SSAW Hotels & Resorts GroupLtd (SZSE:301073) - Share price, News & Analysis

Q: What is the Fair Price of 301073 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

301073 (CN¥66.15) is trading below our estimate of [[fair value]] (CN¥99.39)

301073 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

301073 Stock Overview

Zhejiang SSAW Boutique Hotels Co.,Ltd manages and operates hotels.

Rewards

Trading at 33.4% below our estimate of its fair value

Earnings are forecast to grow 65.46% per year

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Profit margins (9.4%) are lower than last year (18.2%)

SSAW Hotels & Resorts GroupLtd Competitors

China Cyts Tours Holding

SHSE:600138

CN¥8.2b

Yunnan Tourism

SZSE:002059

CN¥6.7b

Jiangsu Tianmu Lake TourismLtd

SHSE:603136

CN¥5.0b

Huangshan Tourism DevelopmentLtd

SHSE:600054

CN¥6.6b

Price History & Performance

Summary of all time highs, changes and price drops for SSAW Hotels & Resorts GroupLtd
Historical stock prices
Current Share Price	CN¥66.15
52 Week High	CN¥77.00
52 Week Low	CN¥16.77
Beta	0
1 Month Change	9.99%
3 Month Change	4.98%
1 Year Change	246.46%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	246.46%

Shareholder Returns

	301073	CN Hospitality	CN Market
7D	1.0%	-1.6%	-2.9%
1Y	246.5%	3.4%	-17.3%

Return vs Industry: 301073 exceeded the CN Hospitality industry which returned 3.4% over the past year.

Return vs Market: 301073 exceeded the CN Market which returned -17.3% over the past year.

Price Volatility

Is 301073's price volatile compared to industry and market?
301073 volatility
301073 Average Weekly Movement	9.0%
Hospitality Industry Average Movement	6.0%
Market Average Movement	5.8%
10% most volatile stocks in CN Market	9.2%
10% least volatile stocks in CN Market	3.8%

Stable Share Price: 301073 is more volatile than 75% of CN stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 301073's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of CN stocks.

About the Company

Founded	Employees	CEO	Website
2007	577	n/a	https://www.ssawhotels.com

Zhejiang SSAW Boutique Hotels Co.,Ltd manages and operates hotels. It operates hotels in Shanghai, Zhejiang, Jiangsu, Hainan, Shandong, Hubei, Anhui, Jiangxi, Guangxi, and other cities in China. The company was founded in 2007 and is based in Hangzhou, China.

SSAW Hotels & Resorts GroupLtd Fundamentals Summary

How do SSAW Hotels & Resorts GroupLtd's earnings and revenue compare to its market cap?
301073 fundamental statistics
Market Cap	CN¥8.09b
Earnings (TTM)	CN¥25.45m
Revenue (TTM)	CN¥271.53m

314.0x

P/E Ratio

29.4x

P/S Ratio

Is 301073 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
301073 income statement (TTM)
Revenue	CN¥271.53m
Cost of Revenue	CN¥184.13m
Gross Profit	CN¥87.40m
Other Expenses	CN¥61.95m
Earnings	CN¥25.45m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.21
Gross Margin	32.19%
Net Profit Margin	9.37%
Debt/Equity Ratio	5.2%

How did 301073 perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

151%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 301073 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 301073?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 301073. This is calculated by dividing 301073's market cap by their current preferred multiple.
What is 301073's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥8.09b

301073 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	32.1x
Enterprise Value/EBITDA	197.3x
PEG Ratio	4.8x

Price to Sales Ratio vs Peers

How does 301073's PS Ratio compare to its peers?

301073 PS Ratio vs Peers

The above table shows the PS ratio for 301073 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	9.2x
600138 China Cyts Tours Holding	1x	25.2%	CN¥8.2b
002059 Yunnan Tourism	5.8x	n/a	CN¥6.7b
603136 Jiangsu Tianmu Lake TourismLtd	18x	29.6%	CN¥5.0b
600054 Huangshan Tourism DevelopmentLtd	11.6x	40.4%	CN¥6.6b
301073 SSAW Hotels & Resorts GroupLtd	29.4x	41.3%	CN¥8.1b

Price-To-Sales vs Peers: 301073 is expensive based on its Price-To-Sales Ratio (29.4x) compared to the peer average (9.2x).

Price to Earnings Ratio vs Industry

How does 301073's PE Ratio compare vs other companies in the CN Hospitality Industry?

Price-To-Sales vs Industry: 301073 is expensive based on its Price-To-Sales Ratio (29.4x) compared to the CN Hospitality industry average (7.3x)

Price to Sales Ratio vs Fair Ratio

What is 301073's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

301073 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	29.4x
Fair PS Ratio	6.3x

Price-To-Sales vs Fair Ratio: 301073 is expensive based on its Price-To-Sales Ratio (29.4x) compared to the estimated Fair Price-To-Sales Ratio (6.3x).

Share Price vs Fair Value

What is the Fair Price of 301073 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 301073 (CN¥66.15) is trading below our estimate of fair value (CN¥99.39)

Significantly Below Fair Value: 301073 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is SSAW Hotels & Resorts GroupLtd forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

65.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 301073's forecast earnings growth (65.5% per year) is above the savings rate (3.2%).

Earnings vs Market: 301073's earnings (65.5% per year) are forecast to grow faster than the CN market (25.9% per year).

High Growth Earnings: 301073's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 301073's revenue (41.3% per year) is forecast to grow faster than the CN market (18.2% per year).

High Growth Revenue: 301073's revenue (41.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 301073's Return on Equity is forecast to be high in 3 years time (23.5%)

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Past Performance

How has SSAW Hotels & Resorts GroupLtd performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-9.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 301073 has a high level of non-cash earnings.

Growing Profit Margin: 301073's current net profit margins (9.4%) are lower than last year (18.2%).

Past Earnings Growth Analysis

Earnings Trend: 301073's earnings have declined by 9.9% per year over the past 5 years.

Accelerating Growth: 301073's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 301073 had negative earnings growth (-55.4%) over the past year, making it difficult to compare to the Hospitality industry average (-51%).

Return on Equity

High ROE: 301073's Return on Equity (5.3%) is considered low.

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Financial Health

How is SSAW Hotels & Resorts GroupLtd's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 301073's short term assets (CN¥306.1M) exceed its short term liabilities (CN¥223.8M).

Long Term Liabilities: 301073's short term assets (CN¥306.1M) do not cover its long term liabilities (CN¥714.0M).

Debt to Equity History and Analysis

Debt Level: 301073 has more cash than its total debt.

Reducing Debt: 301073's debt to equity ratio has reduced from 78.4% to 5.2% over the past 5 years.

Debt Coverage: 301073's debt is well covered by operating cash flow (365.7%).

Interest Coverage: 301073's interest payments on its debt are not well covered by EBIT (2.7x coverage).

Balance Sheet

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Dividend

What is SSAW Hotels & Resorts GroupLtd current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.50%

Current Dividend Yield

Dividend Yield vs Market

SSAW Hotels & Resorts GroupLtd Dividend Yield vs Market

How does SSAW Hotels & Resorts GroupLtd dividend yield compare to the market?
Segment	Dividend Yield
Company (SSAW Hotels & Resorts GroupLtd)	0.5%
Market Bottom 25% (CN)	0.5%
Market Top 25% (CN)	2.1%
Industry Average (Hospitality)	0.8%
Analyst forecast in 3 Years (SSAW Hotels & Resorts GroupLtd)	0.4%

Notable Dividend: 301073's dividend (0.5%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.53%).

High Dividend: 301073's dividend (0.5%) is low compared to the top 25% of dividend payers in the CN market (2.13%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 301073's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 301073's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (150.7%), 301073's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 301073 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure

CEO

SSAW Hotels & Resorts GroupLtd has no CEO, or we have no data on them.

Leadership Team

Experienced Management: 301073's management team is seasoned and experienced (7.1 years average tenure).

Board Members

Experienced Board: 301073's board of directors are considered experienced (7.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

What is the ownership structure of 301073?
Owner Type	Number of Shares	Ownership Percentage
Institutions	16,506,885	13.7%
General Public	20,940,615	17.3%
Individual Insiders	83,362,500	69.0%

Dilution of Shares: 301073 only recently listed within the past 12 months.

Top Shareholders

Top 25 shareholders own 69.39% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
36.41%	Qiyuan Wu	43,984,687	CN¥2.9b	0%	no data
19.39%	Bo Cong	23,429,250	CN¥1.5b	0%	no data
10.3%	Chenning Shi	12,438,563	CN¥822.8m	0%	no data
0.83%	Guotai Asset Management Co., Ltd.	1,000,000	CN¥66.2m	1740.57%	0.05%
0.73%	Yong Zhang	877,500	CN¥58.0m	0%	no data
0.48%	Zhongcheng Fubixing (Tianjin) Equity Investment Fund Management Partnership Enterprise (L.P.)	585,000	CN¥38.7m	0%	no data
0.45%	CITIC Securities Company Limited, Asset Management Arm	543,897	CN¥36.0m	0%	0.1%
0.23%	GF Fund Management Co., Ltd.	279,033	CN¥18.5m	0%	0.01%
0.2%	Shanghai Zhongcheng Rongyao Equity Investment Fund Management Co., Ltd.	247,500	CN¥16.4m	0%	no data
0.065%	Yinhua Fund Management Co. Ltd.	77,990	CN¥5.2m	0%	no data
0.04%	China Universal Asset Management Company Ltd.	48,222	CN¥3.2m	0%	no data
0.04%	Harvest Fund Management Co., Ltd.	47,915	CN¥3.2m	0%	no data
0.029%	ICBC Credit Suisse Asset Management Co., Ltd.	34,452	CN¥2.3m	0%	no data
0.028%	Penghua Fund Management Co. Ltd.	33,700	CN¥2.2m	0%	no data
0.028%	Hwabao WP Fund Management Co., Ltd	33,618	CN¥2.2m	0%	no data
0.021%	China Southern Asset Management Co., Ltd.	24,894	CN¥1.6m	0%	no data
0.02%	China Merchants Fund Management Co.,Ltd.	24,498	CN¥1.6m	0%	no data
0.02%	China Asset Management Co., Ltd.	23,976	CN¥1.6m	0%	no data
0.016%	Great Wall Fund Management Co. Ltd.	18,936	CN¥1.3m	0%	no data
0.013%	Invesco Great Wall Fund Management Co. Ltd	15,552	CN¥1.0m	0%	no data
0.011%	Wanjia Asset Management Co., Ltd.	13,584	CN¥898.6k	0%	no data
0.011%	Truvalue Asset Management Co.,Ltd.	12,708	CN¥840.6k	0%	no data
0.01%	Huashang Fund Management Company Ltd.	12,252	CN¥810.5k	0%	no data
0.0099%	Changsheng Fund Management Co., Ltd.	11,952	CN¥790.6k	0%	0.01%
0.0087%	First State Cinda Fund Management Co. Ltd.	10,548	CN¥697.8k	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/09/29 00:00
End of Day Share Price	2022/09/29 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31