SEHK:201

Stock Analysis Report

Magnificent Hotel Investments

Executive Summary

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.


Snowflake Analysis

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.


Market Performance


7 Day Return

1.4%

201

-4.6%

HK Hospitality

-3.2%

HK Market


1 Year Return

-18.2%

201

-7.9%

HK Hospitality

-10.2%

HK Market

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.


Shareholder returns

201IndustryMarket
7 Day1.4%-4.6%-3.2%
30 Day-7.5%-4.4%-3.3%
90 Day-7.5%-4.0%0.2%
1 Year-14.7%-18.2%-5.1%-7.9%-6.9%-10.2%
3 Year-11.5%-20.0%17.3%6.8%11.7%0.4%
5 Year-29.9%-52.3%12.1%-5.4%11.1%-7.3%

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

Valuation

Is Magnificent Hotel Investments undervalued compared to its fair value and its price relative to the market?

>50%

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).


Next Steps

Future Growth

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

14.5%

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.


Next Steps

Past Performance

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

-33.5%

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.


Next Steps

Financial Health

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).


Balance Sheet

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).


Next Steps

Dividend

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

4.95%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateJun 08 2020Dividend Pay DateJun 26 202018 days from Ex DividendBuy in the next 103 days to receive upcoming dividend

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.


Next Steps

Management

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

8.9yrs

Average board tenure


CEO

William Cheng (57yo)

HK$7,028,000

Compensation

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.


Board Members

NamePositionTenureCompensationOwnership
Kai Cheng
Chairman & CEO0yrsHK$7.03mno data
Kam Lau
CFO & Executive Director2.5yrsHK$1.15mno data
Yuet Ying Ng
Head of Operation & Accounting and Executive Director2.5yrsHK$1.00mno data
Wing Hui
Executive Director30.1yrsHK$1.60mno data
Kwai-Fong Wong
Assistant Company Secretary & Executive Director2.1yrsHK$625.38k0.000070% HK$926.9
Chi Sun Kwok
Independent Non-Executive Director21.1yrsHK$53.00kno data
Mei Yee Lui Fung
Non-Executive Director15.1yrsHK$17.00kno data
Kim Fai Chan
Independent Non-Executive Director15.3yrsHK$50.00kno data
Kwai Cheung Lam
Independent Non-Executive Director2.7yrsHK$50.00kno data

8.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 201's board of directors are considered experienced (8.9 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magnificent Hotel Investments Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magnificent Hotel Investments Limited
  • Ticker: 201
  • Exchange: SEHK
  • Founded:
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$1.324b
  • Shares outstanding: 8.95b
  • Website: https://www.magnificenthotelinv.com

Location

  • Magnificent Hotel Investments Limited
  • Shun Ho Tower
  • 3rd Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
201SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:41
End of Day Share Price2020/02/24 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.