Much has been made of the fact that Zhang Yong, owner of Hong Kong-listed hotpot chain operator Haidilao International Holding Ltd (SEHK: 6862), is now Singapore’s richest person – with an estimated wealth of US$13.8 billion according to the 2019 Forbes Singapore Rich List. He’s now a naturalised Singapore citizen and resident.
If investors had carried out their own research on Haidilao (not found in its earnings reports) in what is commonly referred to as “scuttlebutt”, they may have caught on early how popular the hotpot chain has become, both within China – where it has over 300 restaurants – and internationally. For Singapore residents, taking a trip down to Plaza Singapura or Novena would have shown astute observers just how jam-packed these Hai Di Lao outlets actually are.
So, it’s no surprise that Mr Yong is now the richest Singaporean if we look at Haidilao’s share price since its initial public offering (IPO) in September 2018. As you can see below, its shares have more than doubled in that time – returning an impressive 104.8% versus a rather disappointing loss of -7.6% for Hong Kong’s benchmark Hang Seng Index.
With middle-class consumption continuing to rise within China and the “hotpot” theme gaining traction in both Europe and the US, could there be further room for Mr Yong to increase his lead at the top of the rich list?
Source: CapIQ as of 29 August 2019
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Tim Phillips doesn't own shares in any companies mentioned.