“While the company has not formalised a dividend policy, historical patterns suggest that once payout ratios reach such elevated levels, they often remain high for an extended period, unless significant investments or mergers and acquisitions occur,” writes Su in an Aug 27 note.
Hong Kong-listed Chinese hotpot restaurant operator Haidilao is “undervalued”, with its shares trading at just 12 times Morningstar Equity Research’s estimated FY2024 earnings.
Senior equity analyst Ivan Su notes that the company announced its first interim dividend of 39.1 Hong Kong cents for the six months ended June, which represents an “impressive” payout ratio of 95%.
