Magnificent Hotel Investments Limited (0201) AI Stock Analysis

• Market Cap: HK$617.35M
• Dividend Yield: N/A
• Average Volume (3M): 363.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 3.97%
• EPS Growth: 41.51%
• Country: HK
• Employees: 568
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): >-0.01
• Shares Outstanding: 8,947,052,000
• 10 Day Avg. Volume: 909,375
• 30 Day Avg. Volume: 363,537
• PEG Ratio: -0.42
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 6.18
• 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: 56 Neutral
• Price Target: HK$0.07 ▲(4.29% Upside)

The score is primarily supported by a solid balance sheet and positive operating/free cash flow, which reduce financial risk. Offsetting this are continued bottom-line losses and volatile results that weaken earnings quality, while technical indicators show only neutral-to-soft momentum and the negative P/E limits valuation appeal.

Positive Factors

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability and flexibility, supporting long-term operational resilience.

Cash Flow Generation

Positive cash flow indicates the core business is generating cash, providing a buffer against earnings volatility and supporting future investments.

Revenue Growth

Strong revenue growth post-pandemic suggests recovery in demand and potential for future market share gains, enhancing long-term prospects.

Negative Factors

Earnings Quality

Ongoing losses despite revenue growth indicate challenges in cost management and profitability, impacting long-term earnings sustainability.

Earnings Volatility

Volatile earnings reduce predictability and reliability of financial performance, complicating strategic planning and investor confidence.

Negative Free Cash Flow Growth

Negative free cash flow growth limits financial flexibility, potentially constraining investments and strategic initiatives if recovery stalls.

Magnificent Hotel Investments Limited Business Overview & Revenue Model

Company Description

Magnificent Hotel Investments Limited, an investment holding company, invests in and operates hotels in Hong Kong, the People's Republic of China, and the United Kingdom. It operates through Hospitality Services, Property Investment, and Securities Investment segments. The company operates six hotels in Hong Kong, including Best Western Plus Hotel Kowloon, Best Western Plus Hotel Hong Kong, Best Western Hotel Causeway Bay, Ramada Hong Kong Harbour View, Ramada Hong Kong Grand, and Grand City Hotel; Magnificent International Hotel in Shanghai; and Royal Scot Hotel and Wood Street Hotel in London. It also engages in hotel management, property development and leasing, and securities dealing businesses. The company was formerly known as Magnificent Estates Limited and changed its name to Magnificent Hotel Investments Limited in November 2015. The company was incorporated in 1996 is based in Central, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through its hotel operations, which include room bookings, food and beverage sales, and event hosting services. Key revenue streams come from direct sales to customers, as well as partnerships with online travel agencies (OTAs) that facilitate bookings. Additionally, Magnificent Hotel Investments Limited may earn income through management contracts for hotels it does not own, allowing them to charge management fees based on hotel performance. Seasonal promotions and loyalty programs also contribute to revenue by encouraging repeat visits and enhancing customer retention. Strategic partnerships with travel organizations and corporate clients further boost earnings by securing bulk bookings and long-term contracts.

Magnificent Hotel Investments Limited Financial Statement Overview

Summary

The company demonstrates strong balance sheet stability with a high equity ratio and manageable debt levels. However, profitability issues and inconsistent cash flow performance are significant concerns. Revenue growth is a positive sign, but it needs to translate into consistent profitability to improve financial health.

Income Statement

The company has shown a volatile revenue trajectory with a notable recovery in the most recent year, posting a revenue growth rate of 16.36% from the previous year. However, profitability remains a challenge, with persistent negative net income and fluctuating EBIT margins. Gross profit margins have improved significantly, but net profit margins remain negative due to high expenses relative to revenue.

Balance Sheet

The balance sheet is relatively strong, with a high equity ratio of 82.56% indicating financial stability. The debt-to-equity ratio is manageable at 0.17. The company's return on equity has been inconsistent, reflecting the challenges in achieving consistent profitability.

Cash Flow

Cash flow performance is mixed, with a significant decline in operating cash flow in the most recent period. Free cash flow generation has been erratic, and the inability to consistently convert operating cash flow into net income efficiently is concerning. The lack of positive free cash flow growth and operational cash flow to net income ratio emphasizes the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.40M	525.73M	451.81M	439.48M	326.40M	223.41M
Gross Profit	218.37M	203.47M	112.08M	171.01M	46.32M	3.11M
EBITDA	129.30M	113.77M	169.91M	715.22M	158.56M	-114.26M
Net Income	-27.61M	-44.77M	-32.91M	592.80M	65.52M	-201.71M
Balance Sheet
Total Assets	5.03B	5.00B	5.29B	5.27B	4.45B	4.37B
Cash, Cash Equivalents and Short-Term Investments	174.35M	203.14M	309.25M	265.91M	260.29M	143.32M
Total Debt	635.93M	692.54M	870.32M	851.69M	499.38M	481.42M
Total Liabilities	795.08M	865.37M	1.07B	1.03B	663.76M	631.90M
Stockholders Equity	4.22B	4.13B	4.21B	4.23B	3.78B	3.74B
Cash Flow
Free Cash Flow	106.04M	107.08M	63.31M	183.22M	88.44M	8.02M
Operating Cash Flow	117.19M	125.70M	93.23M	191.04M	98.47M	44.49M
Investing Cash Flow	-11.14M	-14.60M	-22.28M	-515.55M	-7.45M	-34.23M
Financing Cash Flow	-89.71M	-215.36M	-37.05M	363.40M	15.52M	49.00M

Magnificent Hotel Investments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 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:0201, the sentiment is Negative. The current price of 0.07 is equal to the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0201.

Magnificent Hotel Investments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0184	62 Neutral	HK$711.02M	3.96	5.57%	4.67%	-3.51%	-31.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0219	61 Neutral	HK$322.32M	-0.95	-4.72%	―	3.58%	-91.61%
0201	56 Neutral	HK$617.35M	-22.58	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$267.50M	-0.17	-19.01%	―	-2.75%	-17.31%
0253	49 Neutral	HK$140.22M	-0.74	-4.69%	―	3.58%	-87.78%
0078	40 Neutral	HK$476.35M	-0.27	-29.62%	―	-0.60%	34.74%