Daiwa Research cut its target price for Shangri-La Asia (00069) to HK$8.8 from HK$9 and maintained its "hold" rating.
The research house said Shangri-La posted a weak set of 1H results. The decline in group RevPAR came in slightly better than Daiwa's estimate. Daiwa still looks for RevPAR growth of most regions to improve HoH in 2H, but it forecast a capitulation in the RevPAR for Shangri-La's Hong Kong hotels (about -30%) in 2H.
Daiwa said the ongoing protests in Hong Kong have greatly reduced the occupancy of Island Shangri-La, which was estimated to be at 50-55% in July while August is likely to be below 50%. Daiwa trimmed its 2019-21 aggregate EBITDA by 4-6% on further operating deleverage and higher staff costs.
22/08/2019 16:00
{I-bank focus}Daiwa cuts Shangri-La Asia (00069) to HK$8.8
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