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

• Market Cap: HK$2.14B
• Dividend Yield: 1.95%
• Average Volume (3M): 17.81K
• Price to Earnings (P/E): 20.2
• 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): 0.05
• 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: 64 Neutral
• Price Target: HK$2.00 ▲(29.87% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

Sino Hotels' strong financial performance, characterized by impressive net profit margins and a solid balance sheet, is the primary driver of its stock score. However, the inconsistency in revenue growth and operational margin volatility are notable risks. The technical analysis indicates limited momentum, and the valuation suggests the stock is reasonably priced, providing a balanced outlook.

Positive Factors

Very low leverage

Extremely low debt-to-equity gives Sino Hotels durable financial flexibility: lower interest burden, capacity to fund maintenance or opportunistic investments internally, and stronger resilience to cyclical shocks in lodging over the next 2–6 months.

Strong cash generation

A large improvement in free cash flow and OCF well above net income indicate robust cash conversion. This supports dividends, reinvestment in properties, and lowers refinancing risk, handing management durable operating flexibility across business cycles.

High reported margins

Elevated gross and reported net margins suggest strong pricing power or favorable non-operating items and efficient cost control in core hotel services. If sustained, this enhances free cash flow and reinvestment capacity over the medium term.

Negative Factors

Revenue declines / inconsistency

Negative and inconsistent top-line growth reduces the durability of earnings and makes margin improvements harder to sustain. For a hotel-centric business, falling revenues constrain organic reinvestment, limit economies of scale, and raise execution risk over the next several months.

Volatile operating margins

Operating-margin volatility and a negative EBIT margin indicate that core hotel operations can swing materially. This undermines earnings predictability, suggests sensitivity to occupancy/ADR shifts, and increases reliance on non-operating items to deliver profits.

Concentration in hotel operations

High revenue concentration in hotel accommodation and related services exposes Sino Hotels to travel cyclicality, event cancellations, and regional demand shifts. Limited diversification raises structural revenue risk across a 2–6 month horizon.

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

Sino Hotels exhibits a strong financial position with impressive net profit margins and a solid balance sheet characterized by low leverage. However, revenue growth inconsistency and operational margin volatility pose challenges. The company has demonstrated significant improvements in cash flow, enhancing its financial flexibility.

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 1.55, above the 50-day MA of 1.53, and above the 200-day MA of 1.46, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 82.54 is Negative, neither overbought nor oversold. The STOCH value of 80.33 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	64 Neutral	HK$2.14B	20.25	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$18.43B	19.27	2.40%	3.05%	-0.04%	-15.56%
1270	58 Neutral	HK$2.13B	39.74	0.50%	3.37%	-22.04%	-90.42%
0201	56 Neutral	HK$626.29M	-22.58	-0.66%	―	3.97%	41.51%
0045	55 Neutral	HK$11.47B	-14.63	-2.21%	―	-12.90%	-95.96%
0078	40 Neutral	HK$512.31M	-0.29	-29.62%	―	-0.60%	34.74%

Sino Hotels (Holdings) Ltd. Corporate Events

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.