Table of contents
Juice: growing, but at a slower rate ......................................................................... 3
SELL Huiyuan........................................................................................................... 5
Comparative valuation ............................................................................................ 6
China juice: growing, but at a slower rate ............................................................... 8
China juice: Not fragmented anymore ................................................................... 12
Margin expansion for leading players.................................................................... 13
Consolidation has just started............................................................................... 16
Risks to the Chinese juice sector........................................................................... 19
Huiyuan Group (1886 HK); SELL........................................................................... 20
Valuation: TP of HK$3.50 ...................................................................................... 21
Earnings and operating outlook ............................................................................ 28
Still an uncertain restructuring plan ...................................................................... 40
Financial weakness................................................................................................ 43
Risks to our investment thesis .............................................................................. 47
Appendix: Company structure............................................................................... 48
Appendix A: Important Disclosures ....................................................................... 50
Yuanta Greater China Equities ............................................................................... 52