Miramar Hotel & Investment Co (0071) AI Stock Analysis

• Market Cap: HK$7.16B
• Dividend Yield: 5.29%
• Average Volume (3M): 57.45K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.19
• Revenue Growth: -2.09%
• EPS Growth: -28.30%
• Country: HK
• Employees: 1,342
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Real Estate - Services
• EPS (TTM): 0.47
• Shares Outstanding: 690,959,660
• 10 Day Avg. Volume: 78,968
• 30 Day Avg. Volume: 57,445
• PEG Ratio: -0.36
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 30.32
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$10.50 ▲(1.35% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and equity position. However, challenges in profitability and cash flow generation in 2024, along with neutral technical indicators, moderate the score. The valuation is favorable, offering a reasonable P/E ratio and a high dividend yield, which supports the stock's attractiveness.

Positive Factors

Strong Equity Position

A 0% debt-to-equity ratio indicates financial stability and low risk, allowing the company to operate without the burden of debt, enhancing long-term resilience.

Revenue Diversification

Diversified revenue streams across hospitality, property, and retail sectors provide stability and reduce dependency on a single income source, supporting long-term growth.

Gross Profit Margin

A consistent 100% gross profit margin indicates efficient cost management and pricing power, contributing to sustained profitability over time.

Negative Factors

Net Profit Margin Decline

A declining net profit margin suggests increased costs or reduced efficiency, which could impact profitability and operational performance if not addressed.

Cash Flow Challenges

Lack of operating and free cash flow indicates potential operational inefficiencies or reinvestment issues, which may constrain financial flexibility and growth.

Decline in ROE

A declining ROE suggests reduced profitability relative to shareholders' equity, which could signal inefficiencies in generating returns for investors.

Miramar Hotel & Investment Co Business Overview & Revenue Model

Company Description

Miramar Hotel and Investment Company, Limited, an investment holding company, engages in property rental, hotels and serviced apartments, food and beverage, and travel businesses in the People's Republic of China. It leases office and retail premises; and operates hotels and serviced apartments, as well as provides hotel management services. The company also operates restaurants; offers travel agency, property management, and financial services; and sells properties. Miramar Hotel and Investment Company, Limited was founded in 1948 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Miramar Hotel & Investment Co generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and event hosting. Key revenue streams come from both direct bookings and partnerships with online travel agencies. Additionally, the company earns income from leasing its commercial properties, which includes retail spaces and office buildings. Significant partnerships with travel and tourism companies enhance its visibility and customer reach, contributing to overall earnings. The firm also engages in property development and investment, which can yield substantial returns when the market conditions are favorable.

Miramar Hotel & Investment Co Financial Statement Overview

Summary

Miramar Hotel & Investment Co shows strong revenue growth and a robust equity position with no debt reliance. However, the decline in net profit margin and cash flow challenges in 2024 suggest potential operational inefficiencies and reduced financial flexibility.

Income Statement

The company shows a strong gross profit margin consistently at 100% in 2024. However, the net profit margin has decreased from 38.3% in 2023 to 26.1% in 2024, indicating increased costs or reduced efficiency. The revenue growth rate from 2023 to 2024 is approximately 12%, which is a positive sign, but it follows a significant increase from 2022 to 2023. EBIT margins are robust, rising from 38% in 2023 to 90.2% in 2024. EBITDA margin is absent for 2024, indicating potential gaps in operational insights.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0% in 2024, reflecting no reliance on debt financing and a high equity ratio of 93.1%. This indicates financial stability and low risk. Return on Equity (ROE) is lower at 3.57% in 2024 compared to 4.77% in 2023, suggesting a decline in profitability relative to shareholders' equity.

Cash Flow

The cash flow situation is challenging with zero operating cash flow and free cash flow in 2024, indicating possible operational inefficiencies or reinvestment. The operating cash flow to net income and free cash flow to net income ratios are unavailable for 2024, which hinders a comprehensive cash flow analysis. However, previous years showed positive cash flow activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.75B	2.86B	2.55B	1.38B	1.25B	1.31B
Gross Profit	1.76B	997.69M	899.27M	621.41M	622.75M	535.99M
EBITDA	926.17M	1.00B	1.20B	639.94M	491.32M	501.23M
Net Income	695.56M	746.56M	977.14M	480.10M	329.96M	301.90M
Balance Sheet
Total Assets	22.68B	22.45B	21.97B	21.25B	21.08B	21.05B
Cash, Cash Equivalents and Short-Term Investments	6.90B	6.45B	5.66B	5.44B	5.31B	5.11B
Total Debt	75.51M	94.70M	75.52M	99.06M	86.41M	90.16M
Total Liabilities	1.47B	1.35B	1.30B	1.12B	1.04B	1.05B
Stockholders Equity	21.03B	20.88B	20.49B	19.97B	19.88B	19.85B
Cash Flow
Free Cash Flow	734.76M	207.64M	1.04B	533.71M	509.36M	276.59M
Operating Cash Flow	778.73M	236.43M	1.08B	594.47M	517.38M	316.24M
Investing Cash Flow	200.54M	577.07M	-1.65B	853.84M	-1.48B	-471.11M
Financing Cash Flow	-438.01M	-418.56M	-411.40M	-362.80M	-385.14M	-456.73M

Miramar Hotel & Investment Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0071, the sentiment is Positive. The current price of 10.36 is above the 20-day moving average (MA) of 10.17, above the 50-day MA of 10.07, and above the 200-day MA of 9.53, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 61.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0071.

Miramar Hotel & Investment Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0071	69 Neutral	HK$7.16B	10.29	3.35%	5.29%	-2.09%	-28.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0029	61 Neutral	HK$3.01B	-47.36	-0.85%	0.08%	-6.63%	-101.17%
0225	52 Neutral	HK$664.38M	-3.08	-4.79%	6.05%	6.17%	63.88%
0266	50 Neutral	HK$949.46M	-8.10	-3.04%	6.22%	-3.09%	62.33%
0105	49 Neutral	HK$1.87B	-8.58	-3.07%	10.10%	-2.39%	61.81%
0277	42 Neutral	HK$407.53M	25.61	0.63%	1.15%	-8.55%	―

Miramar Hotel & Investment Co Corporate Events

Miramar Hotel Inks New Connected Car Park Consultancy Deal With Henderson Land Unit

Miramar Hotel and Investment Company’s wholly owned unit Whirlwind Security Limited has signed a new two-year consultancy agreement with E. M. Parking Limited, an indirect wholly owned subsidiary of Henderson Land, to provide car park consultancy, management and operation services for a parking facility from 1 January 2026 to 31 December 2027. The deal, classified as a continuing connected transaction under Hong Kong’s Listing Rules due to the relationship with Henderson Land, will see E. M. Parking pay consultancy and potential incentive fees and fund direct operating expenses via quarterly cost deposits, with the transaction subject to reporting, announcement and annual review requirements but exempt from circular and independent shareholder approval thresholds, underscoring ongoing intra-group cooperation while remaining within lower regulatory scrutiny bands.

The most recent analyst rating on (HK:0071) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Miramar Hotel & Investment Co stock, see the HK:0071 Stock Forecast page.

Miramar Hotel Announces New Lease Agreement for Shop 407A

Miramar Hotel & Investment Co., Limited announced a new lease agreement for Shop 407A at Mira Place 1, with Shahdan as the landlord and HPAL, a subsidiary of Henderson Land, as the tenant. This transaction is classified as a continuing connected transaction under Chapter 14A of the Listing Rules, subject to reporting and annual review requirements due to its percentage ratios. The lease is set for a fixed term of one year starting December 2025, with an option for a further year, impacting the company’s operational dynamics and stakeholder interests.

The most recent analyst rating on (HK:0071) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on Miramar Hotel & Investment Co stock, see the HK:0071 Stock Forecast page.