In this company, Tan Zi specializes in Hunan cuisine in areas with light flavors, which is quite smart. The spicy taste is addictive. After conducting a small survey, the consumer reputation is good, showing expansion potential in areas with light flavors.
Overall, it's relatively good in terms of calculation:
156 stores = 76 Tan Zi (Hong Kong, China) + 74 San Go (Hong Kong, China) + 3 Tan Zi (Mainland China) + 3 San Go (Singapore)
From an operational perspective, the Hong Kong noodle market is basically saturated, with a market share of 64.4%. The population of Hong Kong is currently not growing significantly, and this market segment is approaching saturation.
The impact of the epidemic on the dining industry is immediate, with daily customers continuously decreasing. Excluding the 0.15 billion Hong Kong dollars subsidy provided by the government under the epidemic, the actual pre-tax profit level is about 0.17 billion Hong Kong dollars. Currently, the revenue is 1.8 billion Hong Kong dollars. So:
1. In terms of P/S ratio, it is approximately 2.4-3 times.
2. In terms of P/E ratio, excluding the impact of the epidemic, it is approximately 22-27 times P/E. Without considering subsidies, the P/E ratio is between 25-32 times.
Looking at the growth rate of opening new stores, by 2024, a total of 173 stores are planned to be opened. Assuming the revenue per store remains the same, assuming the income can keep up, then the P/S ratio will decrease to 1.2-1.5 times, and P/E will decrease to around 15 times. Based on the current 30% dividend payout ratio, the dividend yield is approximately around 2.2%, which may not be very profitable.
Tan Zai belongs to the fast food industry, referencing similar fast food companies in the industry, such as Cafe de Coral, with a market cap of 8.2 billion...