SEHK:69

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer with limited growth.


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


Market Performance


7 Day Return

2.2%

SEHK:69

3.4%

HK Hospitality

2.5%

HK Market


1 Year Return

-27.5%

SEHK:69

3.7%

HK Hospitality

-3.9%

HK Market

69 underperformed the Hospitality industry which returned 3.7% over the past year.

69 underperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

69IndustryMarket
7 Day2.2%3.4%2.5%
30 Day2.2%10.9%6.9%
90 Day-10.7%8.1%0.8%
1 Year-25.9%-27.5%7.3%3.7%-0.4%-3.9%
3 Year4.8%0.2%27.8%15.7%19.6%7.6%
5 Year-24.2%-29.2%-6.8%-21.6%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

24.73x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Shangri-La Asia's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Shangri-La Asia's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Shangri-La Asia is overvalued based on earnings compared to the HK Hospitality industry average.

Shangri-La Asia is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Shangri-La Asia is poor value based on expected growth next year.


Price Based on Value of Assets

Shangri-La Asia is good value based on assets compared to the HK Hospitality industry average.


Next Steps

Future Growth

How is Shangri-La Asia expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Shangri-La Asia's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Shangri-La Asia's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

Shangri-La Asia's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Shangri-La Asia's earnings growth is expected to exceed the Hong Kong market average.

Shangri-La Asia's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Shangri-La Asia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-0.01%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Shangri-La Asia's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Shangri-La Asia's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Shangri-La Asia's 1-year earnings growth is negative, it can't be compared to the HK Hospitality industry average.


Return on Equity

Shangri-La Asia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Shangri-La Asia used its assets less efficiently than the HK Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

Shangri-La Asia has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Shangri-La Asia's financial position?


Financial Position Analysis

Shangri-La Asia is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Shangri-La Asia's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Shangri-La Asia's level of debt (81.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (76.8% vs 81.2% today).

Debt is not well covered by operating cash flow (8.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

2.99%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Shangri-La Asia before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Shangri-La Asia's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

Shangri-La Asia's dividend is below the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


Next Steps

Management

What is the CEO of Shangri-La Asia's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Beng Chee Lim (51yo)

2.7yrs

Tenure

US$2,454,000

Compensation

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


CEO Compensation Analysis

Beng Chee's remuneration is higher than average for companies of similar size in Hong Kong.

Beng Chee's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.1yrs

Average Tenure

52.5yo

Average Age

The tenure for the Shangri-La Asia management team is about average.


Board Age and Tenure

2.9yrs

Average Tenure

51yo

Average Age

The average tenure for the Shangri-La Asia board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Shangri-La Asia individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$72,450,01311 Sep 19
Hui Kuok
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares9,000,000
Max PriceUS$8.05
BuyUS$166,500,03607 May 19
Hui Kuok
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000,000
Max PriceUS$11.10
BuyUS$108,00024 Apr 19
Kim Swee Ho
EntityIndividual
Shares10,000
Max PriceUS$10.80
BuyUS$109,00017 Apr 19
Kim Swee Ho
EntityIndividual
Shares10,000
Max PriceUS$10.90
BuyUS$110,40015 Apr 19
Kim Swee Ho
EntityIndividual
Shares10,000
Max PriceUS$11.04
BuyUS$112,00012 Apr 19
Kim Swee Ho
EntityIndividual
Shares10,000
Max PriceUS$11.20
BuyUS$108,60001 Apr 19
Kim Swee Ho
EntityIndividual
Shares10,000
Max PriceUS$10.86
SellUS$26,308,22816 Nov 18
Skiddaw Investment Ltd
EntityCompany
Shares2,374,389
Max PriceUS$11.08
BuyUS$26,308,22816 Nov 18
KS Ocean Inc.
EntityCompany
Shares2,374,389
Max PriceUS$11.08
BuyUS$32,100,01015 Oct 18
Hui Kuok
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,000,000
Max PriceUS$10.70
BuyUS$137,759,98308 Oct 18
Hui Kuok
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares12,000,000
Max PriceUS$11.48

Ownership Breakdown


Management Team

  • Hui Kuok (41yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$1.85m
  • Beng Chee Lim (51yo)

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$2.45m
  • Sven Bonke (54yo)

    President & COO

    • Tenure: 2yrs
  • Jean Offe (62yo)

    Executive Vice President of Food & Beverage

    • Tenure: 6.3yrs
  • Iain Seow (53yo)

    General Counsel & Company Secretary

    • Tenure: 2.3yrs
  • May Yip

    SNL Contact Person

    • Tenure: 0yrs
  • Jian Cheng Yang (34yo)

    Chief Technology Officer

    • Tenure: 2.7yrs
  • Nichlas Maratos

    Executive Vice President of Sales

    • Tenure: 1.8yrs
  • Lay Tan (52yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Robert Chong (56yo)

    Chief Corporate & Human Resources Officer

    • Tenure: 1.3yrs

Board Members

  • Hui Kuok (41yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: US$1.85m
  • Beng Chee Lim (51yo)

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: US$2.45m
  • Arthur Li (74yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: US$75.00k
  • Chee Keong Yap (59yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$57.00k
  • Chung Tao Ho (45yo)

    Alternate Non-Executive Director

    • Tenure: 2.9yrs
  • Forrest Xiaodong Li (41yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Kian Guan Ho (74yo)

    Non-Executive Director

    • Tenure: 26.3yrs
    • Compensation: US$62.00k

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$30.030b
  • Shares outstanding: 3.58b
  • Website: https://ir.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 and operates hotels and associated properties worldwide. It operates through four segments: Hotel Properties, Hotel Management and Relate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:38
End of Day Share Price2019/09/13 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.