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Magnificent Hotel Investments

SEHK:201
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
201
SEHK
HK$2B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

Magnificent Hotel Investments Limited, an investment holding company, invests in and operates hotels in the People’s Republic of China. The last earnings update was 93 days ago. More info.


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201 Share Price and Events
7 Day Returns
4.4%
SEHK:201
0.7%
HK Hospitality
-0.2%
HK Market
1 Year Returns
-5%
SEHK:201
-5.7%
HK Hospitality
-4.5%
HK Market
201 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magnificent Hotel Investments (201) 4.4% 8.6% -2.1% -5% 5.6% -51.3%
HK Hospitality 0.7% 10.5% -3.3% -5.7% 43.2% -28.9%
HK Market -0.2% 2.7% -8.3% -4.5% 16.5% 1%
1 Year Return vs Industry and Market
  • 201 matched the Hospitality industry (-5.7%) over the past year.
  • 201 matched the Hong Kong Market (-4.5%) over the past year.
Price Volatility
201
Industry
5yr Volatility vs Market

201 Value

 Is Magnificent Hotel Investments undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magnificent Hotel Investments to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magnificent Hotel Investments.

SEHK:201 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:201
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.922 (1 + (1- 25%) (26.29%))
1.07
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.07 * 6.65%)
9.12%

Discounted Cash Flow Calculation for SEHK:201 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magnificent Hotel Investments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:201 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.12%)
2020 285.20 Est @ 13.52% 261.37
2021 313.89 Est @ 10.06% 263.63
2022 337.89 Est @ 7.64% 260.07
2023 358.00 Est @ 5.95% 252.53
2024 375.06 Est @ 4.77% 242.47
2025 389.83 Est @ 3.94% 230.96
2026 402.92 Est @ 3.36% 218.77
2027 414.81 Est @ 2.95% 206.41
2028 425.87 Est @ 2.67% 194.21
2029 436.38 Est @ 2.47% 182.37
Present value of next 10 years cash flows HK$2,312.79
SEHK:201 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$436.38 × (1 + 2%) ÷ (9.12% – 2%)
HK$6,257.37
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$6,257.37 ÷ (1 + 9.12%)10
HK$2,615.09
SEHK:201 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$2,312.79 + HK$2,615.09
HK$4,927.87
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$4,927.87 / 8,947.05
HK$0.55
SEHK:201 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.55
Current discount Discount to share price of HK$0.19
= -1 x (HK$0.19 - HK$0.55) / HK$0.55
65.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magnificent Hotel Investments is available for.
Intrinsic value
>50%
Share price is HK$0.19 vs Future cash flow value of HK$0.55078
Current Discount Checks
For Magnificent Hotel Investments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magnificent Hotel Investments's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Magnificent Hotel Investments's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magnificent Hotel Investments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magnificent Hotel Investments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:201 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.03
SEHK:201 Share Price ** SEHK (2019-07-19) in HKD HK$0.19
Hong Kong Hospitality Industry PE Ratio Median Figure of 69 Publicly-Listed Hospitality Companies 13.94x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magnificent Hotel Investments.

SEHK:201 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:201 Share Price ÷ EPS (both in HKD)

= 0.19 ÷ 0.03

6.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnificent Hotel Investments is good value based on earnings compared to the HK Hospitality industry average.
  • Magnificent Hotel Investments is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Magnificent Hotel Investments's expected growth come at a high price?
Raw Data
SEHK:201 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
10.2%per year
Hong Kong Hospitality Industry PEG Ratio Median Figure of 21 Publicly-Listed Hospitality Companies 2.17x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Magnificent Hotel Investments, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Magnificent Hotel Investments's assets?
Raw Data
SEHK:201 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$0.45
SEHK:201 Share Price * SEHK (2019-07-19) in HKD HK$0.19
Hong Kong Hospitality Industry PB Ratio Median Figure of 109 Publicly-Listed Hospitality Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:201 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:201 Share Price ÷ Book Value per Share (both in HKD)

= 0.19 ÷ 0.45

0.42x

* Primary Listing of Magnificent Hotel Investments.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magnificent Hotel Investments is good value based on assets compared to the HK Hospitality industry average.
X
Value checks
We assess Magnificent Hotel Investments's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Magnificent Hotel Investments has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

201 Future Performance

 How is Magnificent Hotel Investments expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Magnificent Hotel Investments, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magnificent Hotel Investments expected to grow at an attractive rate?
  • Magnificent Hotel Investments's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Magnificent Hotel Investments's earnings growth is positive but not above the Hong Kong market average.
  • Unable to compare Magnificent Hotel Investments's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:201 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:201 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 10.2%
Hong Kong Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
Hong Kong Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:201 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:201 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 580 270 260
2018-09-30 567 261 226
2018-06-30 554 251 192
2018-03-31 538 228 172
2017-12-31 522 205 152
2017-09-30 512 202 142
2017-06-30 502 199 132
2017-03-31 489 195 133
2016-12-31 476 191 133
2016-09-30 461 199 105
2016-06-30 445 207 78
2016-03-31 445 217 86

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magnificent Hotel Investments's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Magnificent Hotel Investments is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:201 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Magnificent Hotel Investments Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:201 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.03
2018-09-30 0.03
2018-06-30 0.02
2018-03-31 0.02
2017-12-31 0.02
2017-09-30 0.02
2017-06-30 0.01
2017-03-31 0.01
2016-12-31 0.01
2016-09-30 0.01
2016-06-30 0.01
2016-03-31 0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Magnificent Hotel Investments will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Magnificent Hotel Investments's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magnificent Hotel Investments has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

201 Past Performance

  How has Magnificent Hotel Investments performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magnificent Hotel Investments's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magnificent Hotel Investments's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Magnificent Hotel Investments's 1-year earnings growth exceeds its 5-year average (71.1% vs -41.4%)
  • Magnificent Hotel Investments's earnings growth has exceeded the HK Hospitality industry average in the past year (71.1% vs -2.4%).
Earnings and Revenue History
Magnificent Hotel Investments's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magnificent Hotel Investments Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:201 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 579.67 260.35 33.12
2018-09-30 566.90 225.94 33.37
2018-06-30 554.13 191.54 33.62
2018-03-31 538.28 171.86 33.49
2017-12-31 522.43 152.17 33.36
2017-09-30 512.17 142.23 32.25
2017-06-30 501.91 132.30 31.15
2017-03-31 489.12 132.76 29.96
2016-12-31 476.33 133.22 28.76
2016-09-30 460.71 105.45 27.89
2016-06-30 445.09 77.67 27.02
2016-03-31 444.80 86.00 27.08
2015-12-31 444.51 94.33 27.15
2015-09-30 460.48 118.46 27.37
2015-06-30 476.45 142.58 27.60
2015-03-31 507.50 471.14 27.82
2014-12-31 538.56 799.70 28.04
2014-09-30 586.80 890.57 27.22
2014-06-30 635.04 981.44 26.40
2014-03-31 661.89 802.10 26.21
2013-12-31 688.74 622.77 26.02
2013-09-30 658.67 637.24 25.09
2013-06-30 628.61 651.71 24.15
2013-03-31 574.56 594.03 22.81
2012-12-31 520.50 536.35 21.47
2012-09-30 487.33 425.57 20.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magnificent Hotel Investments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magnificent Hotel Investments used its assets more efficiently than the HK Hospitality industry average last year based on Return on Assets.
  • Magnificent Hotel Investments has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magnificent Hotel Investments's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magnificent Hotel Investments has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

201 Health

 How is Magnificent Hotel Investments's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magnificent Hotel Investments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magnificent Hotel Investments is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magnificent Hotel Investments's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magnificent Hotel Investments's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magnificent Hotel Investments Company Filings, last reported 6 months ago.

SEHK:201 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,061.66 451.60 499.17
2018-09-30 4,061.66 451.60 499.17
2018-06-30 3,943.77 692.95 610.12
2018-03-31 3,943.77 692.95 610.12
2017-12-31 3,961.27 723.24 608.76
2017-09-30 3,961.27 723.24 608.76
2017-06-30 3,826.57 793.53 656.62
2017-03-31 3,826.57 793.53 656.62
2016-12-31 3,769.99 688.68 331.07
2016-09-30 3,769.99 688.68 331.07
2016-06-30 3,706.33 770.04 245.07
2016-03-31 3,706.33 770.04 245.07
2015-12-31 3,795.87 402.01 778.06
2015-09-30 3,795.87 402.01 778.06
2015-06-30 6,480.82 506.69 1,168.81
2015-03-31 6,480.82 506.69 1,168.81
2014-12-31 6,276.62 767.13 1,164.76
2014-09-30 6,276.62 767.13 1,164.76
2014-06-30 6,140.50 711.92 1,131.91
2014-03-31 6,140.50 711.92 1,131.91
2013-12-31 5,434.97 746.54 314.28
2013-09-30 5,434.97 746.54 314.28
2013-06-30 5,129.14 1,139.15 331.28
2013-03-31 5,129.14 1,139.15 331.28
2012-12-31 4,693.37 1,269.64 179.76
2012-09-30 4,693.37 1,269.64 179.76
  • Magnificent Hotel Investments's level of debt (11.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (13.7% vs 11.1% today).
  • Debt is well covered by operating cash flow (59.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 43.4x coverage).
X
Financial health checks
We assess Magnificent Hotel Investments's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magnificent Hotel Investments has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

201 Dividends

 What is Magnificent Hotel Investments's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.85%
Current annual income from Magnificent Hotel Investments dividends.
If you bought HK$2,000 of Magnificent Hotel Investments shares you are expected to receive HK$77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magnificent Hotel Investments's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • Magnificent Hotel Investments's dividend is below the markets top 25% of dividend payers in Hong Kong (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:201 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:201 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-17 0.007 4.034
2019-03-08 0.007 3.852
2018-04-20 0.007 3.654
2018-03-13 0.007 3.172
2017-06-16 0.006 2.765
2016-04-25 0.007 3.808
2016-03-11 0.007 3.962
2015-05-21 0.008 3.349
2014-06-18 0.008 2.171
2013-06-18 0.007 1.755
2012-08-28 0.003 0.733
2012-03-28 0.003 0.990
2011-03-22 0.003 1.019
2010-04-09 0.001 0.427
2009-09-28 0.000 0.000
2009-09-17 0.000 0.000
2009-04-15 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Magnificent Hotel Investments has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Magnificent Hotel Investments only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Magnificent Hotel Investments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Magnificent Hotel Investments's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magnificent Hotel Investments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magnificent Hotel Investments has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

201 Management

 What is the CEO of Magnificent Hotel Investments's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
William Cheng
COMPENSATION HK$7,028,000
AGE 57
CEO Bio

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 Ltd. Mr. Cheng has over ten year's experience in construction, property investment and development. He serves as a Director of Mercury Fast Limited and of Omnico Company Inc. Mr. Cheng has been an Executive Director of Shun Ho Technology Holdings Limited since 1990, Magnificent Hotel Investments Limited since 1987 and of Shun Ho Resources Holdings Ltd. since 1990. He graduated in the U.K. and holds a Bachelor’s Degree in Civil Engineering and a Master’s Degree in Structural Engineering.

CEO Compensation
  • William's compensation has been consistent with company performance over the past year, both up more than 20%.
  • William's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

William Cheng

TITLE
Chairman & CEO
COMPENSATION
HK$7M
AGE
57

Kimmy Lau

TITLE
CFO & Executive Director
COMPENSATION
HK$1M
AGE
52

Yuet Ying Ng

TITLE
Head of Operation & Accounting and Executive Director
COMPENSATION
HK$1M
AGE
36

Albert Hui

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
56

Jennie Wong

TITLE
Assistant Company Secretary & Executive Director
COMPENSATION
HK$625K
AGE
56

Ching Koo

TITLE
Company Secretary
AGE
49
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the Magnificent Hotel Investments board of directors in years:

8.3
Average Tenure
56
Average Age
  • The tenure for the Magnificent Hotel Investments board of directors is about average.
Board of Directors

William Cheng

TITLE
Chairman & CEO
COMPENSATION
HK$7M
AGE
57

Kimmy Lau

TITLE
CFO & Executive Director
COMPENSATION
HK$1M
AGE
52
TENURE
1.9 yrs

Yuet Ying Ng

TITLE
Head of Operation & Accounting and Executive Director
COMPENSATION
HK$1M
AGE
36
TENURE
1.9 yrs

Albert Hui

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
56
TENURE
29.5 yrs

Vincent Kwok

TITLE
Independent Non-Executive Director
COMPENSATION
HK$53K
AGE
56
TENURE
20.5 yrs

Jennie Wong

TITLE
Assistant Company Secretary & Executive Director
COMPENSATION
HK$625K
AGE
56
TENURE
1.5 yrs

Mabel Lui Fung

TITLE
Non-Executive Director
COMPENSATION
HK$17K
AGE
67
TENURE
14.5 yrs

Eddie Chan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$50K
AGE
60
TENURE
14.8 yrs

Kwai Cheung Lam

TITLE
Independent Non-Executive Director
COMPENSATION
HK$50K
AGE
59
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
11. Apr 19 Buy Saray Capital Limited Company 08. Apr 19 08. Apr 19 4,724,000 HK$0.19 HK$897,571
X
Management checks
We assess Magnificent Hotel Investments's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magnificent Hotel Investments has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

201 News

Simply Wall St News

Is Magnificent Hotel Investments Limited's (HKG:201) CEO Being Overpaid?

At the time of writing our data says that Magnificent Hotel Investments Limited has a market cap of HK$1.6b, and is paying total annual CEO compensation of HK$7.0m. … It would therefore appear that Magnificent Hotel Investments Limited pays William Cheng more than the median CEO remuneration at companies of a similar size, in the same market. … We compared total CEO remuneration at Magnificent Hotel Investments Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Imagine Owning Magnificent Hotel Investments (HKG:201) While The Price Tanked 57%

At this point some shareholders may be questioning their investment in Magnificent Hotel Investments Limited (HKG:201), since the last five years saw the share price fall 57%. … During the five years over which the share price declined, Magnificent Hotel Investments's earnings per share (EPS) dropped by 16% each year. … We note that for Magnificent Hotel Investments the TSR over the last 5 years was -35%, which is better than the share price return mentioned above.

Simply Wall St -

Does Magnificent Hotel Investments Limited's (HKG:201) P/E Ratio Signal A Buying Opportunity?

We'll look at Magnificent Hotel Investments Limited's (HKG:201) P/E ratio and reflect on what it tells us about the company's share price. … What is Magnificent Hotel Investments's P/E ratio? … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Here’s why Magnificent Hotel Investments Limited’s (HKG:201) Returns On Capital Matters So Much

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

What Kind Of Investor Owns Most Of Magnificent Hotel Investments Limited (HKG:201)?

Every investor in Magnificent Hotel Investments Limited (HKG:201) should be aware of the most powerful shareholder groups. … With a market capitalization of HK$1.7b, Magnificent Hotel Investments is a small cap stock, so it might not be well known by many institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Introducing Magnificent Hotel Investments, The Stock That Dropped 49% In The Last Five Years

At this point some shareholders may be questioning their investment in Magnificent Hotel Investments Limited (HKG:201), since the last five years saw the share price fall 49%. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years over which the share price declined, Magnificent Hotel Investments's earnings per share (EPS) dropped by 22% each year.

Simply Wall St -

Do You Like Magnificent Hotel Investments Limited (HKG:201) At This P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Magnificent Hotel Investments Limited's (HKG:201) P/E ratio and reflect on what it tells us about the company's share price. … Magnificent Hotel Investments has a P/E ratio of 8.41, based on the last twelve months.

Simply Wall St -

Is Magnificent Hotel Investments Limited (HKG:201) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Magnificent Hotel Investments Limited (HKG:201), with a market cap of HK$1.6b. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Magnificent Hotel Investments Limited (HKG:201): Why Return On Capital Employed Is Important

and want to begin learning the link between Magnificent Hotel Investments Limited (HKG:201)’s return fundamentals and stock market performance. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Magnificent Hotel Investments, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

What Kind Of Shareholder Owns Most Magnificent Hotel Investments Limited (HKG:201) Stock?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of HK$1.6b, Magnificent Hotel Investments is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

201 Company Info

Description

Magnificent Hotel Investments Limited, an investment holding company, invests in and operates hotels in the People’s Republic of China. The company owns eight hotels, including Best Western Plus Hotel, Best Western Hotel Harbour View, Best Western Plus Hotel, Best Western Grand Hotel, Best Western Hotel, Grand City Hotel, and Magnificent International Hotel in Hong Kong and China, as well as lease out Royal Scot Hotel in London. It is also involved in the shop and hotel properties investment, and securities dealing and 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.

Details
Name: Magnificent Hotel Investments Limited
201
Exchange: SEHK
Founded:
HK$1,717,833,792
8,947,051,000
Website: http://www.magnificenthotelinv.com
Address: Magnificent Hotel Investments Limited
Shun Ho Tower,
3rd Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 201 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
Number of employees
Current staff
Staff numbers
0
Magnificent Hotel Investments employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:40
End of day share price update: 2019/07/19 00:00
Last earnings filing: 2019/04/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.