DB:SHN

Stock Analysis Report

Executive Summary

Shangri-La Asia Limited, an investment holding company, owns/leases and operates hotels and associated properties worldwide.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has Shangri-La Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

SHN

-4.8%

DE Hospitality

-0.9%

DE Market


1 Year Return

-25.4%

SHN

3.3%

DE Hospitality

12.8%

DE Market

Return vs Industry: SHN underperformed the German Hospitality industry which returned 3.3% over the past year.

Return vs Market: SHN underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

SHNIndustryMarket
7 Day-0.6%-4.8%-0.9%
30 Day2.4%1.6%-0.4%
90 Day-9.9%-15.2%2.3%
1 Year-23.5%-25.4%7.8%3.3%16.3%12.8%
3 Year-23.0%-26.7%-9.6%-22.0%15.8%5.7%
5 Year-19.0%-24.8%-12.3%-30.9%19.7%3.3%

Price Volatility Vs. Market

How volatile is Shangri-La Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Shangri-La Asia undervalued compared to its fair value and its price relative to the market?

22.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHN (€0.87) is trading above our estimate of fair value (€0.41)

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


Price To Earnings Ratio

PE vs Industry: SHN is good value based on its PE Ratio (22.1x) compared to the Hospitality industry average (25.5x).

PE vs Market: SHN is poor value based on its PE Ratio (22.1x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: SHN is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: SHN is good value based on its PB Ratio (0.6x) compared to the DE Hospitality industry average (2.3x).


Next Steps

Future Growth

How is Shangri-La Asia forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHN's forecast earnings growth (3.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: SHN's earnings (3.9% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: SHN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SHN's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: SHN's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHN's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

How has Shangri-La Asia performed over the past 5 years?

-0.01%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHN has a large one-off loss of $101.7M impacting its June 30 2019 financial results.

Growing Profit Margin: SHN's current net profit margins (6.1%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: SHN's earnings have declined by -0.01% per year over the past 5 years.

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

Earnings vs Industry: SHN had negative earnings growth (-37.7%) over the past year, making it difficult to compare to the Hospitality industry average (-36.8%).


Return on Equity

High ROE: SHN's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shangri-La Asia's financial position?


Financial Position Analysis

Short Term Liabilities: SHN's short term assets ($1.5B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SHN's short term assets ($1.5B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: SHN's debt to equity ratio (81.4%) is considered high.

Reducing Debt: SHN's debt to equity ratio has increased from 76.8% to 81.4% over the past 5 years.

Debt Coverage: SHN's debt is not well covered by operating cash flow (7%).

Interest Coverage: SHN's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: SHN has a high level of physical assets or inventory.

Debt Coverage by Assets: SHN's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Shangri-La Asia's current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.3%markettop25%3.6%industryaverage5.4%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: SHN's dividend (2.93%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: SHN's dividend (2.93%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: SHN's dividend payments have been volatile in the past 10 years.

Growing Dividend: SHN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.8%), SHN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHN's dividends in 3 years are forecast to be covered by earnings (55.1% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Beng Chee Lim (51yo)

3.1yrs

Tenure

US$2,454,000

Compensation

Mr. Lim Beng Chee has been Chief Executive Officer of Shangri-La Asia Limited since January 1, 2017. Mr. Lim serves as a Manager of Eureka Office Fund. Mr. Lim has been an Executive Director of Shangri-La  ...


CEO Compensation Analysis

Compensation vs Market: Beng Chee's total compensation ($USD2.45M) is about average for companies of similar size in the German market ($USD2.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hui Kuok
Chairman of the Board3.1yrsUS$1.85m1.39% $43.7m
Beng Chee Lim
CEO & Executive Director3.1yrsUS$2.45m0.017% $541.6k
Sven Bonke
President & COO2.4yrsno datano data
Lay Tan
Chief Financial Officer0.8yrsno datano data
Jian Cheng Yang
Chief Technology Officer3.1yrsno datano data
May Yip
SNL Contact Person0yrsno datano data
Chow Loong Seow
General Counsel & Company Secretary2.7yrsno datano data
Nichlas Maratos
Executive Vice President of Sales2.2yrsno datano data
Kwang Cheong Chong
Chief Corporate & Human Resources Officer1.8yrsno datano data
Jean Offe
Executive Vice President of Food & Beverage6.7yrsno datano data

2.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SHN's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hui Kuok
Chairman of the Board3.1yrsUS$1.85m1.39% $43.7m
Beng Chee Lim
CEO & Executive Director3.1yrsUS$2.45m0.017% $541.6k
Chenchao Zhuang
Independent Non-executive Director0.2yrsno datano data
Kwok Cheung Li
Independent Non-Executive Director8.9yrsUS$75.00kno data
Chee Keong Yap
Independent Non-Executive Director2.2yrsUS$57.00kno data
Chung Tao Ho
Alternate Non-Executive Director3.3yrsno datano data
Forrest Xiaodong Li
Independent Non-Executive Director0.8yrsno datano data
Kian Guan Ho
Non-Executive Director26.8yrsUS$62.00kno data

3.2yrs

Average Tenure

48yo

Average Age

Experienced Board: SHN's board of directors are considered experienced (3.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Shangri-La Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shangri-La Asia Limited
  • Ticker: SHN
  • Exchange: DB
  • Founded: 1971
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$26.651b
  • Listing Market Cap: HK$3.150b
  • Shares outstanding: 3.57b
  • Website: https://ir.shangri-la.com

Number of Employees


Location

  • Shangri-La Asia Limited
  • Kerry Centre
  • 28th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
69SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1993
S07SGX (Singapore Exchange)YesOrdinary SharesSGHKDJun 1993
SHNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
69SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1993
69SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1993
SHAL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2001

Biography

Shangri-La Asia Limited, an investment holding company, owns/leases and operates hotels and associated properties worldwide. It operates through four segments: Hotel Properties, Hotel Management and Related Services, Investment Properties, and Property Development for Sale. The company develops, owns, and operates office and commercial properties, and serviced apartments/residences; and operates restaurants. It is also involved in the hotel ownership, and property rental and sale business; and property investment, as well as wines trading activities. The company operates hotels under the Shangri-La Hotels and Resorts, Kerry Hotels, Hotel Jen, and Traders Hotel names. As of December 31, 2018, it had equity interests in 79 operating hotels with 35,834 rooms. The company was founded in 1971 and is headquartered in Quarry Bay, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:39
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.