Research from Quam Securities, Quam Securities

Quam Securities Research

Research from Quam Securities

Quam Securities

Since its inception in 1986, Quam Securities Limited (Quam Securities) has grown to become one of the few mid-tier securities brokerages in Hong Kong with global execution capabilities for both private and institutional clients. It boasts a well-established network in Greater China including Taiwan and in major world markets through the Global Alliance Partners (GAP). Quam Securities is well-positioned not only to harness and drive business within the China Tonghai International Financial Limited but also between China and the world markets.

Equity Bottom-Up

<ul><li>With the easing of the COVID-19 pandemic, most of the anti-pandemic measures in Hong Kong were lifted at the end of 2022, and the market sentiment of the catering industry began to recover.</li><li>As a result, Tai Hing Group (“THG”) delivered a satisfactory recovery in 1H23 with revenue surging by 28.8% y/y to HK$1.6bn, while the bottom line turned to a profit of HK$45.3mn, from a loss of HK$52.5mn in 1H22.</li><li>An interim DPS of 3.40 HK cents was declared, translating into a payout ratio of 75%. </li></ul>

With the easing of the COVID-19 pandemic, most of the anti-pandemic measures in Hong Kong were lifted at the end of 2022, and the market sentiment of the catering industry began to recover.As a result, Tai Hing Group (“THG”) delivered a satisfactory recovery in 1H23 with revenue surging by 28.8% y/y to HK$1.6bn, while the bottom line turned to a profit of HK$45.3mn, from a loss of HK$52.5mn in 1H22.An interim DPS of 3.40 HK cents was declared, translating into a payout ratio of 75%. 

Tai Hing Group - Satisfactory Recovery After 3-Yr Pandemic

<ul><li>Tai Hing Group (“THG”) is poised to benefit from the imminent recovery in local catering demand, thanks to its effective multi-brand strategy, broad store footprint, solid management and execution capabilities.</li><li>We have adjusted our earnings forecasts and TP, given the unfavourable operating environment caused by the COVID-19 outbreak in both HK and China in 1H22.</li><li>We reiterate our Buy rating for THG and revised our TP to HK$1.69 based on 13x 2023E P/E, which implies a 69% upside potential. </li></ul>

Tai Hing Group (“THG”) is poised to benefit from the imminent recovery in local catering demand, thanks to its effective multi-brand strategy, broad store footprint, solid management and execution capabilities.We have adjusted our earnings forecasts and TP, given the unfavourable operating environment caused by the COVID-19 outbreak in both HK and China in 1H22.We reiterate our Buy rating for THG and revised our TP to HK$1.69 based on 13x 2023E P/E, which implies a 69% upside potential. 

Tai Hing Group (6811 HK) – Expecting Decent Recovery and Dividend Yield

<ul><li>Affected by the negative impact caused by the COVID-19 pandemic around the world in 1H22, Tai Hing Group (THG) reported an attributable net loss of HK$52.5mn for the period, compared with an attributable net profit of HK$33.4 in 1H21.</li><li>As the pandemic eased and consumer sentiment in HK gradually improved, THG’s operating performance in June has been recovering.</li><li>Going forward, THG will step up marketing efforts to seize the post-pandemic market recovery momentum and will also focus on strengthening internal operations, optimising the restaurant network and dining experience.</li></ul>

Affected by the negative impact caused by the COVID-19 pandemic around the world in 1H22, Tai Hing Group (THG) reported an attributable net loss of HK$52.5mn for the period, compared with an attributable net profit of HK$33.4 in 1H21.As the pandemic eased and consumer sentiment in HK gradually improved, THG’s operating performance in June has been recovering.Going forward, THG will step up marketing efforts to seize the post-pandemic market recovery momentum and will also focus on strengthening internal operations, optimising the restaurant network and dining experience.

Tai Hing Group (6811 HK; BUY; TP: HK$2.87)

Hong Kong

Tai Hing Group Holdings Limited is an investment holding company primarily engaged in restaurant operations and management, and the sale of food products. It operates a multi-brand casual dining restaurant group with over 200 restaurants across Hong Kong, Macau, and Mainland China. The company was founded in 1989 and is headquartered in Quarry Bay, Hong Kong.

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Tai Hing (6811 HK)

Tai Hing Group - Satisfactory Recovery After 3-Yr Pandemic

With the easing of the COVID-19 pandemic, most of the anti-pandemic measures in Hong Kong were lifted at the end of 2022, and the market sentiment...

Quam Securities

Tai Hing Group (6811 HK) – Expecting Decent Recovery and Dividend Yield

We have adjusted our earnings forecasts and TP, given the unfavourable operating environment caused by the COVID-19 outbreak in both HK and China...

Quam Securities

Tai Hing Group (6811 HK; BUY; TP: HK$2.87)

As the pandemic eased and consumer sentiment in HK gradually improved, THG’s operating performance in June has been recovering.

Quam Securities

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