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1180

Paradise Entertainment SEHK:1180 Stock Report

Last Price

HK$0.81

Market Cap

HK$841.7m

7D

0%

1Y

-18.2%

Updated

30 Jun, 2022

Data

Company Financials
1180 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

1180 Stock Overview

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

Paradise Entertainment Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paradise Entertainment
Historical stock prices
Current Share PriceHK$0.81
52 Week HighHK$1.30
52 Week LowHK$0.72
Beta0.39
1 Month Change10.96%
3 Month Change-6.90%
1 Year Change-18.18%
3 Year Change-30.17%
5 Year Change-23.59%
Change since IPO-99.67%

Recent News & Updates

Apr 07
Here's Why Paradise Entertainment (HKG:1180) Can Afford Some Debt

Here's Why Paradise Entertainment (HKG:1180) Can Afford Some Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Shareholder Returns

1180HK HospitalityHK Market
7D0%15.8%3.1%
1Y-18.2%-34.3%-21.2%

Return vs Industry: 1180 exceeded the Hong Kong Hospitality industry which returned -34.3% over the past year.

Return vs Market: 1180 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 1180's price volatile compared to industry and market?
1180 volatility
1180 Average Weekly Movement7.7%
Hospitality Industry Average Movement7.9%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1180 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1180's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996370Jay Chunhttps://www.hk1180.com

Paradise Entertainment Limited, an investment holding company, primarily provides casino management services in Macau and internationally. It operates through Casino Management Services and Gaming Systems segments. The company 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.

Paradise Entertainment Fundamentals Summary

How do Paradise Entertainment's earnings and revenue compare to its market cap?
1180 fundamental statistics
Market CapHK$841.75m
Earnings (TTM)-HK$86.11m
Revenue (TTM)HK$494.13m

1.7x

P/S Ratio

-9.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1180 income statement (TTM)
RevenueHK$494.13m
Cost of RevenueHK$304.19m
Gross ProfitHK$189.94m
Other ExpensesHK$276.05m
Earnings-HK$86.11m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.082
Gross Margin38.44%
Net Profit Margin-17.43%
Debt/Equity Ratio41.2%

How did 1180 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1180 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1180?

Other financial metrics that can be useful for relative valuation.

1180 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/Revenue2x
Enterprise Value/EBITDA-24.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 1180's PS Ratio compare to its peers?

1180 PS Ratio vs Peers
The above table shows the PS ratio for 1180 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average4x
296 Emperor Entertainment Hotel
1.5xn/aHK$634.6m
8156 Sinopharm Tech Holdings
11.4xn/aHK$544.5m
1680 Macau Legend Development
2.2xn/aHK$2.7b
102 Summit Ascent Holdings
0.8xn/aHK$202.9m
1180 Paradise Entertainment
1.7xn/aHK$841.7m

Price-To-Sales vs Peers: 1180 is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (4x).


Price to Earnings Ratio vs Industry

How does 1180's PE Ratio compare vs other companies in the HK Hospitality Industry?

Price-To-Sales vs Industry: 1180 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the Hong Kong Hospitality industry average (1.7x)


Price to Sales Ratio vs Fair Ratio

What is 1180'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.

1180 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1180's Price-To-Sales Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1180 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1180's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1180's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1180's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


61.9%

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.


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  • Examine Paradise Entertainment's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Paradise Entertainment competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Paradise Entertainment 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


-4.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1180 is currently unprofitable.

Growing Profit Margin: 1180 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1180 is unprofitable, and losses have increased over the past 5 years at a rate of 4.2% per year.

Accelerating Growth: Unable to compare 1180's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1180 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (7.5%).


Return on Equity

High ROE: 1180 has a negative Return on Equity (-27.7%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Paradise Entertainment's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 1180's short term assets (HK$188.8M) exceed its short term liabilities (HK$101.4M).

Long Term Liabilities: 1180's short term assets (HK$188.8M) exceed its long term liabilities (HK$130.8M).


Debt to Equity History and Analysis

Debt Level: 1180's net debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: 1180's debt to equity ratio has increased from 14% to 41.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1180 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 1180 has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of 28.9% each year.


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Dividend

What is Paradise Entertainment 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

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1180's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1180's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1180's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1180's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1180 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1180 has not reported any payouts.


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Management

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

14.8yrs

Average board tenure


CEO

Jay Chun (56 yo)

23.42yrs

Tenure

HK$13,476,000

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 ($USD1.72M) is above average for companies of similar size in the Hong Kong market ($USD232.99K).

Compensation vs Earnings: Jay's compensation has increased whilst the company is unprofitable.


Board Members

Experienced Board: 1180's board of directors are seasoned and experienced ( 14.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Paradise Entertainment Limited
  • Ticker: 1180
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Implied Market Cap: HK$841.748m
  • Shares outstanding: 1.05b
  • Website: https://www.hk1180.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.