Real Estate and Business Valuation for a Leading Japanese Restaurant Chain

Ajisen (China) Holding Ltd (538.hk) is the leading Japanese-food restaurant chain operating in HK and the Mainland China. It has some 30 outlets in Hong Kong. Its workshop and storage centre in Yau Tong is the largest investment property of the Group. The Group has over 600 outlets in various cities in the PRC, and our valuation covers their investment properties in some of these cities as well. 
 

We were also engaged by the Group to perform impairment review for goodwill.  The assessment was based on cash flow forecasts. Whilst the long-term growth rate was made reference to the industry growth forecasts, the discount rates adopted reflecting the time value of money and risks specific to the subject cash generating units (CGU).