Comparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Magnificent Hotel Investments Ltd. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 16.65% and Operating profit at 19.88% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With ROE of -0.83%, it has a Expensive valuation with a 0.16 Price to Book Value
- Over the past year, while the stock has generated a return of -4.11%, its profits have fallen by -22.6%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -4.11% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Magnificent Hotel Investments Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Magnificent Hotel Investments Ltd.
-4.11%
-0.45
27.92%
Hang Seng Hong Kong
8.25%
0.41
19.93%
Quality key factors
Factor
Value
Sales Growth (5y)
16.65%
EBIT Growth (5y)
19.88%
EBIT to Interest (avg)
1.25
Debt to EBITDA (avg)
3.75
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
0.09
Tax Ratio
27.56%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0.88%
ROE (avg)
3.00%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.16
EV to EBIT
65.20
EV to EBITDA
7.28
EV to Capital Employed
0.25
EV to Sales
2.16
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
0.38%
ROE (Latest)
-0.83%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
Bullish
Bollinger Bands
Sideways
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 254.74 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 10.81 %
INTEREST COVERAGE RATIO(Q)
Highest at 473.45
INVENTORY TURNOVER RATIO(HY)
Highest at 395.32 times
PRE-TAX PROFIT(Q)
At HKD -3.73 MM has Grown at 84.76%
NET PROFIT(Q)
At HKD -10.2 MM has Grown at 62.73%
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 53.8% (YoY
Here's what is working for Magnificent Hotel Investments Ltd.
Operating Cash Flow
Highest at HKD 254.74 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Interest Coverage Ratio
Highest at 473.45
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at 10.81 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
At HKD -3.73 MM has Grown at 84.76%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Net Profit
At HKD -10.2 MM has Grown at 62.73%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
Inventory Turnover Ratio
Highest at 395.32 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at HKD 69.49 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (HKD MM)
Here's what is not working for Magnificent Hotel Investments Ltd.
Raw Material Cost
Grown by 53.8% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






