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Haidilao International Holding

SEHK:6862
Snowflake Description

Exceptional growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6862
SEHK
HK$169B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

Haidilao International Holding Ltd., an investment holding company, engages in the restaurants operation and relevant delivery businesses. The last earnings update was 86 days ago. More info.


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6862 Share Price and Events
7 Day Returns
-4.2%
SEHK:6862
1.8%
HK Hospitality
1%
HK Market
1 Year Returns
-
SEHK:6862
-5.1%
HK Hospitality
-4.7%
HK Market
6862 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Haidilao International Holding (6862) -4.2% 5.3% 6.2% - - -
HK Hospitality 1.8% 12.2% -2.3% -5.1% 43.9% -27.7%
HK Market 1% 3.9% -7.8% -4.7% 17.5% 2%
1 Year Return vs Industry and Market
  • No trading data on 6862.
  • No trading data on 6862.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Haidilao International Holding's competitors could be found in our database.

6862 Value

 Is Haidilao International Holding 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 Haidilao International Holding 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 Haidilao International Holding.

SEHK:6862 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
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:6862
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))
= 0.923 (1 + (1- 25%) (0.28%))
0.95
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% + (0.95 * 5.96%)
7.66%

Discounted Cash Flow Calculation for SEHK:6862 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Haidilao International Holding 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:6862 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.66%)
2020 2,306.00 Analyst x2 2,141.84
2021 3,465.00 Analyst x2 2,989.22
2022 4,460.70 Est @ 28.74% 3,574.26
2023 5,384.79 Est @ 20.72% 4,007.54
2024 6,198.01 Est @ 15.1% 4,284.39
2025 6,890.47 Est @ 11.17% 4,423.99
2026 7,470.76 Est @ 8.42% 4,455.10
2027 7,956.06 Est @ 6.5% 4,406.74
2028 8,365.65 Est @ 5.15% 4,303.75
2029 8,717.39 Est @ 4.2% 4,165.44
Present value of next 10 years cash flows CN¥38,752.27
SEHK:6862 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥8,717.39 × (1 + 2%) ÷ (7.66% – 2%)
CN¥157,060.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥157,060.78 ÷ (1 + 7.66%)10
CN¥75,048.57
SEHK:6862 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥38,752.27 + CN¥75,048.57
CN¥113,800.84
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥113,800.84 / 5,300.00
CN¥21.47
SEHK:6862 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:6862)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥21.47 x 1.137
HK$24.41
Value per share (HKD) From above. HK$24.41
Current discount Discount to share price of HK$31.85
= -1 x (HK$31.85 - HK$24.41) / HK$24.41
-30.5%

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

  • The current share price of Haidilao International Holding is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Haidilao International Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Haidilao International Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:6862 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.33
SEHK:6862 Share Price ** SEHK (2019-07-18) in HKD HK$31.85
SEHK:6862 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥28.02
Hong Kong Hospitality Industry PE Ratio Median Figure of 69 Publicly-Listed Hospitality Companies 13.94x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.82x

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

** Primary Listing of Haidilao International Holding.

SEHK:6862 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:6862 Share Price ÷ EPS (both in CNY)

= 28.02 ÷ 0.33

84.91x

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

  • Haidilao International Holding is overvalued based on earnings compared to the HK Hospitality industry average.
  • Haidilao International Holding is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Haidilao International Holding's expected growth come at a high price?
Raw Data
SEHK:6862 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 84.91x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
29.8%per year
Hong Kong Hospitality Industry PEG Ratio Median Figure of 21 Publicly-Listed Hospitality Companies 2.21x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:6862 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 84.91x ÷ 29.8%

2.85x

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

  • Haidilao International Holding is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Haidilao International Holding's assets?
Raw Data
SEHK:6862 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥1.63
SEHK:6862 Share Price * SEHK (2019-07-18) in HKD HK$31.85
SEHK:6862 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥28.02
Hong Kong Hospitality Industry PB Ratio Median Figure of 109 Publicly-Listed Hospitality Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:6862 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:6862 Share Price ÷ Book Value per Share (both in CNY)

= 28.02 ÷ 1.63

17.22x

* Primary Listing of Haidilao International Holding.

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

  • Haidilao International Holding is overvalued based on assets compared to the HK Hospitality industry average.
X
Value checks
We assess Haidilao International Holding'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. Haidilao International Holding has a total score of 0/6, 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.

6862 Future Performance

 How is Haidilao International Holding expected to perform in the next 1 to 3 years based on estimates from 9 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
29.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Haidilao International Holding expected to grow at an attractive rate?
  • Haidilao International Holding's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Haidilao International Holding's earnings growth is expected to exceed the Hong Kong market average.
  • Haidilao International Holding's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:6862 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:6862 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 29.8%
SEHK:6862 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 30.6%
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 -5.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 13.5%

*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:6862 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:6862 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 46,226 6,294 4,376 8
2020-12-31 37,161 5,150 3,565 9
2019-12-31 27,235 3,755 2,665 9
SEHK:6862 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 16,969 2,388 1,646
2018-09-30 15,096 2,087 1,448
2018-06-30 13,224 1,786 1,250
2018-03-31 11,930 1,593 1,139
2017-12-31 10,637 1,400 1,028
2016-12-31 7,808 1,414 735

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Haidilao International Holding's earnings are expected to grow significantly at over 20% yearly.
  • Haidilao International Holding's revenue is expected to grow significantly at over 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:6862 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 9 Analyst Estimates (S&P Global) See Below

All data from Haidilao International Holding Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6862 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.86 0.93 0.83 5.00
2020-12-31 0.70 0.72 0.66 6.00
2019-12-31 0.51 0.53 0.50 6.00
SEHK:6862 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.33
2018-09-30 0.29
2018-06-30 0.26
2018-03-31 0.24
2017-12-31 0.21
2016-12-31 0.16

*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.
  • Haidilao International Holding is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Haidilao International Holding'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.
Haidilao International Holding has a total score of 6/6, 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.

6862 Past Performance

  How has Haidilao International Holding 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 Haidilao International Holding'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.
  • Insufficient data to establish if Haidilao International Holding's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Haidilao International Holding's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Haidilao International Holding's earnings growth has exceeded the HK Hospitality industry average in the past year (60.2% vs -2.4%).
Earnings and Revenue History
Haidilao International Holding'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 Haidilao International Holding Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:6862 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 16,969.10 1,646.16 159.47
2018-09-30 15,096.42 1,447.84 162.39
2018-06-30 13,223.75 1,249.53 213.15
2018-03-31 11,930.46 1,138.69 190.29
2017-12-31 10,637.17 1,027.85 119.60
2016-12-31 7,807.69 735.17 145.37
2015-12-31 5,756.68 272.69 74.46

*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.
  • Haidilao International Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Haidilao International Holding used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.
  • Haidilao International Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Haidilao International Holding'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.
Haidilao International Holding has a total score of 2/6, 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.

6862 Health

 How is Haidilao International Holding'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 Haidilao International Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Haidilao International Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Haidilao International Holding's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Haidilao International Holding'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 14x 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 Haidilao International Holding Company Filings, last reported 6 months ago.

SEHK:6862 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,629.56 410.35 4,223.66
2018-09-30 8,629.56 410.35 4,223.66
2018-06-30 1,191.93 1,111.48 543.78
2018-03-31 1,191.93 1,111.48 543.78
2017-12-31 1,090.98 1,048.47 360.89
2016-12-31 1,071.74 578.56 414.20
2015-12-31 1,156.92 414.39 210.55
  • Haidilao International Holding's level of debt (4.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Haidilao International Holding's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (582%, greater than 20% of total debt).
  • Haidilao International Holding earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Haidilao International Holding'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. Haidilao International Holding 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.

6862 Dividends

 What is Haidilao International Holding'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
0.23%
Current annual income from Haidilao International Holding dividends. Estimated to be 0.49% next year.
If you bought HK$2,000 of Haidilao International Holding shares you are expected to receive HK$5 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?
  • Haidilao International Holding's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Haidilao International Holding's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
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:6862 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 9 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:6862 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.18 6.00
2020-12-31 0.14 7.00
2019-12-31 0.10 7.00
SEHK:6862 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-23 0.065 0.257

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

  • Haidilao International Holding is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • Haidilao International Holding is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Haidilao International Holding's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Haidilao International Holding's dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • No need to calculate the sustainability of Haidilao International Holding's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.
X
Income/ dividend checks
We assess Haidilao International Holding'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 Haidilao International Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Haidilao International Holding has a total score of 0/6, see the detailed checks below.


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

6862 Management

 What is the CEO of Haidilao International Holding'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
Yong Zhang
AGE 49
TENURE AS CEO 1.5 years
CEO Bio

Mr. Yong Zhang has been Chairman of the Board and Chief Executive Officer of Haidilao International Holding Ltd. since January 17, 2018 and has been its Executive Director since May 2, 2018. Mr. Zhang has over 20 years of experience in restaurant management business. He served as a Director of Haidilao International Holding Ltd from July 14, 2015 to May 2, 2018. Mr. Zhang has held various positions in Group since its establishment. From April 1994 to March 2001, he served as the General Manager of Sichuan Haidilao Catering Co., Ltd. From April 2001 to June 2009, Mr. Zhang served as both the Executive Director and the General Manager of Sichuan Haidilao Catering Co., Ltd. Since July 2009, Mr. Zhang has been serving as a Director and the Chairman of the Board of Sichuan Haidilao Catering Co., Ltd and was re-designated as a Non-Executive Director in January 2018. Mr. Zhang has been serving as a Non-Executive Director of Yihai International Holding Ltd since March 2016. Mr. Zhang completed the Master of Business Administration program and completed the Finance Master of Business Administration Program hosted by Cheung Kong Graduate School of Business in October 2011 and August 2012, respectively.

CEO Compensation
  • Insufficient data for Yong to compare compensation growth.
  • Insufficient data for Yong to establish whether their remuneration is reasonable compared to companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Haidilao International Holding management team in years:

1.5
Average Tenure
45
Average Age
  • The average tenure for the Haidilao International Holding management team is less than 2 years, this suggests a new team.
Management Team

Yong Zhang

TITLE
Chairman & CEO
AGE
49
TENURE
1.5 yrs

Xiaofeng Tong

TITLE
CFO, Joint Company Secretary
AGE
45
TENURE
2 yrs

Lijuan Yang

TITLE
Chief Operating Officer
AGE
41
TENURE
1.5 yrs

Zhidong Shao

TITLE
Chief Information Officer & Executive Director
AGE
44
TENURE
5 yrs

Yonghong Shi

TITLE
Executive Director
AGE
50

Zhaocheng Zhou

TITLE
Chief Strategy Officer
AGE
46
TENURE
1.3 yrs

Chunxia Tang

TITLE
Chief Development Officer
AGE
43
TENURE
1.3 yrs

Betty So

TITLE
Joint Company Secretary
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Haidilao International Holding board of directors in years:

1.5
Average Tenure
49.5
Average Age
  • The average tenure for the Haidilao International Holding board of directors is less than 3 years, this suggests a new board.
Board of Directors

Yong Zhang

TITLE
Chairman & CEO
AGE
49
TENURE
1.5 yrs

Xiaofeng Tong

TITLE
CFO, Joint Company Secretary
AGE
45
TENURE
1.5 yrs

Zhidong Shao

TITLE
Chief Information Officer & Executive Director
AGE
44
TENURE
1.5 yrs

Yonghong Shi

TITLE
Executive Director
AGE
50
TENURE
4 yrs

Theng-Fong Hee

TITLE
Independent Non Executive Director
AGE
64
TENURE
1.2 yrs

Dave Qi

TITLE
Independent Non-Executive Director
AGE
55
TENURE
1.2 yrs

Ping Shu

TITLE
Non Executive Director
AGE
49
TENURE
4 yrs

Sin Bin Chua

TITLE
Independent Non-Executive Director
AGE
72
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Haidilao International Holding'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. Haidilao International Holding 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.

6862 News

Simply Wall St News

A Close Look At Haidilao International Holding Ltd.’s (HKG:6862) 27% ROCE

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Haidilao International Holding: 0.27 = CN¥2.3b ÷ (CN¥12b - CN¥3.3b) (Based on the trailing twelve months to December 2018.) So, Haidilao International Holding has an ROCE of 27%. … How Haidilao International Holding's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Our Take On Haidilao International Holding's ROCE With low current liabilities and a high ROCE, Haidilao International Holding could be worthy of further investigation.

Simply Wall St -

Calculating The Fair Value Of Haidilao International Holding Ltd. (HKG:6862)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CN¥, Millions) CN¥1.25k CN¥1.97k CN¥3.47k CN¥4.82k CN¥6.18k CN¥7.42k CN¥8.52k CN¥9.45k CN¥10.23k CN¥10.88k Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x2 Est @ 39.19% Est @ 28.03% Est @ 20.23% Est @ 14.76% Est @ 10.93% Est @ 8.25% Est @ 6.38% Present Value (CN¥, Millions) Discounted @ 7.64% CN¥1.16k CN¥1.70k CN¥2.78k CN¥3.59k CN¥4.27k CN¥4.77k CN¥5.09k CN¥5.24k CN¥5.27k CN¥5.21k Present Value of 10-year Cash Flow (PVCF)= CN¥39.09b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CN¥11b × (1 + 2%) ÷ (7.6% – 2%) = CN¥197b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CN¥CN¥197b ÷ ( 1 + 7.6%)10 = CN¥94.29b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CN¥133.39b. … SEHK:6862 Intrinsic value, June 28th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is Haidilao International Holding Ltd.'s (HKG:6862) High P/E Ratio A Problem For Investors?

View our latest analysis for Haidilao International Holding How Do I Calculate Haidilao International Holding's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) Or for Haidilao International Holding: P/E of 74.99 = CN¥24.75 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.33 (Based on the year to December 2018.) Is A High P/E Ratio Good? … The Verdict On Haidilao International Holding's P/E Ratio With a P/E ratio of 75, Haidilao International Holding is expected to grow earnings very strongly in the years to come.

Simply Wall St -

What Should You Know About The Future Of Haidilao International Holding Ltd.'s (HKG:6862)?

The latest earnings release Haidilao International Holding Ltd.'s (HKG:6862) announced in December 2018 signalled that the business experienced a strong tailwind, leading to a high double-digit earnings growth of 60%. … Below, I've laid out key numbers on how market analysts predict Haidilao International Holding's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … View our latest analysis for Haidilao International Holding Analysts' outlook for the coming year seems optimistic, with earnings expanding by a significant 58%.

Simply Wall St -

Is Haidilao International Holding Ltd.'s (HKG:6862) ROE Of 19% Impressive?

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.19 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Fundamental Investors Might Love Haidilao International Holding Ltd. (HKG:6862)

Attractive stocks have exceptional fundamentals. … In the case of Haidilao International Holding Ltd. … financial health as well as

Simply Wall St -

Haidilao International Holding Ltd. (HKG:6862) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Don't Sell Haidilao International Holding Ltd. (HKG:6862) Before You Read This

How Do I Calculate Haidilao International Holding's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 66.62 = CN¥17.08 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.26

Simply Wall St -

Are Haidilao International Holding Ltd.'s (HKG:6862) Interest Costs Too High?

Investors pursuing a solid, dependable stock investment can often be led to Haidilao International Holding Ltd. … This article will examine Haidilao International Holding’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … See our latest analysis for Haidilao International Holding

Simply Wall St -

6862 Company Info

Description

Haidilao International Holding Ltd., an investment holding company, engages in the restaurants operation and relevant delivery businesses. Its Haidilao brand Chinese cuisine restaurant focuses on hot pot cuisine. The company is also involved in the sale of condiment products and food ingredients; logistics and wholesale trade activities; and food research and development, and trading businesses. As of December 31, 2018, it owned and operated 466 restaurants, including 430 restaurants in 109 cities in Mainland China, as well as 36 restaurants in Taiwan, Hong Kong, Singapore, South Korea, Japan, the United States, and Canada. Haidilao International Holding Ltd. was incorporated in 2015 and is headquartered in Beijing, the People’s Republic of China.

Details
Name: Haidilao International Holding Ltd.
6862
Exchange: SEHK
Founded: 2015
HK$169,070,000,000
5,300,000,000
Website: http://www.haidilao.com
Address: Haidilao International Holding Ltd.
No. 1 Building,
7th Floor,
Beijing,
102218,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 6862 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 26. Sep 2018
OTCPK HDAL.F Ordinary Shares Pink Sheets LLC US USD 26. Sep 2018
SHSC 6862 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 26. Sep 2018
SZSC 6862 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 26. Sep 2018
Number of employees
Current staff
Staff numbers
69,056
Haidilao International Holding employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 13:08
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/04/23
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.