Taste Gourmet munching with a vengeance
Where share buybacks reflect a "re-opening" buffet line at their restaurant
Taste Gourmet Group Limited incorporated in 2017 and headquartered in Sheung Wan, Hong Kong operates full-service restaurants and kiosks in Hong Kong and the People’s Republic of China.
It operates 38 restaurants under the Nabe Urawa, Dab-Pa, La’taste, Rakuraku Ramen, Yakiniku Guu, Parkview, Takano Ramen, Moments Together, Sankinn, Tirpse, Urawa, Wasyokuya Yamaichi, Xianghui, and Same Same brands.
Taste Gourmet is a pandemic re-opening bet on restaurants in Hong Kong and China. There is really nothing exceptional about their restaurant business but their recent capital allocation exercise is really something.
It is very rare to see a HKEX listed company being so aggressive in their share buyback exercise (2% bought back within 7 days).
If you look at the daily trading volume before 28th Sep (the start of the share buyback), there is hardly any volume traded.
For 10th October 2022, the volume traded on the exchange is equal to the share buyback amount!
On the operation front, Taste Gourmet had signed up quite a number of new restaurant leases during this pandemic period and is poise to open those restaurant soon.
I am vested in Taste Gourmet and may just choose to sell back the shares to the company during this share buyback exercise.