Do you think Hai Di Lao (6862.HK) is overpriced? was thinking perhaps to invest in HDL but realised that the P/E ratio is far above industry average at 83. Any recommendations?

I agree with the rest that the PE ratio for HDL is really very high. There's certainly a lot of hype recently by the markets and by consumers but I'm not sure if this can be sustained in the future. Interestingly, despite a lot of talk that the PE ratio of HDL was so high, share prices have gone up since the IPO last year.

I think a lot of the hype can be attributed to their rapid growth plans in the near future, but as to whether these plans can materialise and push the hype into the Western Countries is quite uncertain. Maintaining quality and consistency for F&B can be quite challenging. In fact, HDL did have some quality control issues before at various outlets. Clark Quay had an outlet that was suspended for 2 weeks. (https://www.straitstimes.com/singapore/clarke-q...)

Another way to look at this is to compare the P/E to EPS growth (PEG) with other comparables. I would still suspect that the PEG would be too high!

Seedly has actually featured a guest post last year with regards to HDL.

https://blog.seedly.sg/invest-in-haidilao-hkg-6...

A Price to Earning at 80+ and Price to Book at 79+ is very high. Maybe you can ask yourself why are you interested in the company, is it the hype? I believe Singapore will have better choices in on F&B companies.