DB:BVI

Stock Analysis Report

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Executive Summary

Tao Heung Holdings Limited, an investment holding company, operates restaurants and bakeries in Hong Kong and Mainland China.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Tao Heung Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.0%

BVI

8.4%

DE Hospitality

4.2%

DE Market


1 Year Return

-42.5%

BVI

-44.1%

DE Hospitality

-4.6%

DE Market

Return vs Industry: BVI exceeded the German Hospitality industry which returned -44.1% over the past year.

Return vs Market: BVI underperformed the German Market which returned -4.6% over the past year.


Shareholder returns

BVIIndustryMarket
7 Day-8.0%8.4%4.2%
30 Day-2.1%6.9%6.6%
90 Day-26.4%-47.0%-12.1%
1 Year-34.0%-42.5%-42.0%-44.1%-3.0%-4.6%
3 Year-44.0%-57.6%-57.7%-63.4%-8.6%-15.7%
5 Year-62.3%-75.1%-58.3%-67.1%-1.5%-14.1%

Price Volatility Vs. Market

How volatile is Tao Heung Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tao Heung Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BVI (€0.09) is trading below our estimate of fair value (€1.36)

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


Price To Earnings Ratio

PE vs Industry: BVI is good value based on its PE Ratio (8x) compared to the Hospitality industry average (21.5x).

PE vs Market: BVI is good value based on its PE Ratio (8x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BVI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BVI is good value based on its PB Ratio (0.6x) compared to the DE Hospitality industry average (1.7x).


Next Steps

Future Growth

How is Tao Heung Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

96.3%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tao Heung Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tao Heung Holdings performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BVI has high quality earnings.

Growing Profit Margin: BVI's current net profit margins (3.2%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: BVI's earnings have declined by -12.1% per year over the past 5 years.

Accelerating Growth: BVI's earnings growth over the past year (7.4%) exceeds its 5-year average (-12.1% per year).

Earnings vs Industry: BVI earnings growth over the past year (7.4%) exceeded the Hospitality industry -36.2%.


Return on Equity

High ROE: BVI's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Tao Heung Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BVI's short term assets (HK$999.2M) exceed its short term liabilities (HK$786.9M).

Long Term Liabilities: BVI's short term assets (HK$999.2M) exceed its long term liabilities (HK$637.1M).


Debt to Equity History and Analysis

Debt Level: BVI's debt to equity ratio (9.4%) is considered satisfactory.

Reducing Debt: BVI's debt to equity ratio has reduced from 10.7% to 9.4% over the past 5 years.

Debt Coverage: BVI's debt is well covered by operating cash flow (450.2%).

Interest Coverage: BVI's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is Tao Heung Holdings's current dividend yield, its reliability and sustainability?

9.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BVI's dividend (9.69%) is higher than the bottom 25% of dividend payers in the German market (1.36%).

High Dividend: BVI's dividend (9.69%) is in the top 25% of dividend payers in the German market (4.18%)


Stability and Growth of Payments

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

Growing Dividend: BVI's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.3%), BVI's payments are 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?

1.6yrs

Average management tenure


CEO

Wai Chung (59yo)

0.50

Tenure

HK$254,000

Compensation

Mr. Wai Ping Chung, JP, BHS, is a Founder of Tao Heung Holdings Limited and serves as its Chairman. Mr. Chung serves as Chief Executive Officer of Tao Heung Holdings Limited since November 19, 2019. Mr. Ch ...


CEO Compensation Analysis

Compensation vs Market: Wai's total compensation ($USD32.75K) is below average for companies of similar size in the German market ($USD422.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wai Chung
Founder0.50yrHK$254.00k40.56% HK$47.8m
Ka Wong
Founder & Executive Director13.17yrsHK$823.00k10.7% HK$12.6m
Chun Chung
Acting Director of Marketing & Business Development and Executive Director0.50yrHK$365.98kno data
Yuen Ho
Chief Officer of Operation- China Division & Executive Director13.17yrsHK$1.48m0.20% HK$232.0k
Wai Leung Chung
Executive Officerno datano datano data
Ming Chung
Founder and Director of Logistic Management - Hong Kong & Mainland Chinano dataHK$271.00k5.59% HK$6.6m
Wing Tsang
CFO & Company Secretaryno datano datano data
Lee Lau
Chief Operations Officer- Hong Kong3.17yrsno datano data
Hiu Li
Director of Human Resourcesno datano datano data
Sai Ying Chan
Consultantno datano data1.2% HK$1.4m

1.6yrs

Average Tenure

58yo

Average Age

Experienced Management: BVI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wai Chung
Founder0.50yrHK$254.00k40.56% HK$47.8m
Ka Wong
Founder & Executive Director13.17yrsHK$823.00k10.7% HK$12.6m
Chun Chung
Acting Director of Marketing & Business Development and Executive Director0.50yrHK$365.98kno data
Yuen Ho
Chief Officer of Operation- China Division & Executive Director13.17yrsHK$1.48m0.20% HK$232.0k
Yue Kwong Chan
Non-Executive Director13.17yrsHK$204.00kno data
Yat Ng
Independent Non-Executive Director13.17yrsHK$204.00kno data
Hing Keung Mak
Independent Non-Executive Director13.17yrsHK$204.00kno data
Chi Chan
Independent Non-Executive Director13.17yrsHK$204.00kno data
Siu Fong
Non-Executive Director13.17yrsHK$204.00k0.018% HK$20.9k

13.2yrs

Average Tenure

61yo

Average Age

Experienced Board: BVI's board of directors are seasoned and experienced ( 13.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BVI 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

Tao Heung Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tao Heung Holdings Limited
  • Ticker: BVI
  • Exchange: DB
  • Founded: 1991
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$996.279m
  • Listing Market Cap: HK$117.918m
  • Shares outstanding: 1.02b
  • Website: https://www.taoheung.com.hk

Number of Employees


Location

  • Tao Heung Holdings Limited
  • No. 18 Dai Fat Street
  • Tai Po Industrial Estate
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
573SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2007
BVIDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007

Biography

Tao Heung Holdings Limited, an investment holding company, operates restaurants and bakeries in Hong Kong and Mainland China. The company engages in the provision of food catering services; and production, sale, and distribution of food products and other items related to restaurant operations; and provision of poultry farm operations. It also produces, slaughters, processes, and sells livestock; produces and retails bakery products; and provides management and promotion, treasury, and human resources support services, as well as trades in food and other operating items to restaurant operations. In addition, the company engages in the property investment activities. It operates restaurants under Tao Heung, Tao Square, Cheers Restaurant, Hak Ka Hut, Pier 88, Chao Inn, Chung’s Cuisine/Chung’s Kitchen, HITEA, Tai Cheong Bakery, One Roast, JOYOUS One CHAO ZHOU CUISINE, Cheers Palace, RingerHut, T CAFÉ 1954, TCT, T.Point, Bakerz 180, and Tao’s Kitchen brands. The company was founded in 1991 and is headquartered in Tai Po, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 07:14
End of Day Share Price2020/05/22 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.