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Hongkong & Shanghai Hotels Ltd. (HK:0045)
:0045
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Hongkong & Shanghai Hotels (0045) AI Stock Analysis

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HK:0045

Hongkong & Shanghai Hotels

(0045)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
HK$6.00
▼(-0.66% Downside)
The overall stock score is primarily influenced by strong financial stability and cash flow, despite ongoing profitability challenges. Technical indicators show a neutral trend, while valuation remains a concern due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

Hongkong & Shanghai Hotels (0045) vs. iShares MSCI Hong Kong ETF (EWH)

Hongkong & Shanghai Hotels Business Overview & Revenue Model

Company DescriptionThe Hongkong and Shanghai Hotels, Limited, an investment holding company, engages in the ownership, development, and management of hotels, and commercial and residential properties in Asia, the United States, and Europe. It operates through three divisions: Hotels, Commercial Properties, and Clubs and Services. The Hotels division is involved in the operation of hotels; and leasing of commercial shopping arcades and office premises located within the hotel buildings. The Commercial Properties division engages in the development, lease, and sale of residential apartments; and lease of retail and office premises, as well as operation of food and beverage outlets in such premises. The Clubs and Services division operates golf courses, as well as The Peak Tram, a tramway; wholesales and retails food and beverage products; and offers laundry, and management and consultancy services for clubs. The company is also involved in the wholesale and retail of merchandise; provision of dry cleaning, and marketing services; lending and borrowing of funds; and operates golf club and resort, and property investment activities. In addition, it offers tourism, leisure, and other services; and operates Peninsula Boutiques. The company was formerly known as The Hongkong Hotel Company, Limited. The Hongkong and Shanghai Hotels, Limited was incorporated in 1866 and is headquartered in Central, Hong Kong.
How the Company Makes MoneyHSH generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and event hosting. The company benefits from high occupancy rates and premium pricing due to its luxury positioning. Additional revenue streams come from its real estate investments, including leasing and property management, as well as income from its restaurants and retail outlets. Strategic partnerships with travel agencies, online booking platforms, and corporate clients also enhance its earnings. Seasonal promotions and loyalty programs further drive customer retention and revenue growth.

Hongkong & Shanghai Hotels Earnings Call Summary

Earnings Call Date:Mar 31, 2025
(Q2-2024)
|
% Change Since: |
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong revenue growth driven by new properties and residential sales, alongside significant losses influenced by high depreciation, interest costs, and weak tourism in Hong Kong. Positive momentum in new hotels and sustainability initiatives provide optimism, but challenges in key markets remain.
Q2-2024 Updates
Positive Updates
Record Revenue Growth
Consolidated revenue increased by 89% to $4.6 billion, driven by residential sales and new hotel openings.
Positive Developments in New Properties
The Peninsula London and Istanbul showed good momentum, with Peninsula London achieving the highest revenue in the group for July.
Commercial Properties Performance
Revenue from commercial properties rose by over 400% to $2.1 billion, largely due to residential sales.
Strong Performance in Mainland China
The Peninsula Shanghai reported strong results with a return of international visitors, and The Peninsula Beijing achieved a 27% year-over-year increase in RevPAR.
Sustainability Initiatives
74% of total committed facilities classified as green or sustainability-linked loans, up from 57% last year.
Negative Updates
Significant Loss
The group reported a loss of $448 million for the period compared to a profit of $95 million last year.
Weak Tourism in Hong Kong
A very weak second quarter for operating results in Hong Kong, with low long-haul traveler numbers.
Negative Impact of Renovations
EBITDA before nonrecurring expenses decreased due to The Peninsula New York renovation and new hotels requiring time to stabilize.
Increase in Depreciation and Interest Costs
Depreciation increased by $100 million, and net financing charges rose by $237 million due to The Peninsula London.
Revaluation Loss
A revaluation loss of $139 million was recorded, primarily due to a decrease in the market value of The Repulse Bay Complex.
Company Guidance
During the Q2 2024 earnings call for The Hongkong and Shanghai Hotels, key guidance focused on several financial metrics and operational updates. Consolidated revenue increased by 89% to $4.6 billion, largely driven by $1.7 billion from the sale of Peninsula-branded London Residences and additional revenue from new hotels in London and Istanbul. Despite this, EBITDA before nonrecurring expenses decreased from $498 million to $395 million due to ongoing renovations at The Peninsula New York and the stabilization period required for the new hotels. Increased depreciation and net financing charges, primarily related to The Peninsula London, contributed to a net loss of $448 million for the period. The company expects interest costs to decline with future proceeds from remaining residential sales in London. The second half of the year is anticipated to be stronger, bolstered by events like The Quail Motorsports Gathering and mooncake sales, though challenges persist in Hong Kong's tourism sector. The management emphasized the long-term strategic focus on stabilizing new properties and leveraging existing assets.

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
58
Neutral
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
64
Positive
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.96B10.29B8.11B4.20B3.46B2.71B
Gross Profit3.45B3.42B2.72B1.43B1.09B433.00M
EBITDA1.50B1.40B1.23B279.00M368.00M-906.00M
Net Income-784.00M-943.00M146.00M-488.00M-120.00M-1.94B
Balance Sheet
Total Assets55.95B54.18B57.87B56.58B55.69B53.68B
Cash, Cash Equivalents and Short-Term Investments832.00M895.00M881.00M585.00M479.00M520.00M
Total Debt17.57B16.00B18.65B17.98B16.48B14.45B
Total Liabilities20.39B18.73B21.49B20.46B18.82B16.53B
Stockholders Equity35.51B35.40B36.28B36.02B36.76B36.84B
Cash Flow
Free Cash Flow2.71B4.06B1.16B-2.41B-2.32B-2.51B
Operating Cash Flow3.15B4.39B3.41B134.00M163.00M-1.03B
Investing Cash Flow-1.12B-1.28B-2.60B-2.74B-2.60B-2.31B
Financing Cash Flow-1.43B-3.10B-654.00M2.45B2.24B2.99B

Hongkong & Shanghai Hotels Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.04
Price Trends
50DMA
5.92
Positive
100DMA
5.84
Positive
200DMA
5.76
Positive
Market Momentum
MACD
0.03
Positive
RSI
56.98
Neutral
STOCH
44.44
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 6.04 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.92, and above the 200-day MA of 5.76, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$1.69B16.202.49%1.99%-7.90%58.19%
62
Neutral
$765.45M4.265.57%4.50%-3.51%-31.41%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
$17.43B17.842.40%3.18%-0.04%-15.56%
58
Neutral
HK$1.72B35.210.50%3.20%-22.04%-90.42%
55
Neutral
$9.97B-12.72-2.21%1.34%-12.90%-95.96%
52
Neutral
HK$626.29M-0.66%3.97%41.51%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0045
Hongkong & Shanghai Hotels
6.04
0.37
6.53%
HK:0184
Keck Seng Investments (Hong Kong)
2.22
0.12
5.71%
HK:1270
Langham Hospitality Investments
0.50
0.01
2.04%
HK:0069
Shangri-La Asia
4.70
-0.42
-8.22%
HK:0201
Magnificent Hotel Investments Limited
0.08
<0.01
14.29%
HK:1221
Sino Hotels (Holdings) Ltd.
1.51
0.14
10.22%

Hongkong & Shanghai Hotels Corporate Events

Hongkong & Shanghai Hotels Enhances Board Governance with New Nomination Committee Terms
Oct 15, 2025

The Hongkong and Shanghai Hotels, Limited has outlined the terms of reference for its Nomination Committee, which is tasked with ensuring the effective governance and strategic alignment of the company’s board. The Committee’s responsibilities include reviewing the board’s composition, diversity, and succession planning, as well as assessing director independence and professional development. This initiative aims to strengthen the company’s leadership structure and support its long-term success, reflecting a commitment to maintaining high standards of corporate governance.

The most recent analyst rating on (HK:0045) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Hongkong & Shanghai Hotels stock, see the HK:0045 Stock Forecast page.

Hongkong & Shanghai Hotels Sets New Remuneration Committee Guidelines
Oct 15, 2025

The Hongkong and Shanghai Hotels, Limited has outlined the terms of reference for its Remuneration Committee, emphasizing transparency and fairness in the remuneration policies for directors and senior management. The committee is tasked with reviewing and recommending remuneration packages, ensuring alignment with corporate goals, and maintaining fair compensation practices, which could impact the company’s governance and stakeholder trust.

The most recent analyst rating on (HK:0045) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Hongkong & Shanghai Hotels stock, see the HK:0045 Stock Forecast page.

Hongkong & Shanghai Hotels Strengthens Audit Oversight
Oct 15, 2025

The Hongkong and Shanghai Hotels, Limited has outlined the terms of reference for its Audit Committee, emphasizing the importance of financial oversight and risk management. The committee, composed mainly of Independent Non-Executive Directors, is tasked with ensuring the integrity of financial reporting, compliance with accounting standards, and effective risk management systems. This move is likely to enhance the company’s governance framework, potentially boosting stakeholder confidence and aligning with industry best practices.

The most recent analyst rating on (HK:0045) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Hongkong & Shanghai Hotels stock, see the HK:0045 Stock Forecast page.

Hongkong & Shanghai Hotels Reports Mixed Q2 2025 Performance
Aug 6, 2025

The Hongkong and Shanghai Hotels, Limited reported its unaudited operating statistics for the second quarter of 2025, showing varied performance across its hotel and leasing operations. The Peninsula Hotels experienced fluctuations in RevPAR and occupancy rates across different regions, with notable improvements in Europe and the USA compared to the previous year. Meanwhile, the leasing segment maintained stable occupancy rates and rental income, indicating resilience in its property portfolio. These statistics reflect the company’s strategic positioning in the luxury hospitality and real estate markets, with implications for continued growth and stakeholder confidence.

Hongkong & Shanghai Hotels Sees Revenue Growth Amidst Strategic Asset Sales
Aug 6, 2025

Hongkong & Shanghai Hotels reported a 13% increase in consolidated operating revenue to HK$3,281 million for the first half of 2025, excluding non-recurring sales from Peninsula London Residences. The company also achieved a 63% rise in operating EBITDA, reflecting strong operational performance. Despite these improvements, the group incurred a loss attributable to shareholders of HK$289 million, though this was a 35% reduction compared to the previous year. The sale of 17 out of 24 Peninsula London Residences was completed, with the remaining units being released for sale, indicating ongoing strategic asset management. The company’s net assets remained stable, and the net debt to total assets ratio was maintained at a manageable level, suggesting a solid financial position despite the reported losses.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 21, 2025