Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

A Long & Short Investment Ideas generator for Asian Equities with 10 years experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment thesis. Provides on-the-ground insights in various Asian markets with a sway towards ASEAN. Experienced and survived the Asian Financial Crisis in a family business, as well as the Global Financial Crisis in financial markets where lessons learned. It's all about understanding business drivers and navigating business cycles, which has high applicability in generating investment ideas. 

Investment horizon: Mid to Long term

Asian Insight Provider - Actionable ideas

Yum China: A Solid Business with a Cautious Outlook?

Haidilao (6862): Not a Victim of Swine Flu Thus Still Hot!

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

On the last quarterly earnings, <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> management stated that they have successfully fended off the inflated chicken raw material price as they have around 300 chicken suppliers in China and by launching innovative products that use a less premium part of a chicken.
The Novel Coronavirus outbreak has caused significant disruption to the business, confirmed by the management that more than 30% of the total number of restaurants were closed and the outlets that remained open are significantly impacted by travel restriction, suspended festivities and shortened operating hours as people do not go out as much. 
Despite the Coronavirus crisis, the company's share price has not been that depressed compared to the others such as <a href="https://www.smartkarma.com/entities/xiabuxiabu-catering-mgt-chn-hldgs-co-ltd" target="_blank" data-smartkarma-citation="entities:76:1" rel="noopener">Xiabuxiabu Catering Mgt Chn Hldgs (520 HK)</a> . Therefore it is the right time to short-sell/reduce holdings in Yum China with potential earnings drop of between 39 to 49%.

On the last quarterly earnings, Yum China Holdings, Inc (YUMC US) management stated that they have successfully fended off the inflated chicken raw material price as they have around 300 chicken suppliers in China and by launching innovative products that use a less premium part of a chicken.
The Novel Coronavirus outbreak has caused significant disruption to the business, confirmed by the management that more than 30% of the total number of restaurants were closed and the outlets that remained open are significantly impacted by travel restriction, suspended festivities and shortened operating hours as people do not go out as much. 
Despite the Coronavirus crisis, the company's share price has not been that depressed compared to the others such as Xiabuxiabu Catering Mgt Chn Hldgs (520 HK) . Therefore it is the right time to short-sell/reduce holdings in Yum China with potential earnings drop of between 39 to 49%. 

Yum China Holdings

Yum China (YUMC): Still Yummy?