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Haidilao International Holding (HKSE:06862) ROE % : 43.04% (As of Dec. 2023)


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What is Haidilao International Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Haidilao International Holding's annualized net income for the quarter that ended in Dec. 2023 was HK$4,902 Mil. Haidilao International Holding's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was HK$11,390 Mil. Therefore, Haidilao International Holding's annualized ROE % for the quarter that ended in Dec. 2023 was 43.04%.

The historical rank and industry rank for Haidilao International Holding's ROE % or its related term are showing as below:

HKSE:06862' s ROE % Range Over the Past 10 Years
Min: -46.72   Med: 28.94   Max: 111.24
Current: 47.48

During the past 9 years, Haidilao International Holding's highest ROE % was 111.24%. The lowest was -46.72%. And the median was 28.94%.

HKSE:06862's ROE % is ranked better than
89.73% of 331 companies
in the Restaurants industry
Industry Median: 8.76 vs HKSE:06862: 47.48

Haidilao International Holding ROE % Historical Data

The historical data trend for Haidilao International Holding's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Haidilao International Holding ROE % Chart

Haidilao International Holding Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only 24.14 3.06 -46.72 17.05 47.05

Haidilao International Holding Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -94.52 -6.69 42.43 53.45 43.04

Competitive Comparison of Haidilao International Holding's ROE %

For the Restaurants subindustry, Haidilao International Holding's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Haidilao International Holding's ROE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Haidilao International Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Haidilao International Holding's ROE % falls into.



Haidilao International Holding ROE % Calculation

Haidilao International Holding's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=4920.999/( (8311.916+12607.585)/ 2 )
=4920.999/10459.7505
=47.05 %

Haidilao International Holding's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=4902.378/( (10172.942+12607.585)/ 2 )
=4902.378/11390.2635
=43.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Haidilao International Holding  (HKSE:06862) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4902.378/11390.2635
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4902.378 / 49367.696)*(49367.696 / 26141.497)*(26141.497 / 11390.2635)
=Net Margin %*Asset Turnover*Equity Multiplier
=9.93 %*1.8885*2.2951
=ROA %*Equity Multiplier
=18.75 %*2.2951
=43.04 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=4902.378/11390.2635
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4902.378 / 6604.796) * (6604.796 / 6462.398) * (6462.398 / 49367.696) * (49367.696 / 26141.497) * (26141.497 / 11390.2635)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7422 * 1.022 * 13.09 % * 1.8885 * 2.2951
=43.04 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Haidilao International Holding ROE % Related Terms

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Haidilao International Holding (HKSE:06862) Business Description

Traded in Other Exchanges
Address
No. 398 Yard, Zhongdong Road, 7th Floor, No. 1 Building, Dongxiaokou Town, Changping District, Beijing, CHN, 102218
Haidilao International is a Chinese hot pot restaurant operator that started in Sichuan in 1998. In 2022, the restaurant chain served over 276 million customers across more than the 1,300 stores it had in Greater China. With CNY 31 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in China, behind Yum China (CNY 68 billion) but ahead of Xiabuxiabu and Jiumaojiu. All of Haidilao's restaurants are company-owned, as the firm is focusing more on the quality of its restaurants than quantity.Haidilao is known for serving Sichuan-style hot pot along with exceptional service. It's still looking to expand its store footprint, but expansion opportunities are now limited to only Greater China following the spinoff of Super Hi—the operator of Haidilao stores overseas.

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