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

• Market Cap: HK$2.23B
• Dividend Yield: 1.95%
• Average Volume (3M): 17.81K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.17
• Revenue Growth: -7.90%
• EPS Growth: 58.19%
• Country: HK
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 1,188,173,700
• 10 Day Avg. Volume: 45,713
• 30 Day Avg. Volume: 17,807
• PEG Ratio: 0.26
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 12.84
• P/FCF Ratio: 17.00
• 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: 66 Neutral
• Price Target: HK$2.00 ▲(29.87% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by strong financial stability (minimal leverage) and improved cash-flow strength, but is held back by inconsistent top-line performance and volatile operating margins. Technically, the trend is positive, though overbought indicators reduce the near-term technical score. Valuation is neutral-to-slightly expensive with only a modest dividend yield.

Positive Factors

Balance Sheet Strength

Extremely low leverage gives the company durable financial flexibility: it can fund operations, capital upkeep or opportunistic investments with minimal interest burden. A strong equity base reduces solvency risk in downturns and supports long-term stability for hospitality assets.

Cash Flow Generation

Robust cash generation and a large recent rebound in free cash flow indicate the business can convert earnings into spendable cash. This supports reinvestment in properties, debt-light growth or distributions, and provides a buffer versus volatile reported earnings.

Improved Gross Margin

A materially higher gross margin signals improved cost control or better pricing at the property level. Higher underlying margins enhance resilience to revenue swings, allow easier recovery of fixed costs, and support sustainable operating cash flows over the medium term.

Negative Factors

Inconsistent Revenue

Declining and uneven top-line trends reduce predictability of occupancy and room-rate driven income. For a hotel-focused operator, inconsistent revenue complicates capacity planning, capital expenditure timing and limits ability to sustainably scale fixed-cost recovery.

Volatile Operating Profitability

Large divergence between operating and net margins suggests results are influenced by non-operating items or one-offs. This volatility undermines confidence in underlying hotel operating performance and makes future operating cash generation less predictable.

Concentration in Hotel Operations

High reliance on lodging and hospitality services exposes the firm to travel cyclicality, demand shocks and competitive pricing pressure. Limited revenue diversification increases sensitivity to macro downturns and structural shifts in travel behavior or regulation.

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

Company Description

Sino Hotels (Holdings) Limited, an investment holding company, operates and manages hotels in Hong Kong. It operates hotels under the Royal Pacific Hotel & Towers, Conrad Hong Kong, City Garden Hotel, The Olympian Hong Kong, Hong Kong Gold Coast Hotel, and The Pottinger Hong Kong names in Hong Kong; and The Fullerton Hotel and The Fullerton Bay Hotel names in Singapore. The company also operates clubs under the Gold Coast Yacht & Country Club name. In addition, it engages in the provision of nominee and finance services; and share and bond investment activities. Further, the company operates restaurants and bars under the Gradini Ristorante E Bar Italiano, Satay Inn - Royal Pacific Hotel, Satay Inn - Hong Kong Gold Coast Hotel, YUÈ, Lobby Lounge, Gold Coast Prime Rib, and Pierside Bar & Restaurant; and cafes and delis under the Cafe Lagoon, Café on the PARK, and Park Deli names. Sino Hotels (Holdings) Limited is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Sino Hotels generates revenue primarily through its hotel operations, which include room bookings, food and beverage services, and event hosting. The company earns income from both direct sales to customers and management fees from properties it manages for third parties. Key revenue streams include occupancy rates from its hotels and serviced apartments, ancillary services like dining and event management, and long-term leases on commercial spaces. Significant partnerships with travel agencies and corporate clients also contribute to its earnings by ensuring a steady flow of guests, while strategic investments in property development provide additional income through lease agreements and capital appreciation.

Sino Hotels (Holdings) Ltd. Financial Statement Overview

Summary

Financials are solid overall: a very low debt-to-equity ratio (0.0068) supports balance-sheet strength, and cash generation is strong with operating cash flow at 2.04x net income and free cash flow conversion at 0.92x, plus a sharp 2025 free cash flow growth rebound. Offsetting this, revenue declined 4.75% in 2025 and operational profitability looks volatile with EBIT margin turning negative despite unusually high net margin.

Income Statement

Sino Hotels has shown a mixed performance in its income statement. The gross profit margin has improved over the years, reaching 58.85% in 2025, indicating efficient cost management. However, revenue growth has been inconsistent, with a decline of 4.75% in 2025. The net profit margin is exceptionally high at 83.94% in 2025, driven by a significant net income, but EBIT and EBITDA margins have shown volatility, with EBIT margin turning negative. This suggests potential operational challenges despite strong net income figures.

Balance Sheet

The balance sheet of Sino Hotels is robust, with a very low debt-to-equity ratio of 0.0068 in 2025, indicating minimal leverage and financial risk. The return on equity has improved to 2.47% in 2025, reflecting better profitability. The equity ratio remains strong, showcasing a solid capital structure. Overall, the company maintains financial stability with low debt levels, though there is room for improvement in profitability.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, with a remarkable increase of 1349.98% in 2025. The operating cash flow to net income ratio is healthy at 2.04, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.92, suggesting good cash conversion. Despite past fluctuations, the company has shown strong cash flow performance recently.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	123.13M	133.69M	136.36M	128.81M	112.37M
Gross Profit	72.46M	75.67M	76.12M	29.26M	11.08M
EBITDA	7.84M	106.02M	14.51M	15.98M	-53.13M
Net Income	103.35M	64.31M	-19.49M	-92.42M	-95.33M
Balance Sheet
Total Assets	4.24B	4.14B	4.17B	4.21B	4.39B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.33B	911.59M	839.03M	957.59M
Total Debt	28.64M	1.38M	1.47M	1.27M	60.52K
Total Liabilities	49.54M	21.30M	22.41M	14.72M	10.90M
Stockholders Equity	4.19B	4.11B	4.14B	4.19B	4.38B
Cash Flow
Free Cash Flow	93.01M	17.29M	34.09M	24.52M	9.81M
Operating Cash Flow	101.20M	24.82M	36.95M	26.70M	14.45M
Investing Cash Flow	155.31M	-18.17M	-33.19M	-250.92M	210.24M
Financing Cash Flow	27.18M	-2.65M	-201.08K	523.43K	-4.04M

Sino Hotels (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1.54 is below the 20-day moving average (MA) of 1.59, below the 50-day MA of 1.54, and above the 200-day MA of 1.46, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 81.72 is Negative, neither overbought nor oversold. The STOCH value of 94.84 is Negative, 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	66 Neutral	HK$2.23B	21.15	2.49%	1.95%	-7.90%	58.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0069	59 Neutral	HK$18.18B	18.61	2.40%	3.05%	-0.04%	-15.56%
1270	58 Neutral	HK$2.11B	38.46	0.50%	3.37%	-22.04%	-90.42%
0201	56 Neutral	HK$635.24M	-22.90	-0.66%	―	3.97%	41.51%
0045	55 Neutral	HK$11.29B	-14.40	-2.21%	―	-12.90%	-95.96%
0078	40 Neutral	HK$530.28M	-0.30	-29.62%	―	-0.60%	34.74%

Sino Hotels (Holdings) Ltd. Corporate Events

Sino Hotels Lifts Interim Profit on Tourism Rebound and Strong Hotel Performance

Sino Hotels (Holdings) Ltd. reported unaudited net profit attributable to shareholders of HK$51.9 million for the six months ended 31 December 2025, up from HK$43.5 million a year earlier, on revenue of HK$64.3 million versus HK$61.3 million. Earnings per share rose to HK4.40 cents, and the board declared an unchanged interim dividend of HK1.5 cents per share, with an option for shareholders to receive new shares instead of cash, reflecting confidence in the business while preserving cash flexibility.

The Group’s three Hong Kong hotels delivered solid year-on-year improvements in both occupancy and room rates, supported by a 12% rise in citywide visitor arrivals to 49.9 million and a strong calendar of mega events. City Garden Hotel maintained 100% occupancy under a four-year lease arrangement that guarantees pre-agreed room rates, while Conrad Hong Kong and The Royal Pacific Hotel & Towers increased revenue and profit, helping drive the Group’s higher profitability despite a smaller unrealised gain from a long-term financial investment.

The most recent analyst rating on (HK:1221) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Sino Hotels (Holdings) Ltd. stock, see the HK:1221 Stock Forecast page.

Sino Hotels Declares Interim Dividend with Scrip Option for FY2026

Sino Hotels (Holdings) Limited has declared an interim ordinary dividend of HKD 0.015 per share for the six months ended 31 December 2025, for the financial year ending 30 June 2026. The dividend will be paid in cash by default in Hong Kong dollars, with shareholders offered an optional scrip dividend scheme allowing partial election for new shares instead of cash.

The shares will trade ex-dividend on 12 March 2026, with the book closure period running from 16 to 18 March 2026 and a record date of 18 March 2026 to determine eligible shareholders. Payment of the dividend and despatch of share certificates for those choosing scrip shares are scheduled for 24 April 2026, providing investors with flexibility in how they receive returns while signaling the company’s continued commitment to shareholder distribution.

The most recent analyst rating on (HK:1221) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Sino Hotels (Holdings) Ltd. stock, see the HK:1221 Stock Forecast page.

Sino Hotels Sets February Board Meeting to Approve Interim Results and Dividend

Sino Hotels (Holdings) Limited has scheduled a board meeting for 27 February 2026 to review and approve the group’s interim results for the six months ended 31 December 2025 and to consider the declaration of an interim dividend. The upcoming meeting will determine the company’s mid-year financial disclosure and potential shareholder returns, signaling a routine but important checkpoint for investors tracking its performance in the hotel and hospitality sector.

The most recent analyst rating on (HK:1221) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sino Hotels (Holdings) Ltd. stock, see the HK:1221 Stock Forecast page.