Banyan Tree

Re: Banyan Tree

Postby winston » Tue Mar 12, 2019 10:21 am

not vested

Banyan Tree kept at 'accumulate' by Phillip on higher property sales, contract wins

By Samantha Chiew

SINGAPORE (Mar 11): Banyan Tree on Feb 27 announced that its 4Q18 earnings have increased by 44% y-o-y to $5.63 million, while revenue increased by 4% y-o-y to $92.8 million.

Other income surged 171% to $24.3 million and share of results of associates saw a significant increase to $12.3 million compared to $0.86 million last year.

For FY18, earnings were 4% up from the previous year at $13.5 million, with revenue also increasing by 4% to $329.0 million.

The group has proposed a final dividend of 1.05 cent per share.

Following the results announcement, Phillip Capital is keeping its “accumulate” recommendation on Banyan Tree with a higher target price of 76 cents from 73 cents previously.

Two of the group’s three components of the fee-based segment – hotel/fund/club management and spa/gallery operations – saw positive growth in 4Q18 after recorded a decline of almost 20% each y-o-y the same period last year.

The group’s operating profit the fee-based segment in FY18 experienced an 86% y-o-y increase, which is the result of the group’s efforts in transition to an increasingly asset-light model is building momentum.

Meanwhile, the group’s revenue from its property sales segment recorded a 61% y-o-y increase for 4Q18 and 50% increase in FY18. The 4Q18 increase was mainly due to the higher handover of units at Cassia Phuket, Laguna Park town homes/villas and Laguna Village residences, as well as handover of units for Banyan Tree Grand Residences.

However, revenue from the group’s hotel investments segment dropped 13% y-o-y in 4Q18, mainly due to ongoing renovations at Banyan Tree Phuket and underperformance from Angsana Laguna Phuket due to absence of major events, as well as the deconsolidation effect following the disposal of entire Seychelles assets portfolio in Nov 2018.

RevPAR for all hotels under the group was also down 17% y-o-y on both lower occupancy and lower average room rate.

In a Friday report, analyst Tara Wong says, “Despite the continued negative impact from the July 2018 Phuket incident which compressed forward bookings in Thailand through 1Q19, long-term growth catalysts remain intact as the group transitions to an increasingly asset-light model.”

In 2018, the group secured a record of 28 management contracts. And the analyst believes that the securing of such contracts, especially with strong partners such as Accor and Vanke, will be the main driver for its fee-based income.

As at 11.25am, shares in Banyan Tree are trading at 57 cents or 19.6 times FY19 earnings with a dividend yield of 1.7%.

Source: The Edge

https://www.theedgesingapore.com/banyan ... 401b309bc7
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Banyan Tree

Postby winston » Thu May 23, 2019 9:32 am

not vested

Banyan Tree Holdings Limited – Plagued by one-offs
Accumulate (Maintained); Target price: S$0.76, Last close: S$0.54

Reveue and PATMI below our expectations due to under-forecasted one-offs and continued weakness in Thailand. Excluding other income, PATMI would have risen c.50%.

One-offs from reduced stake in BTAC and disposal of Seychelles portfolio to continue into the rest of FY2019.

Effective cost measures across the board, with total costs and expenses declining -23%.
Forward bookings edged back up after a decline in 1Q19, up 11% YoY for 2Q19 (+6% YoY for Thailand market and +26% YoY for Non-Thailand markets).

Hotel investments segment still suffering from Thailand underperformance, stemming from the inventory shortage from ongoing renovations at flagship resort Banyan Tree Phuket.

Long-term growth catalysts remain intact. Focus would be the continued build-up in fee-based income and property sales. 53 hotels under the Banyan Tree umbrella of brands are slated to open from 2019 to 2022.

Maintain ACCUMULATE with unchanged target price of S$0.76.

Source: Phillips

https://internetfileserver.phillip.com. ... 190522.pdf
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