DOCSLIB.ORG

Yoshinoya HD / 9861

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Yoshinoya HD / 9861 R Yoshinoya HD / 9861 COVERAGE INITIATED ON: 2018.11.14 LAST UPDATE: 2019.07.05 Shared Research Inc. has produced this report by request from the company discussed in the report. The aim is to provide an “owner’s manual” to investors. We at Shared Research Inc. make every effort to provide an accurate, objective, and neutral analysis. In order to highlight any biases, we clearly attribute our data and findings. We will always present opinions from company management as such. Our views are ours where stated. We do not try to convince or influence, only inform. We appreciate your suggestions and feedback. Write to us at [email protected] or find us on Bloomberg. Research Coverage Report by Shared Research Inc. Yoshinoya HD / 9861 R LAST UPDATE: 2019.07.05 Research Coverage Report by Shared Research Inc. | https://sharedresearch.jp Coverage INDEX How to read a Shared Research report: This report begins with the trends and outlook section, which discusses the company’s most recent earnings. First-time readers should start at the business section later in the report. Executive summary ----------------------------------------------------------------------------------------------------------------------------------- 3 Key financial data ------------------------------------------------------------------------------------------------------------------------------------- 5 Recent updates ---------------------------------------------------------------------------------------------------------------------------------------- 7 Highlights ------------------------------------------------------------------------------------------------------------------------------------------------------------7 Trends and outlook ----------------------------------------------------------------------------------------------------------------------------------- 8 Quarterly trends and results -----------------------------------------------------------------------------------------------------------------------------------8 Past initial forecasts versus results -------------------------------------------------------------------------------------------------------------------------- 17 Business ------------------------------------------------------------------------------------------------------------------------------------------------ 21 Business description -------------------------------------------------------------------------------------------------------------------------------------------- 21 Group strategy --------------------------------------------------------------------------------------------------------------------------------------------------- 36 Group structure -------------------------------------------------------------------------------------------------------------------------------------------------- 37 Profitability snapshot ------------------------------------------------------------------------------------------------------------------------------------------- 38 Strengths and weaknesses ------------------------------------------------------------------------------------------------------------------------------------ 42 Market and value chain ---------------------------------------------------------------------------------------------------------------------------- 44 Restaurant market trends ------------------------------------------------------------------------------------------------------------------------------------- 44 Competition ------------------------------------------------------------------------------------------------------------------------------------------------------ 45 Historical performance and financial statements ------------------------------------------------------------------------------------------ 48 Income statement ----------------------------------------------------------------------------------------------------------------------------------------------- 48 Balance sheet ----------------------------------------------------------------------------------------------------------------------------------------------------- 49 Cash flow statement -------------------------------------------------------------------------------------------------------------------------------------------- 51 Historical performance ---------------------------------------------------------------------------------------------------------------------------------------- 52 Other information ---------------------------------------------------------------------------------------------------------------------------------- 60 History -------------------------------------------------------------------------------------------------------------------------------------------------------------- 60 News and topics ------------------------------------------------------------------------------------------------------------------------------------------------- 61 Corporate governance and top management --------------------------------------------------------------------------------------------------------- 64 Dividend policy -------------------------------------------------------------------------------------------------------------------------------------------------- 65 Major shareholders --------------------------------------------------------------------------------------------------------------------------------------------- 65 Employees --------------------------------------------------------------------------------------------------------------------------------------------------------- 66 By the way --------------------------------------------------------------------------------------------------------------------------------------------------------- 66 Profile ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 67 02/68 Yoshinoya HD / 9861 R LAST UPDATE: 2019.07.05 Research Coverage Report by Shared Research Inc. | https://sharedresearch.jp Coverage Executive summary Business overview Yoshinoya HD operates major restaurant chains in Japan and overseas. Its core business is Yoshinoya, which invented gyudon ◤ (beef bowl) and boasts a 120-year history since opening its first restaurant. The company began actively acquiring businesses from around 1995, and has grown to operate a diverse portfolio of restaurants. Main brands include Yoshinoya (gyudon), Hanamaru Udon (udon noodles), Volks (steak), Steak-no-Don (steaks), Kyotaru (take-out sushi), and Kaisen Misakiko (conveyor belt sushi). As of end February 2019, it had a total of 3,403 restaurants, 2,480 in Japan and 923 overseas. The majority of its restaurants in Japan are directly managed, whereas overseas (mainly Yoshinoya and Hanamaru restaurants) most are operated as franchises. The company has five business segments: Yoshinoya, Hanamaru, Arcmeal, Kyotaru, and Overseas. In the Yoshinoya segment, which accounts for 50% of total sales and 60% of operating profit, the company operated 1,211 ◤ restaurants in Japan (as of end February 2019), ranking the chain second among the three companies that dominate the domestic beef bowl market. Annual sales per restaurant were JPY85mn. Over the past five years, Yoshinoya restaurants in Japan have increased by 21 outlets (net) as the company continued to scrap and build its domestic suburban stores. While Yoshinoya is a strong brand, the overall earnings environment for the company is challenging, because gyudon has a large sales weighting and beef prices remain high. Yoshinoya’s segment profit margin (before adjustments) driven by beef prices is generally low (3.4% in FY02/19). Consequently, companywide OPM over the past five years only averaged 1.2%, placing Yoshinoya HD near the bottom of the food-service sector, although profit levels have recovered somewhat from the post-BSE slump. Growth drivers are the Hanamaru segment (14.3% of total sales in FY02/19) and the Overseas segment (10.5%). The ◤ Hanamaru business comprised 512 restaurants around the country (mostly directly operated), making it the second-largest udon chain in Japan. Annual sales per restaurant were JPY57mn. The company targets a total of 1,000 locations. The Overseas segment mostly involves Yoshinoya (923 locations) and Hanamaru (44) restaurants in the US, China, and the ASEAN region (as of end FY02/19). The company is also focusing on opening directly operated restaurants abroad and expects the number of overseas restaurants to exceed that of Yoshinoya restaurants in Japan by 2025. In addition, although details have not been disclosed, it also considers Kaisen Misakiko (Kyotaru segment) to be a growth business that is highly profitable. The strategy for Kaisen Misakiko is to continue opening restaurants in urban commercial buildings. Trends and outlook For FY02/19, the company reported consolidated sales of JPY202.4bn (+2.0% YoY), an operating profit of JPY104mn (-97.4% ◤ YoY), recurring profit of JPY349mn (-92.4% YoY), and net loss of JPY6.0bn (versus profit of JPY1.5bn in FY 02/18). Although operating hours and days in operation at some restaurants were shortened as a result of severe weather conditions and natural disasters such as torrential rains, typhoons, and earthquake, sales at existing Yoshinoya restaurants logged solid gains and top-line growth was further aided by new restaurant openings by the company's Hanamaru chain and overseas. On the earnings front, operating profit fell due to the rising cost of beef, rice, and other ingredients; personnel-related
Load more

Recommended publications
  • Demae-Can / 2484
    Demae-can / 2484 COVERAGE INITIATED ON: 2017.12.25 LAST UPDATE: 2021.06.25 Shared Research Inc. has produced this report by request from the company discussed herein. The aim is to provide an “owner’s manual” to investors. We at Shared Research Inc. make every effort to provide an accurate, objective, neutral analysis. To highlight any biases, we clearly attribute our data and findings. We always present opinions from company management as such. The views are ours where stated. We do not try to convince or influence, only inform. We appreciate your suggestions and feedback. Write to us at [email protected] or find us on Bloomberg. Research Coverage Report by Shared Research Inc. Demae-can / 2484 RCoverage LAST UPDATE: 2021.06.25 Research Coverage Report by Shared Research Inc. | https://sharedresearch.jp INDEX How to read a Shared Research report: This report begins with the Trends and outlook section, which discusses the company’s most recent earnings. First-time readers should start at the later Business section. Executive summary ----------------------------------------------------------------------------------------------------------------------------------- 3 Key financial data ------------------------------------------------------------------------------------------------------------------------------------- 5 Recent updates ---------------------------------------------------------------------------------------------------------------------------------------- 6 Highlights ------------------------------------------------------------------------------------------------------------------------------------------------------------
    [Show full text]
  • PACIFICO Yokohama MEAL TICKET RESTAURANT MAP As of Apr
    PACIFICO Yokohama MEAL TICKET RESTAURANT MAP As of Apr. 2016 198 restaurants 58 Cafe 045-664-5859 【Front】 【Back】 Pukari Port of Rinko Park Yokohama Rinko Park Sanbashi Yokohama YOKOHAMA NUMAZU-Kou 045-232-4027 Pier World Porters 250 from July 1, 2015 to December 31, 2015 5 Issued by PACIFICO Yokohama Yokohama 250 from July 1, 2015 to December 31, 2015 Minato Mirai Issued by PACIFICO Yokohama PACIFICO YokohamaYokohama Manyo Club TORIMARU 045-651-9010 250 from July 1, 2015 to December 31, 2015 Issued by PACIFICO Yokohama 250 from July 1, 2015 to December 31, 2015 Keawjai 045-682-2679 6 Issued by PACIFICO Yokohama Keiyu Police Hospital Box 7 27 Yokohama ８ Cosmo World Stickers on the left above are shown Kamakura Bowls 045-651-5450 20 21 Avenue Sakura SOGO YCAT Minato Mirai Line 9 (Yokohama City Minato Mirai Station in restaurants where Meal Ticket can Air Terminal) 10 be used. SOGO 22 11 Station 1F Bus Terminal Bashamichi Station 23 24 12 ＊No change will be given. When there’s a large amount of Station change, please pay in cash. YokohamaYokohama 26 Shintakashima 15 StationStation 25 Keyaki Boulevard 13 14 ＊Meal tickets cannot be exchanged for cash. Icho Boulevard Suzukake Boulevard Minato Mirai Boulevard 18 19 ＊Meal tickets that are not used will not be exchanged for Bus/Taxi Terminal new tickets unless there is an error or flaw made by Sakuragicho PACIFICO Yokohama. Minato Mirai Ramp 16 17 Station ＊Please check the expiration date printed on the front side. Issued by: PACIFICO Yokohama ① PACIFICO Yokohama Exhibition Hall ⑥ The Yokohama
    [Show full text]
  • HIDAY HIDAKA Corporation
    HIDAY HIDAKA Corporation Restaurant chain serving ramen and Chinese dishes to the mass-market: focusing on new business formats despite the impact of COVID-19 TICKER: 7611 | TSE1 | HP: http://hidakaya.hiday.co.jp/english/ | LAST UPDATE: 2021.08.23 Business Strengths and weaknesses Runs Hidakaya restaurant chain near train stations in Greater Tokyo; particular focus Strengths on opening new branches in Kanagawa Cost advantages from area-dominant Business model: Core business is chain of Hidakaya restaurants (94.2% of strategy and central kitchen: GPM above FY02/21 sales) that serve ramen, gyoza (dumplings), and other popular Chinese 70% for over 20 years through FY02/21, dishes. It also offers side dishes that go with alcohol for customers who want a despite relatively low-price menu. One of only quick drink. Customers range from students to businesspeople, late-shift workers, a handful of leading listed restaurant and seniors, all attracted by affordable prices (JPY390 for ramen and JPY230 for operators with a GPM above 70%. gyoza including tax) and late hours (nearly half of stores are open till 2 a.m.; more Directly operated restaurants maintain than 10% are open 24 hours*). Average customer spend is about JPY750 (before quality, boost brand power, and enable tax; FY02/21). Per the company, no other chain operates the same restaurant flexible operations format (serving both ramen and Chinese dishes). From FY02/10 to FY02/19, Low prices and classic dishes keep HIDAY HIDAKA maintained an OPM of over 10%, but in FY02/21 sales fell and the customers coming back: Maintained company posted an operating loss, due in large part to shortened opening hours comparable store sales of at least 100% YoY amid the COVID-19 outbreak.
    [Show full text]
  • The New Cityon.Zhengzhou Shopping Center Opened to Capacity Crowds Today in Henan Province
    The New CityOn.Zhengzhou Shopping Center Opened to Capacity Crowds Today in Henan Province Developers Taubman Asia and Wangfujing Group bring a modern, exceptional new shopping, dining and entertainment destination to Zhengzhou, China Zhengzhou, China, March 16, 2017 – The new CityOn.Zhengzhou Shopping Center in Zhengzhou, Henan Province, opened today after a ceremonial ribbon cutting featuring Taubman Centers, Inc. (NYSE: TCO) Chairman, President and Chief Executive Officer Robert Taubman, Wangfujing Group Co., Ltd. senior executives, special guests from the community and a large, enthusiastic crowd. Taubman Asia and Wangfujing jointly developed the shopping center to cater to the local community. Anchored by a four-level Wangfujing Department Store, the 94,000 square meter / approximately one million square foot center opened today 100 percent leased and 93 percent occupied. By the end of April 2017, it is expected to be 100 percent occupied with nearly 200 of today’s most in- demand retailers, restaurants and entertainment venues. “We are thrilled to introduce the new CityOn.Zhengzhou Shopping Center, our second project with Wangfujing and third ground-up development in Asia,” said Taubman. “This center will set a new standard for retail experiences for the people of Zhengzhou, while driving significant shareholder value over time.” “We are delighted to again work with Taubman Asia to offer a world-class shopping experience in Zhengzhou,” said Liu Yi, Chairman of Wangfujing Group. “CityOn.Zhengzhou Shopping Center perfectly combines our extensive experience as China’s leading retail brand with Taubman’s 67 year legacy in shopping center development. The center is now one of the most exciting retail destinations in the region and will undoubtedly attract significant investment, economic activity and job opportunities to Zhengdong New District.” A flourishing city in Central China, Zhengzhou is a major finance, business and transportation hub in Central China.
    [Show full text]
  • Langkah Membuka Bisnis Restoran Di Jepang
    VOLUME NO.1//2020 MARKET INTELLIGENT LANGKAH MEMBUKA BISNIS RESTORAN DI JEPANG INDONESIAN TRADE PROMOTION CENTER (ITPC) OSAKA DAFTAR ISI 03 Gambaran Umum Bisnis Restoran di Jepang 04 Pasar Jasa Makanan di Jepang 07 Tren Pasar Restoran di Jepang 09 Tahapan Mendirikan Restoran bagi WNA di Jepang 10 Tahapan Umum Mendirikan Restoran di Jepang 11 Pendaftaran Perusahaan 14 Mendapatkan Visa Manajer Bisnis 17 Mendapatkan Izin Bisnis Restoran 21 Ketentuan Lain dalam Bisnis Restoran 22 Ketentuan Operasional 25 Ketentuan Tenaga Kerja 28 Ketentuan Pajak 34 Peluang Pasar Bisnis Restoran di Jepang 35 Gambaran Tren Kuliner 41 Masakan Asing di Jepang 45 Potensi Makanan Indonesia 49 Tips Menjalankan Bisnis Restoran di Jepang 50 Sertifikasi Halal 54 Suplai Bahan Baku 60 Tips Lainnya MARKET INTELLIGENT VOL.1/2020 | 2 GAMBARAN UMUM PASAR JASA MAKANAN DI JEPANG MARKET INTELLIGENT VOL.1/2020 | 3 PASAR JASA MAKANAN DI JEPANG Gambaran Umum kerja (USD 15,8 miliar). Semua sub sektor tumbuh sedikit dari 2015 hingga 2018. Dengan jumlah penduduk sekitar 127 juta dan produk domestik bruto (PDB) sebesar USD 5 Perkembangan Outlet triliun pada tahun 2018, Jepang merupakan salah satu pasar konsumen terbesar di dunia, Restoran memberikan peluang bagi para eksportir Di Jepang, sub sektor restoran memiliki Indonesia, terutama bagi mereka yang berminat penjualan terbesar di sektor jasa makanan laba pada pasar jasa makanan. Jepang, menyumbang 50,9% dari total pendapatan jasa makanan pada tahun 2018. Di Industri jasa makanan konsumen Jepang dalam sub sektor restoran, gerai makan kasual penting, mencapai penjualan sebesar USD mencatat penjualan tertinggi sebesar USD 91,5 274,6 miliar pada tahun 2018.
    [Show full text]
  • Lee Gardens Area E-Coupon Acceptance List 利園區電子優惠禮券適用商戶 (Shopping and Dining 購物及餐飲)
    MAGICAL CHRISTMAS AT LEE GARDENS 利園區奇妙聖誕購物禮遇 (Promotion Period 活動日期: 4/12/2020 - 27/12/2020) While stocks last 換完即止 Lee Gardens Area e-Coupon Acceptance List 利園區電子優惠禮券適用商戶 (Shopping and Dining 購物及餐飲) (Dining Merchants are highlighted in RED 紅色標注爲餐飲商戶) Lee Garden One to Six 利園一至六期 Hysan Place 希慎廣場 10 Shanghai 十里洋場 LG2 101 :CHOCOOLATE HP 501-502 10mois LG2 229 10/10 HOPE HP 8F(eslite) 45R LG1 201 6IXTY8IGHT HP 705-708A Abebi LG2 204-205 Acca Kappa HP 313-314 AMOREPACIFIC LG1 B01A adidas Performance HP 503-504 Anagram LG1 211 Aesop HP 205 AnNam 安南 LG1 4/F ALLURESSORIES HP B104 Anteprima LG1 214-215 Aroma Truffle HP B105 Anya Hindmarch LG1 216 b+ab HP 306-307 APM Monaco LG2 106 BAI FUNG BENTO 百芳 HP Food Stall No. 1 Arte Madrid LG2 103 BEAMS HP 626-627 at. home LG3 116-118 Beyorg / Beyond Organic HP 215-216 Atsuro Tayama LG1 202 BIGPACK HP 402-403 BAPE KIDS by *a bathing ape@ LG2 208 BODYCARE HP 10F(eslite) Belgos LG3 G11-G15 C.P.U. HP 712-714 BoConcept LG3 206-210 Cadillac Bar & Grill HP 718-719 Bonpoint LG2 213 Cha Ling HP 206 Book Castle LG2 217-218 Champion HP 509 Bora Aksu Kids LG2 216 Cheung Leung Kee 張梁記 HP 422B BRICK LANE LG6 G01 Chilli N Spice HP 1105 Brunello Cucinelli LG1 112-115 City Chain HP 303A, 303B Busybee LG3 319-320 Cocotree HP 10F(eslite) Bvlgari LG2 G06 Dearest HP 10F(eslite) Caelum Greene LG1 310A DEMK HP 515B Calvin Klein Underwear LG2 121 Diamanti Per Tutti HP 329 Chaumet LG1 G09 Didier Dubot HP 301A Chicco LG2 203 Dimension 12 HP 514 Cocktail LG1 203 double-park / fingercroxx HP 521-525 COVA Pasticceria-Confetteria (Cake Shop) LG1 108A Dr.
    [Show full text]
  • Ramen Kameya and Marugame Seimen Udon
    totalokinawaTM www.totalokinawa.com October & November 2013 for 2 www.totalokinawa.com Totalokinawa Magazine October 2013 Magazine Totalokinawa totalokinawa CONTENTS OCTOBER & NOVEMBER In the Mood 2013 for Noodles Issue 18 The Noodle Issue ove over, fried rice. In our cover story, Mwe explore the beloved Japanese noodle, in its many forms and lavors. Plus, don’t miss our detailed reviews of noodle restaurants Ramen Kameya and Marugame Seimen Udon. Also, check out our review on www.totalokinawa.mobi the Okinawa YOHO honey store; you’ll “bee” Need a QR reader? craving a bottle or two for your own sweet stash. And, we’ve Check out our got our latest dive report and issue of Weird & Wonderful. magazine page on Also view the magazine online at: www.totalokinawa.com Totalokinawa.com 1 0 FEATURE IN THE MOOD FOR NOODLES Noodles p. 10 Okinawa YOHO Honey 4 Dive Report 6 Weird & Wonderful 9 In the Mood for Noodles 10 Ramen Kameya 13 Marugame Seimen Udon 17 Published in Okinawa by Totalokinawa.com by in Okinawa Published 2013. All Reserved Rights Copyright is All content - www.totalokinawa.com information advertising For the for responsible not partners are it’s and Totalokinawa external advertising. any of content 3 Totalokinawa Magazine October 2013 to Local Shop Review by Melissa Nazario YOHO Okinawa YOHO-ho! And a bottle of honey--Local shop ofers sweet selections. umans’ use of honey for medicinal reasons dates back thousands Hof years. Egyptians used it to dress wounds and embalm bodies. Today, there are lots of claims that honey can do much more, from talokinawa.com preventing diseases to being a “better” sugar for diabetics (it’s not—it to packs more calories and carbs and has the same efect as table sugar).
    [Show full text]
  • Global Equity Fund Description Plan 3S DCP & JRA MICROSOFT CORP
    Global Equity Fund June 30, 2020 Note: Numbers may not always add up due to rounding. % Invested For Each Plan Description Plan 3s DCP & JRA MICROSOFT CORP 2.5289% 2.5289% APPLE INC 2.4756% 2.4756% AMAZON COM INC 1.9411% 1.9411% FACEBOOK CLASS A INC 0.9048% 0.9048% ALPHABET INC CLASS A 0.7033% 0.7033% ALPHABET INC CLASS C 0.6978% 0.6978% ALIBABA GROUP HOLDING ADR REPRESEN 0.6724% 0.6724% JOHNSON & JOHNSON 0.6151% 0.6151% TENCENT HOLDINGS LTD 0.6124% 0.6124% BERKSHIRE HATHAWAY INC CLASS B 0.5765% 0.5765% NESTLE SA 0.5428% 0.5428% VISA INC CLASS A 0.5408% 0.5408% PROCTER & GAMBLE 0.4838% 0.4838% JPMORGAN CHASE & CO 0.4730% 0.4730% UNITEDHEALTH GROUP INC 0.4619% 0.4619% ISHARES RUSSELL 3000 ETF 0.4525% 0.4525% HOME DEPOT INC 0.4463% 0.4463% TAIWAN SEMICONDUCTOR MANUFACTURING 0.4337% 0.4337% MASTERCARD INC CLASS A 0.4325% 0.4325% INTEL CORPORATION CORP 0.4207% 0.4207% SHORT-TERM INVESTMENT FUND 0.4158% 0.4158% ROCHE HOLDING PAR AG 0.4017% 0.4017% VERIZON COMMUNICATIONS INC 0.3792% 0.3792% NVIDIA CORP 0.3721% 0.3721% AT&T INC 0.3583% 0.3583% SAMSUNG ELECTRONICS LTD 0.3483% 0.3483% ADOBE INC 0.3473% 0.3473% PAYPAL HOLDINGS INC 0.3395% 0.3395% WALT DISNEY 0.3342% 0.3342% CISCO SYSTEMS INC 0.3283% 0.3283% MERCK & CO INC 0.3242% 0.3242% NETFLIX INC 0.3213% 0.3213% EXXON MOBIL CORP 0.3138% 0.3138% NOVARTIS AG 0.3084% 0.3084% BANK OF AMERICA CORP 0.3046% 0.3046% PEPSICO INC 0.3036% 0.3036% PFIZER INC 0.3020% 0.3020% COMCAST CORP CLASS A 0.2929% 0.2929% COCA-COLA 0.2872% 0.2872% ABBVIE INC 0.2870% 0.2870% CHEVRON CORP 0.2767% 0.2767% WALMART INC 0.2767%
    [Show full text]
  • A Craving for Noodles: Bringing Udon to the World 1 2
    Series From Japan to the World A CRAVING FOR NOODLES: BRINGING UDON TO THE WORLD 1 2 TAMAKI KAWASAKI Japanese udon noodles were already widely known throughout Asia. Recently, however, these noodles have been gaining fans throughout the world. With branches in fourteen regions, udon purveyor Marugame Seimen reveals their globalization tactics and localized menus, as well as the many reasons for the popularity of these noodles outside of Japan. ATOSHI Suga, general manager of Russia and the United States, and currently have the International Business Planning shops in fourteen regions. Department at TORIDOLL Holdings “While the ramen craze was in full swing, it Corporation, says that the overseas seems many people were seeking something less Sexpansion of their sanuki udon restaurant chain oily and with a healthier image,” Suga says about Marugame Seimen began with a hunch on the udon’s popularity overseas. Compared to ramen, part of CEO Takaya Awata. The company already udon is also less expensive—another reason for its had overseas expansion plans when in 2011 they popularity. came across an empty shop on a popular street in While long tables bearing toppings to customize Hawaii. They grabbed the spot and were blown your udon are quite common in Japan, Suga notes away by the positive reception. That Hawaii that before opening shops in many countries they branch continues to grow—with lines of patrons received feedback that this layout looked too much waiting to sample the firm’s popular udon—and like a cafeteria. They decided to stick with the self- remains the top earner of all their overseas serve system, however, which ultimately captured branches.
    [Show full text]
  • Zhou Hei Ya International Holdings Focus on Potential Demand and Attempts at Extending Brand
    Equity Research December 13, 2017 Zhou Hei Ya International Holdings Focus on potential demand and attempts at extending brand Initial Coverage Initiate with BUY Investment positives We initiate coverage with a BUY rating and a target price of HK$9.72 Ticker 01458.HK based on 23.4x 2018e P/E—lower than the average for Hong Kong CICC investment rating * BUY Last close HK$7.08 staples and global peers using chain store business models. Given the CICC target HK$9.72 long-term growth visibility, the current 16.5x 2018e P/E presents a good buying opportunity, in our view. 52wk price range HK$9.80–6.38 Market cap (bn) HK$17 Why a BUY rating? Daily value (mn) HK$21.46 Abundant demand potential. We expect potential demand for Shares outstanding (mn) 2,383 existing products at 4.3x of 2017e sales in self-operated stores Free float (%) 100 (Rmb2.78bn). Assuming the company meets all potential demand in Daily volume (mn sh) 2.97 Business sector Food & Beverages 10 years, we expect the sales CAGR of self-operated stores to reach 15.6% over 2017–2027 in our base case. 01458.HK HSCEI Margin correction does not reflect weakening consumption. The 130 margin correction is more a result of the company's attempts to expand membership, foster robust growth of online demand and a 120 mismatch between the growth pattern of rental cost and average sales per store. Excluding member discounts, ASP and gross margin 110 should remain stable. We also expect the ratios of online expenses Relative Value (%) Value Relative 100 and rentals to sales to fall after peaking in 2020 and 2022.
    [Show full text]
  • Food and Restaurant Industry Highlights (October-December, 2014)
    Food and Restaurant Industry Highlights (October-December, 2014) Dominant restaurant chains The top three companies of Japan’s food and restaurant services industry are focused on fast food. Among them, the number one Zensho HD and the number three Yoshinoya HD have dominant “gyudon (beef bowl) chains.” The two groups collectively yielded more than one third of total turnover of the top ten publicly traded food and restaurant companies in 2013. The other categories include “family restaurants (casual dining)” and coffee shop chains. “Izakaya (dining and drinking)” which is represented by Watami and sushi bars by Kappa Create HD are also deeply rooted categories into the daily lives of the Japanese. Figure 1: Revenue ranking of publicly traded restaurant chains in 2013 in billion yen (Source: Food Business Research Institute) 1 This article was written by Prepared Slides, LLC - a Japan based advisory firm supporting international clients on market research, international business development, strategic alliance, and investment. Low price restaurants One of the important characteristics of large-scale restaurant chains is their low price points with high turnover rates. Here are the popular low price restaurant categories: Gyudon (beef bowl) Companies: Sukiya (Zensho), Yoshinoya, Matsuya... Price points: Regular-sized gyudon bowls range between JPY270 to JPY300 (USD2.28 to USD2.53) Characteristics: Gyudon restaurants traditionally targeted single male customers who don’t want to spend much time and money for meals. According to several sources, the average time spent at Yoshinoya was from 7 to 15 minutes. Noodles (udon, soba, ramen) Companies: Fuji Soba, Hakone Soba (soba), Marugame Seimen, Hanamaru Udon (udon), Korakuen, Hidakaya (ramen)..
    [Show full text]
  • Meet 65,000 Buyers in Hotel, Restaurant and Food Service Industry
    Japan’s Largest Exhibition for Hospitality Standard Booth (Space ONLY) Special Trade show for Food-service, Accommodation & Leisure industries 1 booth=9㎡ (W2,970mm× D2,970mm× H2,700mm) Early bird 2700㎜ Early bird discount discount 47 [Until Jul. 31] 378,000 JPY (tax incl.) 75,600 Final application JPY No carpet [Until Sep. 28] 453,600 JPY (tax incl.) 2970㎜ 2970㎜ Option: Package Plan Trade show for Food-service & Home delivery 40 1 booth with Package W2,970×D2,970×H2,700 unit/ mm Company name Outlet 507,600 JPY (Early bird) Price Fascia board 583,200 JPY (Final Application) (incl. Construction fee & 8% consumption tax) 1. Fascia board + Company name 5-3 Rental equipment (Choose 3 items) Trade show for Kitchen equipment 2. Outlet (100V, Single phase) J. Rectangle table (Choose 1 item) 3. Carpet (Choose your own color) K. Wall shelf (x 1 unit) 4. Meeting set L. White cloth (2200x1000mm x 3 units) 5. Rental equipments (Choose your own)※ M. Brochure stand (A4 size, 6 rows) 5-1 Electrical equipment (Choose 3 items) N. Panel stand (Choose 1 item) 2700 A. Fluorescent light (40W) O. Fire extinguisher B. Spotlight (100W) P. Table-top brochure stand & Business card box C. Arm spotlight (100W) Q. Hanger stand (x 1 unit) & Hangers (x 10 units) 5-2 Rental equipment (Choose 1 item) ※Check the official website or contact the Secretariat Carpet D. Reception counter 6. Electricity (Choose your own color) E. Square table (Choose 1 item) Electric wiring work (Up to 1kW/ 100V) Date Venue F. Counter table (φ600xH1000mm) Electricity usage (1kW/ For set up & show period ) 2970 Tue Fri G.
    [Show full text]