SEHK:1579

Stock Analysis Report

Executive Summary

Yihai International Holding Ltd., together with its subsidiaries, researches, develops, manufactures, distributes, and sells hot pot soup flavoring, hot pot dipping sauce, and Chinese style compound condiment products under Haidilao brand.

Rewards

Trading at 9.8% below its fair value

Earnings are forecast to grow 27.04% per year

Earnings grew by 38.8% over the past year

Risk Analysis

No risks detected for 1579 from our risk checks.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1579 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.8%

1579

-0.02%

HK Food

1.1%

HK Market


1 Year Return

49.6%

1579

-11.1%

HK Food

-21.6%

HK Market

Return vs Industry: 1579 exceeded the Hong Kong Food industry which returned -11.1% over the past year.

Return vs Market: 1579 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

1579IndustryMarket
7 Day-7.8%-0.02%1.1%
30 Day-0.3%-4.4%-10.2%
90 Day17.6%-4.9%-16.1%
1 Year50.3%49.6%-8.7%-11.1%-18.8%-21.6%
3 Year1407.0%1376.0%28.2%18.5%-3.1%-12.8%
5 Yearn/a-3.1%-12.8%-13.5%-27.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1579 (HK$55.35) is trading below our estimate of fair value (HK$61.34)

Significantly Below Fair Value: 1579 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1579 is poor value based on its PE Ratio (68.3x) compared to the Food industry average (12.3x).

PE vs Market: 1579 is poor value based on its PE Ratio (68.3x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1579 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 1579 is overvalued based on its PB Ratio (18.8x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Yihai International Holding forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1579's forecast earnings growth (27% per year) is above the savings rate (1.6%).

Earnings vs Market: 1579's earnings (27% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).

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

Revenue vs Market: 1579's revenue (26.1% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1579's revenue (26.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1579's Return on Equity is forecast to be high in 3 years time (32.2%)


Next Steps

Past Performance

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

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1579 has high quality earnings.

Growing Profit Margin: 1579's current net profit margins (16.8%) are lower than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: 1579's earnings have grown significantly by 42.9% per year over the past 5 years.

Accelerating Growth: 1579's earnings growth over the past year (38.8%) is below its 5-year average (42.9% per year).

Earnings vs Industry: 1579 earnings growth over the past year (38.8%) exceeded the Food industry 17.9%.


Return on Equity

High ROE: 1579's Return on Equity (29.1%) is considered high.


Next Steps

Financial Health

How is Yihai International Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1579's short term assets (CN¥2.4B) exceed its short term liabilities (CN¥556.9M).

Long Term Liabilities: 1579's short term assets (CN¥2.4B) exceed its long term liabilities (CN¥26.7M).


Debt to Equity History and Analysis

Debt Level: 1579 is debt free.

Reducing Debt: 1579 has no debt compared to 5 years ago when its debt to equity ratio was 1.1%.

Debt Coverage: 1579 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1579 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1579 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1579's debt is covered by short term assets (assets are 3.3129421800109E+17x debt).


Next Steps

Dividend

What is Yihai International Holding's current dividend yield, its reliability and sustainability?

0.41%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 1579's dividend (0.41%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.57%).

High Dividend: 1579's dividend (0.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).


Stability and Growth of Payments

Stable Dividend: 1579 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1579 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: 1579 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 1579'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?

2.1yrs

Average management tenure


CEO

Qiang Guo (50yo)

0.083

Tenure

CN¥40,200,887

Compensation

Mr. Qiang Guo serves as Chief Executive Officer at Yihai International Holding Ltd. since March 25, 2020. He is Executive Director of Yihai International Holding Ltd. since March 26, 2019 and serves as its ...


CEO Compensation Analysis

Compensation vs Market: Qiang's total compensation ($USD5.67M) is above average for companies of similar size in the Hong Kong market ($USD670.77K).

Compensation vs Earnings: Insufficient data to compare Qiang's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Qiang Guo
Head of Marketing0.083yrCN¥40.20m0.041% CN¥22.1m
Shengfeng Sun
CFO, Joint Company Secretary & Executive Director4.08yrsCN¥5.03m0.070% CN¥37.6m
Chunxiang Dang
VP & Executive Director4.33yrsCN¥7.17m0.098% CN¥52.6m
Zhuang Du
Sales Director2.67yrsCN¥5.14mno data
Ping Shu
Executive Director2.08yrsCN¥1.75m0.010% CN¥5.5m
Hai Xu
Key Account Director & Sales Director2.67yrsCN¥1.31mno data
Yin Wah Chan
Joint Company Secretary1.92yrsno datano data

2.1yrs

Average Tenure

45yo

Average Age

Experienced Management: 1579's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qiang Guo
Head of Marketing0.083yrCN¥40.20m0.041% CN¥22.1m
Shengfeng Sun
CFO, Joint Company Secretary & Executive Director4.08yrsCN¥5.03m0.070% CN¥37.6m
Chunxiang Dang
VP & Executive Director4.33yrsCN¥7.17m0.098% CN¥52.6m
Ping Shu
Executive Director2.08yrsCN¥1.75m0.010% CN¥5.5m
Shujun Ye
Independent Non-Executive Director3.83yrsCN¥167.00kno data
Yong Zhang
Non-Executive Director4.33yrsCN¥3.51m38.33% CN¥20.6b
Yonghong Shi
Chairman of the Board2.42yrsCN¥4.31m18.27% CN¥9.8b
Ka Chi Yau
Independent Non-Executive Director3.83yrsCN¥167.00kno data
Mingxing Qian
Independent Non-Executive Director3.83yrsCN¥167.00kno data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 1579's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1579 insiders have only sold shares 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

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


Key Information

  • Name: Yihai International Holding Ltd.
  • Ticker: 1579
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$53.850b
  • Shares outstanding: 972.89m
  • Website: https://www.yihchina.com

Number of Employees


Location

  • Yihai International Holding Ltd.
  • Songlei Office Building
  • Building 6, 1st and 2nd Floors
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1579SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2016
1579SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2016
1579SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2016

Biography

Yihai International Holding Ltd., together with its subsidiaries, researches, develops, manufactures, distributes, and sells hot pot soup flavoring, hot pot dipping sauce, and Chinese style compound condiment products under Haidilao brand. It offers sour tomato, spicy clear oil, clear oil, butter, mellow butter, clear oil slag-free, and handmade butter hot pot bottom materials; fresh fragrant and seafood clear hot pot soups; and fresh flavor, spicy, and original hot pot sauces, as well as oatmeal green pepper, and red onion and soy sauces. The company also provides spicy, flavored, garlic, boiled fish, soup pickled fish, three pepper spicy fish, spicy incense pot, fresh oil spicy hot, and halal spicy seasonings; and pickled sour soup with fish sauce. In addition, it offers various hot pot course, which includes spicy tender beef boiled, tomato burdock self-cooking, crispy beef belly boiled, spicy vegetarian self-cooking, scented curry self-cooking, tomato small crispy meat boiled, spicy assorted vegetables, vine pepper flavored assorted vegetables, chicken mixed with hot and sour powder boiled, and bean sprouts meet hot and sour powder boiled hot pot courses. Further, the company offers self-serving small hot pot products, and consulting services. It provides its products through distributors to hypermarkets, supermarkets, grocery stores, neighborhood stores, and butcher shops, as well as e-commerce channels covering approximately 31 provincial regions of China, as well as the Hong Kong, Macau, and Taiwan regions; and 42 international countries and markets. The company was incorporated in 2013 and is headquartered in Beijing, the People’s Republic of China. Yihai International Holding Ltd. is a subsidiary of ZYSP YIHAI Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 14:22
End of Day Share Price2020/04/03 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.