Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

Yum China Secondary Listing: Accelerating EBIT Growth Justifies Elevated Valuation Multiples

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

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> operates world-famous restaurant brands such as KFC, Pizza Hut, Taco Bell and Lavazza and other brands such as Little Sheep, Huang Ji Huang, COFFii &amp; JOY and East Dawning in China. It is the largest restaurant chain in China with more than 10,000 restaurants and US$ 8.8 billion in revenue.There were rumours (from as early as January 2020) about Yum China’s plans of a secondary listing on the Hong Kong stock exchange. Eight months later, the company officially filed for a secondary listing on the Hong Kong stock exchange, becoming the latest New York-traded Chinese company to seek an alternative listing amidst the U.S./China tension.Most of the information on the prospectus (PHIP) filled on the Hong Kong stock exchange has been redacted; however, the Nikkei article <a href="https://asia.nikkei.com/Business/Markets/KFC-operator-Yum-China-heats-up-Hong-Kong-secondary-listing" target="_blank" rel="noopener">KFC operator Yum China heats up Hong Kong secondary listing</a> dated 29th August 2020 states that the company is expected to raise a maximum of $2.5 billion by selling more than 41 million shares.

Yum China Holdings, Inc (YUMC US) operates world-famous restaurant brands such as KFC, Pizza Hut, Taco Bell and Lavazza and other brands such as Little Sheep, Huang Ji Huang, COFFii &amp; JOY and East Dawning in China. It is the largest restaurant chain in China with more than 10,000 restaurants and US$ 8.8 billion in revenue.There were rumours (from as early as January 2020) about Yum China’s plans of a secondary listing on the Hong Kong stock exchange. Eight months later, the company officially filed for a secondary listing on the Hong Kong stock exchange, becoming the latest New York-traded Chinese company to seek an alternative listing amidst the U.S./China tension.Most of the information on the prospectus (PHIP) filled on the Hong Kong stock exchange has been redacted; however, the Nikkei article KFC operator Yum China heats up Hong Kong secondary listing dated 29th August 2020 states that the company is expected to raise a maximum of $2.5 billion by selling more than 41 million shares.

Yum China: A Quick Run Through Fundamentals Before the Secondary Listing