Magnificent Hotel Investments Limited (0201) AI Stock Analysis

• Market Cap: HK$635.24M
• Dividend Yield: N/A
• Average Volume (3M): 308.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 3.97%
• EPS Growth: 41.51%
• Country: HK
• Employees: 568
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): >-0.01
• Shares Outstanding: 8,947,052,000
• 10 Day Avg. Volume: 370,422
• 30 Day Avg. Volume: 308,487
• PEG Ratio: -0.42
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 6.18
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ―

Magnificent Hotel Investments Limited exhibits a solid balance sheet but is weighed down by persistent profitability challenges and weak cash flow management. The technical indicators suggest bearish sentiment, with the stock trading below key moving averages. The negative P/E ratio underscores the need for improved earnings consistency. Despite recent revenue growth, the overall outlook remains cautious due to these financial and market challenges.

Magnificent Hotel Investments Limited Business Overview & Revenue Model

Company Description

Magnificent Hotel Investments Limited (0201) is a premier investment company specializing in the hospitality sector. The company focuses on acquiring, developing, and managing luxury hotels and resorts in key tourist destinations. With a portfolio that includes a range of high-end accommodations, Magnificent Hotel Investments aims to provide exceptional guest experiences while maximizing asset value through strategic management and innovative service offerings.

How the Company Makes Money

Magnificent Hotel Investments generates revenue primarily through the operations of its hotel properties, which include room bookings, food and beverage sales, and various ancillary services such as spa and wellness offerings. The company also engages in real estate development, allowing it to profit from the appreciation of property values over time. Additionally, revenue is supplemented through partnerships with travel agencies, online booking platforms, and loyalty programs that drive guest traffic to its hotels. These strategic collaborations help increase occupancy rates and enhance brand visibility, contributing to overall earnings.

Magnificent Hotel Investments Limited Financial Statement Overview

Summary

The company demonstrates strong balance sheet stability with a high equity ratio and manageable debt levels. However, profitability issues and inconsistent cash flow performance are significant concerns. Revenue growth is a positive sign, but it needs to translate into consistent profitability to improve financial health.

Income Statement

The company has shown a volatile revenue trajectory with a notable recovery in the most recent year, posting a revenue growth rate of 16.36% from the previous year. However, profitability remains a challenge, with persistent negative net income and fluctuating EBIT margins. Gross profit margins have improved significantly, but net profit margins remain negative due to high expenses relative to revenue.

Balance Sheet

The balance sheet is relatively strong, with a high equity ratio of 82.56% indicating financial stability. The debt-to-equity ratio is manageable at 0.17. The company's return on equity has been inconsistent, reflecting the challenges in achieving consistent profitability.

Cash Flow

Cash flow performance is mixed, with a significant decline in operating cash flow in the most recent period. Free cash flow generation has been erratic, and the inability to consistently convert operating cash flow into net income efficiently is concerning. The lack of positive free cash flow growth and operational cash flow to net income ratio emphasizes the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	538.40M	525.73M	451.81M	439.48M	326.40M	223.41M
Gross Profit	218.37M	203.47M	112.08M	171.01M	46.32M	3.11M
EBITDA	129.30M	113.77M	169.91M	210.70M	93.37M	-114.26M
Net Income	-27.61M	-44.77M	-32.91M	592.80M	65.52M	-201.71M
Balance Sheet
Total Assets	5.03B	5.00B	5.29B	5.27B	4.45B	4.37B
Cash, Cash Equivalents and Short-Term Investments	174.35M	203.14M	309.25M	265.91M	260.29M	143.32M
Total Debt	635.93M	692.54M	870.32M	851.69M	499.38M	481.42M
Total Liabilities	795.08M	865.37M	1.07B	1.03B	663.76M	631.90M
Stockholders Equity	4.22B	4.13B	4.21B	4.23B	3.78B	3.74B
Cash Flow
Free Cash Flow	106.04M	107.08M	63.31M	183.22M	88.44M	8.02M
Operating Cash Flow	117.19M	125.70M	93.23M	191.04M	98.47M	44.49M
Investing Cash Flow	-11.14M	-14.60M	-22.28M	-515.55M	-7.45M	-34.23M
Financing Cash Flow	-89.71M	-215.36M	-37.05M	363.40M	15.52M	49.00M

Magnificent Hotel Investments Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0201, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0201.

Magnificent Hotel Investments Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0184	64 Neutral	$765.45M	4.26	5.57%	4.44%	-3.51%	-31.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0253	54 Neutral	HK$135.39M	―	-4.69%	―	3.58%	-87.78%
0201	52 Neutral	HK$635.24M	―	-0.66%	―	3.97%	41.51%
0617	49 Neutral	HK$339.95M	-0.20	-19.01%	―	-2.75%	-17.31%
0219	46 Neutral	HK$281.39M	―	-4.72%	―	3.58%	-91.61%
0078	46 Neutral	HK$548.26M	-0.31	-29.62%	―	-0.60%	34.74%

Magnificent Hotel Investments Limited Corporate Events

Magnificent Hotel Investments Reports 43% Increase in Net Profit for H1 2025

Magnificent Hotel Investments Limited reported a significant increase in net profit after tax attributable to owners, reaching HK$59.3 million for the first half of 2025, up from HK$41.6 million in the same period of 2024. Despite the improved profitability, the company decided not to distribute an interim dividend, reflecting a cautious approach amid ongoing financial challenges, including a notable loss after taxation and non-controlling interests.

Magnificent Hotel Investments Reports Mixed Financial Results for H1 2025

Magnificent Hotel Investments Limited, along with Shun Ho Property Investments Limited and Shun Ho Holdings Limited, has issued a joint announcement regarding their financial performance for the first half of 2025. The companies report a significant increase in net profit before revaluation and depreciation, attributed to higher hotel revenue, reduced operating costs, and lower finance costs. However, despite these gains, the net profit after revaluation and depreciation has decreased due to a drop in property valuations in a weak market. The final interim results are expected to be announced in August 2025, and stakeholders are advised to exercise caution.

Magnificent Hotel Investments Schedules Board Meeting for Interim Results

Magnificent Hotel Investments Limited has announced that its board of directors will meet on August 22, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also address the potential payment of an interim dividend, which could impact the company’s financial strategy and stakeholder returns.