Saham: KLSE-SHANG - PT. Shangri-la Hotels (Malaysia) Berhad

$SHANG / 5517 (SHANGRI-LA HOTELS (MALAYSIA) BERHAD)
5 interesting things I observed from SHANGRI-LA HOTELS:-

1) Share price dropped 60% since 5 years ago. I love beaten down stocks like this.
2) Dividends resumed for 1st time since Covid-19 broke out. Management is confident.
3) Heavy sell-down since 2023 should subside since the exit of major shareholder (or manipulator) - Dr. Yu, capping the downside.
4) Top 30 shareholders control a whopping 84% of total shares. When sentiment changes, expect major share price swing upwards.
5) Volume in 2023-2024 has been extremely huge, compared to previous years. Not sure how this info is useful though.

Not everyone can afford to stay a night at Shangri-La Hotel. But almost anyone can buy SHANG stock around RM2.10.

The hotel business is simple to understand & tangible. Revenue had increased since the lockdowns came to an end.

This could be your chance to own a luxury hotel at multi-year low price. But the question is, could share price even rise?

$SHANG / 5517 (SHANGRI-LA HOTELS (MALAYSIA) BERHAD)

Sharing from broker

*Shangri-la: Riding on the trend of tourism revival*

🛎 Shang owns 5 hotels in Malaysia: 1 in KL, 3 in Penang, 1 in Sabah.

🛎 The average occupancy rate is recovering, reaching *67% in 1QFY24 vs. 71%-73% in FY17-FY19*.

🛎 The average revenue per available room in FY23 *was only 1% lower than the FY19 level*, primarily driven by a strong rebound in room rates for its Penang hotels, despite their smaller contribution.

🛎 Notably, the Sabah hotel, a major contributor accounting for 30% of FY23 PBT, had its revenue per available room 19% below the FY19 level. This suggests *potential upside for the group if the Sabah hotel recovers*.

🛎 The Sabah hotel was historically popular with China tourists (50% during pre-covid vs. current 20%-30%). Hence, visa-free entry for Chinese nationals could accelerate the hotel's recovery.

🛎 Shang is considered a *dividend stock*, with the majority of its earnings distributed as dividends. In FY17-FY19, the dividend payout ratio was 91%-104%.

🛎 It distributed 15sen/year during the periods and it was valued at targeted div yield of 2.8%-3.2%.

🛎 Assuming a RM40-44mil PAT in FY24, this indicates a *dividend of approx. 10 sen*, using targeted div yield of 3.2% (take the higher range to exclude Dr Yu effect), this implies a *TP of RM3.12*. A full recover to pre-covid level (dividend: 15 sen) would imply a *TP of RM4.69*.

🛎 Technical wise, the share price appears to be *bottoming out* with support close to the current level.
(I) Pattern: it has formed an inverse head and shoulders pattern with support at RM2.14-2.20.
(ii) 120MA: RM2.17 serve as another support for the share price.
(ii) An uptrend will be confirmed upon breaking through RM2.64, which is likely if the fundamentals and hotel recovery remain solid.

$KLSE-ARTRONIQ
$APB / 5568 (APB RESOURCES BERHAD)
$NOTION / 0083 (NOTION VTEC BERHAD)
$YNHPROP / 3158 (YNH PROPERTY BERHAD)
$SHANG / 5517 (SHANGRI-LA HOTELS (MALAYSIA) BERHAD)

$SHANG / 5517 (SHANGRI-LA HOTELS (MALAYSIA) BERHAD)
$YNHPROP / 3158 (YNH PROPERTY BERHAD)
$RAPID / 7765 (RAPID SYNERGY BERHAD)
$IMASPRO / 7222 (IMASPRO CORPORATION BERHAD)

SC sues Dr Yu Kuan Chon for market manipulation

PETALING JAYA: The Securities Commission (SC) has initiated a civil suit at the Kuala Lumpur High Court against Datuk Dr Yu Kuan Chon for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd (Shang).

SC sues Yu Kuan Chon for Shangri-La share manipulation, seeks over RM26mil payments

KUALA LUMPUR: The Securities Commission (SC) has sued Datuk Yu Kuan Chon for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd.

© New Straits Times Press (M) Bhd

SC sues Yu Kuan Chon for market manipulation

PETALING JAYA: The Securities Commission (SC) has initiated a civil suit at the Kuala Lumpur High Court against Datuk Dr Yu Kuan Chon for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd (Shang).