Langham Hospitality Investments (1270) AI Stock Analysis

• Market Cap: HK$1.83B
• Dividend Yield: 3.08%
• Average Volume (3M): 615.03K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.60
• Revenue Growth: -22.28%
• EPS Growth: -79.09%
• Country: HK
• Employees: 1,236
• Sector: Financial
• Sector Strength: 79
• Industry: Travel Lodging
• EPS (TTM): 0.07
• Shares Outstanding: 3,444,141,000
• 10 Day Avg. Volume: 791,650
• 30 Day Avg. Volume: 615,026
• PEG Ratio: <0.01
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.10
• 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$0.48
• Price Target Upside: -9.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$0.50 ▼(-5.66%Downside)

Langham Hospitality Investments scores a 72, driven by solid profitability and an undervalued valuation. While technical indicators show strong momentum, potential overbought conditions warrant caution. The decline in revenue and free cash flow may pose risks if not addressed, but the company's high profit margins and stable financial position are significant strengths.

Langham Hospitality Investments Business Overview & Revenue Model

Company Description

Langham Hospitality Investments (1270) is a Hong Kong-based trust established to own and invest in hospitality properties. The trust is focused primarily on high-end hotel assets and operates under the Langham and Cordis brand names. Langham Hospitality Investments is committed to providing luxury accommodations and services, targeting both business and leisure travelers in key urban markets.

How the Company Makes Money

Langham Hospitality Investments generates revenue primarily through the leasing of its hotel properties to hotel operators. The trust earns income from fixed rental payments as well as variable rental income, which is based on the hotels' gross operating profit. In addition, Langham Hospitality Investments may benefit from revenue sharing agreements with its hotel operators. The company leverages its strategic partnerships with established hotel brands to enhance its market presence and maximize revenue potential.

Langham Hospitality Investments Financial Statement Overview

Summary

Langham Hospitality Investments exhibits strong profitability with high gross and net profit margins, and a reasonable debt position. However, concerns arise from a 21.83% revenue decline and a significant drop in free cash flow, which may impact future liquidity and financial health if not addressed.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	401.81M	513.97M	335.69M	226.22M	210.24M
Gross Profit	381.02M	494.67M	312.59M	147.20M	119.45M
EBITDA	548.94M	1.41B	595.15M	-231.90M	-2.66B
Net Income	231.72M	1.08B	419.56M	-346.56M	-2.83B
Balance Sheet
Total Assets	16.24B	15.84B	15.02B	14.61B	15.08B
Cash, Cash Equivalents and Short-Term Investments	293.40M	122.52M	245.15M	179.18M	258.61M
Total Debt	6.17B	6.05B	6.31B	6.30B	6.39B
Total Liabilities	6.74B	6.64B	6.86B	6.81B	6.95B
Stockholders Equity	9.50B	9.19B	8.16B	7.80B	8.13B
Cash Flow
Free Cash Flow	114.75M	296.49M	218.14M	90.40M	12.91M
Operating Cash Flow	114.75M	296.50M	218.28M	90.40M	12.94M
Investing Cash Flow	-47.41M	-45.57M	-63.19M	-67.86M	-39.29M
Financing Cash Flow	103.54M	-363.73M	-89.13M	-101.97M	209.23M

Langham Hospitality Investments Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.53
• 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:1270, the sentiment is Positive. The current price of 0.53 is above the 20-day moving average (MA) of 0.49, above the 50-day MA of 0.47, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 74.87 is Negative, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1270.

Langham Hospitality Investments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1270	72 Outperform	HK$1.83B	7.76	2.48%	3.08%	-22.28%	-79.09%
0184	70 Outperform	HK$768.85M	3.01	7.95%	3.14%	-2.67%	16.46%
1221	61 Neutral	HK$1.60B	19.83	1.91%	1.10%	-3.42%	28.95%
Sector *	58 Neutral	$12.55B	5.32	-2.71%	5.38%	5.88%	-56.03%
0201	52 Neutral	HK$662.08M	―	-1.07%	―	16.36%	-35.14%
0022	46 Neutral	HK$418.84M	―	-5.36%	19.05%	-12.78%	-50.72%
0078	35 Underperform	€566.23M	―	-36.48%	―	1.87%	-42.24%

Langham Hospitality Investments Corporate Events

Langham Hospitality Investments AGM Resolutions Approved

Langham Hospitality Investments announced that all resolutions proposed at its Annual General Meeting held on May 9, 2025, were approved by the holders of Share Stapled Units. The resolutions included the adoption of financial statements, declaration of a final distribution, re-election of directors, and granting a mandate to issue new Share Stapled Units. This approval reflects strong shareholder support and may positively impact the company’s operational strategies and market confidence.