SEHK:1180

Stock Analysis Report

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Executive Summary

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

Risk Analysis

No risks detected for 1180 from our risk checks.


Snowflake Analysis

Mediocre balance sheet with weak fundamentals.

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: 1180 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1180's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

1180

0.9%

HK Hospitality

-2.0%

HK Market


1 Year Return

3.7%

1180

15.9%

HK Hospitality

19.3%

HK Market

Return vs Industry: 1180 underperformed the Hong Kong Hospitality industry which returned 11.4% over the past year.

Return vs Market: 1180 underperformed the Hong Kong Market which returned 15.9% over the past year.


Shareholder returns

1180IndustryMarket
7 Day-3.4%0.9%-2.0%
30 Day1.2%6.0%12.0%
90 Day-4.5%17.5%18.6%
1 Year3.7%3.7%17.9%15.9%24.0%19.3%
3 Year-0.1%-2.3%-25.2%-30.7%-3.5%-13.7%
5 Year-19.6%-21.3%48.8%28.1%71.5%42.4%

Long-Term 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

Valuation

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

2x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1180's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1180's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1180 is unprofitable, so we can't compare its PE Ratio to the HK Hospitality industry average.

PE vs Market: 1180 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: 1180 is overvalued based on its PB Ratio (2x) compared to the HK Hospitality industry average (1x).


Next Steps

Future Growth

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

81.0%

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?

47.5%

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, but has reduced losses over the past 5 years at a rate of 47.5% 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 (-59.7%).


Return on Equity

High ROE: 1180 has a negative Return on Equity (-25.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is Paradise Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: 1180's short term assets (HK$363.7M) exceed its short term liabilities (HK$128.9M).

Long Term Liabilities: 1180's short term assets (HK$363.7M) exceed its long term liabilities (HK$137.8M).


Debt to Equity History and Analysis

Debt Level: 1180's debt to equity ratio (29.4%) is considered satisfactory.

Reducing Debt: 1180's debt to equity ratio has increased from 6.4% to 29.4% 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: Insufficient data to determine if 1180 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1180 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1180's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

11.8yrs

Average board tenure


CEO

Jay Chun (55 yo)

22yrs

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 ($USD1.74M) is above average for companies of similar size in the Hong Kong market ($USD231.60K).

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


Board Members

NamePositionTenureCompensationOwnership
Jay Chun
Executive Chairman & MD22yrsHK$13.47m59.97%
HK$ 542.6m
Shiyong Shan
Executive Director22.25yrsHK$12.02m2.48%
HK$ 22.4m
Liming Hu
Executive Director10.17yrsHK$240.00kno data
Zongyang Li
Independent Non Executive Director13.33yrsHK$240.00kno data
Kai-Shing Tao
Independent Non-Executive Director6.75yrsHK$240.00kno data
Kiu Sam Tang
Independent Non-Executive Director6.75yrsHK$240.00kno data

11.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 1180's board of directors are seasoned and experienced ( 11.8 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 company bio, 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
  • Market Cap: HK$904.879m
  • 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...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/27 10:19
End of Day Share Price2021/01/27 00:00
Earnings2020/06/30
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.