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 5.1% below its fair value

Earnings are forecast to grow 32.62% per year

Earnings grew by 60.9% over the past year

Risk Analysis

High level of non-cash earnings



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

-7.1%

1579

0.4%

HK Food

0.6%

HK Market


1 Year Return

136.5%

1579

21.1%

HK Food

-0.06%

HK Market

Return vs Industry: 1579 exceeded the Hong Kong Food industry which returned 21.1% over the past year.

Return vs Market: 1579 exceeded the Hong Kong Market which returned -0.1% over the past year.


Shareholder returns

1579IndustryMarket
7 Day-7.1%0.4%0.6%
30 Day-12.6%-0.9%-3.6%
90 Day1.7%5.1%-0.01%
1 Year137.6%136.5%24.4%21.1%3.5%-0.06%
3 Year1381.2%1350.8%48.0%37.1%19.5%7.4%
5 Yearn/a25.3%12.4%18.4%-1.4%

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?

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1579 (HK$47.15) is trading below our estimate of fair value (HK$49.68)

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 (68.2x) compared to the Food industry average (16x).

PE vs Market: 1579 is poor value based on its PE Ratio (68.2x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: 1579 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 1579 is overvalued based on its PB Ratio (19.4x) 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 12 analysts?

32.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1579's forecast earnings growth (32.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1579's earnings (32.6% per year) are forecast to grow faster than the Hong Kong market (11.9% per year).

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

Revenue vs Market: 1579's revenue (31.2% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 1579's revenue (31.2% 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 (33.3%)


Next Steps

Past Performance

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

44.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1579 has a high level of non-cash earnings.

Growing Profit Margin: 1579's current net profit margins (18.1%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: 1579's earnings have grown significantly by 44.8% per year over the past 5 years.

Accelerating Growth: 1579's earnings growth over the past year (60.9%) exceeds its 5-year average (44.8% per year).

Earnings vs Industry: 1579 earnings growth over the past year (60.9%) exceeded the Food industry 2%.


Return on Equity

High ROE: 1579's Return on Equity (29.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Yihai International Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1579's short term assets (CN¥1.8B) exceed its short term liabilities (CN¥370.8M).

Long Term Liabilities: 1579's short term assets (CN¥1.8B) exceed its long term liabilities (CN¥28.9M).


Debt to Equity History and Analysis

Debt Level: 1579 is debt free.

Reducing Debt: 1579 had no debt 5 years ago.

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: Insufficient data to determine if 1579's debt is covered by short term assets.


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.3%markettop25%6.3%industryaverage2.3%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: 1579's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 1579's dividend (0.36%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.26%).


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

What is the CEO of Yihai International Holding's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Yonghong Shi (50yo)

1yrs

Tenure

CN¥4,305,000

Compensation

Mr. Yonghong Shi is Co-founder of the Haidilao Group Mr. Shi has been the Chief Executive Officer at Yihai International Holding Ltd. since December 9, 2018. Mr. Shi has over 20 years of food industry and ...


CEO Compensation Analysis

Compensation vs Market: Yonghong's total compensation ($USD610.63K) is about average for companies of similar size in the Hong Kong market ($USD542.95K).

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


Management Age and Tenure

1.7yrs

Average Tenure

45.5yo

Average Age

Experienced Management: 1579's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

3.5yrs

Average Tenure

50yo

Average Age

Experienced Board: 1579's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥3,455,00023 Jul 19
Chunxiang Dang
EntityIndividual
Role
Member of the Board of Directors
VP & Executive Director
Shares80,000
Max PriceCN¥43.19
BuyCN¥54,050,98727 Dec 18
UBS Asset Management
EntityCompany
Shares2,870,000
Max PriceCN¥18.83

Ownership Breakdown

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


Management Team

  • Yin Wah Chan (44yo)

    Joint Company Secretary

    • Tenure: 1.6yrs
  • Chunxiang Dang (46yo)

    VP & Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥7.17m
  • Shengfeng Sun (39yo)

    CFO, Joint Company Secretary & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥5.03m
  • Yonghong Shi (50yo)

    Chairman of the Board & CEO

    • Tenure: 1yrs
    • Compensation: CN¥4.31m
  • Zhuang Du (45yo)

    Sales Director

    • Tenure: 2.3yrs
    • Compensation: CN¥5.14m
  • Hai Xu (45yo)

    Key Account Director & Sales Director

    • Tenure: 2.3yrs
    • Compensation: CN¥1.31m
  • Ping Shu (49yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥1.75m
  • Qiang Guo (50yo)

    Head of Marketing & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥40.20m

Board Members

  • Shujun Ye (58yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥167.00k
  • Chunxiang Dang (46yo)

    VP & Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥7.17m
  • Shengfeng Sun (39yo)

    CFO, Joint Company Secretary & Executive Director

    • Tenure: 3.8yrs
    • Compensation: CN¥5.03m
  • Yong Zhang (49yo)

    Non-Executive Director

    • Tenure: 4yrs
    • Compensation: CN¥3.51m
  • Yonghong Shi (50yo)

    Chairman of the Board & CEO

    • Tenure: 1yrs
    • Compensation: CN¥4.31m
  • Ka Chi Yau (61yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥167.00k
  • Mingxing Qian (56yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: CN¥167.00k
  • Ping Shu (49yo)

    Executive Director

    • Tenure: 1.8yrs
    • Compensation: CN¥1.75m
  • Qiang Guo (50yo)

    Head of Marketing & Executive Director

    • Tenure: 0.8yrs
    • Compensation: CN¥40.20m

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$47.575b
  • 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 condim ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 13:02
End of Day Share Price2019/12/09 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.