by winston » Mon Oct 05, 2015 12:56 pm
not vested
CN: Ajisen (China) (538 HK)
Share Price: HKD3.51
Target Price: HKD3.84
Recommendation: Hold
Rating Change: Deep value, but challenges remain
We lower our FY15-16F EPS by 18%/35% to reflect the on-going SSSG pressure.
D/G to HOLD given strong net cash buffer (c. 50% of market cap) although it lacks catalysts.
Mgmt. hopes upcoming Customer Relationship Management (CRM) platform launch in 2016F will enhance its competitiveness.
Also, it is looking to launch a trial of takeaway-only outlets in 2016F, on top of making existing takeaway services available at more restaurants.
We forecast 4.2% EPS CAGR over FY15-17F.
Stock is trading at 1.1X PBR or 3.2X EV/EBITDA, cheapest among peers.
New TP is pegged to 16X FY16F PER, 1.s.d below historical avg.
Source: Kim Eng
It's all about "how much you made when you were right" & "how little you lost when you were wrong"