SEHK:1181

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Tang Palace (China) Holdings

Executive Summary

Tang Palace (China) Holdings Limited, an investment holding company, engages in the restaurant operation and food production businesses in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1181's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1181

2.7%

HK Hospitality

9.0%

HK Market


1 Year Return

-43.8%

1181

-14.7%

HK Hospitality

0.2%

HK Market

Return vs Industry: 1181 underperformed the Hong Kong Hospitality industry which returned -13.2% over the past year.

Return vs Market: 1181 underperformed the Hong Kong Market which returned -0.5% over the past year.


Shareholder returns

1181IndustryMarket
7 Day0%2.7%9.0%
30 Day-2.7%-5.5%8.4%
90 Day-20.0%7.5%12.9%
1 Year-42.1%-43.8%-12.9%-14.7%4.4%0.2%
3 Year-41.4%-52.5%-9.6%-16.7%10.1%-1.8%
5 Year45.1%0%3.0%-11.5%12.2%-6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tang Palace (China) 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: 1181 (HK$0.72) is trading below our estimate of fair value (HK$3.34)

Significantly Below Fair Value: 1181 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1181 is good value based on its PE Ratio (7.7x) compared to the Hospitality industry average (15.9x).

PE vs Market: 1181 is good value based on its PE Ratio (7.7x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1181's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1181 is overvalued based on its PB Ratio (1.7x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

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

19.4%

Forecasted Consumer Services industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 1181's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if 1181's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1181's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1181's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1181's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1181 has high quality earnings.

Growing Profit Margin: 1181's current net profit margins (6.1%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 1181's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: 1181's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1181 had negative earnings growth (-20.7%) over the past year, making it difficult to compare to the Hospitality industry average (-15.7%).


Return on Equity

High ROE: 1181's Return on Equity (21.6%) is considered high.


Next Steps

Financial Health

How is Tang Palace (China) Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1181's short term assets (CN¥598.3M) exceed its short term liabilities (CN¥475.8M).

Long Term Liabilities: 1181's short term assets (CN¥598.3M) exceed its long term liabilities (CN¥237.8M).


Debt to Equity History and Analysis

Debt Level: 1181's debt to equity ratio (18.6%) is considered satisfactory.

Reducing Debt: 1181's debt to equity ratio has increased from 5.5% to 18.6% over the past 5 years.

Debt Coverage: 1181's debt is well covered by operating cash flow (325.7%).

Interest Coverage: 1181's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet


Next Steps

Dividend

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

4.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1181's dividend (4.72%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1181's dividend (4.72%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.63%).


Stability and Growth of Payments

Stable Dividend: 1181 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1181's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.4%), 1181'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?

9.3yrs

Average board tenure


CEO

Zhi Xiong Chen (49yo)

no data

Tenure

Mr. Zhi Xiong Chen serves as the Chief Executive Officer & Executive Director of Tang Palace (China) Holdings Limited since July 1, 2020. He had been the Chief Operations Officer at Tang Palace (China) Hol ...


Board Members

NamePositionTenureCompensationOwnership
Peihe Weng
Executive Chairmanno dataCN¥6.34m2.78% CN¥21.6m
Hok Chiu Ku
Founder & Executive Director9.33yrsCN¥502.00k9.84% CN¥76.2m
Zhi Xiong Chen
CEO & Executive Directorno datano data0.47% CN¥3.6m
Chung Yeung Wong
CFO, Secretary & Executive Directorno datano data0.092% CN¥712.8k
Chi Keung Kwong
Independent Non-Executive Director9.33yrsCN¥251.00kno data
Ping Man Kwong
Independent Non-Executive Director9.33yrsCN¥251.00kno data
Kin Ting Cheung
Independent Non-Executive Director9.33yrsCN¥251.00kno data

9.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 1181's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 1181 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

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


Key Information

  • Name: Tang Palace (China) Holdings Limited
  • Ticker: 1181
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$774.740m
  • Shares outstanding: 1.08b
  • Website: https://www.tanggong.cn

Number of Employees


Location

  • Tang Palace (China) Holdings Limited
  • Greenfield Tower
  • Unit 3, 10th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1181SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.05HKHKDNo data
1181SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2011

Biography

Tang Palace (China) Holdings Limited, an investment holding company, engages in the restaurant operation and food production businesses in the People’s Republic of China. The company operates restaurants under the Tang Palace Seafood Restaurant, Tang's Cuisine, Tang Palace, Social Place, Canton Tea Room, Ninja Japanese Restaurant, Ninja House Japanese Restaurant, Pepper Lunch, and PappaRich brands. It is also involved in intangible assets holding, as well as retail and wholesale trading activities. As of December 31, 2019, the company operated 59 restaurants. Tang Palace (China) Holdings Limited was founded in 1992 and is headquartered in Kowloon, Hong Kong 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 12:43
End of Day Share Price2020/07/08 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.