Associated International Hotels Limited (0105) AI Stock Analysis

• Market Cap: HK$2.02B
• Dividend Yield: 6.42%
• Average Volume (3M): 9.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.13
• Revenue Growth: 1.14%
• EPS Growth: -248.81%
• Country: HK
• Employees: 36
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): -0.19
• Shares Outstanding: 360,000,000
• 10 Day Avg. Volume: 8,600
• 30 Day Avg. Volume: 9,714
• PEG Ratio: 0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 5.96
• P/FCF Ratio: 12.69
• 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: HK$5.50
• Price Target Upside: 0.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$5.50 ▲(0.92% Upside)

The overall stock score is primarily influenced by the company's financial performance challenges, particularly in profitability and cash flow. While technical analysis shows some positive momentum, the valuation is hindered by negative earnings. The high dividend yield offers some compensation, but the financial health remains a significant concern.

Positive Factors

Low Leverage

Low leverage indicates financial stability and reduces risk, allowing the company to better withstand economic downturns and invest in growth opportunities without the burden of high debt costs.

Strong Gross Profit Margin

A strong gross profit margin suggests efficient cost management and pricing power, which can support profitability as the company scales and potentially improve net margins over time.

Revenue Growth

Positive revenue growth, albeit modest, indicates the company's ability to maintain or slightly expand its market presence, which is crucial for long-term sustainability and competitiveness.

Negative Factors

Negative Profit Margins

Negative profit margins highlight significant operational inefficiencies and financial challenges, which can hinder the company's ability to reinvest in growth and improve shareholder value.

Negative Cash Flow Growth

Negative cash flow growth limits the company's ability to fund operations and invest in future growth opportunities, potentially leading to liquidity constraints and financial instability.

Negative Return on Equity

A negative return on equity suggests that the company is not effectively utilizing its equity to generate profits, which can deter investment and impact long-term growth prospects.

Associated International Hotels Limited Business Overview & Revenue Model

Company Description

Associated International Hotels Limited, an investment holding company, engages in the property investment activities in Hong Kong. Its investment properties include iSQUARE, a shopping and entertainment complex located in Tsim Sha Tsui MTR station; various units of Good Luck Industrial Building; a floor of Euro Trade Centre; units of an industrial property; and two residential properties. The company was incorporated in 1983 and is based in Tsim Sha Tsui, Hong Kong. Associated International Hotels Limited is a subsidiary of Tian Teck Land Limited.

How the Company Makes Money

The company generates revenue primarily through hotel management fees, which are earned from managing properties on behalf of owners. These fees typically include base management fees, which are a percentage of the hotel's gross revenue, and incentive fees based on the hotel's performance. Additionally, Associated International Hotels Limited earns income from leasing its owned properties, as well as from consultancy services provided to other hotel owners and developers. The company may also benefit from partnerships with travel agencies, online booking platforms, and tour operators, which can drive occupancy rates and enhance revenue through increased bookings. Seasonal promotions and loyalty programs further contribute to revenue by encouraging repeat business and attracting new customers.

Associated International Hotels Limited Financial Statement Overview

Summary

Associated International Hotels Limited shows a mixed financial performance. Income statement metrics indicate improved profitability and operational efficiency, despite declining revenues. The balance sheet is highly stable with minimal debt and strong equity, providing financial resilience. Cash flow metrics demonstrate robust cash generation capacity, although the company faced challenges in maintaining consistent revenue growth. Overall, the company appears financially sound with positive trends in profitability and cash flows.

Income Statement

The company shows a declining revenue trend with a notable drop from 2020 to 2024. Gross profit margin improved to 67.72% in 2024 from 71.46% in 2023, while net profit margin turned positive to 128.97% from a negative margin in 2023, indicating improved profitability. However, the company's revenue growth rate is negative, showing a decline of 2.38% in 2024. EBIT and EBITDA margins have improved significantly in 2024, reflecting strong operational performance after a challenging previous year.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.03, indicating low financial leverage. The equity ratio remains high at 94.46%, suggesting a solid equity base. Return on equity improved significantly from negative to 4.79% in 2024, enhancing shareholder value. The company maintains a robust asset position with more equity than liabilities, indicating financial stability.

Cash Flow

Free cash flow growth rate is 37.55% in 2024, showing strong cash generation. The operating cash flow to net income ratio is positive at 0.49, indicating efficient conversion of income to cash flows. However, free cash flow to net income is slightly lower at 0.48. The cash flow statement reflects improved liquidity and cash management, despite fluctuations in operating cash flows over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.78M	299.01M	292.14M	299.28M	301.32M	434.18M
Gross Profit	203.24M	204.53M	197.84M	213.93M	212.15M	341.82M
EBITDA	-47.34M	-520.03M	417.74M	192.03M	181.90M	319.76M
Net Income	-571.20M	-560.63M	376.76M	-1.58B	-1.12B	-1.53B
Balance Sheet
Total Assets	7.84B	7.61B	8.32B	8.07B	9.80B	11.06B
Cash, Cash Equivalents and Short-Term Investments	591.12M	510.84M	506.52M	452.42M	440.76M	373.70M
Total Debt	200.00M	200.00M	201.41M	201.49M	200.00M	201.65M
Total Liabilities	561.11M	465.80M	461.53M	449.54M	482.93M	481.00M
Stockholders Equity	7.28B	7.15B	7.86B	7.62B	9.32B	10.58B
Cash Flow
Free Cash Flow	160.29M	140.43M	181.96M	132.26M	185.82M	145.93M
Operating Cash Flow	160.82M	143.24M	183.69M	137.19M	187.99M	147.63M
Investing Cash Flow	24.69M	20.10M	22.55M	-4.31M	18.80M	-12.71M
Financing Cash Flow	-276.09M	-159.03M	-152.15M	-121.22M	-139.72M	-183.13M

Associated International Hotels Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.45
• 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:0105, the sentiment is Positive. The current price of 5.45 is above the 20-day moving average (MA) of 5.40, above the 50-day MA of 5.29, and above the 200-day MA of 5.11, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0105.

Associated International Hotels Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$7.15B	13.09	-0.31%	6.85%	4.03%	-25.34%
0105	54 Neutral	HK$2.02B	―	-7.47%	6.42%	1.14%	-248.81%
HYSNF	―	$2.14B	400.00	-0.48%	12.44%	―	―
MMHTF	―	$891.96M	10.14	3.35%	5.18%	―	―
VI6	―	€1.74B	24.65	18.68%	―	―	―
2602	74 Outperform	HK$29.69B	23.41	7.08%	1.29%	5.75%	-31.63%