Hotel Grand Central Ltd. (H18) AI Stock Analysis

• Market Cap: S$536.08M
• Dividend Yield: 2.08%
• Average Volume (3M): 79.85K
• Price to Earnings (P/E): 59.5
• Beta (1Y): 0.28
• Revenue Growth: -5.87%
• EPS Growth: -217.39%
• Country: SG
• Employees: 1,251
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Travel Lodging
• EPS (TTM): -0.03
• Shares Outstanding: 739,426,150
• 10 Day Avg. Volume: 95,470
• 30 Day Avg. Volume: 79,846
• PEG Ratio: 0.08
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.70
• 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$0.50
• Price Target Upside: -30.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: S$0.50 ▼(-30.56%Downside)

Hotel Grand Central Ltd.'s overall stock score is primarily influenced by its strong balance sheet and improving cash flow, which provide some financial stability amid ongoing revenue and profitability challenges. Technical indicators suggest mild upward movement, though not significantly strong. Valuation remains a concern due to negative earnings, offset slightly by a reasonable dividend yield.

Hotel Grand Central Ltd. Business Overview & Revenue Model

Company Description

Hotel Grand Central Limited, together with its subsidiaries, owns, operates, and manages hotels in Singapore, Malaysia, Australia, New Zealand, and China. It also offers marketing and support, as well as management services; and invests in commercial properties. The company was incorporated in 1968 and is based in Singapore. Hotel Grand Central Limited is a subsidiary of Tan Chee Hoe & Sons Holdings Pte. Ltd.

How the Company Makes Money

Hotel Grand Central Ltd. generates revenue primarily through room bookings, which form the core of its revenue stream. The company capitalizes on its strategic locations and brand reputation to attract a diverse clientele, including tourists, corporate clients, and event organizers. Additionally, ancillary services such as food and beverage sales, spa treatments, and event hosting contribute significantly to the company's earnings. Partnerships with travel agencies, online booking platforms, and corporate agreements also play a crucial role in driving occupancy rates and expanding its customer base. The combination of direct bookings via its website and third-party collaborations helps maximize its revenue potential.

Hotel Grand Central Ltd. Financial Statement Overview

Summary

Hotel Grand Central Ltd. faces revenue and profit margin pressures, resulting in a challenging income statement performance. Despite these challenges, the company maintains a strong balance sheet with low leverage and high equity ratios, indicating financial resilience. Cash flow generation exhibits improvement, particularly in free cash flow, although profitability issues weigh on overall performance.

Income Statement

Hotel Grand Central Ltd. has experienced a decline in total revenue from $149.1M in 2023 to $142.1M in 2024, marking a revenue decrease of 4.7%. The gross profit margin decreased to 25.2% in 2024 from 39.9% in 2023. The company reported a negative net profit margin of -9.8% in 2024, indicating a substantial drop from a positive 8.0% in 2023. EBIT and EBITDA margins have also declined, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity base, with an equity ratio of 83.7% in 2024, indicating financial stability. The debt-to-equity ratio remains low at 0.06, reflecting prudent leverage levels. However, the decrease in stockholders' equity from $1.32B in 2023 to $1.26B in 2024 suggests potential challenges in value retention.

Cash Flow

Free cash flow improved from negative $13.9M in 2023 to positive $11.7M in 2024, showing a positive trend. The operating cash flow to net income ratio is unfavorable due to negative net income in 2024, but the company still generated $38.1M in operating cash flow. The free cash flow to net income ratio is also skewed by the negative net income, which impacts the overall cash flow analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.37M	149.13M	143.51M	123.06M	93.07M
Gross Profit	34.12M	59.48M	107.97M	93.26M	69.07M
EBITDA	33.11M	46.64M	34.18M	41.64M	62.43M
Net Income	-13.99M	11.87M	845.00K	13.95M	37.33M
Balance Sheet
Total Assets	1.51B	1.56B	1.55B	1.50B	1.53B
Cash, Cash Equivalents and Short-Term Investments	296.73M	302.22M	297.52M	230.87M	228.96M
Total Debt	73.65M	67.72M	31.02M	19.45M	32.68M
Total Liabilities	245.83M	230.50M	201.19M	176.81M	195.57M
Stockholders Equity	1.26B	1.32B	1.35B	1.32B	1.33B
Cash Flow
Free Cash Flow	11.66M	-13.89M	8.24M	14.06M	10.63M
Operating Cash Flow	38.12M	39.95M	43.33M	37.42M	23.76M
Investing Cash Flow	-25.28M	-53.59M	44.42M	-13.89M	39.55M
Financing Cash Flow	-10.91M	9.04M	303.00K	-14.36M	-57.79M

Hotel Grand Central Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:H18, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.70, and above the 200-day MA of 0.69, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.91 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:H18.

Hotel Grand Central Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H07	70 Neutral	S$649.35M	19.68	3.78%	1.15%	-5.47%	450.00%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
A34	61 Neutral	S$511.72M	278.13	0.47%	1.12%	6.98%	-74.40%
B28	61 Neutral	S$373.41M	202.17	0.22%	0.85%	3.46%	-73.60%
H18	55 Neutral	S$536.08M	59.50	-1.08%	2.08%	-5.87%	-217.39%
H12	―	S$240.71M	35.99	0.99%	1.36%	―	―
H15	―	S$2.75B	134.97	1.10%	0.77%	―	―

Hotel Grand Central Ltd. Corporate Events

Hotel Grand Central Ltd. Holds 57th Annual General Meeting

Hotel Grand Central Ltd. held its 57th Annual General Meeting at Hotel Chancellor @ Orchard in Singapore, where the Board of Directors and shareholders convened. The meeting was called to order by the Chairman, Mr. Tan Kok Aun, after confirming the presence of a quorum, and included introductions of the Directors, Secretary, and Auditors, highlighting the company’s commitment to transparency and governance.