Magnificent Hotel Investments Limited (0201) AI Stock Analysis

• Market Cap: HK$626.29M
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 16.36%
• EPS Growth: -35.14%
• Country: HK
• Employees: 568
• Sector: Real Estate
• Sector Strength: 60
• Industry: Travel Lodging
• EPS (TTM): >-0.01
• Shares Outstanding: 8,947,052,000
• 10 Day Avg. Volume: 3,776,230
• 30 Day Avg. Volume: 1,692,285
• PEG Ratio: 0.22
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.15
• 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, an investment holding company, invests in and operates hotels in Hong Kong, the People's Republic of China, and the United Kingdom. It operates through Hospitality Services, Property Investment, and Securities Investment segments. The company operates six hotels in Hong Kong, including Best Western Plus Hotel Kowloon, Best Western Plus Hotel Hong Kong, Best Western Hotel Causeway Bay, Ramada Hong Kong Harbour View, Ramada Hong Kong Grand, and Grand City Hotel; Magnificent International Hotel in Shanghai; and Royal Scot Hotel and Wood Street Hotel in London. It also engages in hotel management, property development and leasing, and securities dealing businesses. The company was formerly known as Magnificent Estates Limited and changed its name to Magnificent Hotel Investments Limited in November 2015. The company was incorporated in 1996 is based in Central, Hong Kong.

How the Company Makes Money

Magnificent Hotel Investments Limited generates revenue through several key streams. Firstly, the company earns income from room bookings, which is the primary revenue driver, as guests pay for accommodations at their hotels and resorts. Additionally, the company benefits from ancillary services such as food and beverage sales, conference and event hosting, and other guest services offered on their properties. Partnerships with travel agencies and online booking platforms also play a crucial role in driving occupancy rates and increasing revenue. Furthermore, the company may engage in strategic property sales or leasing agreements, which can provide significant one-time income or recurring revenue. Overall, the company's financial performance is influenced by factors such as location desirability, hotel occupancy rates, average daily rates, and the overall state of the tourism and travel industry.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
525.73M	451.81M	439.48M	326.40M	223.41M
	Gross Profit
203.47M	112.08M	171.01M	46.32M	3.11M
	EBIT
155.74M	41.14M	134.89M	15.18M	-26.95M
	EBITDA
113.77M	169.91M	210.70M	93.37M	-114.26M
	Net Income Common Stockholders
-44.77M	-32.91M	592.80M	65.52M	-201.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
203.14M	309.25M	265.91M	260.29M	143.32M
	Total Assets
5.00B	5.29B	5.27B	4.45B	4.37B
	Total Debt
692.54M	870.32M	851.69M	499.38M	481.42M
	Net Debt
489.40M	561.08M	585.78M	251.53M	338.10M
	Total Liabilities
865.37M	1.07B	1.03B	663.76M	631.90M
	Stockholders Equity
4.13B	4.21B	4.23B	3.78B	3.74B
Cash Flow		Free Cash Flow
0.00	63.31M	183.22M	88.44M	8.02M
	Operating Cash Flow
108.50M	93.23M	191.04M	98.47M	44.49M
	Investing Cash Flow
0.00	-22.28M	-515.55M	-7.45M	-34.23M
	Financing Cash Flow
0.00	-37.05M	363.40M	15.52M	49.00M

Magnificent Hotel Investments Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 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 Neutral. The current price of 0.07 is equal to the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
0201	52 Neutral	HK$626.29M	―	-1.07%	―	16.36%	-35.14%
LONKF		$1.09B	7.25	9.85%	6.96%	―	―
TSYHF		$4.28B	14.82	9.69%	1.54%	―	―
0029	59 Neutral	HK$3.19B	0.55	-0.74%	0.07%	-23.73%	-101.00%
6T8		$1.11B	57.55	5.89%	―	―	―
0419	45 Neutral	HK$557.00M	―	-83.09%	―	-24.22%	-66.67%

Magnificent Hotel Investments Limited Corporate Events

Magnificent Hotel Investments Limited Announces 2025 Annual General Meeting

Magnificent Hotel Investments Limited has announced its Annual General Meeting to be held on May 23, 2025. Key agenda items include the consideration of audited financial statements for 2024, re-election of directors, re-appointment of auditors, and a resolution to authorize the company to buy back up to 10% of its shares. This announcement reflects the company’s ongoing commitment to corporate governance and shareholder value, potentially impacting its market positioning and investor relations.

Magnificent Hotel Investments Reports 151% Profit Increase Despite Overall Loss

Magnificent Hotel Investments Limited reported a significant increase in net profit after tax attributable to owners before revaluation, depreciation, and impairment for the year ended December 31, 2024, reaching HK$104 million, a 151% rise from the previous year. Despite this profit increase, the company experienced a loss after taxation and non-controlling interests of HK$44.8 million, and the Board decided not to recommend a final dividend for the year, reflecting ongoing financial challenges and strategic decisions impacting stakeholders.

Magnificent Hotel Investments Issues Profit Warning Amid Strong Occupancy

Magnificent Hotel Investments Limited, Shun Ho Property Investments Limited, and Shun Ho Holdings Limited have issued a profit warning for the financial year ending December 2024. Despite achieving over 90% hotel occupancy and increased hotel revenue, the companies expect a significant rise in net profit before revaluation and depreciation due to reduced costs and no extraordinary tax expenses. However, the net profit after revaluation and depreciation is expected to decrease due to a drop in property valuations amid a weak property market.

Magnificent Hotel Investments Schedules Board Meeting for Final Results

Magnificent Hotel Investments Limited has announced a board meeting scheduled for March 14, 2025, to discuss and approve the company’s final results for the year ended December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact shareholder returns and the company’s financial strategy.

Magnificent Hotel Announces Change in Hong Kong Share Registrar

Magnificent Hotel Investments Limited, Shun Ho Property Investments Limited, and Shun Ho Holdings Limited have announced a change in their Hong Kong Share Registrar and Transfer Office. Effective from March 12, 2025, the responsibilities will be transferred to Tricor Investor Services Limited. This change may affect stakeholders who are required to lodge applications for registration of share transfers with the new office and collect any uncollected share certificates after the specified date.