Why Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006) Could Be Your Next Investment

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Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 2006, it is a dependable dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Shanghai Jin Jiang International Hotels (Group) here.

Very undervalued average dividend payer

2006’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 2006’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the hospitality industry, 2006 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 2006’s price is currently discounted.

SEHK:2006 Intrinsic value, June 20th 2019
SEHK:2006 Intrinsic value, June 20th 2019

2006’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

SEHK:2006 Historical Dividend Yield, June 20th 2019
SEHK:2006 Historical Dividend Yield, June 20th 2019

Next Steps:

For Shanghai Jin Jiang International Hotels (Group), I’ve compiled three relevant factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 2006’s future growth? Take a look at our free research report of analyst consensus for 2006’s outlook.
  2. Historical Performance: What has 2006’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2006? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.