DB:LIL3

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Paradise Entertainment

Executive Summary

Paradise Entertainment Limited, an investment holding company, primarily provides casino management services in Macau and internationally.


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

How has Paradise Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LIL3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

27.0%

LIL3

-2.4%

DE Hospitality

-0.6%

DE Market


1 Year Return

-18.5%

LIL3

-35.6%

DE Hospitality

3.0%

DE Market

Return vs Industry: LIL3 exceeded the German Hospitality industry which returned -34.9% over the past year.

Return vs Market: LIL3 underperformed the German Market which returned 2.5% over the past year.


Shareholder returns

LIL3IndustryMarket
7 Day27.0%-2.4%-0.6%
30 Day37.4%-18.4%-0.1%
90 Day32.0%2.7%16.4%
1 Year-18.5%-18.5%-32.8%-35.6%5.2%3.0%
3 Year-6.8%-9.0%-50.4%-57.2%1.0%-6.9%
5 Year-53.0%-54.1%-50.4%-60.9%8.0%-6.4%

Price Volatility Vs. Market

How volatile is Paradise Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Paradise Entertainment undervalued compared to its fair value and its price relative to the market?

1113.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LIL3 (€0.1) is trading above our estimate of fair value (€0.02)

Significantly Below Fair Value: LIL3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LIL3 is poor value based on its PE Ratio (1113.6x) compared to the Hospitality industry average (20.5x).

PE vs Market: LIL3 is poor value based on its PE Ratio (1113.6x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LIL3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LIL3 is good value based on its PB Ratio (1.9x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Paradise Entertainment forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

114.7%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Paradise Entertainment has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Paradise Entertainment performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LIL3 has high quality earnings.

Growing Profit Margin: LIL3's current net profit margins (0.08%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: LIL3 has become profitable over the past 5 years, growing earnings by 37.2% per year.

Accelerating Growth: LIL3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LIL3 had negative earnings growth (-98.4%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: LIL3's Return on Equity (1.7%) is considered low.


Next Steps

Financial Health

How is Paradise Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: LIL3's short term assets (HK$501.2M) exceed its short term liabilities (HK$155.8M).

Long Term Liabilities: LIL3's short term assets (HK$501.2M) exceed its long term liabilities (HK$144.9M).


Debt to Equity History and Analysis

Debt Level: LIL3's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: LIL3's debt to equity ratio has increased from 6% to 24.3% over the past 5 years.

Debt Coverage: LIL3's debt is well covered by operating cash flow (55.2%).

Interest Coverage: Insufficient data to determine if LIL3's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Paradise Entertainment current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LIL3's dividend (2.55%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: LIL3's dividend (2.55%) is low compared to the top 25% of dividend payers in the German market (3.84%).


Stability and Growth of Payments

Stable Dividend: LIL3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LIL3 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2840.9%), LIL3's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

11.3yrs

Average board tenure


CEO

Jay Chun (55yo)

21.5yrs

Tenure

HK$13,468,000

Compensation

Mr. Jay Chun has been the Managing Director of Paradise Entertainment Limited since January 1999 and has been its Executive Chairman since July 2002. Mr. Chun has a solid background in information technolo ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD1.74M) is above average for companies of similar size in the German market ($USD469.15K).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jay Chun
Executive Chairman & MD21.5yrsHK$13.47m59.97% HK$70.5m
Shiyong Shan
Executive Director21.75yrsHK$12.02m2.48% HK$2.9m
Liming Hu
Executive Director9.67yrsHK$240.00kno data
Zongyang Li
Independent Non Executive Director12.83yrsHK$240.00kno data
Kai-Shing Tao
Independent Non-Executive Director6.25yrsHK$240.00kno data
Kiu Sam Tang
Independent Non-Executive Director6.25yrsHK$240.00kno data

11.3yrs

Average Tenure

55yo

Average Age

Experienced Board: LIL3's board of directors are seasoned and experienced ( 11.3 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Paradise Entertainment Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paradise Entertainment Limited
  • Ticker: LIL3
  • Exchange: DB
  • Founded: 1996
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$1.031b
  • Listing Market Cap: HK$117.590m
  • Shares outstanding: 1.05b
  • Website: https://www.hk1180.com

Number of Employees


Location

  • Paradise Entertainment Limited
  • Entertainment Building
  • Unit C
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1180SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1997
LIL3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1997
PDSS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1997

Biography

Paradise Entertainment Limited, an investment holding company, primarily provides casino management services in Macau and internationally. The company operates through Casino Management Services and Gaming Systems segments. It operates Casino Kam Pek Paradise, which offers various games, such as baccarat, roulette, sic bo, etc. on live multi gaming terminals, traditional tables, and slot machines. The company also engages in the development, sale, and leasing of electronic gaming equipment and systems. Its gaming products include the Live Multi Game system, which provides live table gaming to play different types of games on different tables while being on the same terminal; slot machines that provide chance games, bingo jackpots, and bonuses; horse racing gaming, which creates virtual sports events for betting purpose that are provided to the bet acceptance system; Chips on Me that are member self-service chips exchange terminals; Personal Dice/ Personal Sic Bo, a standalone gaming terminal; Intelligent Card Shoe that helps casino operators to handle their card games; and other products and services. In addition, it provides management and consulting services; and properties holding, market development, and technology and software development services. The company was formerly known as LifeTec Group Limited and changed its name to Paradise Entertainment Limited in May 2007. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. Paradise Entertainment Limited is a subsidiary of August Profit Investments Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 21:22
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.