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CCH Holdings IPO & Valuation Analysis

SIGNIFICANT RED FLAGS — There are several concerning aspects to this IPO that warrant scrutiny.

The IPO Structure: Technically Legitimate, But Questionable

CCH Holdings conducted an IPO on October 3, 2025, offering 1,250,000 shares at $4.00 per share, raising $5 million in gross proceeds. The underwriter Cathay Securities granted a 45-day over-allotment option for an additional 187,500 shares. The shares opened above the IPO price at $5.32 on the first day and have since climbed dramatically to around $11.47 as of December 6, 2025—a +162% return from IPO price.

The Valuation Problem: Massively Disconnected From Reality

Here's where things get genuinely suspicious. Let's examine the numbers:

Financial Foundation (as of December 31, 2024):
• Revenue: $8.92 million (LTM)
• Net Income: $913,401
• Earnings Per Share: $0.03
• Employees: 190

Current Market Valuation (December 6, 2025):
• Market Cap: ~$223.69 million
• P/E Ratio: 1,007.69x
• Price-to-Sales Ratio: 24.8x
• Enterprise Value/EBITDA: 139.5x

To put this in perspective: the company is worth 25x its annual revenue. It would take the company roughly 25 years of all current revenue just to equal its market capitalization—assuming zero expenses.

What Makes This Particularly Sus

1. The Float Explosion
The company went from a private company to having 19.25 million shares outstanding. This means pre-IPO shareholders massively diluted their ownership. If 1.25 million shares were issued at the IPO, approximately 17-18 million shares must have been outstanding before going public, likely through a reverse split or share structure manipulation. This is extremely aggressive.

2. Declining Revenues
Despite the excitement, revenues actually declined 8.79% year-over-year from 2023 to 2024. The company went from $9.78M in revenue (2023) to $8.92M (2024). This is a shrinking business that's somehow worth 10x more than its annual revenue.

3. Microscopic Scale
32 restaurant outlets across Malaysia and a handful of locations in Thailand, Indonesia, and China, with 190 employees. For context, McDonald's has ~40,000 locations. The company generated just $8.92 million in revenue—less than what a typical mid-sized restaurant franchise might generate in a single city.

4. Negative Free Cash Flow
The company had negative free cash flow of -$0.38 million in 2024 and -$0.73 million in 2023. It's burning cash despite being "profitable" on a net income basis.

5. Unrealistic Growth Assumptions
The only way this valuation makes sense is if investors believe the company will achieve extraordinary growth. Yet the company has been declining in revenue and has limited capital ($5M in IPO proceeds, likely ~$4-4.5M after fees) to actually execute on expansion plans.

The Comparable Analysis Problem

A peer comparison reveals the absurdity: El Pollo Loco (a successful restaurant chain) trades at 0.7x price-to-sales. The industry average is around 1x P/S. CCH Holdings trades at 24.8x P/S—roughly 25-35x more expensive than comparable restaurant operators.

How Did This Even Get Listed?

The mechanics are straightforward, the logic is not:

1. Nasdaq Capital Market (Lower Standards): CCHH listed on the Nasdaq Capital Market, not the main Nasdaq exchange. Capital Market has lower listing requirements than the Nasdaq Global Select Market.

2. Small IPO Size: At $5 million, this is a micro-cap IPO with minimal analyst coverage (zero analysts cover it according to some sources). Large institutions typically ignore such small deals, leaving the field open to retail speculation.

3. Legitimate SEC Filing: The company completed a legitimate Form F-1 SEC filing and passed regulatory requirements—which only means the company disclosed material information correctly, not that the valuation makes sense.

4. Cathay Securities as Lead Underwriter: Cathay Securities is a real underwriter but not a major investment bank. Smaller underwriters sometimes take on more speculative deals.

Recent Stock Performance: Speculative Bubble Indicators

The stock has performed extraordinarily since IPO:
• IPO price: $4.00 (October 3, 2025)
• Current price: $11.47 (December 6, 2025)
• Gain: +187% in ~2 months

This dramatic appreciation despite declining fundamentals and microscopic scale is a textbook sign of retail speculation and IPO hype, not fundamental value discovery.

Summary Assessment

✗ SUS FACTORS:
• Valuation is 25-35x disconnected from peer companies in the same industry
• Declining revenues being valued like a growth company
• Negative free cash flow with minimal capital to execute growth
• Massive share dilution suggesting pre-IPO manipulation
• Penny-stock level trading patterns on a Nasdaq-listed company
• Stock appreciation despite shrinking business metrics
• Zero analyst coverage in a market driven by retail speculation

✓ TECHNICALLY LEGITIMATE:
• Proper SEC filings completed
• Real business with real locations and revenue
• Actual operating restaurants generating genuine profits
• Legal underwriter and exchange listing

The Bottom Line: CCH Holdings legitimately conducted an IPO with proper regulatory oversight, but the valuation appears completely disconnected from financial reality. This looks like a classic case where a small Malaysian restaurant chain capitalized on retail FOMO, weak due diligence on a micro-cap listing, and speculative interest in Asian F&B growth stories. The company is profitable, but investors are pricing in growth and scale that may never materialize—and the company doesn't have nearly enough capital to justify its current valuation.

Sources

[1] Chicken Claypot House IPO in Nasdaq - Lowyat Forum https://forum.lowyat.net/topic/5548493
[2] CCH Holdings prices IPO at $4 per share on NASDAQ https://www.investing.com/news/stock-market...q-432SI-4270858
[3] CCH Holdings: CCHH IPO, Consumer Discretionary https://www.renaissancecapital.com/Profile/...CH-Holdings/IPO
[4] CCH Holdings Ltd Closes $5.0M IPO https://www.stocktitan.net/news/CCHH/cch-ho...tskj532a3w.html
[5] CCH Holdings Ltd: CCHH Stock Price Quote & News https://robinhood.com/us/en/stocks/CCHH/
[6] CCH Holdings (CCHH) Statistics & Valuation https://stockanalysis.com/stocks/cchh/statistics/
[7] CCH Holdings (CCHH) Financials - Income Statement https://stockanalysis.com/stocks/cchh/financials/
[8] CCH Holdings Ltd (CCHH) Company Information https://simplywall.st/stocks/us/consumer-se...ngs/information
[9] CCH Holdings Past Earnings Performance https://simplywall.st/stocks/us/consumer-se...h-holdings/past
[10] Malaysian hot pot chain Chicken Pot House submits IPO ... https://longbridge.com/en/news/254947642
[11] CCH HOLDINGS LTD (CCHH) Stock Price, Forecast & ... https://www.chartmill.com/stock/quote/CCHH/profile
[12] CCH Holdings (NasdaqCM:CCHH) Stock Valuation, Peer ... https://simplywall.st/stocks/us/consumer-se...dings/valuation
[13] Buy CCHH Shares | CCH HOLDINGS LTD Stock Price Today https://hellostake.com/au/invest/wall-st/stocks/cchh
[14] CCH Holdings Ltd. https://www.iposcoop.com/ipo/cch-international/
[15] Malaysia-based hotpot chain CCH Holdings files for a $7 ... https://www.renaissancecapital.com/IPO-Cent...-million-US-IPO
[16] Malaysia-based hotpot chain CCH Holdings prices US IPO at ... https://www.renaissancecapital.com/IPO-Cent...-the-low-end-of
[17] CCH Holdings Ltd (CCHH) valuation measures and ... https://sg.finance.yahoo.com/quote/CCHH/key-statistics/
[18] CCH Holdings (CCHH) Stock Price & Overview https://stockanalysis.com/stocks/cchh/
[19] CCH Holdings Ltd (CCHH) IPO https://www.nasdaq.com/market-activity/ipos...=1347082-115114
[20] SIGNATURE TASTY CLAYPOT HOUSE HOLDING SDN BHD https://goldenbullaward.com/winners/my-hall...olding-sdn-bhd/
[21] Chicken Claypot House https://www.sunwaypyramid.com/directory/chi...n-claypot-house
[22] CCH Holdings' IPO: A Strategic Entry into a High-Growth ... https://www.ainvest.com/news/cch-holdings-i...th-market-2510/
[23] Form F-1 https://www.sec.gov/Archives/edgar/data/207...a0245520-05.htm
[24] CCH Holdings Company Profile & Introduction https://www.moomoo.com/stock/CCHH-US/compan...-3FXPhg.1kegj40
[25] CCH Holdings Ltd's U.S. IPO: A Strategic Leap for Global ... https://www.ainvest.com/news/cch-holdings-i...liquidity-2509/
[26] Key Metrics - CCH Holdings Ltd CCHH https://www.morningstar.com/stocks/xnas/cchh/key-metrics
[27] CCH Holdings Ltd (CCHH) valuation measures and ... https://nz.finance.yahoo.com/quote/CCHH/key-statistics/
[28] CCH Holdings Ltd Announces Closing of US$5.0 Million https://www.globenewswire.com/news-release/...c-Offering.html
[29] CCHH Stock Price | CCH Holdings Ltd. Stock Quote (U.S. https://www.marketwatch.com/investing/stock/cchh
[30] CCH Holdings (CCHH) Market Cap & Net Worth https://stockanalysis.com/stocks/cchh/market-cap/
[31] CCHH CCH Holdings Ltd Stock Analysis: 3 Scenarios After ... https://www.youtube.com/watch?v=C1E2MSSzyww
[32] CCHH Stock Price and Chart https://www.tradingview.com/symbols/NASDAQ-CCHH/
[33] CCH Holdings LTD Rings the Closing Bell https://www.nasdaq.com/events/cch-holdings-...gs-closing-bell
[34] CCH Holdings (CCHH) Stock price today - quote & chart https://www.kraken.com/stocks/cchh

This post has been edited by DogeGamingPRO: Yesterday, 07:27 PM

Chicken claypot sedapp

Ya la tat one lo..

the gaibou got biz one meh?
went to ss2 branch during dinner time only got 2 tables including mine

Traitor who does not support Bursa

all in

This PRC film shows how IPO can be done in a shady manner:

Business in Malaysia only but trading in US.

GRAB also like that but they are international companies …

listed in US is easy if you have money, there are alot of shell companies for sales … buy then can get listed without going thru the long winding processes…

But this small company is highly suspicious to take this path .. they could be anticipating some money flowing from elsewhere and to facilitate some transactions …

manyak mahal

baik makan local steamboat

If IPO in Bursa, apa jadi?

nasdaq requirement so easy to list meh...

1. Nasdaq Capital Market (Lower Standards): CCHH listed on the Nasdaq Capital Market, not the main Nasdaq exchange. Capital Market has lower listing requirements than the Nasdaq Global Select Market.

2. Small IPO Size: At $5 million, this is a micro-cap IPO with minimal analyst coverage (zero analysts cover it according to some sources). Large institutions typically ignore such small deals, leaving the field open to retail speculation.

Deswai only genting highland branch ok only.
Tat mid valley one i also doubt abit probably tahan till ipo, then next will bungkus la