SEHK:6811

Stock Analysis Report

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Executive Summary

Tai Hing Group Holdings Limited operates as a multi-brand casual dining restaurant company.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.

Share Price & News

How has Tai Hing Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6811 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

6811

-3.7%

HK Hospitality

3.0%

HK Market


1 Year Return

-48.5%

6811

-17.9%

HK Hospitality

-0.9%

HK Market

Return vs Industry: 6811 underperformed the Hong Kong Hospitality industry which returned -17.9% over the past year.

Return vs Market: 6811 underperformed the Hong Kong Market which returned -0.9% over the past year.


Shareholder returns

6811IndustryMarket
7 Day-8.2%-3.7%3.0%
30 Day-6.1%-9.4%6.1%
90 Day-5.4%4.3%12.1%
1 Year-46.9%-48.5%-16.2%-17.9%3.1%-0.9%
3 Yearn/a-13.4%-20.2%7.1%-4.4%
5 Yearn/a-1.6%-15.5%8.7%-9.4%

Price Volatility Vs. Market

How volatile is Tai Hing Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tai Hing Group Holdings undervalued compared to its fair value and its price relative to the market?

14.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6811 (HK$1.23) is trading above our estimate of fair value (HK$0.67)

Significantly Below Fair Value: 6811 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6811 is good value based on its PE Ratio (14.2x) compared to the HK Hospitality industry average (15.8x).

PE vs Market: 6811 is poor value based on its PE Ratio (14.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6811 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 6811 is overvalued based on its PB Ratio (1.3x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Tai Hing Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6811's forecast earnings growth (28.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 6811's earnings (28.4% per year) are forecast to grow faster than the Hong Kong market (17.8% per year).

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

Revenue vs Market: 6811's revenue (9.4% per year) is forecast to grow slower than the Hong Kong market (10.8% per year).

High Growth Revenue: 6811's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6811's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Tai Hing Group Holdings performed over the past 5 years?

-74.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 6811 has high quality earnings.

Growing Profit Margin: 6811's current net profit margins (2.4%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6811's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: 6811's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6811 had negative earnings growth (-74.8%) over the past year, making it difficult to compare to the Hospitality industry average (-15.7%).


Return on Equity

High ROE: 6811's Return on Equity (7.9%) is considered low.


Next Steps

Financial Health

How is Tai Hing Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6811's short term assets (HK$925.5M) do not cover its short term liabilities (HK$1.1B).

Long Term Liabilities: 6811's short term assets (HK$925.5M) do not cover its long term liabilities (HK$1.3B).


Debt to Equity History and Analysis

Debt Level: 6811's debt to equity ratio (31.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6811's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6811's debt is well covered by operating cash flow (222.4%).

Interest Coverage: 6811's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Tai Hing Group Holdings's current dividend yield, its reliability and sustainability?

4.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6811's dividend (4.1%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 6811's dividend (4.1%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.79%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6811's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6811's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.3%), 6811's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6811's dividends in 3 years are forecast to be covered by earnings (51.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Tai Hing Group Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Wing Chan
Chairman31yrsno data0.096% HK$1.2m
Kin Wong
Senior Director of Finance Department & Company Secretary1.5yrsno datano data
Chi Yuen
Executive Director1.58yrsno datano data
Hon Lau
Executive Director1.58yrsno datano data
Shuk Chan
Executive Director1.58yrsno data1.14% HK$14.1m
Siu Ho
GM & Director of Chinese Gourmet1.83yrsno datano data
Man Yiu
GM & Director of Central Production & Product Development1.83yrsno datano data
Tai Lam
GM & Director of Mainland China3.33yrsno datano data
Ka Chan
General Manager of Branding & Business Development1.5yrsno datano data
Yuewu Zhou
General Manager of Back Office & Leasing4.5yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 6811's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wing Chan
Chairman31yrsno data0.096% HK$1.2m
Chi Yuen
Executive Director1.58yrsno datano data
Hon Lau
Executive Director1.58yrsno datano data
Shuk Chan
Executive Director1.58yrsno data1.14% HK$14.1m
Shiu Hoi Wong
Independent Non-Executive Director1.17yrsno datano data
Ping Leung Mak
Independent Non-Executive Director1.17yrsno datano data
Chui Sat
Independent Non-Executive Director1.17yrsno datano data
Ping Ho
Non-Executive Director1.58yrsno datano data

1.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 6811's board of directors are not considered experienced ( 1.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Tai Hing Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tai Hing Group Holdings Limited
  • Ticker: 6811
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$1.232b
  • Shares outstanding: 1.00b
  • Website: https://www.taihing.com

Number of Employees


Location

  • Tai Hing Group Holdings Limited
  • Chinachem Exchange Square
  • 13th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6811SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2019

Biography

Tai Hing Group Holdings Limited operates as a multi-brand casual dining restaurant company. As of December 31, 2019, it had 205 restaurants operated by franchisees in Hong Kong, Mainland China, Macau, and Taiwan under the Tai Hing, TeaWood, Trusty Congee King, Men Wah Bing Teng, Ph? L?, Tokyo Tsukiji, Fisher & Farmer, Asam Chicken Rice, King Fong Bing Teng, Rice Rule, and Hot Pot Couple brands. The company was founded in 1989 and is headquartered in Quarry Bay, Hong Kong. Tai Hing Group Holdings Limited is a subsidiary of Chun Fat Company Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:42
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.