Hongkong & Shanghai Hotels (0045) AI Stock Analysis

• Market Cap: HK$9.32B
• Dividend Yield: 1.43%
• Average Volume (3M): 63.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: 26.85%
• EPS Growth: -742.37%
• Country: HK
• Employees: 7,836
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Travel Lodging
• EPS (TTM): -0.57
• Shares Outstanding: 1,666,939,800
• 10 Day Avg. Volume: 82,928
• 30 Day Avg. Volume: 63,523
• PEG Ratio: -0.09
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: HK$5.50 ▼(-1.61%Downside)

The overall stock score is primarily driven by strong cash flow and financial stability, despite ongoing profitability challenges. Technical analysis presents mixed signals, while valuation remains a concern due to negative earnings.

Hongkong & Shanghai Hotels Business Overview & Revenue Model

Company Description

Hongkong & Shanghai Hotels, Limited (HSH) is a renowned hospitality and real estate development company, primarily known for its prestigious Peninsula Hotels brand. Established in 1866, HSH operates in the luxury hospitality sector, offering top-tier accommodation, dining, and leisure experiences. The company's portfolio includes a collection of luxury hotels, commercial, residential, and club properties across Asia, the United States, and Europe.

How the Company Makes Money

HSH generates revenue through multiple streams, primarily from its luxury hotel operations, which include room rentals, food and beverage services, and spa and wellness offerings. The Peninsula Hotels brand is a significant contributor, attracting high-end clientele who seek premium hospitality experiences. Additionally, the company earns income from its residential and commercial properties, leveraging prime real estate locations to secure rental and lease agreements. HSH's strategic partnerships and joint ventures enhance its market reach and profitability, while its commitment to quality and service excellence ensures a loyal customer base and steady revenue flow.

Hongkong & Shanghai Hotels Financial Statement Overview

Summary

Hongkong & Shanghai Hotels is experiencing solid revenue growth and improving operational efficiency. However, profitability remains a challenge with consistent net losses impacting return on equity. The balance sheet remains strong with a healthy equity ratio and manageable debt levels. Notably, the cash flow position is strong, enhancing the company's financial flexibility.

Income Statement

The company has shown significant revenue growth, with a 26.8% increase in 2024. However, despite the revenue growth, the net profit margin is negative due to a net loss of HKD 943 million. There is an improvement in EBIT and EBITDA margins compared to previous years, indicating better operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 65.4%, indicating financial stability. The debt-to-equity ratio stands at 0.45, reflecting moderate leverage. However, the return on equity is negative due to net losses, which is a concern for profitability.

Cash Flow

The company has a robust free cash flow growth of 248.9% in 2024, with free cash flow significantly improving to HKD 4.06 billion. The operating cash flow to net income ratio is positive, indicating healthy cash generation relative to accounting profits.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.29B	8.11B	4.20B	3.46B	2.71B
Gross Profit	3.42B	2.72B	1.43B	1.09B	433.00M
EBITDA	1.40B	1.23B	167.00M	308.00M	-906.00M
Net Income	-943.00M	146.00M	-488.00M	-120.00M	-1.94B
Balance Sheet
Total Assets	54.18B	57.87B	56.58B	55.69B	53.68B
Cash, Cash Equivalents and Short-Term Investments	895.00M	881.00M	585.00M	479.00M	520.00M
Total Debt	16.00B	18.65B	17.98B	16.48B	14.45B
Total Liabilities	18.73B	21.49B	20.46B	18.82B	16.53B
Stockholders Equity	35.40B	36.28B	36.02B	36.76B	36.84B
Cash Flow
Free Cash Flow	4.06B	1.16B	-2.41B	-2.32B	-2.51B
Operating Cash Flow	4.39B	3.41B	134.00M	163.00M	-1.03B
Investing Cash Flow	-1.28B	-2.60B	-2.74B	-2.60B	-2.31B
Financing Cash Flow	-3.10B	-654.00M	2.74B	2.40B	3.15B

Hongkong & Shanghai Hotels Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.59
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0045, the sentiment is Positive. The current price of 5.59 is above the 20-day moving average (MA) of 5.46, above the 50-day MA of 5.45, and below the 200-day MA of 5.73, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0045.

Hongkong & Shanghai Hotels Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1270	65 Neutral	HK$2.00B	8.49	2.48%	2.76%	-22.28%	-79.09%
0184	64 Neutral	HK$768.85M	3.01	7.95%	3.10%	-2.67%	16.46%
1221	62 Neutral	HK$1.65B	20.41	1.91%	1.07%	-3.42%	28.95%
0045	57 Neutral	HK$9.32B	―	-2.63%	1.43%	26.85%	-742.37%
Sector *	56 Neutral	HK$23.37B	3.96	-1.56%	6.69%	0.06%	-64.88%
0201	52 Neutral	HK$644.19M	―	-1.07%	―	16.36%	-35.14%

Hongkong & Shanghai Hotels Corporate Events

Hongkong & Shanghai Hotels Announces New Board Composition

The Hongkong and Shanghai Hotels, Limited has announced the composition of its Board of Directors following the Annual General Meeting held on May 7, 2025. The board includes a mix of non-executive, independent non-executive, and executive directors, with The Hon. Sir Michael Kadoorie serving as Chairman. This announcement reflects the company’s commitment to strong governance and leadership, which is crucial for maintaining its position in the competitive luxury hospitality market.

Hongkong & Shanghai Hotels Approves AGM Resolutions and Updates Nomination Committee

The Hongkong and Shanghai Hotels, Limited held its 2025 Annual General Meeting on May 7, where all proposed resolutions were approved by shareholders, including the re-election of several directors and the adoption of new Articles of Association. Additionally, the company announced a change in its Nomination Committee, appointing Dr. Rosanna Yick Ming Wong to comply with updated corporate governance codes, reflecting the company’s commitment to diversity and governance standards.

Hongkong & Shanghai Hotels Reports Q1 2025 Performance

The Hongkong and Shanghai Hotels, Limited released its unaudited operating statistics for the first quarter of 2025, showing variations in RevPAR, average room rates, and occupancy rates across different regions. The announcement highlights the company’s performance in the hospitality sector, with particular attention to the varying market conditions in Greater China, Other Asia, USA, and Europe, which could impact stakeholders’ decisions.

Hongkong & Shanghai Hotels Announces 2025 AGM Agenda

The Hongkong and Shanghai Hotels, Limited has announced its Annual General Meeting (AGM) scheduled for May 7, 2025, at The Peninsula Hong Kong. Key agenda items include reviewing the 2024 financial statements, re-electing directors, and re-appointing KPMG as the independent auditor. Additionally, shareholders will consider granting mandates to the directors to issue new shares and buy back existing shares, with specific limits on the number of shares involved. The meeting will also address adopting new Articles of Association. These resolutions, if passed, could impact the company’s capital structure and governance, potentially influencing shareholder value and market perception.