Xiabuxiabu Catering Management (China) Hldgs Co Ltd Shs Unitary 144A/Reg S

00520: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$3.00	Qjjw	Tjvjdtmy

China Restaurant Sector: Delectable Investment Opportunities Amid Market Correction

Ivan Su

Jan 26, 2024

Following the recent market correction, Chinese restaurant operators are trading at attractive valuations and offer prime buying opportunities for long-term investors. Apart from Haidilao, our coverage—Yum China, Jiumaojiu, and Xiabuxiabu—now sits comfortably in five-star territory. Wide-moat Yum China is our top pick in the sector, which is trading at a considerable 50% discount to our $80 fair value estimate.

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