Group Ltd (8371 HK). The stock has been on a tear recently and is up 57% since my first insight, Taste Gourmet - Small Is Beautiful. I will provide some context to this price movement with a few updates:

In this insight, I will cover:

• The game-changing joint venture with the WH Group (288 HK).
• Transfer of Listing to the Main Board.
• Resilient results for FY20 and the recovery in May/June.
• Government Aid

While the stock has recently moved up a lot and trades at 8x PE FY21 earnings (7x ex-cash), there is ample opportunity for it to rerate as it will now undertake a massive expansion in China.