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8371

Taste Gourmet Group SEHK:8371 Stock Report

Last Price

HK$1.04

Market Cap

HK$402.4m

7D

-1.9%

1Y

-10.3%

Updated

24 Jun, 2022

Data

Company Financials
8371 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends3/6

8371 Stock Overview

Taste Gourmet Group Limited, an investment holding company, operates full-service restaurants and kiosks in Hong Kong and the People’s Republic of China.

Taste Gourmet Group Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Taste Gourmet Group
Historical stock prices
Current Share PriceHK$1.04
52 Week HighHK$1.30
52 Week LowHK$0.56
Beta0.31
1 Month Change-0.95%
3 Month Change22.35%
1 Year Change-10.35%
3 Year Change26.83%
5 Year Changen/a
Change since IPO23.81%

Recent News & Updates

Mar 03
Here's Why Taste Gourmet Group (HKG:8371) Can Manage Its Debt Responsibly

Here's Why Taste Gourmet Group (HKG:8371) Can Manage Its Debt Responsibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

8371HK HospitalityHK Market
7D-1.9%-0.9%1.2%
1Y-10.3%-41.3%-23.3%

Return vs Industry: 8371 exceeded the Hong Kong Hospitality industry which returned -41.3% over the past year.

Return vs Market: 8371 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 8371's price volatile compared to industry and market?
8371 volatility
8371 Average Weekly Movement8.6%
Hospitality Industry Average Movement7.7%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 8371 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 8371's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017860Wai Chun Chanhttps://www.tastegourmet.com.hk

Taste Gourmet Group Limited, an investment holding company, operates full-service restaurants and kiosks in Hong Kong and the People’s Republic of China. It operates 38 restaurants under the Nabe Urawa, Dab-Pa, La’taste, Rakuraku Ramen, Yakiniku Guu, Parkview, Takano Ramen, Moments Together, Sankinn, Tirpse, Urawa, Wasyokuya Yamaichi, Xianghui, and Same Same brands. The company also provides management services.

Taste Gourmet Group Fundamentals Summary

How do Taste Gourmet Group's earnings and revenue compare to its market cap?
8371 fundamental statistics
Market CapHK$402.41m
Earnings (TTM)HK$52.47m
Revenue (TTM)HK$594.13m

7.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
8371 income statement (TTM)
RevenueHK$0
Cost of RevenueHK$0
Gross ProfitHK$0
Other ExpensesHK$0
EarningsHK$0

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin32.99%
Net Profit Margin8.83%
Debt/Equity Ratio167.7%

How did 8371 perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

59%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 8371 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 8371?

Other financial metrics that can be useful for relative valuation.

8371 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA8.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 8371's PE Ratio compare to its peers?

8371 PE Ratio vs Peers
The above table shows the PE ratio for 8371 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.6x

Price-To-Earnings vs Peers: 8371 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (17.6x).


Price to Earnings Ratio vs Industry

How does 8371's PE Ratio compare vs other companies in the Hong Kong Hospitality Industry?

Price-To-Earnings vs Industry: 8371 is good value based on its Price-To-Earnings Ratio (7.7x) compared to the Hong Kong Hospitality industry average (20.7x)


Price to Earnings Ratio vs Fair Ratio

What is 8371's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

8371 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 8371's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 8371 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 8371 (HK$1.04) is trading below our estimate of fair value (HK$8.02)

Significantly Below Fair Value: 8371 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8371's PEG Ratio to determine if it is good value.


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Future Growth

How is Taste Gourmet Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


61.7%

Forecasted Consumer Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Taste Gourmet Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine whether Taste Gourmet Group is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Taste Gourmet Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Taste Gourmet Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


30.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 8371 has a large one-off gain of HK$35.0M impacting its March 31 2022 financial results.

Growing Profit Margin: 8371's current net profit margins (8.8%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: 8371's earnings have grown significantly by 30.8% per year over the past 5 years.

Accelerating Growth: 8371's earnings growth over the past year (166.7%) exceeds its 5-year average (30.8% per year).

Earnings vs Industry: 8371 earnings growth over the past year (166.7%) exceeded the Hospitality industry 18.5%.


Return on Equity

High ROE: 8371's Return on Equity (29.3%) is considered high.


Discover strong past performing companies

Financial Health

How is Taste Gourmet Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 8371's short term assets (HK$125.6M) do not cover its short term liabilities (HK$138.0M).

Long Term Liabilities: 8371's short term assets (HK$125.6M) do not cover its long term liabilities (HK$210.8M).


Debt to Equity History and Analysis

Debt Level: 8371's net debt to equity ratio (108.9%) is considered high.

Reducing Debt: 8371's debt to equity ratio has increased from 123.5% to 167.7% over the past 5 years.

Debt Coverage: 8371's debt is well covered by operating cash flow (58.6%).

Interest Coverage: 8371's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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Dividend

What is Taste Gourmet Group current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 8371's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.76%).

High Dividend: 8371's dividend (3.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).


Stability and Growth of Payments

Stable Dividend: 8371 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8371's dividend payments have increased, but the company has only paid a dividend for 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59%), 8371's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (12.7%), 8371's dividend payments are thoroughly covered by cash flows.


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Management

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

3.1yrs

Average management tenure


CEO

Wai Chun Chan (44 yo)

no data

Tenure

HK$1,503,000

Compensation

Ms. Wai Chun Chan serves as Chief Executive Officer & Executive Director at Taste Gourmet Group Limited. Ms. Chan is one of the co-founders of Taste Gourmet Group. She is responsible for the overall day to...


CEO Compensation Analysis

Compensation vs Market: Wai Chun's total compensation ($USD191.48K) is about average for companies of similar size in the Hong Kong market ($USD232.99K).

Compensation vs Earnings: Wai Chun's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 8371's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: 8371's board of directors are considered experienced (4.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Taste Gourmet Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Taste Gourmet Group Limited
  • Ticker: 8371
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: HK$402.409m
  • Shares outstanding: 386.93m
  • Website: https://www.tastegourmet.com.hk

Number of Employees


Location

  • Taste Gourmet Group Limited
  • Crawford Tower
  • Unit B, 24th Floor
  • Sheung Wan
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.