英文 81页
Fast-food to fine dining

 A 24-hour dining cycle: The restaurant industry is known to be highly competitive, but an
emerging breed is extracting synergies and economies of scale on a different level. Given
limited scope for cost-cutting, chain operators compete to raise table turns by extending
operating hours. This practice virtually creates a 24-hour eating cycle.
 Convenience stores: Despite thin margins and slow growth, convenience stores pose
round-the-clock competition for dining outlets with their high-margin, prepared-food products
in a defensive business.
 Equity opportunities: We expect diners to spend more on eating out, which should benefit
mid-market casual dining outlets the most, as they are affordable for most people. We initiate
coverage on Tao Heung with Outperform and make it our top pick, followed by Café de Coral,
Convenience Retail Asia, Ajisen (China) and Xiao Nan Guo. Our order of preference is
dictated by a combination of these factors: growth, valuation and our proprietary scorecard.


Contents
Executive summary 3
A 24-hour dining cycle 4
Valuations 19
Annex 1: Porter analysis 22
Annex 2: Demographics and behavioural trends 24
Annex 3: Framework and scorecard 26
Companies
Ajisen (China) Holdings 31
Café de Coral Holdings 34
Convenience Retail Asia 37
Tao Heung 40
Xiao Nan Guo Restaurants Holdings 51
An-Shin Food Services 54
Gourmet Master 59
Hop Hing Group Holdings 64
Taiwan FamilyMart 69
Tsui Wah Holdings 74
Disclosures appendix 79