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45

Hongkong and Shanghai HotelsSEHK:45 Stock Report

Market Cap

HK$12.4b

7D

7.4%

1Y

25.9%

Updated

23 Oct, 2021

Data

Company Financials +
45 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health1/6
Dividends0/6

45 Overview

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.

Rewards

Revenue is forecast to grow 33.16% per year

Risk Analysis

No risks detected for 45 from our risk checks.

Hongkong and Shanghai Hotels Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hongkong and Shanghai Hotels
Historical stock prices
Current Share PriceHK$7.54
52 Week HighHK$5.60
52 Week LowHK$8.60
Beta0.75
1 Month Change3.86%
3 Month Change1.75%
1 Year Change25.88%
3 Year Change-30.44%
5 Year Change-10.98%
Change since IPO57.74%

Recent News & Updates

Aug 05
This Analyst Just Downgraded Their The Hongkong and Shanghai Hotels, Limited (HKG:45) EPS Forecasts

This Analyst Just Downgraded Their The Hongkong and Shanghai Hotels, Limited (HKG:45) EPS Forecasts

Market forces rained on the parade of The Hongkong and Shanghai Hotels, Limited ( HKG:45 ) shareholders today, when the...

Jun 28
Does Hongkong and Shanghai Hotels (HKG:45) Have A Healthy Balance Sheet?

Does Hongkong and Shanghai Hotels (HKG:45) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

May 14
We Think Shareholders May Want To Consider A Review Of The Hongkong and Shanghai Hotels, Limited's (HKG:45) CEO Compensation Package

We Think Shareholders May Want To Consider A Review Of The Hongkong and Shanghai Hotels, Limited's (HKG:45) CEO Compensation Package

The Hongkong and Shanghai Hotels, Limited ( HKG:45 ) has not performed well recently and CEO Clement Kwok will probably...

Shareholder Returns

45HK HospitalityHK Market
7D7.4%1.5%2.1%
1Y25.9%-25.8%5.9%

Return vs Industry: 45 exceeded the Hong Kong Hospitality industry which returned -25.8% over the past year.

Return vs Market: 45 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 45's price volatile compared to industry and market?
45 volatility
45 Beta0.75
Industry Beta1.1
Market Beta1

Stable Share Price: 45 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 45's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18665,595Clement Kwokhttps://www.hshgroup.com

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 divisions: Hotels, Commercial Properties, and Clubs and Services. The Hotels division is involved in the operation of hotels; and leasing of commercial shopping arcades and office premises located within the hotel buildings.

Hongkong and Shanghai Hotels Fundamentals Summary

How do Hongkong and Shanghai Hotels's earnings and revenue compare to its market cap?
45 fundamental statistics
Market CapHK$12.44b
Earnings (TTM)-HK$1.19b
Revenue (TTM)HK$2.64b

4.7x

P/S Ratio

-10.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
45 income statement (TTM)
RevenueHK$2.64b
Cost of RevenueHK$1.95b
Gross ProfitHK$690.00m
ExpensesHK$1.89b
Earnings-HK$1.19b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.72
Gross Margin26.14%
Net Profit Margin-45.27%
Debt/Equity Ratio33.9%

How did 45 perform over the long term?

See historical performance and comparison

Valuation

Is Hongkong and Shanghai Hotels undervalued compared to its fair value and its price relative to the market?

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 45 (HK$7.54) is trading above our estimate of fair value (HK$0.36)

Significantly Below Fair Value: 45 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 45 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Hospitality industry average.

PE vs Market: 45 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 45's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 45 is good value based on its PB Ratio (0.3x) compared to the HK Hospitality industry average (1.2x).


Future Growth

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

124.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 45 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 45 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 45 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 45's revenue (33.2% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).

High Growth Revenue: 45's revenue (33.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 45's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Hongkong and Shanghai Hotels performed over the past 5 years?

-50.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 45 is currently unprofitable.

Growing Profit Margin: 45 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 45 is unprofitable, and losses have increased over the past 5 years at a rate of 50.9% per year.

Accelerating Growth: Unable to compare 45's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 45 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (34.7%).


Return on Equity

High ROE: 45 has a negative Return on Equity (-3.27%), as it is currently unprofitable.


Financial Health

How is Hongkong and Shanghai Hotels's financial position?


Financial Position Analysis

Short Term Liabilities: 45's short term assets (HK$1.4B) do not cover its short term liabilities (HK$4.5B).

Long Term Liabilities: 45's short term assets (HK$1.4B) do not cover its long term liabilities (HK$13.3B).


Debt to Equity History and Analysis

Debt Level: 45's debt to equity ratio (33.9%) is considered satisfactory.

Reducing Debt: 45's debt to equity ratio has increased from 18.1% to 33.9% over the past 5 years.

Debt Coverage: 45's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 45's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Hongkong and Shanghai Hotels's current dividend yield, its reliability and sustainability?

0.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 45's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 45's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 45's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 45's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 45 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 45's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

10.8yrs

Average management tenure


CEO

Clement Kwok (61 yo)

19.67yrs

Tenure

HK$12,699,000

Compensation

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 G...


CEO Compensation Analysis

Compensation vs Market: Clement's total compensation ($USD1.63M) is above average for companies of similar size in the Hong Kong market ($USD496.86K).

Compensation vs Earnings: Clement's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 45's management team is seasoned and experienced (10.8 years average tenure).


Board Members

Experienced Board: 45's board of directors are seasoned and experienced ( 17.6 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

The Hongkong and Shanghai Hotels, Limited's employee growth, exchange listings and data sources


Key Information

  • Name: The Hongkong and Shanghai Hotels, Limited
  • Ticker: 45
  • Exchange: SEHK
  • Founded: 1866
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$12.437b
  • Shares outstanding: 1.65b
  • Website: https://www.hshgroup.com

Number of Employees


Location

  • The Hongkong and Shanghai Hotels, Limited
  • St. George’s Building
  • 8th Floor
  • Central
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 10:06
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.