Xiabuxiabu Catering Management (China) Holdings

SEHK:520

Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.

520

SEHK

HK$12B

Market Cap

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Last updated 2019/07/20 13:02

Company description

Xiabuxiabu Catering Management (China) Holdings Co., Ltd., an investment holding company, operates Chinese hotpot restaurants in the People’s Republic of China. The last earnings update was 88 days ago. More info.

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520 Share Price and Events

7 Day Returns

-7.6%

SEHK:520

0.9%

HK Hospitality

0.8%

HK Market

1 Year Returns

-34.5%

SEHK:520

-4.7%

HK Hospitality

-4.4%

HK Market

520 Shareholder Return

	7 Day	30 Day	90 Day	1 Year	3 Year	5 Year
Xiabuxiabu Catering Management (China) Holdings (520)	-7.6%	7.7%	-14.7%	-34.5%	185.6%	-
HK Hospitality	0.9%	8%	-2.6%	-4.7%	43.9%	-27.7%
HK Market	0.8%	1.5%	-7.4%	-4.4%	17.7%	1.6%

1 Year Return vs Industry and Market

520 underperformed the Hospitality industry which returned -4.7% over the past year.
520 underperformed the Market in Hong Kong which returned -4.4% over the past year.

Price Volatility

520

Industry

5yr Volatility vs Market

Related Companies

Sorry, no analysis for Xiabuxiabu Catering Management (China) Holdings's competitors could be found in our database.

Value

Is Xiabuxiabu Catering Management (China) Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS

Here we compare the current share price of Xiabuxiabu Catering Management (China) Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Xiabuxiabu Catering Management (China) Holdings.

SEHK:520 Discounted Cash Flow Data Sources
Data Point	Source	Value
Valuation Model		2 Stage Free Cash Flow to Equity
Levered Free Cash Flow	Average of 14 Analyst Estimates (S&P Global)	See below
Discount Rate (Cost of Equity)	See below	7.6%
Perpetual Growth Rate	10-Year HK Government Bond Rate	2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:520
Data Point	Calculation/ Source	Result
Risk-Free Rate	10-Year HK Govt Bond Rate	2%
Equity Risk Premium	S&P Global	6%
Hospitality Unlevered Beta	Simply Wall St/ S&P Global	0.92
Re-levered Beta	= Unlevered beta (1 + (1- tax rate) (Debt/Equity)) = 0.922 (1 + (1- 25%) (0%))	0.947
Levered Beta	Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm)	0.95
Discount Rate/ Cost of Equity	= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium) = 2% + (0.947 * 5.96%)	7.65%

Discounted Cash Flow Calculation for SEHK:520 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Xiabuxiabu Catering Management (China) Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:520 DCF 1st Stage: Next 10 year cash flow forecast
	Levered FCF (CNY, Millions)	Source	Present Value Discounted (@ 7.65%)
2020	595.75	Analyst x4	553.42
2021	860.67	Analyst x3	742.69
2022	1,085.16	Est @ 26.08%	869.87
2023	1,289.81	Est @ 18.86%	960.45
2024	1,467.83	Est @ 13.8%	1,015.34
2025	1,618.47	Est @ 10.26%	1,039.98
2026	1,744.46	Est @ 7.78%	1,041.29
2027	1,850.00	Est @ 6.05%	1,025.81
2028	1,939.47	Est @ 4.84%	999.00
2029	2,016.78	Est @ 3.99%	965.00
Present value of next 10 years cash flows			CN¥9,212.85

SEHK:520 DCF 2nd Stage: Terminal Value
	Calculation	Result
Terminal Value	= FCF₂₀₂₉ × (1 + g) ÷ (Discount Rate – g) = CN¥2,016.78 × (1 + 2%) ÷ (7.65% – 2%)	CN¥36,431.14
Present Value of Terminal Value	= Terminal Value ÷ (1 + r)¹⁰ = CN¥36,431.14 ÷ (1 + 7.65%)¹⁰	CN¥17,431.80

SEHK:520 Total Equity Value
	Calculation	Result
Total Equity Value	= Present value of next 10 years cash flows + Terminal Value = CN¥9,212.85 + CN¥17,431.80	CN¥26,644.65
Equity Value per Share (CNY)	= Total value / Shares Outstanding = CN¥26,644.65 / 1,069.47	CN¥24.91

SEHK:520 Discount to Share Price
	Calculation	Result
Exchange Rate	CNY/HKD (Reporting currency to currency of SEHK:520)	1.135
Value per Share (HKD)	= Value per Share in CNY x Exchange Rate (CNY/HKD) = CN¥24.91 x 1.135	HK$28.27
Value per share (HKD)	From above.	HK$28.27
Current discount	Discount to share price of HK$11.14 = -1 x (HK$11.14 - HK$28.27) / HK$28.27	60.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount

Amount off the current price Xiabuxiabu Catering Management (China) Holdings is available for.

^>50%

Share price is HK$11.14 vs Future cash flow value of HK$28.27

Current Discount Checks

For Xiabuxiabu Catering Management (China) Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.

Xiabuxiabu Catering Management (China) Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
Xiabuxiabu Catering Management (China) Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Xiabuxiabu Catering Management (China) Holdings's earnings, growth and assets is considered below, and whether this is a fair price.

Price based on past earnings

Are Xiabuxiabu Catering Management (China) Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?

Raw Data

SEHK:520 PE (Price to Earnings) Ratio Data Sources
Data Point	Source	Value
Earnings Per Share *	Company Filings (2018-12-31) in CNY	CN¥0.43
SEHK:520 Share Price **	SEHK (2019-07-19) in HKD	HK$11.14
SEHK:520 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.881	CN¥9.82
Hong Kong Hospitality Industry PE Ratio	Median Figure of 69 Publicly-Listed Hospitality Companies	14.28x
Hong Kong Market PE Ratio	Median Figure of 1,511 Publicly-Listed Companies	10.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Xiabuxiabu Catering Management (China) Holdings.

SEHK:520 PE (Price to Earnings) Ratio Calculation
	Calculation	Outcome
PE Ratio	= SEHK:520 Share Price ÷ EPS (both in CNY) = 9.82 ÷ 0.43	22.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Xiabuxiabu Catering Management (China) Holdings is overvalued based on earnings compared to the HK Hospitality industry average.
Xiabuxiabu Catering Management (China) Holdings is overvalued based on earnings compared to the Hong Kong market.

Price based on expected Growth

Does Xiabuxiabu Catering Management (China) Holdings's expected growth come at a high price?

Raw Data

SEHK:520 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point	Source	Value
PE Ratio	See PE Ratio Section	22.57x
Net Income Annual Growth Rate	See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts	18.9%per year
Hong Kong Hospitality Industry PEG Ratio	Median Figure of 21 Publicly-Listed Hospitality Companies	2.19x
Hong Kong Market PEG Ratio	Median Figure of 480 Publicly-Listed Companies	0.8x

*Line of best fit is calculated by linear regression .

SEHK:520 PEG (Price to Earnings to Growth) Ratio Calculation
	Calculation	Outcome
PEG Ratio	= PE Ratio ÷ Net Income Annual Growth Rate = 22.57x ÷ 18.9%	1.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Xiabuxiabu Catering Management (China) Holdings is poor value based on expected growth next year.

Price based on value of assets

What value do investors place on Xiabuxiabu Catering Management (China) Holdings's assets?

Raw Data

SEHK:520 PB (Price to Book) Ratio Data Sources
Data Point	Source	Value
Book Value per Share	Company Filings (2018-12-31) in CNY	CN¥2.13
SEHK:520 Share Price *	SEHK (2019-07-19) in HKD	HK$11.14
SEHK:520 Share Price converted to CNY reporting currency	Exchange rate (HKD/ CNY) 0.881	CN¥9.82
Hong Kong Hospitality Industry PB Ratio	Median Figure of 109 Publicly-Listed Hospitality Companies	1.13x
Hong Kong Market PB Ratio	Median Figure of 2,197 Publicly-Listed Companies	0.92x

SEHK:520 PB (Price to Book) Ratio Calculation
	Calculation	Outcome
PB Ratio	= SEHK:520 Share Price ÷ Book Value per Share (both in CNY) = 9.82 ÷ 2.13	4.62x

* Primary Listing of Xiabuxiabu Catering Management (China) Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Xiabuxiabu Catering Management (China) Holdings is overvalued based on assets compared to the HK Hospitality industry average.

Value checks

We assess Xiabuxiabu Catering Management (China) Holdings's value by looking at:

Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)

Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

How is Xiabuxiabu Catering Management (China) Holdings expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!

18.9%

Expected annual growth in earnings.

Earnings growth vs Low Risk Savings

Is Xiabuxiabu Catering Management (China) Holdings expected to grow at an attractive rate?

Xiabuxiabu Catering Management (China) Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.

Growth vs Market Checks

Xiabuxiabu Catering Management (China) Holdings's earnings growth is expected to exceed the Hong Kong market average.
Xiabuxiabu Catering Management (China) Holdings's revenue growth is expected to exceed the Hong Kong market average.

Annual Growth Rates Comparison

Raw Data

SEHK:520 Future Growth Rates Data Sources
Data Point	Source	Value (per year)
SEHK:520 Future Earnings Growth Rate	Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts	18.9%
SEHK:520 Future Revenue Growth Rate	Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts	18.5%
Hong Kong Hospitality Industry Earnings Growth Rate	Market Cap Weighted Average	15.4%
Hong Kong Hospitality Industry Revenue Growth Rate	Market Cap Weighted Average	11.4%
Hong Kong Market Earnings Growth Rate	Market Cap Weighted Average	11.3%
Hong Kong Market Revenue Growth Rate	Market Cap Weighted Average	10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations

Raw Data

SEHK:520 Analysts Growth Expectations Data Sources
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below

All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:520 Future Estimates Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *	Avg. No. Analysts
2021-12-31	8,444	1,188	814	10
2020-12-31	7,096	906	678	14
2019-12-31	5,967	930	551	13

SEHK:520 Past Financials Data
Date (Data in CNY Millions)	Revenue	Cash Flow	Net Income *
2018-12-31	4,759	493	462
2018-09-30	4,493	448	452
2018-06-30	4,221	404	441
2018-03-31	3,950	400	431
2017-12-31	3,684	395	420
2017-09-30	3,389	449	419
2017-06-30	3,094	503	417
2017-03-31	2,929	449	392
2016-12-31	2,763	395	368
2016-09-30	2,666	376	327
2016-06-30	2,569	357	285
2016-03-31	2,497	364	274

*GAAP earnings excluding extraordinary items.

High Growth Checks

Xiabuxiabu Catering Management (China) Holdings's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
Xiabuxiabu Catering Management (China) Holdings's revenue is expected to grow by 18.5% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.

Raw Data

SEHK:520 Past and Future Earnings per Share
Data Point	Source	Value
Past Financials	Company Filings (6 months ago)	See Below
Future Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below

All data from Xiabuxiabu Catering Management (China) Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:520 Future Estimates Data
Date (Data in CNY Millions)	EPS *	EPS High Estimate	EPS Low Estimate	Avg. No. Analysts
2021-12-31	0.75	0.84	0.64	9.00
2020-12-31	0.63	0.76	0.56	13.00
2019-12-31	0.51	0.55	0.49	13.00

SEHK:520 Past Financials Data
Date (Data in CNY Millions)	EPS *
2018-12-31	0.43
2018-09-30	0.42
2018-06-30	0.41
2018-03-31	0.40
2017-12-31	0.39
2017-09-30	0.39
2017-06-30	0.39
2017-03-31	0.37
2016-12-31	0.35
2016-09-30	0.31
2016-06-30	0.27
2016-03-31	0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years

In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.

Xiabuxiabu Catering Management (China) Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).

Show me more growth companies in the Hospitality industry

Future performance checks

We assess Xiabuxiabu Catering Management (China) Holdings's future performance by looking at:

Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)

Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Xiabuxiabu Catering Management (China) Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

How has Xiabuxiabu Catering Management (China) Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.

Past earnings growth

Below we compare Xiabuxiabu Catering Management (China) Holdings's growth in the last year to its industry (Hospitality).

Past Earnings growth analysis

We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.

Xiabuxiabu Catering Management (China) Holdings has delivered over 20% year on year earnings growth in the past 5 years.
Xiabuxiabu Catering Management (China) Holdings's 1-year earnings growth is less than its 5-year average (10.1% vs 33.3%)
Xiabuxiabu Catering Management (China) Holdings's earnings growth has exceeded the HK Hospitality industry average in the past year (10.1% vs -2.4%).

Earnings and Revenue History

Xiabuxiabu Catering Management (China) Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.

Raw Data

All data from Xiabuxiabu Catering Management (China) Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:520 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions)	Revenue	Net Income *	G+A Expenses
2018-12-31	4,759.21	462.48	1.32
2018-09-30	4,492.75	451.90	1.18
2018-06-30	4,221.30	441.32	1.05
2018-03-31	3,949.95	430.75	0.79
2017-12-31	3,683.59	420.17	0.53
2017-09-30	3,388.85	418.50	0.53
2017-06-30	3,094.11	416.83	0.53
2017-03-31	2,928.79	392.43	0.53
2016-12-31	2,763.47	368.03	0.53
2016-09-30	2,666.43	326.62	0.53
2016-06-30	2,569.39	285.22	0.53
2016-03-31	2,497.40	274.29	0.53
2015-12-31	2,425.41	263.36	0.53
2015-09-30	2,365.93	208.12	0.53
2015-06-30	2,306.45	152.88	0.53
2015-03-31	2,255.37	116.51	0.53
2014-12-31	2,204.28	80.14	0.53
2014-09-30	2,125.66	84.95	-3.64
2014-06-30	2,047.04	89.75	-7.82
2014-03-31	1,970.09	83.24	-3.64
2013-12-31	1,893.14	76.73	0.53
2012-12-31	1,510.29	105.27	15.18

*GAAP earnings excluding extraordinary items.

Performance last year

We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.

Xiabuxiabu Catering Management (China) Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
Xiabuxiabu Catering Management (China) Holdings used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.
Xiabuxiabu Catering Management (China) Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Show me more strong past performing companies in the Hospitality industry

Past performance checks

We assess Xiabuxiabu Catering Management (China) Holdings's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Xiabuxiabu Catering Management (China) Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

How is Xiabuxiabu Catering Management (China) Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Xiabuxiabu Catering Management (China) Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Xiabuxiabu Catering Management (China) Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Xiabuxiabu Catering Management (China) Holdings's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of Xiabuxiabu Catering Management (China) Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.
Xiabuxiabu Catering Management (China) Holdings has no debt, it does not need to be covered by short term assets.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.

Raw Data

All data from Xiabuxiabu Catering Management (China) Holdings Company Filings, last reported 6 months ago.

SEHK:520 Past Debt and Equity Data
Date (Data in CNY Millions)	Total Equity	Cash & Short Term Investments
2018-12-31	2,247.47	1,340.69
2018-09-30	2,247.47	1,340.69
2018-06-30	2,094.77	1,421.93
2018-03-31	2,094.77	1,421.93
2017-12-31	1,985.53	1,485.66
2017-09-30	1,985.53	1,485.66
2017-06-30	1,812.32	1,544.73
2017-03-31	1,812.32	1,544.73
2016-12-31	1,716.31	1,496.90
2016-09-30	1,716.31	1,496.90
2016-06-30	1,551.68	1,301.32
2016-03-31	1,551.68	1,301.32
2015-12-31	1,480.48	1,354.50
2015-09-30	1,480.48	1,354.50
2015-06-30	1,379.16	1,195.36
2015-03-31	1,379.16	1,195.36
2014-12-31	1,273.87	1,122.78
2014-09-30	1,273.87	1,122.78
2014-06-30	469.78	203.49
2014-03-31	469.78	203.49
2013-12-31	537.42	343.31
2012-12-31	365.40	260.22

Xiabuxiabu Catering Management (China) Holdings has no debt.
Xiabuxiabu Catering Management (China) Holdings has not taken on any debt in the past 5 years.
Xiabuxiabu Catering Management (China) Holdings has no debt, it does not need to be covered by operating cash flow.
Xiabuxiabu Catering Management (China) Holdings has no debt, therefore coverage of interest payments is not a concern.

Show me more healthy companies in the Hospitality industry

Financial health checks

We assess Xiabuxiabu Catering Management (China) Holdings's financial health by checking for:

Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)

For companies that are loss making and have been so on average in the past we replace the last 2 checks with:

Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)

Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.

Annual Dividend Income

1.77%

Current annual income from Xiabuxiabu Catering Management (China) Holdings dividends. Estimated to be 2.83% next year.

If you bought HK$2,000 of Xiabuxiabu Catering Management (China) Holdings shares you are expected to receive HK$35 in your first year as a dividend.

Dividend Amount

Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?

Xiabuxiabu Catering Management (China) Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
Xiabuxiabu Catering Management (China) Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).

Annualized Historical and Future Dividends

It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.

Raw Data

SEHK:520 Annualized Past and Future Dividends
Data Point	Source	Value
Past Annualized Dividend Yield	S&P Global Market Data	See Below
Past Dividends per Share	Company Filings/ Annualized Dividend Payments	See Below
Future Dividends per Share Estimates	Average of up to 14 Analyst Estimates (S&P Global)	See Below
Hong Kong Hospitality Industry Average Dividend Yield	Market Cap Weighted Average of 44 Stocks	2.7%
Hong Kong Market Average Dividend Yield	Market Cap Weighted Average of 978 Stocks	3.6%
Hong Kong Minimum Threshold Dividend Yield	10th Percentile	1.2%
Hong Kong Bottom 25% Dividend Yield	25th Percentile	2.1%
Hong Kong Top 25% Dividend Yield	75th Percentile	5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:520 Future Dividends Estimate Data
Date (Data in CN¥)	Dividend per Share (annual)	Avg. No. Analysts
2021-12-31	0.35	9.00
2020-12-31	0.29	13.00
2019-12-31	0.22	13.00

SEHK:520 Past Annualized Dividends Data
Date (Data in CN¥)	Dividend per share (annual)	Avg. Yield (%)
2019-05-24	0.174	1.797
2018-03-21	0.157	1.417
2017-09-18	0.156	1.486
2017-03-28	0.138	2.175
2016-04-26	0.098	2.514
2016-03-29	0.098	2.499
2015-09-23	0.088	3.123
2015-08-18	0.088	2.805
2015-04-16	0.094	2.665
2015-03-18	0.094	2.577

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

Whilst dividend payments have been stable, Xiabuxiabu Catering Management (China) Holdings has been paying a dividend for less than 10 years.
Dividend payments have increased, but Xiabuxiabu Catering Management (China) Holdings only paid a dividend in the past 4 years.

Current Payout to shareholders

What portion of Xiabuxiabu Catering Management (China) Holdings's earnings are paid to the shareholders as a dividend.

Dividends paid are well covered by earnings (2.5x coverage).

Future Payout to shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).

Income/ dividend checks

We assess Xiabuxiabu Catering Management (China) Holdings's dividend by checking for:

Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
Is current dividend yield above the bottom 25% of dividend payers? (1 check)
Is current dividend yield above the top 25% of dividend payers? (1 check)
Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
If they have paid a dividend for 10 years has it increased in this time? (1 check)
How sustainable is the dividend, can Xiabuxiabu Catering Management (China) Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)

Full details on the Dividends part of the Simply Wall St company analysis model.

Management

What is the CEO of Xiabuxiabu Catering Management (China) Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.

CEO

Shuling Yang

COMPENSATION	CN¥7,227,000
AGE	58
TENURE AS CEO	6.3 years

CEO Bio

Ms. YANG Shuling has been the Chief Executive Officer and Executive Director at Xiabuxiabu Catering Management (China) Holdings Co., Ltd. since March 2013 and November 3, 2008 respectively. Ms. Yang is primarily responsible for overseeing the management and strategic development. She joined Xiabu Fast Food in 1998 as an Accountant and has subsequently continued to serve Xiabuxiabu as Finance Manager, Deputy General Manager, Executive Vice President and President and has gained over 16 years of experiences in the food and beverage industry and also in operations management. Prior to joining Xiabuxiabu, Ms. Yang has served as Statistics Officer and An Accounting Officer, in certain Beijing enterprises. Ms. Yang is also a director of each of the subsidiaries of Xiabuxiabu Catering Management. She obtained secondary technical education in finance and accounting.

CEO Compensation

Shuling's compensation has been consistent with company performance over the past year, both up more than 20%.
Shuling's remuneration is higher than average for companies of similar size in Hong Kong.

Management Team

Kuang-Chi Ho

TITLE

Head of Quality Control Department

Sau Mei Ng

TITLE

Company Secretary

AGE

42

TENURE

4.7 yrs

Board of Directors Tenure

Average tenure and age of the Xiabuxiabu Catering Management (China) Holdings board of directors in years:

4.7

Average Tenure

55.5

Average Age

The tenure for the Xiabuxiabu Catering Management (China) Holdings board of directors is about average.

Board of Directors

Shuling Yang

TITLE

CEO & Executive Director

COMPENSATION

CN¥7M

AGE

58

TENURE

10.7 yrs

Lily Hsieh

TITLE

Independent Non-Executive Director

COMPENSATION

CN¥205K

AGE

64

TENURE

TITLE

Alternate Director

AGE

39

TENURE

1.1 yrs

Who owns this company?

Recent Insider Trading

No 3 month individual insider trading information.

Recent Insider Transactions

Announced	Type	Name	Entity	Start	End	Shares	Max Price (HK$)	Value (HK$)
26. Jun 19	Buy	Snow Lake Capital Limited	Company	21. Jun 19	21. Jun 19	1,000,000	HK$9.84	HK$9,839,697
26. Jun 19	Buy	Snow Lake Capital (HK) Ltd	Company	21. Jun 19	21. Jun 19	6,341,500	HK$9.84	HK$62,398,439
25. Jun 19	Buy	Snow Lake Capital Limited	Company	20. Jun 19	20. Jun 19	10,000,000	HK$10.25	HK$102,499,969

Management checks

We assess Xiabuxiabu Catering Management (China) Holdings's management by checking for:

Is the CEO's compensation unreasonable compared to market cap? (1 check)
Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
Is the average tenure of the management team less than 2 years? (1 check)
Is the average tenure of the board of directors team less than 3 years? (1 check)

Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Despite Its High P/E Ratio, Is Xiabuxiabu Catering Management (China) Holdings Co., Ltd. (HKG:520) Still Undervalued?

Xiabuxiabu Catering Management (China) Holdings has a price to earnings ratio of 22.83, based on the last twelve months. … See our latest analysis for Xiabuxiabu Catering Management (China) Holdings How Do I Calculate Xiabuxiabu Catering Management (China) Holdings's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for Xiabuxiabu Catering Management (China) Holdings: P/E of 22.83 = CN¥9.93 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.43 (Based on the trailing twelve months to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St - 3 days ago – Full article

Does Market Volatility Impact Xiabuxiabu Catering Management (China) Holdings Co., Ltd.'s (HKG:520) Share Price?

View our latest analysis for Xiabuxiabu Catering Management (China) Holdings What we can learn from 520's beta value Xiabuxiabu Catering Management (China) Holdings has a five-year beta of 1.08. … Xiabuxiabu Catering Management (China) Holdings is a small cap stock with a market capitalisation of HK$13b. … What this means for you: It is probable that there is a link between the share price of Xiabuxiabu Catering Management (China) Holdings and the broader market, since it has a beta value quite close to one.

Simply Wall St - 1 week ago – Full article

What Should Investors Know About Xiabuxiabu Catering Management (China) Holdings Co., Ltd.'s (HKG:520) Growth?

Since Xiabuxiabu Catering Management (China) Holdings Co., Ltd. … Below is a brief commentary on the longer term outlook the market has for Xiabuxiabu Catering Management (China) Holdings. … Check out our latest analysis for Xiabuxiabu Catering Management (China) Holdings Can we expect Xiabuxiabu Catering Management (China) Holdings to keep growing?

Simply Wall St - 2 weeks ago – Full article

Should You Be Excited About Xiabuxiabu Catering Management (China) Holdings Co., Ltd.'s (HKG:520) 21% Return On Equity?

Our data shows Xiabuxiabu Catering Management (China) Holdings has a return on equity of 21% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Xiabuxiabu Catering Management (China) Holdings: 21% = CN¥462m ÷ CN¥2.2b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Xiabuxiabu Catering Management (China) Holdings Have A Good Return On Equity?

Simply Wall St - 3 weeks ago – Full article

If You Like EPS Growth Then Check Out Xiabuxiabu Catering Management (China) Holdings (HKG:520) Before It's Too Late

See our latest analysis for Xiabuxiabu Catering Management (China) Holdings How Quickly Is Xiabuxiabu Catering Management (China) Holdings Increasing Earnings Per Share? … So we're pleased to report that Xiabuxiabu Catering Management (China) Holdings insiders own a meaningful share of the business. … Given my belief that share price follows earnings per share you can easily imagine how I feel about Xiabuxiabu Catering Management (China) Holdings's strong EPS growth.