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

2.1%

69

-0.4%

HK Hospitality

2.2%

HK Market


1 Year Return

-26.6%

69

11.2%

HK Hospitality

-1.3%

HK Market

Return vs Industry: 69 underperformed the Hong Kong Hospitality industry which returned 11.2% over the past year.

Return vs Market: 69 underperformed the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

69IndustryMarket
7 Day2.1%-0.4%2.2%
30 Day-5.6%-5.0%-2.9%
90 Day-20.4%-8.4%-5.8%
1 Year-24.7%-26.6%14.8%11.2%2.3%-1.3%
3 Year-1.9%-6.5%19.2%8.0%15.6%3.9%
5 Year-22.8%-28.2%-11.2%-25.4%20.1%0.06%

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?

23.28x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: 69 (HK$7.93) is trading above our estimate of fair value (HK$4.2)

Significantly Undervalued: 69 is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: 69 is poor value based on its PE Ratio (23.3x) compared to the Hospitality industry average (12.3x).

PE vs Market: 69 is poor value based on its PE Ratio (23.3x) compared to the Hong Kong market (10.3x).


Price Based on Expected Growth

Low PEG Ratio: 69 is poor value based on its PEG Ratio (1.6x)


Price Based on Value of Assets

PB vs Industry: 69 is good value based on its PB Ratio (0.6x) compared to the HK Hospitality industry average (1x).


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

Earnings vs Savings Rate: 69's forecast earnings growth (14.7% per year) is above the savings rate (2%).

Earnings vs Market: 69's earnings (14.7% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 69's revenue is expected to decline over the next 3 years (-0.07% per year).

High Growth Revenue: 69's revenue is forecast to decline over the next 3 years (-0.07%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 69's Return on Equity is forecast to be low in 3 years time (3.7%).


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

Earnings Trend: 69's earnings have declined by -0.01% 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 (-37.7%) over the past year, making it difficult to compare to the Hospitality industry average (-5.3%).


Return on Equity

High ROE: 69's Return on Equity (2.4%) is considered low.


Return on Assets

ROA vs Industry: 69's Return on Assets is below or equal to the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: 69 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Shangri-La Asia's financial position?


Financial Position Analysis

Short Term Liabilities: 69's short term assets ($1.5B) exceeds its short term liabilities ($1.5B)

Long Term Liabilities: 69's short term assets (1.5B) do not cover its long term liabilities (5.7B)


Debt to Equity History and Analysis

Debt Level: 69's debt to equity ratio (81.4%) is considered high

Reducing Debt: 69's debt to equity ratio has increased from 76.8% to 81.4% over the past 5 years.

Debt Coverage: 69's debt is not well covered by operating cash flow (7%).

Interest Coverage: 69's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: 69 has a high level of physical assets or inventory.

Debt Coverage by Assets: 69's 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?

3.17%

Expected Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.3%markettop25%6.3%industryaverage3.8%forecastin3Years3.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 69's dividend (2.77%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 69's dividend (2.77%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).

Stable Dividend: 69's dividend payments have been volatile in the past 10 years.

Growing Dividend: 69's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.8%), 69's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 69's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


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?

2.2yrs

Average management tenure


CEO

Beng Chee Lim (51yo)

2.8yrs

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

Compensation vs. Market: Beng Chee's total compensation ($USD2.45M) is about average for companies of similar size in the Hong Kong market ($USD494.49K).

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


Management Age and Tenure

2.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 69's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Board: 69's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: 69 insiders have bought more shares than they have sold 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
BuyUS$26,308,22816 Nov 18
KS Ocean Inc.
EntityCompany
Shares2,374,389
Max PriceUS$11.08
SellUS$26,308,22816 Nov 18
Skiddaw Investment Ltd
EntityCompany
Shares2,374,389
Max PriceUS$11.08

Ownership Breakdown


Management Team

  • Hui Kuok (41yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$1.85m
  • Beng Chee Lim (51yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$2.45m
  • Sven Bonke (54yo)

    President & COO

    • Tenure: 2.1yrs
  • 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: 2.8yrs
  • Nichlas Maratos

    Executive Vice President of Sales

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

    Chief Financial Officer

    • Tenure: 0.5yrs
  • Robert Chong (56yo)

    Chief Corporate & Human Resources Officer

    • Tenure: 1.4yrs

Board Members

  • Hui Kuok (41yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$1.85m
  • Beng Chee Lim (51yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: US$2.45m
  • Arthur Li (74yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • 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: 3yrs
  • Forrest Xiaodong Li (41yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Kian Guan Ho (74yo)

    Non-Executive Director

    • Tenure: 26.4yrs
    • 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$27.437b
  • Shares outstanding: 3.57b
  • 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 Analysis2019/10/14 12:35
End of Day Share Price2019/10/14 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.

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