Magnificent Hotel Investments Limited, an investment holding company, invests in and operates hotels in Hong Kong, the People’s Republic of China, and the United Kingdom.
Flawless balance sheet, undervalued and pays a dividend.
Share Price & News
How has Magnificent Hotel Investments's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 201 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 201 underperformed the Hong Kong Hospitality industry which returned -7.9% over the past year.
Return vs Market: 201 underperformed the Hong Kong Market which returned -10.2% over the past year.
Price Volatility Vs. Market
How volatile is Magnificent Hotel Investments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StHere's What Magnificent Hotel Investments Limited's (HKG:201) P/E Ratio Is Telling Us
3 weeks ago | Simply Wall StDoes Magnificent Hotel Investments Limited's (HKG:201) CEO Salary Compare Well With Others?
1 month ago | Simply Wall StShould You Rely On Magnificent Hotel Investments's (HKG:201) Earnings Growth?
Is Magnificent Hotel Investments undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 201 (HK$0.15) is trading below our estimate of fair value (HK$0.4)
Significantly Below Fair Value: 201 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 201 is good value based on its PE Ratio (5.2x) compared to the Hospitality industry average (11.8x).
PE vs Market: 201 is good value based on its PE Ratio (5.2x) compared to the Hong Kong market (9.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 201's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 201 is good value based on its PB Ratio (0.3x) compared to the HK Hospitality industry average (0.9x).
How is Magnificent Hotel Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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 Magnificent Hotel Investments 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.
- Examine whether Magnificent Hotel Investments is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Magnificent Hotel Investments competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Services industry.
How has Magnificent Hotel Investments performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 201 has a large one-off gain of HK$95.9M impacting its June 30 2019 financial results.
Growing Profit Margin: 201's current net profit margins (44%) are higher than last year (34.6%).
Past Earnings Growth Analysis
Earnings Trend: 201's earnings have declined by -33.5% per year over the past 5 years.
Accelerating Growth: 201's earnings growth over the past year (33.9%) exceeds its 5-year average (-33.5% per year).
Earnings vs Industry: 201 earnings growth over the past year (33.9%) exceeded the Hospitality industry -3.6%.
Return on Equity
High ROE: 201's Return on Equity (6.3%) is considered low.
How is Magnificent Hotel Investments's financial position?
Financial Position Analysis
Short Term Liabilities: 201's short term assets (HK$536.7M) exceed its short term liabilities (HK$194.8M).
Long Term Liabilities: 201's short term assets (HK$536.7M) exceed its long term liabilities (HK$368.0M).
Debt to Equity History and Analysis
Debt Level: 201's debt to equity ratio (9.8%) is considered satisfactory.
Reducing Debt: 201's debt to equity ratio has reduced from 11.6% to 9.8% over the past 5 years.
Debt Coverage: 201's debt is well covered by operating cash flow (63.7%).
Interest Coverage: 201's interest payments on its debt are well covered by EBIT (345.1x coverage).
Inventory Level: 201 has a high level of physical assets or inventory.
Debt Coverage by Assets: 201's debt is covered by short term assets (assets are 1.3x debt).
What is Magnificent Hotel Investments's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 201's dividend (4.95%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.3%).
High Dividend: 201's dividend (4.95%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.4%).
Stability and Growth of Payments
Stable Dividend: 201's dividends per share have been stable in the past 10 years.
Growing Dividend: 201's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.5%), 201's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
William Cheng (57yo)
Mr. Kai Man Cheng, also known as William, serves as an Executive Chairman and Chief Executive Officer of Shun Ho Resources Holdings Limited., : Shun Ho Property Investments Limited and Magnificent Estates ...
CEO Compensation Analysis
Compensation vs Market: William's total compensation ($USD901.56K) is above average for companies of similar size in the Hong Kong market ($USD290.18K).
Compensation vs Earnings: William's compensation has been consistent with company performance over the past year.
|Chairman & CEO||0yrs||HK$7.03m||no data|
|CFO & Executive Director||2.5yrs||HK$1.15m||no data|
|Head of Operation & Accounting and Executive Director||2.5yrs||HK$1.00m||no data|
|Executive Director||30.1yrs||HK$1.60m||no data|
|Assistant Company Secretary & Executive Director||2.1yrs||HK$625.38k||0.000070% HK$926.9|
|Independent Non-Executive Director||21.1yrs||HK$53.00k||no data|
|Non-Executive Director||15.1yrs||HK$17.00k||no data|
|Independent Non-Executive Director||15.3yrs||HK$50.00k||no data|
|Independent Non-Executive Director||2.7yrs||HK$50.00k||no data|
Experienced Board: 201's board of directors are considered experienced (8.9 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Magnificent Hotel Investments Limited's company bio, employee growth, exchange listings and data sources
- Name: Magnificent Hotel Investments Limited
- Ticker: 201
- Exchange: SEHK
- Industry: Hotels, Resorts and Cruise Lines
- Sector: Consumer Services
- Market Cap: HK$1.324b
- Shares outstanding: 8.95b
- Website: https://www.magnificenthotelinv.com
- Magnificent Hotel Investments Limited
- Shun Ho Tower
- 3rd Floor
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|201||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Jan 1992|
Magnificent Hotel Investments Limited, an investment holding company, invests in and operates hotels in Hong Kong, the People’s Republic of China, and the United Kingdom. It operates through four segments: Hospitality Services, Property Investment, Securities Investment, and Hotel Properties. The Hospitality Services segment operates hotels. The Property Investment segment invests in shops. The Securities Investment segment invests in securities. The Hotel Properties segment develops hotel properties. The company also engages in the hotel investment and management, securities dealing, and treasury investment activities. The company was formerly known as Magnificent Estates Limited and changed its name to Magnificent Hotel Investments Limited in November 2015. The company is based in Central, Hong Kong. Magnificent Hotel Investments Limited is a subsidiary of Shun Ho Property Investments Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 12:41|
|End of Day Share Price||2020/02/24 00:00|
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.