SEHK:69

Stock Analysis Report

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Executive Summary

Shangri-La Asia Limited, an investment holding company, owns/leases, operates, and manages hotels and associated properties worldwide.


Snowflake Analysis

Questionable track record and overvalued.


Similar Companies

Share Price & News

How has Shangri-La Asia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 69 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

69

3.4%

HK Hospitality

1.4%

HK Market


1 Year Return

-35.3%

69

-7.8%

HK Hospitality

3.1%

HK Market

Return vs Industry: 69 underperformed the Hong Kong Hospitality industry which returned -10.1% over the past year.

Return vs Market: 69 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

69IndustryMarket
7 Day3.4%3.4%1.4%
30 Day-13.6%-3.2%-0.8%
90 Day-8.5%1.0%8.8%
1 Year-34.6%-35.3%-5.9%-7.8%7.4%3.1%
3 Year-52.1%-54.1%-12.6%-19.6%-0.2%-10.9%
5 Year-36.3%-40.4%-5.7%-19.3%8.9%-9.3%

Price Volatility Vs. Market

How volatile is Shangri-La Asia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shangri-La Asia undervalued compared to its fair value and its price relative to the market?

17.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 69 (HK$5.84) is trading above our estimate of fair value (HK$1.28)

Significantly Below Fair Value: 69 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 69 is poor value based on its PE Ratio (17.6x) compared to the HK Hospitality industry average (16.3x).

PE vs Market: 69 is poor value based on its PE Ratio (17.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 69 is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: 69 is good value based on its PB Ratio (0.4x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Shangri-La Asia forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 69's forecast earnings growth (4% per year) is above the savings rate (1.6%).

Earnings vs Market: 69's earnings (4% per year) are forecast to grow slower than the Hong Kong market (18.1% per year).

High Growth Earnings: 69's earnings are forecast to grow, but not significantly.

Revenue vs Market: 69's revenue (1.8% per year) is forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Revenue: 69's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 69's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

Past Performance

How has Shangri-La Asia performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 69 has high quality earnings.

Growing Profit Margin: 69's current net profit margins (6.3%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 69's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: 69's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 69 had negative earnings growth (-21%) over the past year, making it difficult to compare to the Hospitality industry average (-20.7%).


Return on Equity

High ROE: 69's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Shangri-La Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 69's short term assets ($1.6B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: 69's short term assets ($1.6B) do not cover its long term liabilities ($5.9B).


Debt to Equity History and Analysis

Debt Level: 69's debt to equity ratio (81.6%) is considered high.

Reducing Debt: 69's debt to equity ratio has increased from 69.4% to 81.6% over the past 5 years.

Debt Coverage: 69's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: 69's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Shangri-La Asia current dividend yield, its reliability and sustainability?

1.70%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 69's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 69'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 69's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 69's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 69 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 69'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?

2.9yrs

Average management tenure


CEO

Beng Chee Lim (52 yo)

3.58yrs

Tenure

US$2,994,000

Compensation

Mr. Lim Beng Chee has been Chief Executive Officer and Executive Director of Shangri-La Asia Limited since January 1, 2017. Mr. Lim serves as a Manager of Eureka Office Fund. He served as the Chief Executi ...


CEO Compensation Analysis

Compensation vs Market: Beng Chee's total compensation ($USD2.99M) is above average for companies of similar size in the Hong Kong market ($USD508.67K).

Compensation vs Earnings: Beng Chee's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hui Kuok
Executive Chairman of the Board3.58yrsUS$2.44m2.1%
$ 419.9m
Beng Chee Lim
CEO & Executive Director3.58yrsUS$2.99m0.021%
$ 4.2m
Lay Tan
Chief Financial Officer1.33yrsno datano data
Chua Chee Wui
Chief Investment Officer0.92yrno datano data
Jian Cheng Yang
Chief Technology Officer3.58yrsno datano data
May Yip
SNL Contact Personno datano datano data
Chow Loong Seow
General Counsel & Company Secretary3.17yrsno datano data
Nichlas Maratos
Executive Vice President of Sales2.67yrsno datano data
Chen Kiong Tan
Chief Human Resources Officer0.50yrno datano data
Jean Offe
Executive Vice President of Food & Beverage7.17yrsno datano data
Michael Cottan
Executive Vice President of Operations - Middle Eastno datano datano data
Chuen Paw
Executive Vice President of Operations - North Chinano datano datano data

2.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 69's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hui Kuok
Executive Chairman of the Board3.58yrsUS$2.44m2.1%
$ 419.9m
Beng Chee Lim
CEO & Executive Director3.58yrsUS$2.99m0.021%
$ 4.2m
Chenchao Zhuang
Independent Non-executive Director0.67yrUS$3.00kno data
Kwok Cheung Li
Independent Non-Executive Director9.42yrsUS$75.00kno data
Chee Keong Yap
Independent Non-Executive Director2.67yrsUS$70.00kno data
Chung Tao Ho
Alternate Non-Executive Director3.83yrsno datano data
Forrest Xiaodong Li
Independent Non-Executive Director1.25yrsUS$24.00kno data
Kian Guan Ho
Non-Executive Director27.25yrsUS$62.00kno data

3.7yrs

Average Tenure

49yo

Average Age

Experienced Board: 69's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 69 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

Shangri-La Asia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shangri-La Asia Limited
  • Ticker: 69
  • Exchange: SEHK
  • Founded: 1971
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$19.995b
  • Shares outstanding: 3.57b
  • Website: https://www.shangri-la.com

Number of Employees


Location

  • Shangri-La Asia Limited
  • Kerry Centre
  • 28th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHAL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
69SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 1993
S07SGX (Singapore Exchange)YesOrdinary SharesSGHKDJun 1993
SHNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
69SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1993
69SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 1993
SHAL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2001

Biography

Shangri-La Asia Limited, an investment holding company, owns/leases, operates, and manages hotels and associated properties worldwide. It operates through four segments: Hotel Properties, Hotel Management ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 12:40
End of Day Share Price2020/08/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.