SEHK:1703

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Executive Summary

Palace Banquet Holdings Limited, an investment holding company, operates restaurants in Hong Kong.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1703 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.3%

1703

2.7%

HK Hospitality

9.0%

HK Market


1 Year Return

-19.5%

1703

-14.7%

HK Hospitality

0.2%

HK Market

Return vs Industry: 1703 underperformed the Hong Kong Hospitality industry which returned -13.2% over the past year.

Return vs Market: 1703 underperformed the Hong Kong Market which returned -0.5% over the past year.


Shareholder returns

1703IndustryMarket
7 Day3.3%2.7%9.0%
30 Day1.6%-5.5%8.4%
90 Day-6.1%7.5%12.9%
1 Year-19.5%-19.5%-12.9%-14.7%4.4%0.2%
3 Yearn/a-9.6%-16.7%10.1%-1.8%
5 Yearn/a3.0%-11.5%12.2%-6.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Palace Banquet 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: 1703 (HK$0.31) is trading below our estimate of fair value (HK$0.62)

Significantly Below Fair Value: 1703 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1703 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 1703 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1703's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1703 is overvalued based on its PB Ratio (2.2x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

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

19.4%

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 Palace Banquet 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 Palace Banquet Holdings performed over the past 5 years?

-45.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1703 is currently unprofitable.

Growing Profit Margin: 1703 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1703 is unprofitable, and losses have increased over the past 5 years at a rate of -45.8% per year.

Accelerating Growth: Unable to compare 1703's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1703 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.7%).


Return on Equity

High ROE: 1703 has a negative Return on Equity (-81.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Palace Banquet Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1703's short term assets (HK$183.7M) do not cover its short term liabilities (HK$238.5M).

Long Term Liabilities: 1703's short term assets (HK$183.7M) do not cover its long term liabilities (HK$389.1M).


Debt to Equity History and Analysis

Debt Level: 1703's debt to equity ratio (32.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1703's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1703's debt is well covered by operating cash flow (248.4%).

Interest Coverage: Insufficient data to determine if 1703's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Palace Banquet Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1703's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1703's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1703's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1703's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1703's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Xiao Ping Chen (46yo)

4yrs

Tenure

HK$927,000

Compensation

Ms. Xiao Ping Chen (formerly known as Chen Shu Ping) serves as Chief Executive Officer of Palace Banquet Holdings Limited since July 2006 and has been its Executive Director since June 28, 2018. Ms. Chen j ...


CEO Compensation Analysis

Compensation vs Market: Xiao Ping's total compensation ($USD119.61K) is below average for companies of similar size in the Hong Kong market ($USD228.40K).

Compensation vs Earnings: Xiao Ping's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Shou Ming Chan
Chairman2.08yrsHK$5.08m66.25% HK$202.1m
Xiao Ping Chen
CEO & Executive Director4yrsHK$927.00k2.25% HK$6.9m
Chunlin Qian
Banquet Director & Executive Director2.08yrsHK$795.00k1.5% HK$4.6m
Ting Pong Chan
Head of Human Resources5.25yrsno datano data
Kin Lam Wong
Head Chef10yrsno datano data
Kin Hung To
Head of Dim Sum Division5.92yrsno datano data
Kar Wai Tam
Executive Directorno datano datano data
Chiu Hung Chan
Company Secretary2.08yrsno datano data

5.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 1703's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shou Ming Chan
Chairman2.08yrsHK$5.08m66.25% HK$202.1m
Xiao Ping Chen
CEO & Executive Director4yrsHK$927.00k2.25% HK$6.9m
Chunlin Qian
Banquet Director & Executive Director2.08yrsHK$795.00k1.5% HK$4.6m
Kar Wai Tam
Executive Directorno datano datano data
Kwok Tung Ng
Independent Non-executive Director1.5yrsHK$15.00kno data
Ming Wai Yue
Independent Non-executive Director1.5yrsHK$15.00kno data
Koon Yuen Chan
Independent Non-executive Director1.5yrsHK$15.00kno data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 1703's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

Palace Banquet Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Palace Banquet Holdings Limited
  • Ticker: 1703
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$305.000m
  • Shares outstanding: 1.00b
  • Website: https://www.palace-rest.com.hk

Number of Employees


Location

  • Palace Banquet Holdings Limited
  • Win Century Centre
  • 14th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1703SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2019

Biography

Palace Banquet Holdings Limited, an investment holding company, operates restaurants in Hong Kong. It offers Cantonese dining and banquet services, including wedding banquet services. As of March 31, 2019, it operated 19 Chinese full-service restaurants under the Palace and Royal Courtyard brand names. The company was formerly known as The Palace Holdings Limited and changed its name to Palace Banquet Holdings Limited in October 2018. Palace Banquet Holdings Limited was founded in 2006 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 12:45
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.