Wanda Hotel Development Co. Ltd. (169) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

H World Group Ltd.

NagaCorp Ltd.

Wanda Hotel Development Co. Ltd.

Sino Hotels (Holdings) Ltd.

Guoco Group Ltd.

Shangri-La Asia Ltd.

Magnificent Hotel Investments Ltd.

Great Eagle Holdings Ltd.

The Hongkong & Shanghai Hotels Ltd.

Regal Hotels International Holdings Ltd.

Paliburg Holdings Ltd.

Why is Wanda Hotel Development Co. Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 7.68%

Poor long term growth as Net Sales has grown by an annual rate of 2.12%

Flat results in Jun 25

CASH AND EQV(HY) Lowest at HKD 224.48 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 0.8 times
NET SALES(Q) Lowest at HKD 57.16 MM

With ROE of 6.16%, it has a Attractive valuation with a 1.45 Price to Book Value

Over the past year, while the stock has generated a return of -83.45%, its profits have fallen by -37.6%

Below par performance in long term as well as near term

Along with generating -83.45% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wanda Hotel Development Co. Ltd. should be less than 10%
Overall Portfolio exposure to Hotels & Resorts should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wanda Hotel Development Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wanda Hotel Development Co. Ltd.

-100.0%

-0.60

97.32%

Hang Seng Hong Kong

8.99%

0.36

24.71%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.12%

EBIT Growth (5y)

74.91%

EBIT to Interest (avg)

9.54

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.38

Tax Ratio

8.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

18.04%

ROE (avg)

7.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.45

EV to EBIT

13.81

EV to EBITDA

11.17

EV to Capital Employed

1.55

EV to Sales

2.57

PEG Ratio

Dividend Yield

ROCE (Latest)

11.25%

ROE (Latest)

6.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 347.9 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 0.97 times

RAW MATERIAL COST(Y)

Fallen by -43.96% (YoY

PRE-TAX PROFIT(Q)

At HKD -3.49 MM has Grown at 99.59%

NET PROFIT(Q)

At HKD -31.08 MM has Grown at 93.68%

-7What is not working for the Company

CASH AND EQV(HY)

Lowest at HKD 224.48 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.8 times

NET SALES(Q)

Lowest at HKD 57.16 MM

Here's what is working for Wanda Hotel Development Co. Ltd.

Operating Cash Flow

Highest at HKD 347.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Debtors Turnover Ratio

Highest at 0.97 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Pre-Tax Profit

At HKD -3.49 MM has Grown at 99.59%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -31.08 MM has Grown at 93.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Raw Material Cost

Fallen by -43.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Wanda Hotel Development Co. Ltd.

Net Sales

At HKD 57.16 MM has Fallen at -88.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Net Sales

Lowest at HKD 57.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Cash and Eqv

Lowest at HKD 224.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio