Business Finance Caf De Coral Group
SPD 3147 Business Finance
Semester 1, 2014/15 (Full-time)
Group project
Group: A02C
Company name: Café de Coral Group (0341)
Name: CHENG, Chi Fung (14062897S)
LEUNG, Wai Han (14064891S) MA, Kit Man (14016174S) WONG, Chun Yin (14011688S) WONG, Chui Yi (14064750S)
Introduction Café de Coral Group is the largest Chinese fast-food restaurant chain in Hong Kong which was founded in 1968. It has over 140 restaurants in Hong Kong with more than 14,000 employees. The company slogan is “A hundred Points of Excellence” which wants to provide quality food and service to the customers and let the customers to enjoy time in Café de Coral Group.
Last Price
Cash per share
Total debt/assets (recent years)
Price to Book
Return on equity (recent years)
Café de Coral Group(0341)
$26.6
1.81
0
4.13
15.97
(Date:27/11/2014) The reason why we choose Café de Coral Group as our target company is its stable finance source. According to the data from Google finance, the last price is $26.6 and the cash per share ratio is 1.81 which shows that it has excessive cash. Also, the total debt per asset ratio in recent years is 0 which illustrates that the company nearly doesn’t have debt. Furthermore, it has low valuation as the price to book ratio is 4.13. Moreover, Café de Coral Group is profitable due to the return on equity in recent years is 15.97 which is positive. Therefore, after analyzing different ratios of Café de Coral Group, we believe that it is a suitable company to offer a special dividend
Before paying special dividends
The following figure is the preliminary analysis showing the overall performance of the company, Café de Coral Group (0341), during the period starting from 2011-03-31 to 2014-03-31.
HKD in thousands
12months as of 2014-03-31
12months as of 2013-03-31
12months as of 2012-03-31
12months as of 2011-03-31
Turnover
6,990,463
6,394,089
5,956,438
5,332,639
Cash and bank balances
1,004,093
772,694
854,417
993,333
Semester 1, 2014/15 (Full-time)
Group project
Group: A02C
Company name: Café de Coral Group (0341)
Name: CHENG, Chi Fung (14062897S)
LEUNG, Wai Han (14064891S) MA, Kit Man (14016174S) WONG, Chun Yin (14011688S) WONG, Chui Yi (14064750S)
Introduction Café de Coral Group is the largest Chinese fast-food restaurant chain in Hong Kong which was founded in 1968. It has over 140 restaurants in Hong Kong with more than 14,000 employees. The company slogan is “A hundred Points of Excellence” which wants to provide quality food and service to the customers and let the customers to enjoy time in Café de Coral Group.
Last Price
Cash per share
Total debt/assets (recent years)
Price to Book
Return on equity (recent years)
Café de Coral Group(0341)
$26.6
1.81
0
4.13
15.97
(Date:27/11/2014) The reason why we choose Café de Coral Group as our target company is its stable finance source. According to the data from Google finance, the last price is $26.6 and the cash per share ratio is 1.81 which shows that it has excessive cash. Also, the total debt per asset ratio in recent years is 0 which illustrates that the company nearly doesn’t have debt. Furthermore, it has low valuation as the price to book ratio is 4.13. Moreover, Café de Coral Group is profitable due to the return on equity in recent years is 15.97 which is positive. Therefore, after analyzing different ratios of Café de Coral Group, we believe that it is a suitable company to offer a special dividend
Before paying special dividends
The following figure is the preliminary analysis showing the overall performance of the company, Café de Coral Group (0341), during the period starting from 2011-03-31 to 2014-03-31.
HKD in thousands
12months as of 2014-03-31
12months as of 2013-03-31
12months as of 2012-03-31
12months as of 2011-03-31
Turnover
6,990,463
6,394,089
5,956,438
5,332,639
Cash and bank balances
1,004,093
772,694
854,417
993,333
References: Café de Coral Holdings Limited. (2014). Annual Report 2011. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2011.pdf Café de Coral Holdings Limited. (2014). Annual Report 2012. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2012.pdf Café de Coral Holdings Limited. (2014). Annual Report 2013. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2013.pdf Café de Coral Holdings Limited. (2014). Annual Report 2014. Retrieved from http://www.cafedecoral.com/eng/investor_relations/reports/images/are2014.pdf