SEHK:296

Stock Analysis Report

Emperor Entertainment Hotel

Executive Summary

Emperor Entertainment Hotel Limited, an investment holding company, provides entertainment and hospitality services.

Rewards

Trading at 70.1% below its fair value

Earnings grew by 2.9% over the past year

Risk Analysis

Earnings have declined by -3.41% per year over past 5 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Emperor Entertainment Hotel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 296 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

296

2.8%

HK Hospitality

1.7%

HK Market


1 Year Return

-17.1%

296

5.6%

HK Hospitality

-2.9%

HK Market

Return vs Industry: 296 underperformed the Hong Kong Hospitality industry which returned 5.6% over the past year.

Return vs Market: 296 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

296IndustryMarket
7 Day0.7%2.8%1.7%
30 Day-7.2%-9.5%-4.2%
90 Day-14.0%1.4%4.6%
1 Year-12.2%-17.1%8.8%5.6%0.7%-2.9%
3 Year-8.5%-21.7%23.6%12.5%15.3%3.6%
5 Year-1.2%-23.4%9.6%-7.7%15.9%-3.5%

Price Volatility Vs. Market

How volatile is Emperor Entertainment Hotel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Emperor Entertainment Hotel 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: 296 (HK$1.41) is trading below our estimate of fair value (HK$4.71)

Significantly Below Fair Value: 296 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 296 is good value based on its PE Ratio (4.3x) compared to the Hospitality industry average (12.1x).

PE vs Market: 296 is good value based on its PE Ratio (4.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 296's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 296 is good value based on its PB Ratio (0.4x) compared to the HK Hospitality industry average (0.8x).


Next Steps

Future Growth

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

14.3%

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 Emperor Entertainment Hotel 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 Emperor Entertainment Hotel performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 296 has high quality earnings.

Growing Profit Margin: 296's current net profit margins (29.8%) are higher than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: 296's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: 296's earnings growth over the past year (2.9%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: 296 earnings growth over the past year (2.9%) exceeded the Hospitality industry -2.1%.


Return on Equity

High ROE: 296's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Emperor Entertainment Hotel's financial position?


Financial Position Analysis

Short Term Liabilities: 296's short term assets (HK$3.5B) exceed its short term liabilities (HK$599.1M).

Long Term Liabilities: 296's short term assets (HK$3.5B) exceed its long term liabilities (HK$139.3M).


Debt to Equity History and Analysis

Debt Level: 296's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: 296's debt to equity ratio has reduced from 15.1% to 0.7% over the past 5 years.

Debt Coverage: 296's debt is well covered by operating cash flow (1176.5%).

Interest Coverage: 296's interest payments on its debt are well covered by EBIT (583.2x coverage).


Balance Sheet

Inventory Level: 296 has a high level of physical assets or inventory.

Debt Coverage by Assets: 296's debt is covered by short term assets (assets are 85.3x debt).


Next Steps

Dividend

What is Emperor Entertainment Hotel's current dividend yield, its reliability and sustainability?

5.82%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.3%markettop25%6.3%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 296's dividend (5.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 296's dividend (5.82%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: 296's dividend payments have been volatile in the past 10 years.

Growing Dividend: 296's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.5%), 296'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?

6.5yrs

Average board tenure


CEO

Emperor Entertainment Hotel has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Chi Fai Wong
Executive Director29.1yrsHK$250.00kno data
Man Seung Fan
Executive Director0yrsHK$250.00kno data
Siu Man Luk
Chairperson20.1yrsno datano data
King Tin Yu
Independent Non-Executive Director6.5yrsHK$220.00kno data
Shin Luen Kwan
Independent Non-Executive Director4.5yrsHK$220.00kno data
Ka Fung Lai
Independent Non-Executive Director3.5yrsHK$220.00kno data

6.5yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 296's board of directors are considered experienced (6.5 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

Emperor Entertainment Hotel Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emperor Entertainment Hotel Limited
  • Ticker: 296
  • Exchange: SEHK
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$1.741b
  • Shares outstanding: 1.23b
  • Website: https://www.emp296.com

Number of Employees


Location

  • Emperor Entertainment Hotel Limited
  • Emperor Group Centre
  • 28th Floor
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
296SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 1992
EM7ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1992

Biography

Emperor Entertainment Hotel Limited, an investment holding company, provides entertainment and hospitality services. The company operates through Gaming Operation and Hotel Operation segments. Its flagship project, Grand Emperor Hotel located in Macau, is a gaming hotel that offers various facilities covering restaurants and bars, a business center, a functional venue, a Thai Spa, a sauna house, and a nightclub, as well as VIP rooms, gaming concourses, and slot machines. The Grand Emperor Hotel consists of 67 tables in the gaming concourse; a VIP room with 10 tables; a capacity of 180 slot seats; and 311 guest rooms. The company also operates the Inn Hotel Macau with 287 guest rooms located at Taipa Island, Macau. In addition, it offers travel agency and project financing services; hotel and catering services; and gaming-related marketing, public relation, and promotion services, as well as agency services for gaming operation. The company was formerly known as Emperor (China Concept) Investments Ltd. and changed its name to Emperor Entertainment Hotel Limited in January 2005. The company is headquartered in Wanchai, Hong Kong. Emperor Entertainment Hotel Limited is a subsidiary of Emperor Entertainment Hotel Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:47
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.