Declared Dividend • May 27
Dividend of CN¥0.40 announced Shareholders will receive a dividend of CN¥0.40. Ex-date: 29th May 2026 Payment date: 29th May 2026 Dividend yield will be 3.5%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (60% cash payout ratio). The dividend has increased by an average of 9.1% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to grow by 29% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • May 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to CN¥15.52. The fair value is estimated to be CN¥19.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.0% over the last 3 years. Earnings per share has declined by 5.3%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 21% in the next 2 years. Reported Earnings • May 01
First quarter 2026 earnings released: EPS: CN¥0.093 (vs CN¥0.09 in 1Q 2025) First quarter 2026 results: EPS: CN¥0.093 (up from CN¥0.09 in 1Q 2025). Revenue: CN¥1.14b (up 8.9% from 1Q 2025). Net income: CN¥52.8m (up 3.4% from 1Q 2025). Profit margin: 4.6% (down from 4.9% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 20% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 02
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥5.87b to CN¥5.71b. EPS estimate also fell from CN¥1.03 per share to CN¥0.89 per share. Net income forecast to grow 4.0% next year vs 20% growth forecast for Hospitality industry in China. Consensus price target broadly unchanged at CN¥18.80. Share price fell 2.7% to CN¥15.51 over the past week. Announcement • Mar 30
Guangzhou Restaurant Group Company Limited to Report Q1, 2026 Results on Apr 29, 2026 Guangzhou Restaurant Group Company Limited announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Mar 26
Guangzhou Restaurant Group Company Limited, Annual General Meeting, Apr 21, 2026 Guangzhou Restaurant Group Company Limited, Annual General Meeting, Apr 21, 2026, at 14:30 China Standard Time. Location: 6F, No. 16, Keyun Road, Tianhe District, Guangzhou, Guangdong China Buy Or Sell Opportunity • Mar 23
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to CN¥15.46. The fair value is estimated to be CN¥19.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.0% over the last 3 years. Earnings per share has declined by 4.7%. Revenue is forecast to grow by 16% in 2 years. Earnings are forecast to grow by 28% in the next 2 years. Reported Earnings • Mar 10
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.86 (down from CN¥0.87 in FY 2024). Revenue: CN¥5.38b (up 5.0% from FY 2024). Net income: CN¥488.0m (down 1.2% from FY 2024). Profit margin: 9.1% (in line with FY 2024). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 7.2%. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 17% per year, which means it is performing significantly worse than earnings. Announcement • Dec 26
Guangzhou Restaurant Group Company Limited to Report Fiscal Year 2025 Results on Mar 27, 2026 Guangzhou Restaurant Group Company Limited announced that they will report fiscal year 2025 results on Mar 27, 2026 Board Change • Dec 12
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Xia Fan was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 31
Third quarter 2025 earnings released: EPS: CN¥0.73 (vs CN¥0.69 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.73 (up from CN¥0.69 in 3Q 2024). Revenue: CN¥2.29b (up 4.7% from 3Q 2024). Net income: CN¥410.3m (up 5.3% from 3Q 2024). Profit margin: 18% (in line with 3Q 2024). Revenue is forecast to grow 9.6% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 10% per year. Announcement • Sep 30
Guangzhou Restaurant Group Company Limited to Report Q3, 2025 Results on Oct 31, 2025 Guangzhou Restaurant Group Company Limited announced that they will report Q3, 2025 results on Oct 31, 2025 Reported Earnings • Aug 25
Second quarter 2025 earnings released: CN¥0.021 loss per share (vs CN¥0.022 loss in 2Q 2024) Second quarter 2025 results: CN¥0.021 loss per share (improved from CN¥0.022 loss in 2Q 2024). Revenue: CN¥945.4m (up 5.1% from 2Q 2024). Net loss: CN¥11.9m (loss narrowed 3.4% from 2Q 2024). Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 11% per year. Announcement • Jun 30
Guangzhou Restaurant Group Company Limited to Report First Half, 2025 Results on Aug 28, 2025 Guangzhou Restaurant Group Company Limited announced that they will report first half, 2025 results on Aug 28, 2025 Declared Dividend • May 23
Dividend of CN¥0.48 announced Dividend of CN¥0.48 is the same as last year. Ex-date: 27th May 2025 Payment date: 27th May 2025 Dividend yield will be 3.0%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is covered by both earnings (58% earnings payout ratio) and cash flows (75% cash payout ratio). The dividend has increased by an average of 9.8% per year over the past 7 years. However, payments have been volatile during that time. EPS is expected to grow by 42% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 30
First quarter 2025 earnings released: EPS: CN¥0.09 (vs CN¥0.12 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.09 (down from CN¥0.12 in 1Q 2024). Revenue: CN¥1.05b (up 3.3% from 1Q 2024). Net income: CN¥51.0m (down 28% from 1Q 2024). Profit margin: 4.9% (down from 7.0% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 11% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • Apr 03
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥5.72b to CN¥5.63b. EPS estimate also fell from CN¥1.08 per share to CN¥0.96 per share. Net income forecast to grow 10% next year vs 35% growth forecast for Hospitality industry in China. Consensus price target up from CN¥18.47 to CN¥18.84. Share price fell 3.3% to CN¥16.02 over the past week. Announcement • Mar 28
Guangzhou Restaurant Group Company Limited to Report Q1, 2025 Results on Apr 29, 2025 Guangzhou Restaurant Group Company Limited announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Mar 28
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: CN¥0.87 (down from CN¥0.97 in FY 2023). Revenue: CN¥5.12b (up 4.6% from FY 2023). Net income: CN¥493.9m (down 10% from FY 2023). Profit margin: 9.6% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.9%. Revenue is forecast to grow 9.9% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 10% per year, which means it is performing significantly worse than earnings. Announcement • Mar 28
Guangzhou Restaurant Group Company Limited, Annual General Meeting, Apr 22, 2025 Guangzhou Restaurant Group Company Limited, Annual General Meeting, Apr 22, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Announcement • Mar 20
Guangzhou Restaurant Group Company Limited (SHSE:603043) announces an Equity Buyback for CNY 143 million worth of its shares. Guangzhou Restaurant Group Company Limited (SHSE:603043) announces a share repurchase program. Under the program, the company will repurchase up to CNY 143 million worth of its shares. The shares will be repurchased at no more than CNY 23 per share. The shares repurchased will be fully used for equity incentives at an appropriate time in the future. The program will be funded using company-owned funds and/or self-funded. The program is valid for 12 months. Announcement • Dec 27
Guangzhou Restaurant Group Company Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 Guangzhou Restaurant Group Company Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 Reported Earnings • Oct 30
Third quarter 2024 earnings released: EPS: CN¥0.69 (vs CN¥0.72 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.69 (down from CN¥0.72 in 3Q 2023). Revenue: CN¥2.19b (up 2.3% from 3Q 2023). Net income: CN¥389.6m (down 5.3% from 3Q 2023). Profit margin: 18% (down from 19% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has fallen by 2% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Buy Or Sell Opportunity • Oct 09
Now 26% undervalued Over the last 90 days, the stock has risen 1.0% to CN¥15.80. The fair value is estimated to be CN¥21.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 35% in the next 2 years. Announcement • Sep 30
Guangzhou Restaurant Group Company Limited to Report Q3, 2024 Results on Oct 30, 2024 Guangzhou Restaurant Group Company Limited announced that they will report Q3, 2024 results on Oct 30, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CN¥15.93, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 19x in the Hospitality industry in China. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥21.05 per share. Price Target Changed • Aug 31
Price target decreased by 14% to CN¥20.12 Down from CN¥23.30, the current price target is an average from 4 analysts. New target price is 35% above last closing price of CN¥14.85. Stock is down 40% over the past year. The company is forecast to post earnings per share of CN¥0.99 for next year compared to CN¥0.97 last year. Reported Earnings • Aug 20
Second quarter 2024 earnings released: CN¥0.026 loss per share (vs CN¥0.019 profit in 2Q 2023) Second quarter 2024 results: CN¥0.026 loss per share (down from CN¥0.019 profit in 2Q 2023). Revenue: CN¥899.5m (up 11% from 2Q 2023). Net loss: CN¥15.0m (down 239% from profit in 2Q 2023). Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jul 24
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 18% to CN¥15.00. The fair value is estimated to be CN¥18.96, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 27% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Announcement • Jun 28
Guangzhou Restaurant Group Company Limited to Report First Half, 2024 Results on Aug 30, 2024 Guangzhou Restaurant Group Company Limited announced that they will report first half, 2024 results on Aug 30, 2024 Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.12 (vs CN¥0.12 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.12 (up from CN¥0.12 in 1Q 2023). Revenue: CN¥1.01b (up 10.0% from 1Q 2023). Net income: CN¥70.8m (up 2.2% from 1Q 2023). Profit margin: 7.0% (down from 7.5% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 02
Price target decreased by 11% to CN¥24.93 Down from CN¥27.88, the current price target is an average from 4 analysts. New target price is 41% above last closing price of CN¥17.74. Stock is down 41% over the past year. The company is forecast to post earnings per share of CN¥1.14 for next year compared to CN¥0.97 last year. Major Estimate Revision • Mar 30
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate fell from CN¥1.37 to CN¥1.21 per share. Revenue forecast steady at CN¥5.63b. Net income forecast to grow 25% next year vs 58% growth forecast for Hospitality industry in China. Consensus price target broadly unchanged at CN¥27.93. Share price fell 2.1% to CN¥17.46 over the past week. Reported Earnings • Mar 12
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.95 (up from CN¥0.92 in FY 2022). Revenue: CN¥4.90b (up 19% from FY 2022). Net income: CN¥541.7m (up 4.1% from FY 2022). Profit margin: 11% (down from 13% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 20% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jan 31
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to CN¥17.35. The fair value is estimated to be CN¥22.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 5.9%. Revenue is forecast to grow by 34% in 2 years. Earnings are forecast to grow by 65% in the next 2 years. Announcement • Dec 30
Guangzhou Restaurant Group Company Limited to Report Fiscal Year 2023 Results on Mar 29, 2024 Guangzhou Restaurant Group Company Limited announced that they will report fiscal year 2023 results on Mar 29, 2024 Price Target Changed • Oct 30
Price target decreased by 9.0% to CN¥30.43 Down from CN¥33.43, the current price target is an average from 4 analysts. New target price is 43% above last closing price of CN¥21.24. Stock is up 4.2% over the past year. The company is forecast to post earnings per share of CN¥1.04 for next year compared to CN¥0.92 last year. Announcement • Sep 30
Guangzhou Restaurant Group Company Limited to Report Q3, 2023 Results on Oct 28, 2023 Guangzhou Restaurant Group Company Limited announced that they will report Q3, 2023 results at 3:00 PM, China Standard Time on Oct 28, 2023 Reported Earnings • Aug 30
Second quarter 2023 earnings released: EPS: CN¥0.019 (vs CN¥0.003 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.019 (up from CN¥0.003 in 2Q 2022). Revenue: CN¥813.6m (up 20% from 2Q 2022). Net income: CN¥10.8m (up 455% from 2Q 2022). Profit margin: 1.3% (up from 0.3% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 15
Second quarter 2023 earnings released: EPS: CN¥0.012 (vs CN¥0.003 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.012 (up from CN¥0.003 in 2Q 2022). Revenue: CN¥825.0m (up 22% from 2Q 2022). Net income: CN¥6.92m (up 256% from 2Q 2022). Profit margin: 0.8% (up from 0.3% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 22% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year whereas the company’s share price has increased by 6% per year. Announcement • Jun 28
Guangzhou Restaurant Group Company Limited to Report First Half, 2023 Results on Aug 30, 2023 Guangzhou Restaurant Group Company Limited announced that they will report first half, 2023 results on Aug 30, 2023 Board Change • May 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Vice Chairman & GM Liping Zhao was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.093 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.12 (up from CN¥0.093 in 1Q 2022). Revenue: CN¥919.9m (up 23% from 1Q 2022). Net income: CN¥69.2m (up 32% from 1Q 2022). Profit margin: 7.5% (up from 7.0% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 29% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year and the company’s share price has also increased by 14% per year. Price Target Changed • Apr 07
Price target increased by 12% to CN¥33.52 Up from CN¥29.82, the current price target is an average from 2 analysts. New target price is 11% above last closing price of CN¥30.20. Stock is up 43% over the past year. Reported Earnings • Mar 06
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.90 (down from CN¥0.99 in FY 2021). Revenue: CN¥4.11b (up 5.8% from FY 2021). Net income: CN¥507.9m (down 8.9% from FY 2021). Profit margin: 12% (down from 14% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 7.9%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 33% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 12% per year. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥29.62, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 39x in the Hospitality industry in China. Total returns to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥16.13 per share. Valuation Update With 7 Day Price Move • Nov 30
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥25.32, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 39x in the Hospitality industry in China. Total returns to shareholders of 26% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥19.85 per share. Price Target Changed • Nov 16
Price target decreased to CN¥28.73 Down from CN¥35.55, the current price target is an average from 2 analysts. New target price is 22% above last closing price of CN¥23.51. Stock is down 3.2% over the past year. The company is forecast to post earnings per share of CN¥1.07 for next year compared to CN¥0.99 last year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 2 non-independent directors. Independent Director ZhaoZhang Shen was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: CN¥0.73 (vs CN¥0.72 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.73 (up from CN¥0.72 in 3Q 2021). Revenue: CN¥1.92b (up 7.4% from 3Q 2021). Net income: CN¥415.8m (up 2.4% from 3Q 2021). Profit margin: 22% (down from 23% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 31% growth forecast for the Hospitality industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • May 02
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.093 (up from CN¥0.084 in 1Q 2021). Revenue: CN¥747.4m (up 12% from 1Q 2021). Net income: CN¥52.5m (up 10% from 1Q 2021). Profit margin: 7.0% (in line with 1Q 2021). Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 21%, compared to a 32% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 27
Price target decreased to CN¥28.35 Down from CN¥35.55, the current price target is an average from 7 analysts. New target price is 21% above last closing price of CN¥23.48. Stock is down 21% over the past year. The company is forecast to post earnings per share of CN¥1.14 for next year compared to CN¥0.99 last year. Reported Earnings • Apr 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.97 (up from CN¥0.82 in FY 2020). Revenue: CN¥3.88b (up 18% from FY 2020). Net income: CN¥549.2m (up 19% from FY 2020). Profit margin: 14% (in line with FY 2020). Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 8.4%. Over the next year, revenue is forecast to grow 16%, compared to a 30% growth forecast for the restaurants industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 07
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 5.0%. The fair value is estimated to be CN¥27.84, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% per annum over the last 3 years. Earnings per share has grown by 14% per annum over the last 3 years. Reported Earnings • Mar 03
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.97 (up from CN¥0.82 in FY 2020). Revenue: CN¥3.88b (up 18% from FY 2020). Net income: CN¥549.2m (up 19% from FY 2020). Profit margin: 14% (in line with FY 2020). Revenue missed analyst estimates by 4.1%. Earnings per share (EPS) also missed analyst estimates by 9.8%. Over the next year, revenue is forecast to grow 24%, compared to a 33% growth forecast for the restaurants industry in China. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 27
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.3%. The fair value is estimated to be CN¥27.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% per annum over the last 3 years. Earnings per share has grown by 9.6% per annum over the last 3 years. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.72 (vs CN¥0.62 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: CN¥1.78b (up 6.0% from 3Q 2020). Net income: CN¥406.2m (up 17% from 3Q 2020). Profit margin: 23% (up from 21% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 9% per year. Price Target Changed • Aug 30
Price target decreased to CN¥25.11 Down from CN¥35.55, the current price target is an average from 6 analysts. New target price is 7.4% above last closing price of CN¥23.39. Stock is down 27% over the past year. Reported Earnings • Aug 27
Second quarter 2021 earnings released: CN¥0.018 loss per share (vs CN¥0.001 loss in 2Q 2020) The company reported a soft second quarter result with increased losses and weaker control over costs, although revenues improved. Second quarter 2021 results: Revenue: CN¥561.9m (up 29% from 2Q 2020). Net loss: CN¥10.1m (loss widened CN¥9.29m from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 7% per year and the company’s share price has also increased by 7% per year. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorated over the past week After last week's 28% share price decline to CN¥27.59, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 22x in the Hospitality industry in China. Total returns to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥32.59 per share. Reported Earnings • Apr 17
Full year 2020 earnings released: EPS CN¥1.15 (vs CN¥0.95 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.29b (up 8.5% from FY 2019). Net income: CN¥463.6m (up 21% from FY 2019). Profit margin: 14% (up from 13% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 27% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Mar 30
Full year 2020 earnings released: EPS CN¥1.15 (vs CN¥0.95 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.30b (up 8.8% from FY 2019). Net income: CN¥464.9m (up 21% from FY 2019). Profit margin: 14% (up from 13% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Feb 26
New 90-day low: CN¥36.40 The company is down 2.0% from its price of CN¥37.01 on 27 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Hospitality industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥21.33 per share. Is New 90 Day High Low • Jan 22
New 90-day high: CN¥42.11 The company is up 25% from its price of CN¥33.62 on 23 October 2020. The Chinese market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is down 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥22.78 per share. Is New 90 Day High Low • Jan 05
New 90-day high: CN¥41.89 The company is up 18% from its price of CN¥35.47 on 30 September 2020. The Chinese market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥23.29 per share. Is New 90 Day High Low • Dec 15
New 90-day high: CN¥40.48 The company is up 3.0% from its price of CN¥39.15 on 15 September 2020. The Chinese market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Hospitality industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥23.35 per share. Reported Earnings • Oct 29
Third quarter earnings released Over the last 12 months the company has reported total profits of CN¥418.7m, up 1.9% from the prior year. Total revenue was CN¥3.27b over the last 12 months, up 12% from the prior year. Is New 90 Day High Low • Oct 23
New 90-day low: CN¥33.62 The company is down 1.0% from its price of CN¥33.98 on 24 July 2020. The Chinese market is up 4.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Hospitality industry, which is down 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CN¥3.82 per share. Announcement • Jul 17
Guangzhou Restaurant Group Company Limited to Report First Half, 2020 Results on Aug 28, 2020 Guangzhou Restaurant Group Company Limited announced that they will report first half, 2020 results on Aug 28, 2020