Shangri-La Asia 0069

[winston]

SOUTH CHINA MORNING POST

-- Hong Kong-listed Shangri-La Asia (0069.HK: Quote, Profile, Research), the region's largest luxury hotel operator, is targeting to own or manage 100 hotels by 2010, with half of that number in the fast-growing mainland market.

[winston]

DJ MARKET TALK: Shangri-La +2.8%; But Outlook Sluggish -Fulbright

1245 [Dow Jones] Shangri-La Asia (0069.HK) +2.8% at HK$7.62, after 2008 EBITDA comes in slightly above expectations, +10.6% on-year at US$488.84 million vs median forecast of around US$466 million based on FactSet data; stock rebounding after falling 17.7% vs month-to-date peak of HK$9.00 set March 5.

However, FY08 net profit came in down 51% on-year at US$166 million vs US$186.15 million to US$269.18 million forecasts tipped by Thomson Reuters' poll of 4 analysts.

"Weak results should have been priced in given stock's recent sharp fall, but sluggish earnings outlook is likely to cap further upside in stock," says Francis Lun at Fulbright.

Stock unlikely to recover to above psychological resistance at HK$7.80 (intraday high at HK$7.65).

[winston]

Not vested. From Dr. Check, The Standard HK:-

In the meantime, take a look at a defensive play - hotel operator Shangri-La Asia (0069). It currently owns or manages 65 hotels with more than 28,000 rooms.

For the six months ended June 30, 2009, the group had revenues of US$503 million (HK$3.92 billion) from its hotels - 40 percent from the mainland and 16 percent from Hong Kong.

Goldman Sachs expects the mainland hotel business to recover this year. It has a "buy" on the stock with a target price of HK$19.

Shares of Shangri-La Asia have fallen from HK$16.30 to HK$13.82 yesterday. Under HK$13, they look attractive.

[winston]

Not vested

DJ MARKET TALK: GS Keeps Shangri-La Asia At Buy; HK$21 Target

1157 [Dow Jones] STOCK CALL: Goldman Sachs keeps Buy on Shangri-La Asia (0069.HK) at Buy, target at HK$21 (16X FY10 EV/EBITDA).

"We believe investors are overly concerned about supply issues in China, which have overshadowed solid trends in the bottoming-out of China room rates and fast expansion of overall margins."

House positive on China room rate trends as higher demand has led to recovery in occupancy since 4Q 09; expects further increase in demand should translate into higher room rates.


Source: Dow Jones Newswire

[winston]

not vested

Hotel owner and operator Shangri-La Asia Ltd said its 2011 profit fell 11.9 percent to $253 million while revenue increased to $1.91 billion from $1.58 billion in 2010.

Source: Reuters

[winston]

not vested

SHANGRI-LA ASIA (00069) TP$20

Ray Sze, Director of Tianda Securities Limited, said SHANGRI-LA ASIA (00069)'s net profit was HK$2 billion last year.

It had earlier tapped commercial and hotel business in Yunnan for RMB214 million together with KERRY PPT (00683)'s subsidiaries.

The integration of Shangri-la assets in Australia for AUD330 million favours future development of the group.

Investors are advised to buy now with target price HK$20.

Source: AAStocks Financial News

[winston]

not vested

Shangri-La Asia (HK:69)

This is an investment holding company which owns and operates hotels and associated properties, and provides hotel management and related services. Its associates are engaged in leasing of office, commercial, residential and exhibition hall space and serviced apartments, as well as the ownership and operation of hotels.

The company operates in three segments: Hotel operations, hotel management and property rentals throughout mainland China, Hong Kong, Singapore, Malaysia and other countries.

Due to its early entrance into the rapidly urbanising Chinese cities, the company has been able to secure premier hotel sites significantly cheaper than its competitors.

In last year or so, its earnings have been impacted by escalating construction costs and the government’s crackdown on lavish expenditure by government officials and state company employees. However, Lai expects pricing power to mirror the country’s rapidly growing urbanisation.

To take advantage of the strong outbound tourism trend, Shangri-La is also expanding outside of China. With all the properties still in the operating entity, Lai says there’s also ample room for spinning off into a REIT sector into the future.

For the fiscal year ended 31 December 2013, Shangri-La Asia’s revenues increased 1% to $2.08 billion, while net income increased 9% to $392.3 million.

”This stock is cheap relative to stated net asset value (0.8xbook). Net asset value is also under-stated, so it’s doubly cheap. The company has experienced strong long term cash flow relative to profits, and EPS growth has been exceptional over the last five years,” says Lai.

http://www.thebull.com.au/premium/a/463 ... tocks.html

[winston]

not vested

SHANGRI-LA ASIA Annual Net Profit Down 22.53% to US$140M; Final Div HK5 Cents

SHANGRI-LA ASIA (00069.HK) -0.080 (-0.932%) Short selling $8.04M; Ratio 24.345% announced that for the last year as of the end of December, the net profit fell 22.53% yearly to US$140 million.

The EPS equaled US3.93 cents; a final dividend of HK5 cents was declared.

Meanwhile, the turnover rose 0.52% yearly to US$2.123 billion.

Source: AAStocks Financial News

[winston]

Shangri-La Asia (69 HK): Another summit to conquer

Shangri-La Singapore has been in the spotlight recently for being the venue for the historical Trump-Kim Summit.

We believe Shangri-La Asia (69 HK, “Shangri-La”) has another summit to conquer.

Given the group’s substantial exposure to Chinese hospitality as well as a high degree of operational leverage, we see Shangri-La as a proxy to what we expect to be a multi-year recovery in the mainland Chinese luxury hotel industry.

In addition, investors stand to benefit from internal cost-cutting and efficiency measures that are expected to bring up to US$80m in savings as well as opportunities to strengthen EBITDA growth in the next 3-5 years.

We expect EBITDA to increase 16% to US$623.3m in FY18F and a further 4% to US$647.5m in FY19F.

We derive a fair value estimate of HK$21.05 through a sum-of-the-parts (SOTP) valuation that consists of applying a 15.3x EV/EBITDA ratio (15% premium to Asian hotel companies peer average) for Shangri-La’s hotel business as well as applying a 30% discount to its investment properties.

We believe Shangri-La deserves a premium given its strong international branding as well as its exposure to the RevPAR recovery story in China.

Against 14 Jun’s close of HK$16.50, we initiate coverage on Shangri-La with a BUY rating with a fair value of HK$21.05.

Source: OCBC

[winston]

not vested

Shangri-La Asia (69 HK): Interim results beat! PATMI up 148% YoY to 67% of full-year forecast

Shangri-La Asia’s (69 HK, “Shangri-La”) 1H18 results were solid with PATMI increasing 147.8% YoY to US$152.9m or 67.2% of our full-year forecast.

1H18 PATMI also comes to 65.9% of the street consensus estimate of US$232.0m.

1H18 revenue increased 18.8% YoY to US$1.2b or 49.8% of our full-year forecast, while EBITDA increased 22.2% to US$301.5m.

The 78% YoY increase in share of profit of associates took us by surprise, with 1H18 numbers making up 69% of our full-year forecast.

Weighted average RevPAR grew by 14% YoY, supported by a 13% increase in China and a 14% increase in RevPAR in Hong Kong.

Since our initiation, the counter has fallen 30% before closing at HK$11.50 yesterday.

We believe this share price weakness has been due to worries over a sharp slowdown in RevPAR growth in China – China’s July RevPAR growth came to 0.8% YoY (USD terms), according to Smith Travel Research.

We believe these fears have been overblown. With this set of results, should 2H18 be a mere repeat of 2H17, full-year PATMI would be 10% higher than our current FY18 forecasts.

Recall that we expected Shangri-La’s PATMI to increase 16% YoY in FY18 and 4% YoY in FY19.

We continue to see Shangri-La as a proxy to what we expect to be a multi-year recovery in the mainland Chinese luxury hotel industry and see value at current price levels.

Source: OCBC