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Ajisen (China) Holdings

SEHK:538
Snowflake Description

Excellent balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
538
SEHK
HK$4B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People’s Republic of China and Hong Kong Special Administrative Region. The last earnings update was 33 days ago. More info.


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  • Ajisen (China) Holdings has significant price volatility in the past 3 months.
538 Share Price and Events
7 Day Returns
5.6%
SEHK:538
-7.9%
HK Hospitality
-3.5%
HK Market
1 Year Returns
9.6%
SEHK:538
-24.1%
HK Hospitality
-16.8%
HK Market
538 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ajisen (China) Holdings (538) 5.6% 0.8% 70.3% 9.6% 21.9% -39.1%
HK Hospitality -7.9% -12.1% -0.2% -24.1% 32.2% -35.1%
HK Market -3.5% -9.6% -4.2% -16.8% 24.6% 7.2%
1 Year Return vs Industry and Market
  • 538 outperformed the Hospitality industry which returned -24.1% over the past year.
  • 538 outperformed the Market in Hong Kong which returned -16.8% over the past year.
Price Volatility
538
Industry
5yr Volatility vs Market

Value

 Is Ajisen (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 Ajisen (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 Ajisen (China) Holdings.

SEHK:538 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.6%
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:538
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.932 (1 + (1- 25%) (7.6%))
0.99
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.99 * 6.65%)
8.58%

Discounted Cash Flow Calculation for SEHK:538 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ajisen (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:538 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.58%)
2019 513.70 Analyst x1 473.09
2020 148.16 Analyst x2 125.66
2021 279.10 Analyst x1 218.00
2022 274.56 Est @ -1.62% 197.50
2023 273.09 Est @ -0.54% 180.91
2024 273.71 Est @ 0.23% 166.99
2025 275.78 Est @ 0.76% 154.95
2026 278.91 Est @ 1.13% 144.32
2027 282.79 Est @ 1.39% 134.76
2028 287.25 Est @ 1.58% 126.06
Present value of next 10 years cash flows CN¥1,922.24
SEHK:538 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥287.25 × (1 + 2%) ÷ (8.58% – 2%)
CN¥4,451.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥4,451.99 ÷ (1 + 8.58%)10
CN¥1,953.80
SEHK:538 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥1,922.24 + CN¥1,953.80
CN¥3,876.04
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥3,876.04 / 1,091.54
CN¥3.55
SEHK:538 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:538)
1.136
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.55 x 1.136
HK$4.03
Value per share (HKD) From above. HK$4.03
Current discount Discount to share price of HK$3.78
= -1 x (HK$3.78 - HK$4.03) / HK$4.03
6.3%

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

Current Discount
Amount off the current price Ajisen (China) Holdings is available for.
Intrinsic value
6%
Share price is HK$3.78 vs Future cash flow value of HK$4.03
Current Discount Checks
For Ajisen (China) Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ajisen (China) Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ajisen (China) Holdings's share price is below the future cash flow value, but not 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 Ajisen (China) Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ajisen (China) Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:538 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.50
SEHK:538 Share Price ** SEHK (2019-05-21) in HKD HK$3.78
SEHK:538 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.33
Hong Kong Hospitality Industry PE Ratio Median Figure of 65 Publicly-Listed Hospitality Companies 13.99x
Hong Kong Market PE Ratio Median Figure of 1,477 Publicly-Listed Companies 11.08x

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

** Primary Listing of Ajisen (China) Holdings.

SEHK:538 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:538 Share Price ÷ EPS (both in CNY)

= 3.33 ÷ 0.50

6.59x

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

  • Ajisen (China) Holdings is good value based on earnings compared to the HK Hospitality industry average.
  • Ajisen (China) Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Ajisen (China) Holdings's expected growth come at a high price?
Raw Data
SEHK:538 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
-27%per year
Hong Kong Hospitality Industry PEG Ratio Median Figure of 19 Publicly-Listed Hospitality Companies 1.77x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:538 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.59x ÷ -27%

-0.24x

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

  • Ajisen (China) Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Ajisen (China) Holdings's assets?
Raw Data
SEHK:538 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥2.96
SEHK:538 Share Price * SEHK (2019-05-21) in HKD HK$3.78
SEHK:538 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.33
Hong Kong Hospitality Industry PB Ratio Median Figure of 105 Publicly-Listed Hospitality Companies 1.05x
Hong Kong Market PB Ratio Median Figure of 2,156 Publicly-Listed Companies 0.97x
SEHK:538 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:538 Share Price ÷ Book Value per Share (both in CNY)

= 3.33 ÷ 2.96

1.12x

* Primary Listing of Ajisen (China) Holdings.

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

  • Ajisen (China) Holdings is overvalued based on assets compared to the HK Hospitality industry average.
X
Value checks
We assess Ajisen (China) Holdings's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Ajisen (China) Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

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

Future Performance

 How is Ajisen (China) Holdings expected to perform in the next 1 to 3 years based on estimates from 3 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!
Annual Growth Rate
-27%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ajisen (China) Holdings expected to grow at an attractive rate?
  • Ajisen (China) Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Ajisen (China) Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Ajisen (China) Holdings's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:538 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:538 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts -27%
SEHK:538 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.8%
Hong Kong Hospitality Industry Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
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:538 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:538 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,797 477 307 1
2020-12-31 2,699 645 247 3
2019-12-31 2,524 711 237 3
SEHK:538 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 2,378 361 551
2018-09-30 2,356 351 39
2018-06-30 2,334 341 -474
2018-03-31 2,333 352 -480
2017-12-31 2,332 362 -487
2017-09-30 2,341 386 -140
2017-06-30 2,350 409 206
2017-03-31 2,365 408 436
2016-12-31 2,379 407 665
2016-09-30 2,434 366 663
2016-06-30 2,430 318 658
2016-03-31 2,541 329 422

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ajisen (China) Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Ajisen (China) Holdings's revenue is expected to grow by 5.8% 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:538 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Ajisen (China) Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:538 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.28 0.28 0.28 1.00
2020-12-31 0.22 0.26 0.19 2.00
2019-12-31 0.22 0.24 0.19 2.00
SEHK:538 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.50
2018-09-30 0.04
2018-06-30 -0.43
2018-03-31 -0.44
2017-12-31 -0.45
2017-09-30 -0.13
2017-06-30 0.19
2017-03-31 0.40
2016-12-31 0.61
2016-09-30 0.61
2016-06-30 0.60
2016-03-31 0.39

*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.
  • Ajisen (China) Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ajisen (China) Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. 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.
Ajisen (China) Holdings has a total score of 0/6, 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 Ajisen (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 Ajisen (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.
  • Ajisen (China) Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Ajisen (China) Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Ajisen (China) Holdings has become profitable in the last year making it difficult to compare the HK Hospitality industry average.
Earnings and Revenue History
Ajisen (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 Ajisen (China) Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:538 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,377.75 551.02 404.07
2018-09-30 2,355.87 38.53 399.54
2018-06-30 2,334.00 -473.96 395.01
2018-03-31 2,333.14 -480.31 388.97
2017-12-31 2,332.28 -486.65 382.93
2017-09-30 2,341.15 -140.35 379.08
2017-06-30 2,350.02 205.95 375.24
2017-03-31 2,364.56 435.62 381.66
2016-12-31 2,379.10 665.29 388.09
2016-09-30 2,433.66 663.49 393.64
2016-06-30 2,430.00 657.64 389.96
2016-03-31 2,540.78 422.47 401.34
2015-12-31 2,612.22 184.56 406.48
2015-09-30 2,669.70 198.33 411.79
2015-06-30 2,659.31 206.83 406.72
2015-03-31 2,675.25 213.56 404.70
2014-12-31 2,692.54 220.40 402.88
2014-09-30 2,647.74 215.35 392.34
2014-06-30 2,673.78 216.06 392.28
2014-03-31 2,654.25 216.78 389.11
2013-12-31 2,569.78 212.14 376.42
2013-09-30 2,539.54 200.92 380.32
2013-06-30 2,489.37 187.99 381.36
2013-03-31 2,494.35 156.79 384.34
2012-12-31 2,482.58 124.04 384.79
2012-09-30 2,452.12 119.94 381.83
2012-06-30 2,426.70 116.03 379.69

*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.
  • Ajisen (China) Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ajisen (China) Holdings used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.
  • Ajisen (China) Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ajisen (China) Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. 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.
Ajisen (China) Holdings has a total score of 1/6, 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 Ajisen (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 Ajisen (China) Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ajisen (China) Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ajisen (China) Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ajisen (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.
  • Debt is covered by short term assets, assets are 7x debt.
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 Ajisen (China) Holdings Company Filings, last reported 4 months ago.

SEHK:538 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,305.74 267.24 1,356.41
2018-09-30 3,305.74 267.24 1,356.41
2018-06-30 2,967.66 369.24 1,510.37
2018-03-31 2,967.66 369.24 1,510.37
2017-12-31 2,945.95 365.45 1,534.10
2017-09-30 2,945.95 365.45 1,534.10
2017-06-30 3,628.91 328.99 1,404.36
2017-03-31 3,628.91 328.99 1,404.36
2016-12-31 3,619.05 332.75 1,313.30
2016-09-30 3,619.05 332.75 1,313.30
2016-06-30 3,486.43 602.96 1,452.70
2016-03-31 3,385.80 585.55 1,410.77
2015-12-31 2,919.17 590.92 1,335.06
2015-09-30 2,919.17 590.92 1,335.06
2015-06-30 2,773.98 138.76 1,642.69
2015-03-31 2,773.29 138.72 1,642.29
2014-12-31 2,789.25 153.22 1,545.05
2014-09-30 2,756.77 151.44 1,527.05
2014-06-30 2,692.94 151.25 1,599.61
2014-03-31 2,689.87 151.07 1,597.79
2013-12-31 2,624.79 160.00 1,442.35
2013-09-30 2,653.48 161.75 1,458.12
2013-06-30 2,508.96 144.89 1,475.64
2013-03-31 2,536.79 146.50 1,492.01
2012-12-31 2,462.54 94.99 1,327.01
2012-09-30 2,482.84 95.77 1,337.94
2012-06-30 2,401.15 87.56 1,377.71
  • Ajisen (China) Holdings's level of debt (8.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.1% vs 8.1% today).
  • Debt is well covered by operating cash flow (135%, greater than 20% of total debt).
  • Ajisen (China) Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Ajisen (China) Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ajisen (China) Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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 Ajisen (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
Dividend payments
3.61%
Current annual income from Ajisen (China) Holdings dividends. Estimated to be 3.27% next year.
If you bought HK$2,000 of Ajisen (China) Holdings shares you are expected to receive HK$72 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?
  • Ajisen (China) Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • Ajisen (China) Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.75%).
Upcoming dividend payment

Purchase Ajisen (China) Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:538 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 3 Analyst Estimates (S&P Global) See Below
Hong Kong Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 3.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 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 5.8%

Industry and Market average data is calculated daily.

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

SEHK:538 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.14 1.00
2020-12-31 0.11 3.00
2019-12-31 0.10 3.00
SEHK:538 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-18 0.120 3.869
2019-03-20 0.120 5.387
2018-08-23 0.060 2.740
2018-03-20 0.060 2.206
2017-09-27 0.100 3.237
2017-04-20 0.120 4.130
2017-03-21 0.120 4.329
2016-08-23 0.145 5.142
2016-04-18 0.139 5.227
2016-03-21 0.139 5.795
2015-04-27 0.141 5.061
2015-03-18 0.141 3.765
2014-09-22 0.136 3.300
2014-08-26 0.137 2.765
2014-06-05 0.128 2.669
2013-06-20 0.106 1.782
2012-08-22 0.113 2.443
2012-04-13 0.146 2.920
2011-08-23 0.198 2.473
2011-03-23 0.188 1.554
2010-03-29 0.126 1.413

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

  • Ajisen (China) Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Ajisen (China) Holdings has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Ajisen (China) Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Ajisen (China) Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ajisen (China) Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ajisen (China) Holdings has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of Ajisen (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
Wai Poon
COMPENSATION CN¥1,911,000
AGE 62
CEO Bio

Ms. Wai Poon is the Founder of Ajisen China Holdings Ltd. and serves as its Chief Executive Officer. Ms. Poon is responsible for the overall management, major decision-making, strategic planning, development and visions of Ajisen China Holdings Ltd. Ms. Poon has been instrumental to the development of Ajisen China Holdings Ltd. since its inception in 1995. Ms. Poon is an experienced entrepreneur and has over 10 years of experience in the F&B industry. Prior to Ajisen China Holdings Ltd., Ms. Poon was involved in the trading of Asian food products in the US and Hong Kong. Ms. Poon is particularly well versed and experienced in specialty foods from northern and southern regions of China. Ms. Poon serves as an Executive Chairman of Ajisen China Holdings Ltd. and has been its Executive Director since April 6, 2006. Ms. Poon serves as an Assistant Director of the Shanghai Restaurants Asso.

CEO Compensation
  • Wai's compensation has increased in line with Ajisen (China) Holdings recently becoming profitable.
  • Wai's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team

Wai Poon

TITLE
Founder
COMPENSATION
CN¥2M
AGE
62

Jason Poon

TITLE
Chief Marketing Officer & Executive Director
COMPENSATION
CN¥844K
AGE
61

Richard Liu

TITLE
Investors Relation Officer

Shu Jianqun

TITLE
VP - HR Management
AGE
56
TENURE
7.1 yrs

Sau Mei Ng

TITLE
Company Secretary
AGE
41
TENURE
2 yrs

Harker Hao

TITLE
Senior Investor Relations Specialist
Board of Directors Tenure

Average tenure and age of the Ajisen (China) Holdings board of directors in years:

12.2
Average Tenure
62
Average Age
  • The average tenure for the Ajisen (China) Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Wai Poon

TITLE
Founder
COMPENSATION
CN¥2M
AGE
62

Jason Poon

TITLE
Chief Marketing Officer & Executive Director
COMPENSATION
CN¥844K
AGE
61
TENURE
12.2 yrs

Peter Lo

TITLE
Independent Non Executive Director
COMPENSATION
CN¥178K
AGE
62
TENURE
12.2 yrs

Shek Voon Jen

TITLE
Independent Non Executive Director
COMPENSATION
CN¥178K
AGE
71
TENURE
12.2 yrs

Jincheng Wang

TITLE
Independent Non Executive Director
COMPENSATION
CN¥151K
AGE
63
TENURE
10.7 yrs

Katsuaki Shigemitsu

TITLE
Non Executive Director
COMPENSATION
CN¥111K
AGE
49
TENURE
12.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
14. May 19 Sell Invesco Ltd. Company 09. May 19 09. May 19 -632,000 HK$3.46 HK$-2,185,203
12. Feb 19 Buy Marathon Asset Management, LLP Company 11. Feb 19 11. Feb 19 4,880,000 HK$2.26 HK$11,028,797
15. Aug 18 Sell Invesco Ltd. Company 13. Aug 18 13. Aug 18 -898,000 HK$3.31 HK$-2,975,702
15. Jun 18 Buy Invesco Ltd. Company 12. Jun 18 12. Jun 18 374,000 HK$3.14 HK$1,173,611
X
Management checks
We assess Ajisen (China) Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ajisen (China) Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


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

Is Ajisen (China) Holdings Limited's (HKG:538) Balance Sheet Strong Enough To Weather A Storm?

Ajisen (China) Holdings Limited (HKG:538) is a small-cap stock with a market capitalization of HK$2.5b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health.

Simply Wall St -

What Kind Of Investor Owns Most Of Ajisen (China) Holdings Limited (HKG:538)?

If you want to know who really controls Ajisen (China) Holdings Limited (HKG:538), then you'll have to look at the makeup of its share registry. … With a market capitalization of HK$2.6b, Ajisen (China) Holdings is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for Ajisen (China) Holdings

Simply Wall St -

What Should You Know About Ajisen (China) Holdings Limited's (HKG:538) Capital Returns?

and want a simplistic look at the return on Ajisen (China) Holdings Limited (HKG:538) stock. … To understand Ajisen (China) Holdings’s capital returns we will look at a useful metric called return on capital employed. … Ajisen (China) Holdings's Return On Capital Employed

Simply Wall St -

At HK$2.57, Is Ajisen (China) Holdings Limited (HKG:538) Worth Looking At Closely?

Ajisen (China) Holdings Limited (HKG:538), which is in the hospitality business, and is based in Hong Kong,. … A question to answer is whether Ajisen (China) Holdings's current trading price of HK$2.57 reflective of the actual value of the? … Let’s take a look at Ajisen (China) Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What You Must Know About Ajisen (China) Holdings Limited's (HKG:538) Major Investors

Today, I will be analyzing Ajisen (China) Holdings Limited’s (HKG:538) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … Therefore, it is beneficial for us to examine 538's ownership structure in more detail.

Simply Wall St -

What Do You Get For Owning Ajisen (China) Holdings Limited (HKG:538)?

and looking to gauge the potential return on investment in Ajisen (China) Holdings Limited (HKG:538). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Ajisen (China) Holdings’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Is It The Right Time To Buy Ajisen (China) Holdings Limited (HKG:538)?

Ajisen (China) Holdings Limited (HKG:538), a hospitality company based in Hong Kong,. … A question to answer is whether Ajisen (China) Holdings's current trading price of HK$3.09 reflective of the actual value of the? … Let’s take a look at Ajisen (China) Holdings’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Hedge Your Bet With These Dividend Payers

Ajisen (China) Holdings Limited (SEHK:538) Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People’s Republic of China and Hong Kong Special Administrative Region. … SEHK:538 Historical Dividend Yield Feb 8th 18 VSTECS Holdings Limited (SEHK:856) VSTECS Holdings Limited, an investment holding company, distributes information, communication, and technology products and services. … SEHK:856 Historical Dividend Yield Feb 8th 18 Yuexiu Real Estate Investment Trust (SEHK:405) Yuexiu Real Estate Investment Trust (“Yuexiu REIT”) and its subsidiaries (together, the “Group”) are mainly engaged in the leasing of commercial properties in Mainland China (“China”).

Simply Wall St -

Company Info

Description

Ajisen (China) Holdings Limited, an investment holding company, operates a chain of fast casual restaurants in the People’s Republic of China and Hong Kong Special Administrative Region. It operates through Operation of Restaurants; Manufacture and Sales of Noodles and Related Products; and Investment Holding segments. The company’s restaurants primarily offer Japanese ramen and Japanese-style dishes under the Ajisen brand. As of December 31, 2018, it had a retail network of 766 restaurants. It also manufactures and sells packaged noodles and related products; and leases property interests. In addition, the company trades in noodles; and a food processing center. The company was founded in 1996 and is headquartered in Yau Tong, Hong Kong. Ajisen (China) Holdings Limited is a subsidiary of Favour Choice Limited.

Details
Name: Ajisen (China) Holdings Limited
538
Exchange: SEHK
Founded: 1996
HK$3,995,032,081
1,091,538,820
Website: http://www.ajisen.com.cn
Address: Ajisen (China) Holdings Limited
Ajisen Group Tower,
6th Floor,
Yau Tong,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 538 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 30. Mar 2007
DB AJN Ordinary Shares Deutsche Boerse AG DE EUR 30. Mar 2007
Number of employees
Current staff
Staff numbers
11,609
Ajisen (China) Holdings employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 12:47
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/04/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.