Here's Why We Think Hotel Properties (SGX:H15) Might Deserve Your Attention Today

Here's Why We Think Hotel Properties (SGX:H15) Might Deserve Your Attention Today

Simply Wall St ·  2023/08/28 20:52

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

投资者通常以发现 “下一件大事” 的想法为指导,即使这意味着在没有任何收入的情况下购买 “故事股票”,更不用说获利了。不幸的是,这些高风险投资通常几乎不可能获得回报,许多投资者为吸取教训付出了代价。亏损的公司总是与时间赛跑以实现财务可持续性,因此这些公司的投资者承担的风险可能超出了应有的范围。

If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Hotel Properties (SGX:H15). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

如果这种公司不是你的风格,你喜欢能创造收入甚至赚取利润的公司,那么你很可能会感兴趣 酒店物业 (SGX: H15)。尽管这并不一定说明其估值是否被低估,但该业务的盈利能力足以保证一定程度的升值,尤其是在其增长的情况下。

View our latest analysis for Hotel Properties


Hotel Properties' Improving Profits


Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. So for many budding investors, improving EPS is considered a good sign. Commendations have to be given in seeing that Hotel Properties grew its EPS from S$0.0048 to S$0.09, in one short year. When you see earnings grow that quickly, it often means good things ahead for the company. But the key is discerning whether something profound has changed, or if this is a just a one-off boost.


Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The music to the ears of Hotel Properties shareholders is that EBIT margins have grown from 3.0% to 9.9% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth.


The chart below shows how the company's bottom and top lines have progressed over time. To see the actual numbers, click on the chart.


SGX:H15 Earnings and Revenue History August 29th 2023
新加坡证券交易所:2015年上半年收益和收入记录 2023年8月29日

While profitability drives the upside, prudent investors always check the balance sheet, too.


Are Hotel Properties Insiders Aligned With All Shareholders?


It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Shareholders will be pleased by the fact that insiders own Hotel Properties shares worth a considerable sum. Notably, they have an enviable stake in the company, worth S$633m. That equates to 31% of the company, making insiders powerful and aligned with other shareholders. So there is opportunity here to invest in a company whose management have tangible incentives to deliver.


Should You Add Hotel Properties To Your Watchlist?


Hotel Properties' earnings per share growth have been climbing higher at an appreciable rate. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Hotel Properties very closely. Even so, be aware that Hotel Properties is showing 2 warning signs in our investment analysis , and 1 of those is significant...

酒店地产的每股收益增长一直在以可观的速度攀升。这种增长简直引人注目,内部人士持有的巨额投资无疑应该会提振公司的视野。当然,希望强劲的增长标志着商业经济的根本改善。从各部分的总和来看,我们绝对认为值得仔细观察 Hotel Properties。即便如此,请注意酒店地产正在显示 我们的投资分析中有两个警告信号 ,其中一个很重要...

The beauty of investing is that you can invest in almost any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.


Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.


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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Simply Wall St 的这篇文章本质上是笼统的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。

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