Table of contents
On a moderate uptrend......................................................................................... 4
President Chain Store (2912 TT); BUY ...........................................13
Investment thesis................................................................................................ 14
Valuation ............................................................................................................ 15
Earnings outlook................................................................................................. 18
The Taiwan CVS industry..................................................................................... 22
7-11 Shanghai provides long-term growth.......................................................... 24
Retail investments in Taiwan ............................................................................... 27
China growth story ahead ................................................................................... 29
Cash rich and a strong balance sheet .................................................................. 30
Company profile ................................................................................................. 32
Investment risks.................................................................................................. 33
Uni-President (1216 TT); BUY .......................................................35
Investment thesis................................................................................................ 36
Valuation ............................................................................................................ 37
Earnings outlook................................................................................................. 39
China F&B industry – growth remains intact ......................................................... 49
Unshakable leadership in Taiwan......................................................................... 52
Cash flow and balance sheet ............................................................................... 53
Company profile ................................................................................................. 55
Investment risks.................................................................................................. 57
FEDS (2903 TT); SELL........................................................... 59
Investment thesis................................................................................................ 60
Valuation ............................................................................................................ 61
Earnings outlook................................................................................................. 64
Taiwan’s department store landscape.................................................................. 69
Growth engine stalls in China.............................................................................. 70
Asset play angle overstated................................................................................. 73
Cash flow and balance sheet ............................................................................... 74
Company profile ................................................................................................. 76
Investment risks.................................................................................................. 78