Hotel Royal Stock Fair Value Calculation – HOTEL ROYAL Reports Positive Financial Results for Second Quarter of Fiscal Year 2023
August 15, 2023
☀️Earnings Overview
On June 30th 2023, HOTEL ROYAL ($SGX:H12) reported its financial results for the second quarter of fiscal year 2023 and the numbers were impressive. Total revenue for the quarter was SGD 27.5 million – a 63.7% increase from the year prior. Net income also saw a significant rise, with a 150.8% year-over-year increase at SGD 2.0 million.
Market Price
On Thursday, HOTEL ROYAL’s stock opened at SG$2.0 and closed at the same price, representing an impressive performance in the market. The company’s success can be attributed to its quality services and commitment to excellence. HOTEL ROYAL has consistently offered top-notch amenities and customer service that keeps visitors coming back year after year. The organization has also invested in innovative technologies to enhance the guest experience, allowing them to enjoy their stay with minimal disruption or inconvenience.
In addition, HOTEL ROYAL has implemented a comprehensive cost-cutting strategy that has enabled it to reduce operational costs while still providing adequate quality services. This has allowed them to focus more resources on marketing and advertising efforts, resulting in increased brand awareness and customer loyalty. The organization’s strong commitment to quality and innovation has allowed them to grow their business and maintain a competitive edge in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hotel Royal. More…
| Total Revenues | Net Income | Net Margin |
| 52.62 | 2.38 | 1.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hotel Royal. More…
| Operations | Investing | Financing |
| 12.36 | -14.1 | 23.29 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hotel Royal. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 812.94 | 192.6 | 5.13 |
Key Ratios Snapshot
Some of the financial key ratios for Hotel Royal are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.7% | 14.3% | 23.1% |
| FCF Margin | ROE | ROA |
| -2.9% | 1.2% | 0.9% |
Analysis – Hotel Royal Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of the wellbeing of HOTEL ROYAL. Our proprietary Valuation Line has determined that the intrinsic value of the HOTEL ROYAL share is around SG$3.8. Currently, the HOTEL ROYAL stock is trading at SG$2.0, which implies that it is undervalued by 46.8%. We believe that now is an opportune time to invest in HOTEL ROYAL and take advantage of the potential gains that could be made. More…
Peers
The company competes with Shangri-La Asia Ltd, Shangri-La Hotels Malaysia Bhd, and Portsmouth Square Inc.
– Shangri-La Asia Ltd ($SEHK:00069)
Shangri-La Asia Ltd is a Hong Kong-based investment holding company principally engaged in hotels and resorts operation. The Company operates its businesses through five segments. The Hotel Operations segment is engaged in the operation of hotels, resorts and serviced apartments under the Shangri-La, Kerry, Traders and Hotel Jen brands. The Property Development and Investment segment is engaged in the development and investment of properties. The Property Management segment is engaged in the provision of property management services to properties. The Trading and Manufacturing segment is engaged in the trading of food and beverage products and the manufacturing of food products. The Others segment includes the provision of corporate guarantee, management and consultancy services.
– Shangri-La Hotels Malaysia Bhd ($KLSE:5517)
Founded in Malaysia, Shangri-La Hotels is a premier hospitality company that owns and operates hotels, resorts, and residences around the world. The company has a market capitalization of 1.51 billion as of 2022 and a return on equity of -6.52%. Shangri-La Hotels is committed to providing exceptional customer service and luxurious accommodations to its guests. The company’s properties are located in some of the most desirable destinations in the world, including Malaysia, Singapore, Hong Kong, China, and the United Arab Emirates.
– Portsmouth Square Inc ($OTCPK:PRSI)
Portsmouth Square is a publicly traded real estate investment trust that focuses on owning and operating commercial real estate properties in the United States. The company’s portfolio consists of office, retail, and industrial properties. Portsmouth Square’s market cap is $28.56 million, and its ROE is -1.19%.
Summary
Investors looking to invest in Hotel Royal are sure to be pleased with the company’s strong financial results for the second quarter of their 2023 fiscal year. Total revenue for the quarter was up 63.7% from the prior year, reaching SGD 27.5 million. Net income was even more impressive, rising 150.8% year-over-year to reach SGD 2.0 million.
This is an indicator of strong demand for Hotel Royal’s services and a positive outlook for future earnings. Investors should consider Hotel Royal as a viable investment opportunity.
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