Frasers Hospitality Trust (ACV) AI Stock Analysis

• Market Cap: S$1.35B
• Dividend Yield: 2.93%
• Average Volume (3M): 4.36M
• Price to Earnings (P/E): 74.5
• Beta (1Y): 0.49
• Revenue Growth: 7.02%
• EPS Growth: -79.65%
• Country: SG
• Employees: 15
• Sector: Real Estate
• Sector Strength: 63
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.01
• Shares Outstanding: 1,926,073,900
• 10 Day Avg. Volume: 5,000,749
• 30 Day Avg. Volume: 4,363,283
• PEG Ratio: 0.05
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.05
• 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: S$0.70
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: S$0.50 ▼(-28.57%Downside)

Frasers Hospitality Trust shows strong financial performance with efficient cash flow management and a solid operational structure. However, the stock is technically overbought, and the high P/E ratio suggests potential overvaluation. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Balance sheet improvement

Strengthened balance sheet post SSW divestment, bringing gearing down to 35.3%.

MICE events recovery

Frasers Hospitality Trust is seen as a key beneficiary from a global recovery in MICE events.

Overseas growth

Overseas continues to lead growth with higher gross operating profits across most markets.

Negative Factors

Increased tax burden

Potential tax burden to increase from 37.5% from 15% from its Australia assets, potential 15% cut in DPU estimated.

Tax impact in Australia

Disqualification for preferential tax in Australia will contribute to a significant negative impact on DPUs.

Taxes and interest costs

Full-year DPU below estimates due to higher taxes and interest cost.

Frasers Hospitality Trust Business Overview & Revenue Model

Company Description

Frasers Hospitality Trust (FHT) is a global hospitality trust that invests in a diversified portfolio of income-producing real estate assets used predominantly for hospitality purposes. It is listed on the Singapore Exchange and focuses on properties located in prime locations across Asia, Australia, and Europe. FHT's portfolio includes hotels and serviced residences that are managed by renowned international hotel operators, providing guests with high-quality lodging experiences.

How the Company Makes Money

Frasers Hospitality Trust generates revenue primarily through the leasing and management of its portfolio of hotels and serviced residences. The company earns income from the rental fees charged to hotel operators who manage the day-to-day operations of the properties. Additionally, FHT benefits from variable income streams based on the performance of these properties, such as revenue share agreements or management fees. Strategic partnerships with leading hotel brands and operators enhance the trust's ability to attract guests and optimize occupancy rates, contributing significantly to its earnings.

Frasers Hospitality Trust Financial Statement Overview

Summary

Frasers Hospitality Trust demonstrates solid financial health with strong cash flow management and a robust operational structure. However, the declining net profit margin and low return on equity present potential challenges. The company maintains a prudent leverage position, supporting long-term financial stability.

Income Statement

The company shows a positive revenue growth rate of 7.58% from the previous year, indicating a recovering trend. The gross profit margin stands at 62.59%, which is strong. However, the net profit margin decreased significantly due to reduced net income, impacting overall profitability metrics. The EBIT and EBITDA margins remain healthy at 56.78% and 60.62%, respectively, reflecting efficient operations.

Balance Sheet

The debt-to-equity ratio is 0.59, suggesting a moderate level of leverage with manageable debt levels. The return on equity is relatively low at 1.60%, indicating limited returns for shareholders. The equity ratio is 59.32%, showing a solid financial foundation with substantial equity backing total assets.

Cash Flow

The free cash flow growth rate is 7.81%, demonstrating robust cash generation capabilities. The operating cash flow to net income ratio is high at 3.79, indicating efficient cash flow management. The free cash flow to net income ratio also remains strong at 3.77, showcasing the company's ability to convert profit into cash effectively.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
155.45M	132.53M	123.20M	95.86M	85.53M	88.57M
	Gross Profit
107.99M	82.94M	91.09M	60.43M	48.86M	50.25M
	EBIT
95.33M	75.25M	77.29M	86.82M	44.66M	-104.12M
	EBITDA
77.04M	80.33M	77.29M	91.04M	48.59M	-100.26M
	Net Income Common Stockholders
123.26M	20.29M	91.90M	58.32M	16.31M	-113.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
102.53M	94.37M	88.13M	123.88M	78.19M	92.47M
	Total Assets
2.13B	2.13B	2.07B	2.09B	2.35B	2.36B
	Total Debt
755.66M	745.00M	704.45M	759.74M	991.59M	889.34M
	Net Debt
653.13M	650.63M	616.32M	635.86M	913.40M	796.87M
	Total Liabilities
852.20M	868.29M	794.53M	839.71M	1.10B	1.01B
	Stockholders Equity
1.27B	1.27B	1.28B	1.25B	1.25B	1.35B
Cash Flow		Free Cash Flow
77.96M	76.51M	70.97M	27.97M	38.71M	59.63M
	Operating Cash Flow
78.71M	76.92M	71.41M	28.29M	39.22M	60.32M
	Investing Cash Flow
-27.51M	-39.13M	9.57M	301.46M	-8.85M	-9.59M
	Financing Cash Flow
-25.96M	-32.39M	-113.10M	-276.21M	-43.59M	-45.64M

Frasers Hospitality Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:ACV, the sentiment is Positive. The current price of 0.7 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.64, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:ACV.

Frasers Hospitality Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P40U	76 Outperform	S$1.17B	17.47	4.09%	7.06%	2.00%	224.44%
HMN	74 Outperform	$3.32B	14.52	5.22%	7.78%	3.18%	-0.50%
AU8U	67 Neutral	S$1.20B	79.35	-0.91%	7.65%	-7.66%	-145.74%
ACV	62 Neutral	S$1.35B	74.47	1.45%	2.93%	7.02%	-79.65%
Sector *	61 Neutral	$2.86B	10.96	0.41%	6.08%	5.73%	-21.25%
Q5T	61 Neutral	S$1.14B	24.35	2.51%	7.36%	0.84%	-64.42%
J85	54 Neutral	$981.36M	67.98	0.77%	7.25%	0.94%	-88.38%

Frasers Hospitality Trust Corporate Events

Frasers Hospitality Trust Announces Proposed Privatization

Frasers Hospitality Trust has announced a proposed privatization through a trust scheme of arrangement, which involves the acquisition of all issued stapled securities by Frasers Property Hospitality Trust Holdings. This move requires approval from the stapled securityholders and the High Court of Singapore’s leave to convene a Scheme Meeting, indicating a strategic shift in the company’s operational structure.

The most recent analyst rating on (SG:ACV) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Frasers Hospitality Trust stock, see the SG:ACV Stock Forecast page.

Frasers Hospitality Trust Announces Privatization Plan

Frasers Hospitality Trust is set to undergo privatization through a trust scheme of arrangement, as announced by Merrill Lynch (Singapore) Pte. Ltd. The acquisition involves the purchase of all issued stapled securities of Frasers Hospitality Trust by Frasers Property Hospitality Trust Holdings. This move is in compliance with the Singapore Code on Take-overs and Mergers. Merrill Lynch, along with other financial advisers, is facilitating this acquisition. This privatization could potentially streamline operations and enhance strategic flexibility for Frasers Hospitality Trust, impacting its stakeholders and market positioning.

The most recent analyst rating on (SG:ACV) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Frasers Hospitality Trust stock, see the SG:ACV Stock Forecast page.

Frasers Hospitality Trust Announces Proposed Privatization

Frasers Hospitality Trust is undergoing a proposed privatization through a trust scheme of arrangement, where all issued stapled securities will be acquired by Frasers Property Hospitality Trust Holdings. This move, advised by Merrill Lynch and others, aims to comply with the Singapore Code on Take-overs and Mergers, potentially impacting stakeholders by consolidating ownership and streamlining operations.

The most recent analyst rating on (SG:ACV) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Frasers Hospitality Trust stock, see the SG:ACV Stock Forecast page.

Frasers Hospitality Trust Announces Privatization Plan

Frasers Hospitality Trust has announced a proposed privatization through a trust scheme of arrangement. This involves the acquisition of all issued stapled securities by Frasers Property Hospitality Trust Holdings, excluding those held by TCC Group Investments Limited and Frasers Property Limited. The move is aimed at streamlining operations and is in compliance with the Singapore Code on Take-overs and Mergers.

The most recent analyst rating on (SG:ACV) stock is a Buy with a S$0.70 price target. To see the full list of analyst forecasts on Frasers Hospitality Trust stock, see the SG:ACV Stock Forecast page.

Frasers Hospitality Trust Faces Legal Setback in Malaysia

Frasers Hospitality Trust has announced that the Malaysia Court of Appeal has overturned a previous High Court decision in favor of NVSB, citing procedural grounds rather than substantive issues. The company is consulting with professional advisers to consider its options and will provide further updates as developments occur.

Frasers Hospitality Trust Initiates Strategic Review

Frasers Hospitality Trust has announced a strategic review of its operations, considering various options to align with the interests of its Stapled Securityholders. While no specific transactions are confirmed, the company emphasizes caution for stakeholders dealing with its securities and promises to disclose any significant developments in compliance with SGX-ST obligations.