During the second quarter, the Tweedy Browne (Trades, Portfolio) Global Value Fund quadrupled its stake in The Hongkong and Shanghai Hotels Ltd. (HKSE:00045). The fund added an additional 12,475,711 shares in the second quarter for an average price of 8.3 Hong Kong dollars ($1.07). The trade had a 0.18% impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund’s portfolio. It now owns 15,525,711 shares of the company.
The Hongkong and Shanghai Hotels has a market cap of HK$12.81 billion, a P/E ratio of 12.31, an enterprise value of HK$16.31 billion and a P/B ratio of 0.34.
The Hongkong and Shanghai Hotels was incorporated in 1866, and was one of the first 10 companies in Hong Kong to be granted a listing on The Stock Exchange of Hong Kong. The company engages in the ownership, development and management of prestigious hotels and commercial and residential properties in what it perceives to be “key” locations in Asia, the United States and Europe.
According to GuruFocus, The Hongkong Shanghai Hotels Ltd. has a 6 of 10 financial rating, with an equity to asset ratio of 0.81 and a Piotroski F-Score of 4, indicating that the company’s financial situation is typical for a stable company. The company also has a 7 of 10 profitability and growth rating, with an operating margin of 17.66%, a net-margin of 17.42% and an ROC (Joel Greenblatt (Trades, Portfolio)) of 20.60%, ranking it above 69% of the 858 companies in the Global Lodging industry.
The Hongkong Shanghai Hotels Ltd. has 3 good signs according to GuruFocus, which may have had an impact on the Tweedy Browne (Trades, Portfolio) Global Value Fund’s decision to increase its stake by 409.04% during the second quarter.
- The company is expanding its operations, which is usually a good sign
- The company’s current P/B ratio (0.34) is close to its 5-year low of (0.31)
- The company’s current P/S ratio (2.13) is close to its 5-year low of (1.93)
Below is a Peter Lynch chart that shows that The Hongkong and Shanghai Hotels Ltd is trading below its intrinsic value.
Disclosure:Ă‚ Author does not own any shares of this company.
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