Banyan Tree Holdings

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#1
With many of the SGX listed Hotels' share price going up recently, Banyan Tree Holdings is one of them which is under-performed. At current price of 63 cents and expected strong Q1 of FY2013 result due to the disposal gain (S$14 million) of "Angsana Velavaru" (Maldives) and strong forward +33% hotel booking, banyan tree holdings may be a good investment at current price. The Q1 result is very likely going to exceed last year full year result of S$14.8 million and hence may be a good catalyst for the share price. If political situation in Thailand is stable, this company can be a good long term investment.

The following are the data I had for your reference.

Banyan Tree Holdings
Total Current Asset ('000) $349,304.00 Current Non-Current
Total Liability('000) $679,151.00 $231,875.00 $447,276.00
Net Asset ('000) ($329,847.00)
Total Number of shares('000) 760,147.28
Net Current Asset Per Share ($0.4339)
Margin Of Safety ($0.2893)
Mkt Price $0.630 Equtiy
NAV $0.7163 $544,484.00
Price/BV 0.880 Goodwill Intangible
Intangible Asset (Goodwill) $26,903.00 $0.00 $26,903.00
NTA $0.681
Price/NTA 0.9253
Cash On Hand Fixed Deposit
Cash $120,824.00 $120,824.00 $0.00
Cash Per share $0.1589

Secured UnSecured
Debt < 1 Year $75,466.00 $54,035.00 $129,501.00
Debt > 1 Year $156,143.00 $148,817.00 $304,960.00
Total ('000) $434,461.00

(Net Debt)/Cash ($313,637.00)
Net Gearing -57.60%
Net Debt/Cash per share ($0.41260)

FY2012 FY2011 FY2010
Revenue $338,416.00 $329,492.00 $321,300.00
Profit $14,863.00 $1,554.00 $35,900.00
EPS $0.0196 $0.0020 $0.0472
Dividend 1.03% 0.00% 2.06%
PE 32.22 308.17 13.34

Prospect FY2012
The Group continues to see recovery in our key markets with 4Q12 profit attributable to shareholders (“PATMI”)
significantly higher than last year.
Although there remains economic uncertainties in the USA and Europe in 2013, we
believe Asia, particularly China will continue to mitigate the current weakness of the European market which was one
of our major markets.
Currently, the forward bookings for 1Q13 for owned hotels in Thailand and outside of Thailand on same store basis is
ahead of last year by 47% and 12% respectively. Overall, the Group’s forward bookings is ahead by 33%.

In Property sales segment, improved sales momentum continues in 4Q12 with 5 units of S$9.7 million sold compared
to 3 units of S$3.3 million in 4Q11. Our recently launched Laguna Shores project in Phuket also received good
response. Deposits for 89 units with total sale value of S$21.2 million were received as at mid February 2013. We
are hopeful that this trend will continue in 2013.
The Group will continue with its asset rebalancing strategy to unlock values and redeploy capital to high yielding
markets. In January 2013, we completed the sale and lease back of Angsana Velavaru. Profit arising from this sale
is estimated at about S$14 million and will contribute positively to the Group’s PATMI in 1Q13.

New Openings
We expect to open the following 7 new resorts in the next 12 months:
i. Banyan Tree Yangshuo, Guilin, China
ii. Banyan Tree Huangshan, Anhui, China
iii. Banyan Tree Tianjin Riverside, Tianjin, China
iv. Banyan Tree Kerala, India
v. Banyan Tree Chongqing Beibei, Chongqing, China
vi. Banyan Tree Shanghai Riverside, Shanghai, China
vii. Angsana Tengchong - Hot Spring Village, Yunnan, China
Also in the next 12 months, we expect to launch 9 spas under management.
We have also signed the following new hotel management contracts in the recent months:
i. Banyan Tree Yangcheng Lake, Jiangsu, China, is situated in China-Singapore Suzhou Industry Park which is
near to Suzhou Old Town and Shanghai City. Yangcheng Lake is well-known for its natural scenery and
Chinese mitten crabs.
ii. Banyan Tree Nanjing Tangshan, Jiangsu, China, is located in Nanjing which is the second-largest commercial
centre in the East China region and a popular tourist destination with a vast number of cultural sites and
natural spots.
iii. Banyan Tree Jilin Riverside, Jilin, China, is located by Songhua River which is the only river in the region that
does not freeze during winter. Jilin is a popular destination for viewing the magnificent rime ice on trees and
engage in winter sports during winter time.
iv. Angsana Kunming North, Yunnan, China, is situated in Kunming, capital of Yunnan province and is also a
transport hub for tourists heading to other parts of Yunnan such as Dali, Lijiang and Shangri La.

Vested.
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#2
DBS Vicker coverage this morning on Banyan Tree.

Banyan Tree Holdings reported a strong set of 1Q13
results, with earnings rising 19% to S$14m. Outlook for
hotels and property sales continue on an upward
momentum. Forward bookings for hotels improving while
new property launches in Phuket are selling like hot
cakes. Given its asset heavy balance sheet, we believe that
setting up a REIT (probably from its Thailand properties,
coupled with properties from its Indochina and China
Funds) can result in the group crystalizing significant value
in its balance sheet. Maintain BUY and TP S$0.83.


There is a Thai investment properties sale by Banyan Tree Holdings on Laguna Shores at the Fairmont Hotel in Singapore on the weekend of 18-19 May 2013.

http://www.knightfrank.com.sg/en/residen...una-shores

Vested.
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#3
(16-05-2013, 01:41 PM)ngcheeki Wrote: DBS Vicker coverage this morning on Banyan Tree.

Banyan Tree Holdings reported a strong set of 1Q13
results, with earnings rising 19% to S$14m. Outlook for
hotels and property sales continue on an upward
momentum. Forward bookings for hotels improving while
new property launches in Phuket are selling like hot
cakes. Given its asset heavy balance sheet, we believe that
setting up a REIT (probably from its Thailand properties,
coupled with properties from its Indochina and China
Funds) can result in the group crystalizing significant value
in its balance sheet. Maintain BUY and TP S$0.83.


There is a Thai investment properties sale by Banyan Tree Holdings on Laguna Shores at the Fairmont Hotel in Singapore on the weekend of 18-19 May 2013.

http://www.knightfrank.com.sg/en/residen...una-shores

Vested.

There is a article on Banyan Tree on the latest issue of The Edge.

I like the asset-light strategy of the company, will put it under watch-list

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#4
(16-05-2013, 02:01 PM)CityFarmer Wrote:
(16-05-2013, 01:41 PM)ngcheeki Wrote: DBS Vicker coverage this morning on Banyan Tree.

Banyan Tree Holdings reported a strong set of 1Q13
results, with earnings rising 19% to S$14m. Outlook for
hotels and property sales continue on an upward
momentum. Forward bookings for hotels improving while
new property launches in Phuket are selling like hot
cakes. Given its asset heavy balance sheet, we believe that
setting up a REIT (probably from its Thailand properties,
coupled with properties from its Indochina and China
Funds) can result in the group crystalizing significant value
in its balance sheet. Maintain BUY and TP S$0.83.


There is a Thai investment properties sale by Banyan Tree Holdings on Laguna Shores at the Fairmont Hotel in Singapore on the weekend of 18-19 May 2013.

http://www.knightfrank.com.sg/en/residen...una-shores

Vested.

There is a article on Banyan Tree on the latest issue of The Edge.

I like the asset-light strategy of the company, will put it under watch-list

(not vested)

Thank for your information, bro Smile Smile I did read the article and did some research on the company before I put in some money.

Attached is the report from DBS Vickers.

vested


Attached Files
.pdf   bth -dbsv 160513-result buy.pdf (Size: 142.75 KB / Downloads: 38)
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#5
I've stayed in several Banyan Trees before. Very good formula for success. They make people want to go back again and again.
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#6
Preliminary research shows that the company doesn't fit as long term investment for me.

- The earnings were lumpy for the past 5 years. PE is more than 30, even base on FY2012 which is a good year.
- Dividend yield is < 1% at best for the past 5 years
- Surprisingly the ROA is approx 1%, with its asset-light strategy. Need dig out further from AR to find out more?
- Net debt / Equity is about 60%, while debt/equity is 125% which is fair for developer in general, but asset-light strategy??
- PB is 0.95 which is typical for developer stocks.

Anything that i miss? Will continue to find out more on asset-light strategy??

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#7
Ho Kwon Ping in CNA power list asia talked about Banyan Tree Holdings new light asset strategy, the coming new brand as well as his passions and future directions of the company.

http://www.channelnewsasia.com/tv/ho-kwo...08136.html
Reply
#8
(21-05-2013, 11:54 PM)ngcheeki Wrote: Ho Kwon Ping in CNA power list asia talked about Banyan Tree Holdings new light asset strategy, the coming new brand as well as his passions and future directions of the company.

http://www.channelnewsasia.com/tv/ho-kwo...08136.html

Thanks for the link. Will explore...
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#9
what is the key drawback on asset light strategy? U pay less now on capex but higher O&M in the future?

where is the balancing point?

(22-05-2013, 08:52 AM)CityFarmer Wrote:
(21-05-2013, 11:54 PM)ngcheeki Wrote: Ho Kwon Ping in CNA power list asia talked about Banyan Tree Holdings new light asset strategy, the coming new brand as well as his passions and future directions of the company.

http://www.channelnewsasia.com/tv/ho-kwo...08136.html

Thanks for the link. Will explore...
Reply
#10
(22-05-2013, 08:52 AM)CityFarmer Wrote:
(21-05-2013, 11:54 PM)ngcheeki Wrote: Ho Kwon Ping in CNA power list asia talked about Banyan Tree Holdings new light asset strategy, the coming new brand as well as his passions and future directions of the company.

http://www.channelnewsasia.com/tv/ho-kwo...08136.html

Thanks for the link. Will explore...

Listened to the interview, sound good, and impressed by his passion and wisdom on managing resorts...

Good management is not a doubt, but is it a business model worth to put in money? Yet to find out... Big Grin

Anyway, thanks ngcheeki for the link.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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