Hotel Group Q2/2017 Performance

            Q2/2017 Performance Central Plaza Hotel (CENTEL) achieved revenue of 10.2 billion baht, the highest in the group, while the highest net profit margin was held by Shangri-La Hotel (SHANG) at 19.8%. OHTL also made a strong showing with the highest earnings per share (EPS) of 7.35 baht and a return on equity (ROE) of 19.76%. In terms of asset management, Royal Orchid Hotel (Thailand) (ROH) had the highest return on assets (ROA) at 13.46%. Regarding capital structure risk, this group is considered low risk, with most debt-to-equity ratios not exceeding 2 times.

            A standout stock in this group is The Erawan Group (ERW), which reached a new high for the third year. Investors are closely watching the stock due to the budget hotel Hop-Inn targeting tourists during the high season in the second half of the year. It remains to be seen how other stocks will perform moving forward.

TerraBKK Research summarizes the Q2/2017 performance of the “Hotel” group of 10 companies, including revenue, profitability metrics such as net profit margin, earnings per share, return on equity, return on assets, debt levels, and evaluates the price-to-earnings (P/E) ratio as follows:

Revenue
    • The average revenue for Q2 2017 was mostly in the range of 700-2,500 million baht
    • The highest revenue was from Central Plaza Hotel (CENTEL) at 10.2 billion baht
    • The highest growth compared to the same period last year was from The Erawan Group (ERW) at 4.7%, with figures of 2.99 billion baht (Q2/2017) compared to 2.85 billion baht (Q2/2016)
    • The largest decline compared to the same period last year was from Laguna Resort and Hotel (LRH) at 16%, with figures of 2.32 billion baht (Q2/2017) compared to 2.77 billion baht (Q2/2016)

Net Profit Margin (NPM)
    • The average net profit margin for Q2 2017 was in the range of 1.8% - 11.3%
    • The highest net profit margin among the top 3 was Shangri-La Hotel (SHANG) at 19.8%, Royal Orchid Hotel (ROH) at 14.13%, and Central Plaza Hotel (CENTEL) at 11.62%
    • The highest growth compared to the same period last year was Mandarin Hotel (MANRIN) at about 5 times with a figure of 8.84% (Q2/2017), compared to -1.78% (Q2/2016)
    • The largest decline compared to the same period last year was Laguna Resort and Hotel (LRH) with a drop to -1.79% (Q2/2017) from 5.09% (Q2/2016)

Earnings per Share (EPS)
    • The highest EPS was from OHTL at 7.35 baht per share

Return on Equity (ROE)
    • The average ROE for Q2 2017 was in the range of 2.9% - 12.4%
    • The highest ROE among the top 3 was OHTL at 19.76%, Central Plaza Hotel (CENTEL) at 18.77%, and Royal Orchid Hotel (ROH) at 13.64%, reflecting good management efficiency in providing returns to shareholders
    • The highest growth compared to the same period last year was Mandarin Hotel (MANRIN) at 4.73% (Q2/2017) from -3.64% (Q2/2016)
    • The largest decline compared to the same period last year was Asia Hotel (ASIA) at 0.03% (Q2/2017) from 4.97% (Q2/2016)