May 16- six star SHNG 1Q

SGCPI and FBSHI entered into an unincorporated joint venture agreement for the construction of a six-star hotel and high-end development at SGCPI's land property in Bonifacio Global City, Taguig, Metro Manila, to be known as Shangri-La at the Fort

where (FBSHI) a subsidiary of shng has a 40% interest.
RVO is a non-executive Dir.of shangri la asia.

SHNG 1Q 2013

4,764,056,287                -Out.shares
18,579,819,519.3           -MarCap

20.320 billion pesos        -Equity attributable to parent company
14.727 billion pesos        -Retained earnings

37.110  billion pesos       -Assets
8,165 billion pesos          -Total current asset
2.092 billion pesos          -Cash and cash equivalent
13.791billion pesos         -Liabilities

Revenue: 1Qs

1.328 billion pesos          -2012
857 million pesos           -2011
% change: 54.9 %

Net Income 1Qs:

358million pesos            -2013
298million pesos            -2012

% change: 20%

Annualized income: 1.43B

closing price 15-05-2013: 3.95 pesos
ANNUALIZED EPS : 30 centavos
P/E : 13.2x

B/V per share: 4.27 pesos
Price to book value: 0.92x
Note: Market price is below Book value

Comparative avg. PE with other companies at 14
TP- 14 X 0.30 = 4.20

Current price to TP: 6% upside (should I sell?)

Since 1Q posted the least earnings based on last year performance this drags down the annualized eps to 0.30.

Note: wait for 2Q earning report for better assessment and review eps again.

NOTES:

***Fort Bonifacio Shangri-la Hotel, Inc. (FBSHI) 40.00% ownership---if I am right, this is the six-star hotel which is under construction at BGC and is targeted to open in 2014. This will be the Flagship luxury hotel of Shangri la portfolio

Tip: know shng’s partner in this venture…

-Upcoming developments for Shang Properties include One Shangri-La Place, which enjoyed brisk sales of over 250 units during its one-day exclusive preview last March 10, and the construction of a 6-level Shangri-La Plaza mall expansion.

-Construction ongoing for twin towers and next year 2014 completion of the construction.. 

Target turn over date remains 2015.

Other notes:

Return on Equity: 7.0 %
Return on Assets: 3.85 %
Net income margin: 27% 

Current ratio: 2.22 
Debt-to-equity: 0.68

*caveat emptor

Happy Investing