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Hongkong and Shanghai Hotels

SEHK:45
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
45
SEHK
HK$17B
Market Cap
  1. Home
  2. HK
  3. Consumer Services
Company description

The Hongkong and Shanghai Hotels, Limited, an investment holding company, engages in the ownership, development, and management of hotels and commercial and residential properties in Asia, the United States, and Europe. The last earnings update was 116 days ago. More info.


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45 Share Price and Events
7 Day Returns
0.8%
SEHK:45
0.9%
HK Hospitality
0.6%
HK Market
1 Year Returns
-0.7%
SEHK:45
-4.2%
HK Hospitality
-4.5%
HK Market
45 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hongkong and Shanghai Hotels (45) 0.8% -3.5% -11.5% -0.7% 27.3% -3.8%
HK Hospitality 0.9% 8% -3.1% -4.2% 42.7% -28.8%
HK Market 0.6% 0.4% -7% -4.5% 17.8% 1.1%
1 Year Return vs Industry and Market
  • 45 outperformed the Hospitality industry which returned -4.2% over the past year.
  • 45 outperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
45
Industry
5yr Volatility vs Market

Value

 Is Hongkong and Shanghai Hotels 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 Hongkong and Shanghai Hotels 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 Hongkong and Shanghai Hotels.

SEHK:45 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
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:45
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))
= 0.921 (1 + (1- 25%) (40.97%))
1.137
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.137 * 6.65%)
9.56%

Discounted Cash Flow Calculation for SEHK:45 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hongkong and Shanghai Hotels 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:45 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.56%)
2020 483.68 Est @ 0.29% 441.46
2021 487.57 Est @ 0.8% 406.16
2022 493.24 Est @ 1.16% 375.02
2023 500.22 Est @ 1.42% 347.12
2024 508.19 Est @ 1.59% 321.86
2025 516.90 Est @ 1.72% 298.80
2026 526.21 Est @ 1.8% 277.63
2027 536.01 Est @ 1.86% 258.11
2028 546.22 Est @ 1.9% 240.07
2029 556.78 Est @ 1.93% 223.35
Present value of next 10 years cash flows HK$3,189.58
SEHK:45 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$556.78 × (1 + 2%) ÷ (9.56% – 2%)
HK$7,510.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$7,510.74 ÷ (1 + 9.56%)10
HK$3,012.86
SEHK:45 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$3,189.58 + HK$3,012.86
HK$6,202.44
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$6,202.44 / 1,629.09
HK$3.81
SEHK:45 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$3.81
Current discount Discount to share price of HK$10.62
= -1 x (HK$10.62 - HK$3.81) / HK$3.81
-178.9%

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

  • The current share price of Hongkong and Shanghai Hotels is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Hongkong and Shanghai Hotels's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hongkong and Shanghai Hotels's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:45 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.78
SEHK:45 Share Price ** SEHK (2019-07-22) in HKD HK$10.62
Hong Kong Hospitality Industry PE Ratio Median Figure of 69 Publicly-Listed Hospitality Companies 14.28x
Hong Kong Market PE Ratio Median Figure of 1,512 Publicly-Listed Companies 10.77x

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

** Primary Listing of Hongkong and Shanghai Hotels.

SEHK:45 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:45 Share Price ÷ EPS (both in HKD)

= 10.62 ÷ 0.78

13.67x

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

  • Hongkong and Shanghai Hotels is good value based on earnings compared to the HK Hospitality industry average.
  • Hongkong and Shanghai Hotels is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Hongkong and Shanghai Hotels's expected growth come at a high price?
Raw Data
SEHK:45 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-23.2%per year
Hong Kong Hospitality Industry PEG Ratio Median Figure of 21 Publicly-Listed Hospitality Companies 2.2x
Hong Kong Market PEG Ratio Median Figure of 481 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:45 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.67x ÷ -23.2%

-0.59x

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

  • Hongkong and Shanghai Hotels earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hongkong and Shanghai Hotels's assets?
Raw Data
SEHK:45 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$24.14
SEHK:45 Share Price * SEHK (2019-07-22) in HKD HK$10.62
Hong Kong Hospitality Industry PB Ratio Median Figure of 109 Publicly-Listed Hospitality Companies 1.13x
Hong Kong Market PB Ratio Median Figure of 2,198 Publicly-Listed Companies 0.92x
SEHK:45 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:45 Share Price ÷ Book Value per Share (both in HKD)

= 10.62 ÷ 24.14

0.44x

* Primary Listing of Hongkong and Shanghai Hotels.

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

  • Hongkong and Shanghai Hotels is good value based on assets compared to the HK Hospitality industry average.
X
Value checks
We assess Hongkong and Shanghai Hotels'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. Hongkong and Shanghai Hotels has a total score of 2/6, 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.

Future Performance

 How is Hongkong and Shanghai Hotels expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

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
-23.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hongkong and Shanghai Hotels expected to grow at an attractive rate?
  • Hongkong and Shanghai Hotels's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Hongkong and Shanghai Hotels's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Hongkong and Shanghai Hotels's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:45 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:45 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -23.2%
SEHK:45 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 1.4%
Hong Kong Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
Hong Kong Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
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:45 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:45 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 6,387 806 1
2019-12-31 6,217 770 1
SEHK:45 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,214 1,243 1,243
2018-09-30 6,125 1,321 1,262
2018-06-30 6,036 1,399 1,280
2018-03-31 5,909 1,308 1,218
2017-12-31 5,782 1,216 1,155
2017-09-30 5,702 1,137 1,076
2017-06-30 5,621 1,058 996
2017-03-31 5,626 1,117 836
2016-12-31 5,631 1,176 675
2016-09-30 5,644 1,183 698
2016-06-30 5,657 1,189 721
2016-03-31 5,699 1,205 861

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hongkong and Shanghai Hotels's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Hongkong and Shanghai Hotels's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
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:45 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 1 Analyst Estimates (S&P Global) See Below

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

SEHK:45 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 0.49 0.49 0.49 1.00
2019-12-31 0.48 0.48 0.48 1.00
SEHK:45 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.78
2018-09-30 0.79
2018-06-30 0.81
2018-03-31 0.77
2017-12-31 0.73
2017-09-30 0.68
2017-06-30 0.64
2017-03-31 0.54
2016-12-31 0.43
2016-09-30 0.45
2016-06-30 0.47
2016-03-31 0.56

*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 Hongkong and Shanghai Hotels will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Hongkong and Shanghai Hotels'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.
Hongkong and Shanghai Hotels has a total score of 0/6, 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.

Past Performance

  How has Hongkong and Shanghai Hotels 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 Hongkong and Shanghai Hotels'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.
  • Hongkong and Shanghai Hotels's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Hongkong and Shanghai Hotels's 1-year earnings growth exceeds its 5-year average (7.6% vs -4.7%)
  • Hongkong and Shanghai Hotels's earnings growth has exceeded the HK Hospitality industry average in the past year (7.6% vs -2.4%).
Earnings and Revenue History
Hongkong and Shanghai Hotels'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 Hongkong and Shanghai Hotels Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:45 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 6,214.00 1,243.00
2018-09-30 6,125.00 1,261.50
2018-06-30 6,036.00 1,280.00
2018-03-31 5,909.00 1,217.50
2017-12-31 5,782.00 1,155.00
2017-09-30 5,701.50 1,075.50
2017-06-30 5,621.00 996.00
2017-03-31 5,626.00 835.50
2016-12-31 5,631.00 675.00
2016-09-30 5,644.00 698.00
2016-06-30 5,657.00 721.00
2016-03-31 5,699.00 860.50
2015-12-31 5,741.00 1,000.00
2015-09-30 5,775.50 1,085.50
2015-06-30 5,810.00 1,171.00
2015-03-31 5,824.00 1,158.50
2014-12-31 5,838.00 1,146.00
2014-09-30 5,761.00 1,235.00
2014-06-30 5,684.00 1,324.00
2014-03-31 5,596.00 1,518.00
2013-12-31 5,508.00 1,712.00
2013-09-30 5,406.00 1,646.50
2013-06-30 5,304.00 1,581.00
2013-03-31 5,241.00 1,568.00
2012-12-31 5,178.00 1,555.00
2012-09-30 5,146.50 1,360.50

*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.
  • Hongkong and Shanghai Hotels has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hongkong and Shanghai Hotels used its assets less efficiently than the HK Hospitality industry average last year based on Return on Assets.
  • Hongkong and Shanghai Hotels's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hongkong and Shanghai Hotels'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.
Hongkong and Shanghai Hotels has a total score of 2/6, 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.

Health

 How is Hongkong and Shanghai Hotels'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 Hongkong and Shanghai Hotels's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hongkong and Shanghai Hotels is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hongkong and Shanghai Hotels's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hongkong and Shanghai Hotels'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.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x 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 Hongkong and Shanghai Hotels Company Filings, last reported 6 months ago.

SEHK:45 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 39,477.00 7,102.00 1,178.00
2018-09-30 39,477.00 7,102.00 1,178.00
2018-06-30 39,144.00 6,616.00 783.00
2018-03-31 39,144.00 6,616.00 783.00
2017-12-31 38,702.00 7,447.00 1,922.00
2017-09-30 38,702.00 7,447.00 1,922.00
2017-06-30 37,475.00 7,200.00 1,775.00
2017-03-31 37,475.00 7,200.00 1,775.00
2016-12-31 36,574.00 7,014.00 2,087.00
2016-09-30 36,574.00 7,014.00 2,087.00
2016-06-30 36,460.00 6,605.00 2,709.00
2016-03-31 36,460.00 6,605.00 2,709.00
2015-12-31 36,660.00 6,231.00 2,919.00
2015-09-30 36,660.00 6,231.00 2,919.00
2015-06-30 36,459.00 5,487.00 2,698.00
2015-03-31 36,459.00 5,487.00 2,698.00
2014-12-31 36,151.00 5,519.00 2,477.00
2014-09-30 36,151.00 5,519.00 2,477.00
2014-06-30 35,688.00 5,933.00 2,059.00
2014-03-31 35,688.00 5,933.00 2,059.00
2013-12-31 35,374.00 5,521.00 1,494.00
2013-09-30 35,374.00 5,521.00 1,494.00
2013-06-30 34,293.00 4,551.00 1,940.00
2013-03-31 34,293.00 4,551.00 1,940.00
2012-12-31 33,439.00 4,262.00 2,192.00
2012-09-30 33,439.00 4,262.00 2,192.00
  • Hongkong and Shanghai Hotels's level of debt (18%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (15.6% vs 18% today).
  • Debt is not well covered by operating cash flow (17.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.4x coverage).
X
Financial health checks
We assess Hongkong and Shanghai Hotels'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. Hongkong and Shanghai Hotels has a total score of 3/6, 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.

Dividends

 What is Hongkong and Shanghai Hotels'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
1.98%
Current annual income from Hongkong and Shanghai Hotels dividends. Estimated to be 2.14% next year.
If you bought HK$2,000 of Hongkong and Shanghai Hotels shares you are expected to receive HK$40 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?
  • Hongkong and Shanghai Hotels's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Hongkong and Shanghai Hotels's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
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:45 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 1 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:45 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.21 1.00
2020-12-31 0.23 2.00
2019-12-31 0.23 2.00
SEHK:45 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-28 0.210 1.888
2019-03-14 0.210 1.857
2018-05-21 0.200 1.773
2017-03-30 0.190 1.632
2016-04-01 0.200 2.401
2016-03-16 0.200 2.412
2015-04-01 0.230 2.542
2015-03-20 0.230 2.098
2014-09-29 0.170 1.467
2014-03-17 0.160 1.438
2013-03-28 0.140 1.181
2013-03-13 0.140 1.048
2012-04-17 0.140 1.336
2012-03-30 0.140 1.406
2011-05-20 0.120 1.107
2010-03-15 0.090 0.688
2009-09-04 0.135 1.244
2009-04-09 0.170 2.262

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hongkong and Shanghai Hotels's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess Hongkong and Shanghai Hotels'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 Hongkong and Shanghai Hotels afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hongkong and Shanghai Hotels has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of Hongkong and Shanghai Hotels'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
Clement Kwok
COMPENSATION HK$16,548,000
AGE 59
TENURE AS CEO 17.4 years
CEO Bio

Mr. King Man Kwok, also known as Clement, has been the Chief Executive Officer and Managing Director of The Hongkong and Shanghai Hotels, Limited since February 1, 2002 and also serves as its Chairman of Group Management Board. Mr. Kwok serves as the Chief Executive Officer of the Peninsula Chicago LLC. He served as Finance Director of MTR Corporation from 1996 to 2002. His career began with Price Waterhouse and Barclays de Zoete Wedd in the United Kingdom, following which he returned to Hong Kong to work with Schroders Asia. He served as the Head of Corporate Finance at Schroders Asia since 1991. He was an Independent Non-Executive Director of Orient Overseas International Ltd. since July 02, 2015 until August 3, 2018. Mr. Kwok served as an Independent & Non-Executive Director of Swire Pacific Limited since September 19, 2002 until May 20, 2015. He serves as Executive Director at The Hongkong and Shanghai Hotels, Limited. He serves as a Member of Takeovers Appeal Committee of Securities and Futures Commission. He serves on the Securities and Futures Appeals Tribunal and the Board of the Community Chest. He is a Member of the Institute of Chartered Accountants in England & Wales and the Hong Kong Institute of Certified Public Accountants. Mr. Kwok is a fellow of The Hong Kong Management Association, a Council Member of the World Travel & Tourism Council and a Board Member of the Faculty of Business and Economics of The University of Hong Kong. Over his long career in Hong Kong, he has served on the Stock Exchange Listing Committee, the Takeovers and Mergers Panel, the Hang Seng Index Advisory Committee and the Harbourfront Commission, as well as the Interpretations Committee of the International Accounting Standards Board in London. Mr. Kwok holds a Bachelor of Science in Economics from the London School of Economics.

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

Average tenure and age of the Hongkong and Shanghai Hotels management team in years:

8.5
Average Tenure
57.5
Average Age
  • The average tenure for the Hongkong and Shanghai Hotels management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Clement Kwok

TITLE
MD, CEO
COMPENSATION
HK$17M
AGE
59
TENURE
17.4 yrs

Matthew James Lawson

TITLE
CFO, Member of Group Management Board & Executive Director
COMPENSATION
HK$9M
AGE
45
TENURE
3.2 yrs

Peter Camille Borer

TITLE
COO, Member of Group Management Board & Executive Director
COMPENSATION
HK$10M
AGE
64

Ronald McAulay

TITLE
Honorary Life President
COMPENSATION
HK$106K
AGE
84
TENURE
2.2 yrs

Christobelle Liao

TITLE
Group Director of Corporate & Legal
AGE
50
TENURE
8.5 yrs

Martyn P. Sawyer

TITLE
Group Director of Properties & Member of Group Management Board
COMPENSATION
HK$4M
AGE
61
TENURE
17.5 yrs

Maria Razumich-Zec

TITLE
Regional VP & Member of Group Management Board
COMPENSATION
HK$4M
AGE
61
TENURE
12.5 yrs

Shane Izaks

TITLE
Group GM of Information Technology & Member of the Group Management Board
AGE
56
TENURE
3.9 yrs

Sindy Tsui

TITLE
Group Director of Human Resources & Member of Group Management Board
AGE
50
TENURE
8.5 yrs

Joseph Chong

TITLE
Member of Management Board
AGE
51
TENURE
0.5 yrs
Board of Directors Tenure

Average tenure and age of the Hongkong and Shanghai Hotels board of directors in years:

15.3
Average Tenure
69
Average Age
  • The average tenure for the Hongkong and Shanghai Hotels board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Michael David Kadoorie

TITLE
Non-Executive Chairman
COMPENSATION
HK$456K
AGE
78
TENURE
34.5 yrs

Clement Kwok

TITLE
MD, CEO
COMPENSATION
HK$17M
AGE
59
TENURE
17.4 yrs

Andrew Clifford Winawer Brandler

TITLE
Non-Executive Deputy Chairman
COMPENSATION
HK$626K
AGE
63
TENURE
5.2 yrs

Matthew James Lawson

TITLE
CFO, Member of Group Management Board & Executive Director
COMPENSATION
HK$9M
AGE
45
TENURE
3.2 yrs

Peter Camille Borer

TITLE
COO, Member of Group Management Board & Executive Director
COMPENSATION
HK$10M
AGE
64
TENURE
15.3 yrs

Ronald McAulay

TITLE
Honorary Life President
COMPENSATION
HK$106K
AGE
84
TENURE
2.2 yrs

Patrick Blackwell Paul

TITLE
Independent Non-Executive Director
COMPENSATION
HK$646K
AGE
72
TENURE
15.4 yrs

William Elkin Mocatta

TITLE
Non-Executive Director
COMPENSATION
HK$316K
AGE
67
TENURE
34.2 yrs

Pierre Boppe

TITLE
Independent Non-Executive Director
COMPENSATION
HK$366K
AGE
71
TENURE
10.1 yrs

David Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$406K
AGE
80
TENURE
31.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
27. Aug 18 Sell Songbird Sg Pte. Ltd. Company 22. Aug 18 22. Aug 18 -184,360,714 HK$12.80 HK$-2,359,816,880
27. Aug 18 Buy Satinu Resources Group Limited, Asset Management Arm Company 22. Aug 18 22. Aug 18 184,360,714 HK$12.80 HK$2,359,816,880
X
Management checks
We assess Hongkong and Shanghai Hotels'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. Hongkong and Shanghai Hotels 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.

News

Simply Wall St News

The Hongkong and Shanghai Hotels, Limited's (HKG:45) Earnings Grew 29%, Did It Beat Long-Term Trend?

Assessing The Hongkong and Shanghai Hotels, Limited's (HKG:45) past track record of performance is an insightful exercise for investors. … Today I will assess 45's recent performance announced on 30 June 2018 and evaluate these figures to its long-term trend and industry movements. … Commentary On 45's Past Performance.

Simply Wall St -

Does The Hongkong and Shanghai Hotels Limited's (HKG:45) Past Performance Indicate A Stronger Future?

After looking at The Hongkong and Shanghai Hotels Limited's (HKG:45) latest earnings announcement (30 June 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Check out our latest analysis for Hongkong and Shanghai Hotels. … 45's trailing twelve-month earnings (from 30 June 2018) of HK$1.28b has

Simply Wall St -

The Hongkong and Shanghai Hotels Limited (HKG:45): Financial Strength Analysis

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as The Hongkong and Shanghai Hotels Limited (HKG:45) with a market-capitalization of HK$17.81b, rarely draw their attention. … Today we will look at 45’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … See our latest analysis for Hongkong and Shanghai Hotels

Simply Wall St -

Who Are The Major Shareholders In The Hongkong and Shanghai Hotels Limited (HKG:45)?

I am going to take a deep dive into The Hongkong and Shanghai Hotels Limited’s (HKG:45) most recent ownership structure, not a frequent subject of discussion among individual investors. … Ownership structure of a company has been found to affect share performance over time. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

Is The Hongkong and Shanghai Hotels Limited's (HKG:45) PE Ratio A Signal To Buy For Investors?

and want to better understand how you can grow your money by investing in The Hongkong and Shanghai Hotels Limited (HKG:45). … The Hongkong and Shanghai Hotels Limited (HKG:45) trades with a trailing P/E of 16.4x, which is lower than the industry average of 0x. … While this makes 45 appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio

Simply Wall St -

The Hongkong and Shanghai Hotels Limited (HKG:45): What You Have To Know Before Buying For The Upcoming Dividend

Investors who want to cash in on The Hongkong and Shanghai Hotels Limited's (SEHK:45) upcoming dividend of HK$0.16 per share have only 3 days left to buy the shares before its ex-dividend date, 11 May 2018, in time for dividends payable on the 22 June 2018. … See our latest analysis for Hongkong and Shanghai Hotels Here's how I find good dividend stocks When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is their annual yield among the top 25% of dividend payers? … SEHK:45 Historical Dividend Yield May 7th 18 Does Hongkong and Shanghai Hotels pass our checks?

Simply Wall St -

Company Info

Description

The Hongkong and Shanghai Hotels, Limited, an investment holding company, engages in the ownership, development, and management of hotels and commercial and residential properties in Asia, the United States, and Europe. It operates through three segments: Hotels, Commercial Properties, and Clubs and Services. The Hotels segment is involved in the operation of hotels; and leasing of commercial shopping arcades and office premises located within the hotel buildings. The Commercial Properties segment engages in the development, leasing, and sale of luxury residential apartments; and leasing of retail and office premises, as well as operating food and beverage outlets in such premises. The Clubs and Services segment operates golf courses, as well as The Peak Tram, a tramway; wholesales and retails food and beverage products; and offers laundry services, and management and consultancy services. The company is also involved in the wholesale and retail of merchandise; provision of dry cleaning, and marketing services; lending and borrowing of funds; and operation of golf clubs, as well as in resort and property investment activities. In addition, it offers tourism, leisure, and other services; and operates Peninsula Boutiques. The company was formerly known as The Hongkong Hotel Company, Limited. The Hongkong and Shanghai Hotels, Limited was founded in 1866 and is headquartered in Central, Hong Kong.

Details
Name: The Hongkong and Shanghai Hotels, Limited
45
Exchange: SEHK
Founded: 1866
HK$17,333,553,424
1,629,093,367
Website: http://www.hshgroup.com
Address: The Hongkong and Shanghai Hotels, Limited
St. George’s Building,
8th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 45 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK HKSH.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB HSG Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 45 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 45 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK HKSH.Y ADR Pink Sheets LLC US USD 14. Nov 2008
Number of employees
Current staff
Staff numbers
7,594
Hongkong and Shanghai Hotels employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 12:40
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/03/28
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.