Langham Hospitality Investments (1270) AI Stock Analysis

• Market Cap: HK$1.68B
• Dividend Yield: 3.37%
• Average Volume (3M): 414.40K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.60
• Revenue Growth: -22.04%
• EPS Growth: -90.42%
• Country: HK
• Employees: 1,236
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.04
• Shares Outstanding: 3,490,462,000
• 10 Day Avg. Volume: 457,901
• 30 Day Avg. Volume: 414,405
• PEG Ratio: -0.09
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 4.01
• P/FCF Ratio: 14.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

Langham Hospitality Investments' strong profitability and solid balance sheet are offset by challenges in revenue growth, declining free cash flow, and overbought technical indicators. The high P/E ratio suggests the stock is expensive, which, combined with weak momentum, results in a moderate overall score.

Positive Factors

High Profit Margins

The company's high profit margins indicate efficient operations and strong pricing power, which can support long-term profitability even amid revenue challenges.

Stable Balance Sheet

A stable balance sheet with moderate leverage provides financial flexibility and resilience, enabling the company to navigate economic fluctuations and invest in growth opportunities.

Strong Operating Performance

The high EBITDA margin reflects robust operational efficiency, allowing the company to maintain profitability and reinvest in its core business, enhancing competitive positioning.

Negative Factors

Revenue Decline

A significant revenue decline suggests potential market or operational challenges, which could hinder growth prospects and affect long-term financial health if not addressed.

Reduced Free Cash Flow

A sharp decline in free cash flow can strain liquidity, limiting the company's ability to fund operations, invest in growth, or return capital to shareholders, posing a risk to financial stability.

High Debt Levels

High debt levels increase financial risk, especially in a declining revenue environment, potentially leading to increased interest costs and reduced financial flexibility.

Langham Hospitality Investments Business Overview & Revenue Model

Company Description

Langham Hospitality Investments (1270) is a prominent investment entity that primarily focuses on the acquisition, ownership, and management of high-quality hotel properties within the Asia-Pacific region. The company operates in the hospitality sector and is known for its commitment to providing luxury accommodations and exceptional service through its affiliation with the Langham Hotels brand. Langham Hospitality Investments capitalizes on the growing demand for premium lodging options, catering to both business and leisure travelers.

How the Company Makes Money

Langham Hospitality Investments generates revenue primarily through the operation of its hotel properties, where it earns income from room bookings, food and beverage services, and event hosting. The company benefits from a steady stream of income driven by occupancy rates and pricing strategies aligned with market demand. Additionally, Langham Hospitality Investments may engage in management contracts with its hotels, receiving management fees based on hotel performance. Strategic partnerships with travel agencies, online booking platforms, and corporate clients also enhance its revenue potential, while ongoing investments in property renovations and marketing initiatives contribute to maintaining competitive advantage and revenue growth.

Langham Hospitality Investments Financial Statement Overview

Summary

Langham Hospitality Investments demonstrates strong profitability with high profit margins and a solid balance sheet. However, challenges in revenue growth and declining free cash flow are areas of concern that need attention to sustain long-term financial health.

Income Statement

Langham Hospitality Investments shows positive trends in profitability with a strong Gross Profit Margin of 94.84% and Net Profit Margin of 57.67% for 2024. However, the company experienced a revenue decline of 21.83% from 2023 to 2024, indicating challenges in revenue growth. EBIT Margin is unavailable, but EBITDA Margin stands at 136.62%, highlighting strong operating performance when excluding interest, taxes, and depreciation.

Balance Sheet

The balance sheet reflects a stable financial position with a Debt-to-Equity Ratio of 0.65 and an Equity Ratio of 58.52% in 2024, indicating moderate leverage. Return on Equity is high at 24.38%, suggesting efficient use of equity to generate profits. However, the company's total debt is substantial, which could pose a risk if revenue declines persist.

Cash Flow

Operating Cash Flow to Net Income Ratio is 0.50, and Free Cash Flow to Net Income Ratio is 0.50 for 2024, indicating moderate cash conversion efficiency. Free Cash Flow has declined by 61.29% from 2023 to 2024, which may impact future liquidity if the trend continues. The cash flow from operations remains positive, providing some financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	395.46M	401.81M	513.97M	332.11M	224.35M	208.26M
Gross Profit	374.68M	381.02M	494.67M	312.59M	203.62M	119.45M
EBITDA	327.55M	548.94M	1.41B	595.15M	-231.90M	-2.66B
Net Income	46.45M	231.72M	1.08B	419.56M	-346.56M	-2.83B
Balance Sheet
Total Assets	16.09B	16.24B	15.84B	15.02B	14.61B	15.08B
Cash, Cash Equivalents and Short-Term Investments	292.23M	293.40M	122.52M	245.15M	179.18M	258.61M
Total Debt	6.17B	6.17B	6.05B	6.31B	6.30B	6.39B
Total Liabilities	6.78B	6.74B	6.64B	6.86B	6.81B	6.95B
Stockholders Equity	9.31B	9.50B	9.19B	8.16B	7.80B	8.13B
Cash Flow
Free Cash Flow	113.90M	114.75M	296.49M	218.14M	90.40M	12.91M
Operating Cash Flow	113.90M	114.75M	296.50M	218.28M	90.40M	12.94M
Investing Cash Flow	-85.89M	-47.41M	-45.57M	-63.19M	-26.26M	-79.79M
Financing Cash Flow	45.53M	103.54M	-363.73M	-89.13M	-101.97M	209.23M

Langham Hospitality Investments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1270, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.49, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.16 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1270.

Langham Hospitality Investments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1221	64 Neutral	HK$1.83B	17.32	2.49%	1.95%	-7.90%	58.19%
0184	62 Neutral	$728.03M	4.06	5.57%	4.67%	-3.51%	-31.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1270	58 Neutral	HK$1.68B	33.80	0.50%	3.37%	-22.04%	-90.42%
0022	51 Neutral	HK$312.66M	-15.38	―	―	―	―
0201	49 Neutral	HK$626.29M	-22.58	-0.66%	―	3.97%	41.51%
0078	40 Neutral	HK$503.32M	-0.27	-29.62%	―	-0.60%	34.74%

Langham Hospitality Investments Corporate Events

Langham Hospitality Completes Payment and Maintains Public Float

Langham Hospitality Investments announced the completion of payment for outstanding hotel management and license fees for the six-month period ending December 31, 2024. The Stock Exchange granted approval for listing and dealing in Deferred SSUs, with 46,320,885 new SSUs issued to Great Eagle’s Qualifying Shareholders. This issuance ensures the company maintains a sufficient public float, holding approximately 25.18% of the issued SSUs by the public.

Langham Hospitality Issues Deferred SSUs to Settle Fees and Maintain Public Float

Langham Hospitality Investments announced the issuance of 46,320,885 Deferred Share Stapled Units (SSUs) to Qualifying Shareholders of Great Eagle as part of a Distribution in Specie, priced at HK$0.470 per SSU. This issuance is intended to settle outstanding management fees for the period ending December 2024 and ensure compliance with public float requirements. Following this issuance, Great Eagle will indirectly hold approximately 74.81% of the enlarged issued SSUs, maintaining a sufficient public float of about 25.18%.