Sino Hotels (Holdings) Ltd. (1221) AI Stock Analysis

• Market Cap: HK$1.62B
• Dividend Yield: 2.08%
• Average Volume (3M): 11.39K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.15
• Revenue Growth: -7.90%
• EPS Growth: 58.19%
• Country: HK
• Employees: 289
• Sector: Real Estate
• Sector Strength: 57
• Industry: Travel Lodging
• EPS (TTM): 0.05
• Shares Outstanding: 1,176,921,500
• 10 Day Avg. Volume: 4,577
• 30 Day Avg. Volume: 11,392
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$1.50 ▲(8.70% Upside)

The overall score reflects Sino Hotels' strong financial position, characterized by high profitability and low leverage risks. Technical analysis indicates mixed signals, with slight upward trends but potential oversold conditions, contributing to market uncertainty. Valuation suggests the stock is fairly valued, but with limited income potential from dividends. The absence of earnings call data and significant corporate events limits additional insights.

Positive Factors

Leadership Transition

The leadership transition to Mr. Daryl Ng Win Kong, who has extensive experience, may bring new strategic directions and strengthen corporate governance, positively impacting long-term business growth and stability.

Clubhouse Management Contract

Securing a new management contract expands Sino Hotels' service offerings and revenue streams, enhancing its market position and providing stable income over the contract period.

Strong Financial Health

The company's robust financial health, characterized by high profitability and low leverage, provides a solid foundation for sustainable growth and resilience against economic fluctuations.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth could hinder the company's ability to plan long-term investments and may affect its competitive position in the hospitality industry.

Free Cash Flow Challenges

Challenges in free cash flow growth may limit Sino Hotels' ability to invest in new projects or respond to market opportunities, impacting its long-term strategic initiatives.

Board Restructuring Uncertainty

Frequent board changes can lead to strategic uncertainty and may disrupt the company's governance continuity, potentially affecting its strategic execution and stakeholder confidence.

Sino Hotels (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Sino Hotels (Holdings) Ltd. (1221) is a hospitality company based in Hong Kong, primarily engaged in the management and operation of hotels. The company is part of the Sino Group, which is a leading property developer in Hong Kong. Sino Hotels focuses on providing high-quality accommodations and services to both business and leisure travelers through its portfolio of hotels strategically located in key areas within Hong Kong and other regions.

How the Company Makes Money

Sino Hotels (Holdings) Ltd. generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and other related hospitality services. The company capitalizes on its strategic locations and brand reputation to attract a steady flow of guests, ensuring high occupancy rates. Additionally, Sino Hotels benefits from ancillary services such as event hosting, conferences, and banqueting, which provide significant supplementary income. Partnerships with travel agencies, online booking platforms, and corporate clients also enhance its revenue streams by driving consistent bookings and expanding its customer base. The company's alignment with Sino Group further strengthens its market position, offering synergies in branding and operations.

Sino Hotels (Holdings) Ltd. Financial Statement Overview

Summary

Sino Hotels (Holdings) Ltd. demonstrates robust financial health with strong equity and profitability positions. The company has shown improvement in profitability with a TTM net profit margin of 61.1% and a strong equity ratio of 99.4%, indicating financial stability. However, revenue growth has been inconsistent, and free cash flow growth poses potential challenges.

Income Statement

The company has shown improvement in profitability with a TTM net profit margin of 61.1% and a significant increase in net income. However, revenue has experienced fluctuations, showing inconsistency in growth trends.

Balance Sheet

The company has a strong equity position with an equity ratio of 99.4% TTM, indicating financial stability. The debt-to-equity ratio is exceptionally low, minimizing leverage risks.

Cash Flow

The TTM operating cash flow to net income ratio is positive, suggesting efficient cash generation relative to earnings. However, free cash flow growth has been inconsistent, which could pose challenges in capital allocation.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	129.27M	133.69M	136.36M	128.81M	112.37M	160.74M
Gross Profit	72.16M	75.67M	76.12M	72.56M	56.59M	70.56M
EBITDA	39.65M	106.02M	14.51M	15.98M	-53.13M	-25.51M
Net Income	100.72M	64.31M	-19.49M	-92.42M	-95.33M	-76.36M
Balance Sheet
Total Assets	4.22B	4.14B	4.17B	4.21B	4.39B	4.40B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.33B	911.59M	839.03M	957.59M	966.82M
Total Debt	1.39M	1.38M	1.47M	1.27M	60.52K	390.45K
Total Liabilities	26.95M	21.30M	22.41M	14.72M	10.90M	32.52M
Stockholders Equity	4.19B	4.11B	4.14B	4.19B	4.38B	4.37B
Cash Flow
Free Cash Flow	6.41M	17.29M	34.09M	24.52M	9.81M	-88.35M
Operating Cash Flow	14.80M	24.82M	36.95M	26.70M	14.45M	-34.55M
Investing Cash Flow	-80.10M	-18.17M	-33.19M	-250.92M	210.24M	84.24M
Financing Cash Flow	-1.67M	-2.65M	-201.08K	523.43K	-4.04M	-3.57M

Sino Hotels (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1221, the sentiment is Positive. The current price of 1.38 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.45, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.01 is Neutral, neither overbought nor oversold. The STOCH value of 42.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1221.

Sino Hotels (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1221	62 Neutral	HK$1.62B	16.20	2.49%	2.08%	-7.90%	58.19%
Sector *	53 Neutral	$1.28B	3.13	-6.08%	5.51%	-8.21%	-81.31%
HKSHF	―	$1.26B	―	-2.21%	1.44%	―	―
1270	54 Neutral	HK$1.72B	35.21	0.50%	3.20%	-29.06%	-90.42%
SHALF	―	$2.09B	15.25	2.40%	3.58%	―	―
0201	52 Neutral	HK$644.19M	―	-0.66%	―	3.97%	41.51%
RH6B	―	€63.12M	―	-28.68%	―	―	―

Sino Hotels (Holdings) Ltd. Corporate Events

Sino Hotels Announces Leadership Transition

Sino Hotels (Holdings) Ltd. announced a leadership change with Mr. Robert Ng Chee Siong retiring as Chairman and Executive Director, effective August 31, 2025. He will be succeeded by Mr. Daryl Ng Win Kong, who has been with the company since 2003 and holds significant experience in real estate and corporate governance. This transition marks a new phase for the company, as Mr. Daryl Ng is expected to lead the company through its next phase of development, building on the solid foundation established by his predecessor.

Sino Hotels Announces Upcoming Board Meeting for Financial Results and Dividend Consideration

Sino Hotels (Holdings) Limited has scheduled a board meeting for August 27, 2025, to approve the final results for the fiscal year ending June 30, 2025, and to consider a final dividend recommendation. This announcement is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

Sino Hotels Secures New Clubhouse Management Contract

Sino Hotels (Holdings) Ltd. announced that its subsidiary, Bright Tower, has been awarded a new clubhouse management contract by SEM through a tendering process. This contract, effective from August 1, 2025, to July 31, 2028, involves managing the clubhouse of a property owned in part by the Ng Family, a connected person to the company. The contract outlines a monthly service fee starting at HK$487,000, increasing annually, and is classified as a continuing connected transaction under the Listing Rules, subject to certain reporting and review requirements.

Sino Hotels Establishes Nomination Committee for Board Oversight

Sino Hotels (Holdings) Ltd. has established a Nomination Committee to ensure fair and transparent nominations for its Board of Directors. The committee is tasked with reviewing the board’s structure, identifying qualified candidates, assessing director independence, and making recommendations for appointments and succession planning. This move aims to align the board’s composition with the company’s corporate strategy and enhance board performance.

Sino Hotels Announces Board Reshuffle with New Appointments

Sino Hotels (Holdings) Limited has announced the retirement of Mr. Steven Ong Kay Eng from his roles as Independent Non-Executive Director and Chairman of the Audit and Remuneration Committees, effective July 1, 2025. He will be succeeded by The Honourable Rock Chen Chung-nin, who brings over 30 years of financial industry experience. This change is part of a broader reshuffle in the company’s board committees, which also includes new appointments to the Nomination Committee. These changes are expected to bring fresh perspectives and strengthen the company’s governance structure.

Sino Hotels Announces Board Restructuring

Sino Hotels (Holdings) Limited has announced changes to its board of directors and committee memberships effective from July 1, 2025. These changes include the appointment of Robert Ng Chee Siong as Chairman and Daryl Ng Win Kong as Deputy Chairman, along with the designation of various directors to key board committees. These adjustments are likely to influence the company’s strategic direction and governance, potentially impacting its market positioning and stakeholder relations.