DB:AJN

Stock Analysis Report

Ajisen (China) Holdings

Executive Summary

Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People’s Republic of China and Hong Kong Special Administrative Region.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Ajisen (China) Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AJN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

AJN

-4.8%

DE Hospitality

-0.9%

DE Market


1 Year Return

-3.7%

AJN

3.3%

DE Hospitality

12.8%

DE Market

Return vs Industry: AJN underperformed the German Hospitality industry which returned 3.3% over the past year.

Return vs Market: AJN underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

AJNIndustryMarket
7 Day-4.1%-4.8%-0.9%
30 Day-15.8%1.4%0.6%
90 Day-4.1%-14.7%2.9%
1 Year1.6%-3.7%7.8%3.3%16.3%12.8%
3 Year-25.8%-33.9%-9.6%-22.0%15.8%5.7%
5 Year-45.3%-56.0%-12.3%-30.9%19.7%3.3%

Price Volatility Vs. Market

How volatile is Ajisen (China) Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ajisen (China) Holdings undervalued compared to its fair value and its price relative to the market?

37.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AJN (€0.23) is trading below our estimate of fair value (€0.37)

Significantly Below Fair Value: AJN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AJN is good value based on its PE Ratio (3.9x) compared to the Hospitality industry average (25.5x).

PE vs Market: AJN is good value based on its PE Ratio (3.9x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: AJN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AJN is good value based on its PB Ratio (0.6x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Ajisen (China) Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-70.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJN's earnings are forecast to decline over the next 3 years (-70.7% per year).

Earnings vs Market: AJN's earnings are forecast to decline over the next 3 years (-70.7% per year).

High Growth Earnings: AJN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AJN's revenue (6.5% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: AJN's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AJN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ajisen (China) Holdings performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJN has high quality earnings.

Growing Profit Margin: AJN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AJN's earnings have declined by -8% per year over the past 5 years.

Accelerating Growth: AJN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AJN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (-36.8%).


Return on Equity

High ROE: AJN's Return on Equity (16%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ajisen (China) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AJN's short term assets (CN¥2.1B) exceed its short term liabilities (CN¥866.1M).

Long Term Liabilities: AJN's short term assets (CN¥2.1B) exceed its long term liabilities (CN¥653.8M).


Debt to Equity History and Analysis

Debt Level: AJN's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: AJN's debt to equity ratio has increased from 5.6% to 7.4% over the past 5 years.

Debt Coverage: AJN's debt is well covered by operating cash flow (172%).

Interest Coverage: AJN's interest payments on its debt are well covered by EBIT (84.8x coverage).


Balance Sheet

Inventory Level: AJN has a high level of physical assets or inventory.

Debt Coverage by Assets: AJN's debt is covered by short term assets (assets are 8.6x debt).


Next Steps

Dividend

What is Ajisen (China) Holdings's current dividend yield, its reliability and sustainability?

6.52%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%1.3%markettop25%3.6%industryaverage5.4%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: AJN's dividend (6.52%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: AJN's dividend (6.52%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: AJN's dividend payments have been volatile in the past 10 years.

Growing Dividend: AJN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), AJN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Wai Poon (63yo)

CN¥1,891,000

Compensation

Ms. Wai Poon is the Founder of Ajisen China Holdings Ltd. and serves as its Chief Executive Officer. Ms. Poon is responsible for the overall management, major decision-making, strategic planning, developme ...


CEO Compensation Analysis

Compensation vs Market: Wai's total compensation ($USD269.04K) is below average for companies of similar size in the German market ($USD616.99K).

Compensation vs Earnings: Wai's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wai Poon
Founder0yrsCN¥1.89m3.56% CN¥9.4m
Ka Man Poon
Chief Marketing Officer & Executive Director12.9yrsCN¥833.00k0.23% CN¥602.9k
Richard Liu
Investors Relation Officer0yrsno datano data
Shu Jianqun
VP - HR Management7.8yrsno datano data
Minna Ng
Executive Director0.5yrsno data0.26% CN¥672.3k
Sau Mei Ng
Company Secretary2.8yrsno datano data
Harker Hao
Senior Investor Relations Specialist0yrsno datano data

2.8yrs

Average Tenure

57yo

Average Age

Experienced Management: AJN's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wai Poon
Founder0yrsCN¥1.89m3.56% CN¥9.4m
Ka Man Poon
Chief Marketing Officer & Executive Director12.9yrsCN¥833.00k0.23% CN¥602.9k
Minna Ng
Executive Director0.5yrsno data0.26% CN¥672.3k
Peter Lo
Independent Non Executive Director12.9yrsCN¥174.00k0.0069% CN¥18.1k
Shek Voon Jen
Independent Non Executive Director12.9yrsCN¥174.00k0.0087% CN¥22.9k
Jincheng Wang
Independent Non Executive Director11.4yrsCN¥174.00kno data
Katsuaki Shigemitsu
Non Executive Director12.9yrsCN¥108.00k1.99% CN¥5.3m

12.9yrs

Average Tenure

63yo

Average Age

Experienced Board: AJN's board of directors are seasoned and experienced ( 12.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ajisen (China) Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ajisen (China) Holdings Limited
  • Ticker: AJN
  • Exchange: DB
  • Founded: 1996
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$2.227b
  • Listing Market Cap: HK$263.227m
  • Shares outstanding: 1.09b
  • Website: https://www.ajisen.com.cn

Number of Employees


Location

  • Ajisen (China) Holdings Limited
  • Ajisen Group Tower
  • 6th Floor
  • Yau Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
538SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2007
AJNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2007

Biography

Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People’s Republic of China and Hong Kong Special Administrative Region. It operates through Operation of Restaurants; Manufacture and Sales of Noodles and Related Products; and Investment Holding segments. The company’s restaurants primarily offer Japanese ramen and Japanese-style dishes under the Ajisen brand. As of December 31, 2018, it had a retail network of 766 restaurants. It also manufactures and sells packaged noodles and related products; and leases property interests. In addition, the company trades in noodles; and a food processing center. The company was founded in 1996 and is headquartered in Yau Tong, Hong Kong. Ajisen (China) Holdings Limited is a subsidiary of Favour Choice Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:22
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.