SEHK:1158

Stock Analysis Report

Zhejiang New Century Hotel Management

Executive Summary

Zhejiang New Century Hotel Management Co., Ltd.


Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

How has Zhejiang New Century Hotel Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1158 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

1158

1.8%

HK Hospitality

0.6%

HK Market


1 Year Return

n/a

1158

2.1%

HK Hospitality

-4.5%

HK Market

Return vs Industry: Insufficient data to determine how 1158 performed against the Hong Kong Hospitality industry.

Return vs Market: Insufficient data to determine how 1158 performed against the Hong Kong Market.


Shareholder returns

1158IndustryMarket
7 Day-1.2%1.8%0.6%
30 Day-1.3%-10.9%-5.2%
90 Day-2.9%-0.9%2.3%
1 Yearn/a5.2%2.1%-1.0%-4.5%
3 Yearn/a25.2%14.0%14.4%2.9%
5 Yearn/a12.9%-4.9%15.5%-3.8%

Price Volatility Vs. Market

How volatile is Zhejiang New Century Hotel Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Zhejiang New Century Hotel Management undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1158 (HK$14.76) is trading below our estimate of fair value (HK$55.53)

Significantly Below Fair Value: 1158 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1158 is poor value based on its PE Ratio (16.2x) compared to the Hospitality industry average (12.1x).

PE vs Market: 1158 is poor value based on its PE Ratio (16.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1158's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1158 is overvalued based on its PB Ratio (2.5x) compared to the HK Hospitality industry average (0.8x).


Next Steps

Future Growth

How is Zhejiang New Century Hotel Management forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.1%

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 Zhejiang New Century Hotel Management 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 Zhejiang New Century Hotel Management performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1158 has high quality earnings.

Growing Profit Margin: 1158's current net profit margins (10.1%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: 1158's earnings have grown significantly by 33.5% per year over the past 5 years.

Accelerating Growth: 1158's earnings growth over the past year (8.3%) is below its 5-year average (33.5% per year).

Earnings vs Industry: 1158 earnings growth over the past year (8.3%) exceeded the Hospitality industry -2.1%.


Return on Equity

High ROE: 1158's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zhejiang New Century Hotel Management's financial position?


Financial Position Analysis

Short Term Liabilities: 1158's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥978.1M).

Long Term Liabilities: 1158's short term assets (CN¥1.4B) do not cover its long term liabilities (CN¥2.0B).


Debt to Equity History and Analysis

Debt Level: 1158 is debt free.

Reducing Debt: 1158 had no debt 5 years ago.

Debt Coverage: 1158 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1158 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1158 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1158's debt is not covered by short term assets (assets are -3.1023050431188E+15x debt).


Next Steps

Dividend

What is Zhejiang New Century Hotel Management's current dividend yield, its reliability and sustainability?

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%2.3%markettop25%6.4%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 1158's dividend (2.71%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1158's dividend (2.71%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1158's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1158's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), 1158's dividend payments are 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?

2.3yrs

Average management tenure


CEO

Miaoqiang Chen (56yo)

0

Mr. Miaoqiang Chen has been Director of Zhejiang New Century Hotel Investment & Management Group Ltd since December 17, 2008 and has been its President since January 2017, being responsible for the overall ...


Leadership Team

NamePositionTenureCompensationOwnership
Wenjie Jin
Executive Chairman0yrsno datano data
Miaoqiang Chen
Executive Director & President0yrsno datano data
Huajuan Zhao
Chief Financial Officer6.1yrsno datano data
Frank Hou
Executive President0.9yrsno datano data
Lv Ye
Vice President2.7yrsno datano data
Jianping Dai
VP & GM of the Upscale Business Hotel Development & Management Business Division2.3yrsno datano data
Wenfang Chen
Vice President2.3yrsno datano data
Mingsheng Zhu
Vice President0.9yrsno datano data
Donglin Li
VP & Secretary to the Board2.7yrsno datano data
Suet Lam Chan
Joint Company Secretary1.6yrsno datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: 1158's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wenjie Jin
Executive Chairman0yrsno datano data
Miaoqiang Chen
Executive Director & President0yrsno datano data
Yun Qiu
Independent Non Executive Director2.7yrsno datano data
Miaolin Chen
Non-Executive Director11.2yrsno datano data
Canrong Chen
Non-Executive Director11.2yrsno datano data
Chi Zhang
Non Executive Director3.3yrsno datano data
Rungang Zhang
Independent Non Executive Director2.7yrsno datano data
Tianyi Jiang
Non-Executive Director0yrsno datano data
Wun Fat Khoo
Independent Non Executive Director1.5yrsno datano data
Xianghong Zha
Supervisor3.3yrsno datano data

3.3yrs

Average Tenure

53yo

Average Age

Experienced Board: 1158's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: 1158 only recently listed within the past 12 months, with total shares outstanding growing by 10.3% in the past year..


Top Shareholders

Company Information

Zhejiang New Century Hotel Management Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zhejiang New Century Hotel Management Co., Ltd.
  • Ticker: 1158
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$4.144b
  • Shares outstanding: 280.00m
  • Website: https://www.kaiyuanhotels.com

Number of Employees


Location

  • Zhejiang New Century Hotel Management Co., Ltd.
  • No. 818 Shixinzhong Road
  • 18th Floor
  • Hangzhou
  • Zhejiang Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1158SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 2019

Biography

Zhejiang New Century Hotel Management Co., Ltd. owns, operates, franchises, and manages hotels and resorts in the People’s Republic of China. The company operates upscale hotels under the Grand New Century Hotels, New Century Resorts, New Century Grand House, and New Century Wonderland brands; mid-scale hotels under the New Century Hotel and New Century Manju Hotel brands; upscale resort hotels under the New Century Senbo brand; other mid-scale full service hotels under the Maison New Century brand; and other mid-scale select service hotels under the Kaiyuan Life, Mayart Hotel, Wonderland RV Camp, and A.T.K Hotel brands. Its customers primarily comprise hotel owners, travel agencies, online travel agencies, and corporate clients. The company was founded in 1988 and is headquartered in Hangzhou, China. Zhejiang New Century Hotel Management Co., Ltd. is a subsidiary of New Century Tourism Group Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:25
End of Day Share Price2020/02/18 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.