The Daily Pulse of Bursa Malaysia

Shangri-La Hotels takes centrestage in Malaysia and Hong Kong

zaclim
Publish date: Mon, 15 Apr 2024, 08:58 AM
zaclim
0 99
Daily Pulse is a blog that provides daily stock updates and insights on the Bursa Malaysia.

Follow us in telegram for more daily discussion
https://t.me/xifuinvcommunity

Shangri-La Hotels (Malaysia) Bhd is looking strong in terms of share price movement. The counter has already charted a bullish breakout on high trading volume. At the current level, the counter is trading above its net asset value of RM1.81 as at Dec 31, 2023.

But the counter is deemed as undervalued given that Shangri-La Malaysia has five hotels and some landbank, which are sitting at book value. Even if the hospitality group fully writes down its loss-making Myanmar associate, it is still commanding good valuations.

Shangri-La Malaysia’s share of losses from its associated companies in Myanmar rose to RM17.7 million from RM4.5 million in 2022, mainly attributable to the higher fair value losses arising from the year-end revaluation of Sule Square and Shangri-La Serviced Apartments in Yangon.

The Group's unrecognised share of losses for FY23 in Traders Yangon Company Ltd (TYCL) in which it has a 23.5% shareholding amounted to RM8.852 million. TYCL owns and operates Sule Shangri-La Yangon, the Group's associate hotel.

Notably, Hong Kong listed Shangri-La Asia Ltd has also been going on an uptrend recently. There are speculations of Shangri-La Malaysia being taken private and this will benefit Shangri-La Hong Kong.

The hotel operator has chalked in good operating profit with strong operating cash inflow. Investors are also happy the company declared a 7 sen per share dividend in FY23 from no dividends in the previous year. More so because it was still loss-making in FY22.

Shangri-La Malaysia managed to return to the black with a net profit of RM16 million from a net loss of RM40.7 million in the previous year. Its revenue rose to RM503.7 million in FY23 from RM363.4 million in FY22.

With the improving tourist arrivals in the countries Shangri-La Malaysia is present, its financial performance stands to show much better growth moving forward.

More articles on The Daily Pulse of Bursa Malaysia
Glomac flies high, going higher on stronger sales

Created by zaclim | May 27, 2024

Glomac Bhd has touched a multi-year high of 44 sen recently. It is likely to trend higher given its huge growth potential.

Evergreen maximising golden potential in pawnbroking and gold trading businesses

Created by zaclim | May 27, 2024

Evergreen Max Cash Capital Bhd has garnered much trading interest in the past month hitting a high to close at 48 sen recently. Can it surpass its high of 56 sen soon?

Aemulus may be in the red but draws investors’ interest

Created by zaclim | May 24, 2024

Aemulus Holdings Bhd posted its 6th losses in 2Q results recently. However, it is garnering investors attention as semiconductor industry takes a positive spin.

Bahvest trends higher as gold prices hit record high

Created by zaclim | May 23, 2024

ahvest Resources Bhd has been going on a good run, hitting a new high of 62 sen recently. Sustainably higher gold prices should drive investors to this counter.

Perdana Petroleum trades on new highs as it rides on come new jobs.

Created by zaclim | May 21, 2024

Perdana Petroleum is poised for further upside after touching its new high recently. It is a key beneficiary of an increase in upstream maintenance activities, drawing in plenty of trading activities.

MGB’s swelling order book anchors its forward earnings

Created by zaclim | May 20, 2024

MGB Bhd has been on the uptrend as it picks up contracts to ensure growth is sustainable. Its undemanding valuations should draw investors in.

Cengild may see a boost in share price after trading sideways since its listing

Created by zaclim | May 17, 2024

Cengild is on a downtrend since its listing in 2022 although it managed to touch a high of 46 sen in August 2023. But there seems to be more excitement for the counter as it rises from the oblivion.

MN Holdings holds on to recent highs but for how long?

Created by zaclim | May 14, 2024

MN Holdings Bhd has risen 134% in the past year to close at 74 sen on May 13. With exposure in the booming data centre and gree energy play, there could be further upside for the company

MCE hits new high with Brahmal’s entry, should see more upside

Created by zaclim | May 13, 2024

Little-known MCE Holdings took the market by the storm when it announced the emergence of savvy investor as its substantial shareholder. Will this positive news help sustain its uptrend?

Fajarbaru poised to break new highs as it ramps up jobs

Created by zaclim | May 13, 2024

Fajarbaru Builder Group Bhd saw a year-high of 37 recently and should trend higher in the near term as it is a beneficiary of the improving construction sector

Discussions
Be the first to like this. Showing 0 of 0 comments

Post a Comment