Langham Hospitality Investments (1270) AI Stock Analysis

• Market Cap: HK$2.03B
• Dividend Yield: 2.71%
• Average Volume (3M): 791.22K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.61
• Revenue Growth: -22.28%
• EPS Growth: -79.09%
• Country: HK
• Employees: 1,236
• Sector: Financial
• Sector Strength: 75
• Industry: Travel Lodging
• EPS (TTM): 0.06
• Shares Outstanding: 3,444,141,000
• 10 Day Avg. Volume: 582,534
• 30 Day Avg. Volume: 791,221
• PEG Ratio: -0.16
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.90
• 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$0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: HK$0.50 ▼(-15.25%Downside)

Langham Hospitality Investments shows strong profitability and an attractive valuation with a low P/E ratio. However, technical indicators suggest caution due to overbought signals, and revenue and cash flow declines highlight potential growth and liquidity risks. The overall score reflects a balanced view of these factors.

Langham Hospitality Investments Business Overview & Revenue Model

Company Description

Langham Hospitality Investments Limited, an investment holding company, engages in the property investment business in Hong Kong. It owns and invests in a portfolio of hotels under The Langham, Hong Kong; Cordis, Hong Kong; and Eaton HK brand names. As of December 31, 2021, the company managed 26 hotels. It is also involved in the provision of administrative, financing, and treasury management services. The company was incorporated in 2013 and is based in Wanchai, Hong Kong. Langham Hospitality Investments Limited is a subsidiary of LHIL Assets Holdings Limited.

How the Company Makes Money

Langham Hospitality Investments generates revenue primarily through hotel operations, which include room rentals, food and beverage sales, and other related services provided to guests. Income is also derived from leasing agreements with hotel operators who manage the day-to-day operations of the properties. The company benefits from the high demand for luxury accommodations in Hong Kong, a major hub for business and tourism, and maintains partnerships with established hotel brands to enhance its service offerings and market reach. Additionally, Langham Hospitality Investments may earn through strategic investments and developments in the hospitality sector.

Langham Hospitality Investments Financial Statement Overview

Summary

Langham Hospitality Investments shows strong profitability with a Net Profit Margin of 57.67% and EBITDA Margin of 136.62%. The balance sheet is stable with a Debt-to-Equity Ratio of 0.65. However, revenue declined by 21.83% from 2023 to 2024, and Free Cash Flow declined by 61.29%, indicating potential risks in revenue growth and cash flow sustainability.

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: 0.59
• 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 0.59 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.51, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 72.28 is Negative, neither overbought nor oversold. The STOCH value of 91.67 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
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
1270	65 Neutral	HK$2.03B	8.64	2.48%	2.71%	-22.28%	-79.09%
KCKSF	―	$116.65M	3.12	7.95%	6.00%	―	―
1221	62 Neutral	HK$1.65B	20.41	1.91%	1.07%	-3.42%	28.95%
0201	52 Neutral	HK$662.08M	―	-1.07%	―	16.36%	-35.14%
0022	46 Neutral	HK$359.85M	―	-5.36%	19.05%	-12.78%	-50.72%
RH6B	―	€60.08M	―	-36.48%	―	―	―

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.