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52

Fairwood Holdings SEHK:52 Stock Report

Last Price

HK$9.90

Market Cap

HK$1.3b

7D

-9.8%

1Y

-40.6%

Updated

30 Sep, 2022

Data

Company Financials
52 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends3/6

52 Stock Overview

Fairwood Holdings Limited, an investment holding company, engages in the operation of fast-food restaurants.

Fairwood Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fairwood Holdings
Historical stock prices
Current Share PriceHK$9.90
52 Week HighHK$17.20
52 Week LowHK$9.68
Beta0.49
1 Month Change-23.85%
3 Month Change-30.18%
1 Year Change-40.58%
3 Year Change-53.95%
5 Year Change-68.62%
Change since IPO-40.57%

Recent News & Updates

Sep 09
Fairwood Holdings (HKG:52) Is Reducing Its Dividend To HK$0.40

Fairwood Holdings (HKG:52) Is Reducing Its Dividend To HK$0.40

Fairwood Holdings Limited ( HKG:52 ) is reducing its dividend from last year's comparable payment to HK$0.40 on the 6th...

Shareholder Returns

52HK HospitalityHK Market
7D-9.8%2.4%-5.7%
1Y-40.6%-19.1%-29.1%

Return vs Industry: 52 underperformed the Hong Kong Hospitality industry which returned -19.1% over the past year.

Return vs Market: 52 underperformed the Hong Kong Market which returned -29.1% over the past year.

Price Volatility

Is 52's price volatile compared to industry and market?
52 volatility
52 Average Weekly Movement3.5%
Hospitality Industry Average Movement6.6%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.5%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 52 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 52's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19725,700Francis Lohttps://www.fairwoodholdings.com.hk

Fairwood Holdings Limited, an investment holding company, engages in the operation of fast-food restaurants. The company operates through two segments, Hong Kong Restaurants and Mainland China Restaurants. As of March 31, 2022, it operated 157 stores in Hong Kong, which included 145 fast food restaurants and 12 specialty restaurants under the ASAP, Taiwan Bowl, The Leaf Kitchen, and Kenting Tea House names; and 20 stores in Mainland China.

Fairwood Holdings Fundamentals Summary

How do Fairwood Holdings's earnings and revenue compare to its market cap?
52 fundamental statistics
Market CapHK$1.28b
Earnings (TTM)HK$42.64m
Revenue (TTM)HK$2.88b

30.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
52 income statement (TTM)
RevenueHK$2.88b
Cost of RevenueHK$2.66b
Gross ProfitHK$222.56m
Other ExpensesHK$179.92m
EarningsHK$42.64m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.33
Gross Margin7.72%
Net Profit Margin1.48%
Debt/Equity Ratio0%

How did 52 perform over the long term?

See historical performance and comparison

Dividends

6.6%

Current Dividend Yield

197%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 52 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 52?

Other financial metrics that can be useful for relative valuation.

52 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA12.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 52's PE Ratio compare to its peers?

52 PE Ratio vs Peers
The above table shows the PE ratio for 52 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.5x
6811 Tai Hing Group Holdings
72.2x83.2%HK$995.3m
1978 LH Group
10.3xn/aHK$736.0m
2217 Tam Jai International
13.9x32.1%HK$2.8b
8371 Taste Gourmet Group
13.5xn/aHK$421.6m
52 Fairwood Holdings
30.1xn/aHK$1.3b

Price-To-Earnings vs Peers: 52 is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (27.5x).


Price to Earnings Ratio vs Industry

How does 52's PE Ratio compare vs other companies in the HK Hospitality Industry?

Price-To-Earnings vs Industry: 52 is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the Hong Kong Hospitality industry average (18.9x)


Price to Earnings Ratio vs Fair Ratio

What is 52's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

52 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.1x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 52's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 52 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 52 (HK$9.9) is trading below our estimate of fair value (HK$43.31)

Significantly Below Fair Value: 52 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


65.4%

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 Fairwood 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.


Discover growth companies

  • Examine Fairwood Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Fairwood Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Fairwood Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 52 has a large one-off gain of HK$9.4M impacting its March 31 2022 financial results.

Growing Profit Margin: 52's current net profit margins (1.5%) are lower than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: 52's earnings have declined by 20.5% per year over the past 5 years.

Accelerating Growth: 52's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 52 had negative earnings growth (-72.2%) over the past year, making it difficult to compare to the Hospitality industry average (-29.5%).


Return on Equity

High ROE: 52's Return on Equity (6%) is considered low.


Discover strong past performing companies

Financial Health

How is Fairwood Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 52's short term assets (HK$769.5M) do not cover its short term liabilities (HK$782.3M).

Long Term Liabilities: 52's short term assets (HK$769.5M) do not cover its long term liabilities (HK$840.7M).


Debt to Equity History and Analysis

Debt Level: 52 is debt free.

Reducing Debt: 52 has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.

Debt Coverage: 52 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 52 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.57%

Current Dividend Yield

Dividend Yield vs Market

Fairwood Holdings Dividend Yield vs Market
How does Fairwood Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (Fairwood Holdings)6.6%
Market Bottom 25% (HK)3.0%
Market Top 25% (HK)8.9%
Industry Average (Hospitality)1.0%
Analyst forecast in 3 Years (Fairwood Holdings)n/a

Notable Dividend: 52's dividend (6.57%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.98%).

High Dividend: 52's dividend (6.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.91%).


Stability and Growth of Payments

Stable Dividend: 52's dividend payments have been volatile in the past 10 years.

Growing Dividend: 52's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (197.5%), 52's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.4%), 52's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.9yrs

Average management tenure


CEO

Francis Lo (39 yo)

3.67yrs

Tenure

HK$3,262,000

Compensation

Mr. Fai Shing Lo, also known as Francis, serves as Chief Executive Officer at Fairwood Holdings Limited since April 1, 2020. Mr. Lo has been Executive Director of Fairwood Holdings Limited since January 1,...


CEO Compensation Analysis

Francis Lo's Compensation vs Fairwood Holdings Earnings
How has Francis Lo's remuneration changed compared to Fairwood Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022HK$3mHK$2m

HK$43m

Dec 31 2021n/an/a

HK$92m

Sep 30 2021n/an/a

HK$141m

Jun 30 2021n/an/a

HK$147m

Mar 31 2021HK$3mHK$2m

HK$154m

Dec 31 2020n/an/a

HK$111m

Sep 30 2020n/an/a

HK$69m

Jun 30 2020n/an/a

HK$65m

Mar 31 2020HK$2mHK$973k

HK$61m

Dec 31 2019n/an/a

HK$99m

Sep 30 2019n/an/a

HK$137m

Jun 30 2019n/an/a

HK$158m

Mar 31 2019HK$1mHK$936k

HK$180m

Compensation vs Market: Francis's total compensation ($USD415.55K) is above average for companies of similar size in the Hong Kong market ($USD308.76K).

Compensation vs Earnings: Francis's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 52's management team is seasoned and experienced (6.9 years average tenure).


Board Members

Experienced Board: 52's board of directors are seasoned and experienced ( 17.5 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.


Ownership Breakdown

What is the ownership structure of 52?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,691,0001.3%
Institutions14,451,72611.2%
Private Companies48,775,38437.6%
General Public64,634,67049.9%

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


Top Shareholders

Top 15 shareholders own 50.11% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
37.65%
Neblett Investments Limited
48,775,384HK$482.9m0%no data
5.14%
HSBC Global Asset Management (UK) Limited
6,660,000HK$65.9m-0.05%0.01%
4.31%
First Sentier Investors (Australia) IM Ltd
5,583,931HK$55.3m0%0.02%
1.1%
Dimensional Fund Advisors LP
1,421,709HK$14.1m-0.08%no data
0.91%
Yee Mei Mak
1,180,000HK$11.7m0%no data
0.33%
GAM Holding AG
431,500HK$4.3m0%0.01%
0.31%
Peggy Lee
402,000HK$4.0m0%no data
0.13%
State Street Global Advisors, Inc.
173,000HK$1.7m1.17%no data
0.084%
Hoi Yeung Lo
109,000HK$1.1m0%no data
0.084%
FMR LLC
108,586HK$1.1m-0.55%no data
0.026%
AXA Investment Managers S.A.
33,500HK$331.7k0%no data
0.016%
Acadian Asset Management LLC
20,500HK$203.0k0%no data
0.01%
CornerCap Investment Counsel, Inc.
13,500HK$133.7k0%no data
0.0027%
Allard Partners Limited
3,500HK$34.7k0%0.07%
0.0015%
American Century Investment Management Inc
2,000HK$19.8k0%no data

Company Information

Fairwood Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Fairwood Holdings Limited
  • Ticker: 52
  • Exchange: SEHK
  • Founded: 1972
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: HK$1.283b
  • Shares outstanding: 129.55m
  • Website: https://www.fairwoodholdings.com.hk

Number of Employees


Location

  • Fairwood Holdings Limited
  • TRP Commercial Centre
  • 2nd Floor
  • North Point
  • Hong Kong


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRWD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
52SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.