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Haidilao International Holding

Market Cap

HK$235.6b

Last Updated

2021/05/07 10:35 UTC

Data Sources

Company Financials +

Executive Summary

Haidilao International Holding Ltd., an investment holding company, engages in the restaurant chain operation and delivery businesses. More Details


Snowflake Analysis

Exceptional growth potential with imperfect balance sheet.

Share Price & News

How has Haidilao International Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6862 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 6862's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-14.3%

6862

-6.6%

HK Hospitality

-0.7%

HK Market


1 Year Return

26.5%

6862

19.1%

HK Hospitality

25.7%

HK Market

Return vs Industry: 6862 exceeded the Hong Kong Hospitality industry which returned 23% over the past year.

Return vs Market: 6862 matched the Hong Kong Market which returned 27.5% over the past year.


Shareholder returns

6862IndustryMarket
7 Day-14.3%-6.6%-0.7%
30 Day-16.3%-10.5%-1.6%
90 Day-45.4%-13.1%-2.9%
1 Year27.0%26.5%19.9%19.1%30.6%25.7%
3 Yearn/a-19.9%-25.1%3.5%-7.5%
5 Yearn/a50.3%31.2%62.2%34.7%

Long-Term Price Volatility Vs. Market

How volatile is Haidilao International Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Haidilao International Holding undervalued compared to its fair value and its price relative to the market?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6862 (HK$43.15) is trading below our estimate of fair value (HK$44.39)

Significantly Below Fair Value: 6862 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6862 is poor value based on its PE Ratio (615.2x) compared to the HK Hospitality industry average (33.5x).

PE vs Market: 6862 is poor value based on its PE Ratio (615.2x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 6862 is poor value based on its PEG Ratio (11.7x)


Price to Book Ratio

PB vs Industry: 6862 is overvalued based on its PB Ratio (18.6x) compared to the HK Hospitality industry average (1.1x).


Future Growth

How is Haidilao International Holding forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

52.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6862's forecast earnings growth (52.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 6862's earnings (52.7% per year) are forecast to grow faster than the Hong Kong market (17.2% per year).

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

Revenue vs Market: 6862's revenue (32.6% per year) is forecast to grow faster than the Hong Kong market (12.6% per year).

High Growth Revenue: 6862's revenue (32.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6862's Return on Equity is forecast to be high in 3 years time (34.6%)


Past Performance

How has Haidilao International Holding performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6862 has a high level of non-cash earnings.

Growing Profit Margin: 6862's current net profit margins (1.1%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: 6862's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: 6862's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6862 had negative earnings growth (-86.8%) over the past year, making it difficult to compare to the Hospitality industry average (-69.9%).


Return on Equity

High ROE: 6862's Return on Equity (3%) is considered low.


Financial Health

How is Haidilao International Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 6862's short term assets (CN¥6.6B) do not cover its short term liabilities (CN¥9.9B).

Long Term Liabilities: 6862's short term assets (CN¥6.6B) do not cover its long term liabilities (CN¥7.4B).


Debt to Equity History and Analysis

Debt Level: 6862's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: 6862's debt to equity ratio has increased from 35.9% to 39.8% over the past 5 years.

Debt Coverage: 6862's debt is well covered by operating cash flow (71.7%).

Interest Coverage: 6862's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Haidilao International Holding current dividend yield, its reliability and sustainability?

0.05%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 08 2021Ex Dividend DateJun 01 2021Dividend Pay DateJun 22 202121 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6862's dividend (0.05%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.94%).

High Dividend: 6862's dividend (0.05%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.01%).


Stability and Growth of Payments

Stable Dividend: 6862 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6862 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6862 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6862's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Yong Zhang (50 yo)

3.33yrs

Tenure

CN¥36,585,000

Compensation

Mr. Yong Zhang has served as a Chairman of the Board and Chief Executive Officer of Haidilao International Holding Ltd. since January 17, 2018 and has served as its Executive Director since May 2, 2018. Mr...


CEO Compensation Analysis

Compensation vs Market: Yong's total compensation ($USD5.66M) is above average for companies of similar size in the Hong Kong market ($USD847.07K).

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


Leadership Team

Experienced Management: 6862's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 6862's board of directors are considered experienced (3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Haidilao International Holding Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Haidilao International Holding Ltd.
  • Ticker: 6862
  • Exchange: SEHK
  • Founded: 2015
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: HK$235.585b
  • Shares outstanding: 5.30b
  • Website: https://www.haidilao.com

Number of Employees


Location

  • Haidilao International Holding Ltd.
  • No. 1 Building
  • 7th Floor
  • Beijing
  • 102218
  • China

Listings


Biography

Haidilao International Holding Ltd., an investment holding company, engages in the restaurant chain operation and delivery businesses. It operates a Haidilao branded Chinese cuisine restaurant that focuses...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 10:35
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.