GREAT EAGLE H (00041.HK) TP cut 4% to $21.5 by UBS as HK hotel revenue slows down
GREAT EAGLE H (00041.HK)'s core profit grew 11% from a year back, but hotel business is on downtrend, UBS said in a report. Revenue from Hong Kong hotels increased 13%, slowing down from 18% in the prior year, while that from overseas hotel held flat from a year back. GREAT EAGLE H's target price is cut 4% from $22.4 to $21.5. UBS expects the room rate income in the two major flagship hotels in Hong Kong may rise only by 5-10%. As such, the bank reduces full-year revenue growth forecast of GREAT EAGLE H from 12% to 9% and EBITDA margins forecast from 41% to 39%.
Champion REIT sent an invitation to convertible bond holders for early conversion. If GREAT EAGLE H converts its CB in full, its position in Champion REIT will increase from 51.9% before conversion to 57.6%. UBS estimates yield of 5-6%.
UBS cuts GREAT EAGLE H's earnings per share forecast for 2012/13/14 by -1.7%/-1.3%/+0.7% and put a Neutral rating after taking the slowdown in Hong Kong hotel revenue and conversion of CB into account. (y)
AAStocks Financial News
Fax: 852 2186 8286
Web Site: www.aastocks.com
News Provided by AASTOCKS.com