(08-03-2015, 11:18 AM)Tiggerbee Wrote: [ -> ]Dorsett, a hospitality group listed in HK, is currently valued at 0.64x book value. Hotel assets are valued at cost. Stock price was last traded at $1.27 HKD. It's RNAV is at least $7 HKD. Estimated annual dividend payout is about 4c, which translates to about 3.1% yield. Most of its hotels are located in HK, with the rest in China, Malaysia, UK and Singapore.
So it's trading below 0.2x RNAV. In general, most of the hotels listed in HK are trading way below book value. Amara is still not as cheap in terms of valuation. Having said that, the stock prices of hospitality companies in HK has been on a down trend for the past few years and has yet to bottom out. It might take years for investors' interest to return to this sector.
Another sector that has been on a downward spiral since 2011 is the departmental store sector in China. Earnings peaked in 2013 and stock prices of this sector had been sold down to below book value, and about 49-50% below RNAV. Even our dear GIC is suffering heavy losses. It was vested in Intime at $9.90 and has recently cut losses at $4.3+. The PE of a Intime and it's peers are trading at about 7x PE (TTM) with 5-8% dividend yield.
In conclusion, we can't value stocks based on book value of its property assets alone. Investors sentiments and perception of the sector/industry can remain pessimistic for years before interests return to the sector. In return, what one might be compensated for is hopefully the high dividend yield while waiting for the value to be realized. So in my view, Amara do not meet the dividend yield criteria. It's valuation is not that cheap either.
wah Dorsett got delisting offer. Equiv to abt HK$1.80. Missed out on this.
1 cts (final) + 2 cts (special) dividends... around 6.5% dividend yield based on yesterday's close.
Finally some reprieve for long suffering shareholders...
I suspect more upside to come ahead.
The hotel assets are grossly undervalued, not unlike a few other coys like St******. the difference is that Amara is going to open a shopping mall, hotel and office tower in shanghai. huge development, many rooms, many leasable space. in Jing an qu. Like novena of Singapore. Near the mrt. And a pretty busy area.
This will add a significant chunk of value. you may do your own earnings projection but to put things in perspective, Amara has 2 hotels and a shopping mall in Singapore. The shanghai expansion is close to doubling Amara's profit centres.
not only that, if you chart Amara's growth over the decades, you see a pattern of accelerating growth. from one hotel in tanjong pagar, it took awhile to get the 2nd, the shopping mall and office came online, and another hotel in bangkok and now 1 hotel, mall and a shopping centre in shanghai. each significant development taking lesser and lesser time. essentially with more and more income producing properties or profit centres, Amara will experience accelerating growth not unlike a compounding effect.
will be interesting to speak to management to find out about their expansion. but check who recently joined the company. and her credentials. im willing to bet Amara's founding family is not willing to just stand still.
so in short 1) grossly undervalued in the first place, 2) upcoming Shanghai profit centres to start operation to add significant chunk of value 3) more income producing properties is the foundation for accelerating growth.
lets not forget it has done pretty well in its property development. boss may be conservative but he is a savy capital allocator.
Do Amara revalue its Hotels and other assets ?
(24-02-2017, 04:39 AM)babyblue Wrote: [ -> ]I suspect more upside to come ahead.
The hotel assets are grossly undervalued, not unlike a few other coys like St******. the difference is that Amara is going to open a shopping mall, hotel and office tower in shanghai. huge development, many rooms, many leasable space. in Jing an qu. Like novena of Singapore. Near the mrt. And a pretty busy area.
This will add a significant chunk of value. you may do your own earnings projection but to put things in perspective, Amara has 2 hotels and a shopping mall in Singapore. The shanghai expansion is close to doubling Amara's profit centres.
not only that, if you chart Amara's growth over the decades, you see a pattern of accelerating growth. from one hotel in tanjong pagar, it took awhile to get the 2nd, the shopping mall and office came online, and another hotel in bangkok and now 1 hotel, mall and a shopping centre in shanghai. each significant development taking lesser and lesser time. essentially with more and more income producing properties or profit centres, Amara will experience accelerating growth not unlike a compounding effect.
will be interesting to speak to management to find out about their expansion. but check who recently joined the company. and her credentials. im willing to bet Amara's founding family is not willing to just stand still.
so in short 1) grossly undervalued in the first place, 2) upcoming Shanghai profit centres to start operation to add significant chunk of value 3) more income producing properties is the foundation for accelerating growth.
lets not forget it has done pretty well in its property development. boss may be conservative but he is a savy capital allocator.
The shanghai expansion is close to doubling Amara's profit centres?
Singapore:
Amara Singapore = 388 rooms
Amara Sanctuary = 140 rooms
http://www.hotelnewsnow.com/Articles/123...ore-hotels
Shanghai:
Amara Shanghai = 343 rooms (~ 65% of rooms in Singapore)
http://hotelnewsnow.com/Articles/65311/S...-July-2016
Revpar in Shanghai < 50% of Singapore
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Anyone heard any news on this counter? What's behind the sudden surge?
(12-04-2017, 01:41 PM)persia Wrote: [ -> ]Anyone heard any news on this counter? What's behind the sudden surge?
There's an article in the New Paper today that has a BUY for this stock (by RHB) at target price of 0.88, I guess this is why. But we have to do our own due diligence.
(12-04-2017, 07:34 PM)melissalee7676 Wrote: [ -> ] (12-04-2017, 01:41 PM)persia Wrote: [ -> ]Anyone heard any news on this counter? What's behind the sudden surge?
There's an article in the New Paper today that has a BUY for this stock (by RHB) at target price of 0.88, I guess this is why. But we have to do our own due diligence.
Ah, I c... thanks for sharing..