HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

<ul>
<li>Despite <a href="https://www.smartkarma.com/entities/shangri-la-asia-ltd" target="_blank" data-smartkarma-citation="entities:19690:1" rel="noopener">Shangri-La Asia (69 HK)</a>'s good share price performance YTD, it has still not yet fully reflected the strengths of and benefits from China's re-opening. More upside to come.</li>
<li>Occupancy for Hong Kong and mainland China has surged 30-45pp YoY in Mar, and with China's RevPAR for FY22 is down 56.5% from peak, we see massive rebound in profitability.</li>
<li>Share of China's EBITDA was US$258m in FY22, from US$465m in FY16-19, suggests good room for recovery. It is cheap on ~70% discount to revalued NAV, vs. 37% in FY18.</li>
</ul>


Despite Shangri-La Asia (69 HK)'s good share price performance YTD, it has still not yet fully reflected the strengths of and benefits from China's re-opening. More upside to come.
Occupancy for Hong Kong and mainland China has surged 30-45pp YoY in Mar, and with China's RevPAR for FY22 is down 56.5% from peak, we see massive rebound in profitability.
Share of China's EBITDA was US$258m in FY22, from US$465m in FY16-19, suggests good room for recovery. It is cheap on ~70% discount to revalued NAV, vs. 37% in FY18.


Shangri-La Asia (69 HK): Not yet Fully Reflected China's Comeback

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Hilton Worldwide Holdings  / Equity Bottom-Up

<ul><li>Hilton Worldwide Holdings delivered an all-around beat in its last result with strong free cash flows.</li><li>It distributed over $1.7 billion to shareholders for the entire year due to strong profits and increased margins.</li><li>We give Hilton Worldwide Holdings a 'Hold' rating with a revised target price.</li></ul>

Hilton Worldwide Holdings delivered an all-around beat in its last result with strong free cash flows.It distributed over $1.7 billion to shareholders for the entire year due to strong profits and increased margins.We give Hilton Worldwide Holdings a 'Hold' rating with a revised target price.

Hilton Worldwide Holdings Inc.: New Brand Addition & Other Drivers

Credit

<ul><li>Hilton Worldwide is one of the largest hotel chains in the world.</li><li>Hilton’s management also announced several strategic alliances to strengthen their international network and improve the guest experience.</li><li>All categories saw rates rise above levels from 2019, with transitory leisure rates rising into the high teens and business transient and group rates rising into the mid-single digits.</li></ul>

Hilton Worldwide is one of the largest hotel chains in the world.Hilton’s management also announced several strategic alliances to strengthen their international network and improve the guest experience.All categories saw rates rise above levels from 2019, with transitory leisure rates rising into the high teens and business transient and group rates rising into the mid-single digits.

Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>This is our first report on Hilton Worldwide, one of the largest hotel chains in the world.</li><li>Despite the good performance, Hilton failed to meet Wall Street expectations with respect to revenues but it did manage an earnings beat.</li><li>We initiate coverage on the stock of Hilton Worldwide Holdings with a 'Hold' rating.</li></ul>

This is our first report on Hilton Worldwide, one of the largest hotel chains in the world.Despite the good performance, Hilton failed to meet Wall Street expectations with respect to revenues but it did manage an earnings beat.We initiate coverage on the stock of Hilton Worldwide Holdings with a 'Hold' rating.

Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Marriott International / Technical Analysis

<ul>
<li>While we are not yet out of the woods, we are seeing several encouraging signals that indicate improving risk appetites.</li>
<li>Additionally, we are starting to see improvement within the Consumer Discretionary (hotels/resorts, casinos, leisure, cruises), Transportation (airlines), and Materials (metals/mining) Sectors -- we highlight several attractive stocks to buy.</li>
<li>The fact that more areas are becoming attractive (and not <em>just</em> Energy and Financials) is a step in the right direction for bulls.</li>
</ul>


While we are not yet out of the woods, we are seeing several encouraging signals that indicate improving risk appetites.
Additionally, we are starting to see improvement within the Consumer Discretionary (hotels/resorts, casinos, leisure, cruises), Transportation (airlines), and Materials (metals/mining) Sectors -- we highlight several attractive stocks to buy.
The fact that more areas are becoming attractive (and not just Energy and Financials) is a step in the right direction for bulls.


Risk Appetites Improving; Buying Cyclicals (Hotels/Resorts/Casinos, Metals/Mining)

United States

Hilton Worldwide Holdings Inc. operates as a holding company. The Company, through its subsidiaries, provides hospitality services. Hilton Worldwide Holdings owns and manages hotels, resorts, and time share properties worldwide.

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Hilton Worldwide Holdings (HLT US)

Shangri-La Asia (69 HK): Not yet Fully Reflected China's Comeback

Shangri-la Asia is an excellent play on recovery of China, where 55% of rooms are located. Its overseas assets will gain from surge in outbound...

Osbert Tang, CFA

Hilton Worldwide Holdings Inc.: New Brand Addition & Other Drivers

Hilton Worldwide Holdings delivered an all-around beat in its last result with strong free cash flows. It distributed over $1.7 billion to...

Baptista Research

Hilton Worldwide Holdings Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

Hilton Worldwide is one of the largest hotel chains in the world. Hilton’s management also announced several strategic alliances to strengthen...

Baptista Research

Hilton Worldwide Holdings Inc.: Initiation of Coverage – Business Strategy & Key Drivers

This is our first report on Hilton Worldwide, one of the largest hotel chains in the world. Despite the good performance, Hilton failed to meet...

Baptista Research

Risk Appetites Improving; Buying Cyclicals (Hotels/Resorts/Casinos, Metals/Mining)

We are seeing encouraging signals that indicate improving risk appetites, including improvement within the Discretionary, Transports, and Materials...

Vermilion Research

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