AHPL.N0000

[yellow knifeTop contributor]

Asian Hotel Properties Plc, consist of two main hotels in Colombo and a property development company. Cinnamon Grand, Cinnamon Lake Side and Crescat Boulvard are the brand names of them. John Keels Holdings own 78.56% and Dr Sena Yaddehige and Merrill J Fernando & Sons are note worthy shareholders of the top twenty list..

[yellow knifeTop contributor]

I would name this Hotel as a Cash Cow.
Its growth potential is less as it already enjoy highest room capacity among Colombo City hotels..

Cinnamon Grand Colombo records an average occupancy of 75% which is well above the five-star city hotels average occupancy rate..

Thus the growth potential is less for this hotel and thus enjoy a mature stage where it happily give away a considerable dividend out of its earnings..

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[yellow knifeTop contributor]

AHUN and AHPL enjoy above 2 Billion profit from tourism sector. AHUN has to manage many destinations to arrive at Rs 2 Billion profit where as AHPL manage only three closely located destinations in Colombo ..

Dividend payout is rather consistent and Rs 4 as dividend for a share trading at Rs 65 (approximate) ensures 6% dividend yield.. Thus AHPL is good for a dividend hunter as well..

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[yellow knifeTop contributor]

Current Market price of this is also attractive when compare with Net Asset Value

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[yellow knifeTop contributor]

Revenue of AHPL is also note worthy among the tourist related listed companies

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[yellow knifeTop contributor]

All five star hotels find that increased room inventory of three star and four star as a threat.. Even AHPL, AHUN discuss about this matter in their annual reports..

[yellow knifeTop contributor]

In my PF , AHPL appear with the cost of Rs 18.34.. When I get a dividend of Rs 4 my yield is 22%.. This one reason why now I have converted to never to sell..

i know that opportunity cost and the holding period is not measured in my calculation..but this company ensure me a predictable pattern of dividends and which is sufficient for keeping...

[smallvilleTop contributor]

Nice presentation.. Very valuable info.. and I feel if this can be put into one post, that would bring more value as it could be red continuously.

Shall I do the needful or will u?

[කිත්සිරි ද සිල්වාTop contributor]

Thanks YK the efforts and merging them into one post is a great idea.  

Nice presentation.. Very valuable info.. and I feel if this can be put into one post, that would bring more value as it could be red continuously.
Shall I do the needful or will u?

[kassTop contributor]

In my PF , AHPL appear with the cost of Rs 18.34.. When I get a dividend of Rs 4 my yield is 22%.. This one reason why now I have converted to never to sell..

i know that opportunity cost and the holding period is not measured in my calculation..but this company ensure me a predictable pattern of dividends and which is sufficient for keeping...

Wow average cost 18.34 your investment should be at zero cost after receiving continuous dividends. thanks for the post

[HAL9000Top contributor]

In my PF , AHPL appear with the cost of Rs 18.34.. When I get a dividend of Rs 4 my yield is 22%.. This one reason why now I have converted to never to sell..

i know that opportunity cost and the holding period is not measured in my calculation..but this company ensure me a predictable pattern of dividends and which is sufficient for keeping...

Thanks for the great effort, + rep
My concern about this share is, will they able to maintain the same dominance, occupancy rate and the price and brand premium they enjoy now, once the new set of shining hotels like Shangrila, Hyatt, Movenpick, Water front etc flood the Colombo city in coming years.

[yellow knifeTop contributor]

Hal

Why do tourists visit Dubai, Sinagpore etc.. Because the infrastructures is supportive..The more hotels you have the more business you get..

But if you have only hotels that will not work out.. We visit Genting Highlands of Malaysia not just because the First World ( probably the hotel with the highest rooms in the world) but because you have entertainment, shopping all around in cold upcountry in a tropical land..

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Its up to the government to decide to go ahead with Port City Project, Nelum Kuluna and Casino for JKH project or to abandon them..

We have to undertake risk as investors..

[yellow knifeTop contributor]

In my PF , AHPL appear with the cost of Rs 18.34.. When I get a dividend of Rs 4 my yield is 22%.. This one reason why now I have converted to never to sell..

i know that opportunity cost and the holding period is not measured in my calculation..but this company ensure me a predictable pattern of dividends and which is sufficient for keeping...

Wow average cost 18.34 your investment should be at zero cost after receiving continuous dividends. thanks for the post

1. Isn't it the real meaning of calculating PE
2. Mine is a small PF, imagine the generation long holdings of MJF and Dr S... Generation to generation will get cash inflows at zero cost.. Follow the family traditions of real entrepreneurs of the nation..

[guruji]

Wt a insight

[yellow knifeTop contributor]

AHPL declared Rs 4.50 as Dividends for the year...

[yellow knifeTop contributor]

AHPL.N0000 has uploaded its annual report 2015/2016. As I have mentioned earlier the revenue of the company has reached a plateau and it has resulted the company to become a cash cow.

Companies that cannot grow further in revenue become cash cows and dividend hunters should collect these cash cows .

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[yellow knifeTop contributor]

A company that pays higher dividends than earnings may result in declining Net Assets Per Share..

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[yellow knifeTop contributor]

Company maintain good profit margins and will compare with other hotels soon.

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[slstockVeteran]

"A company that pays higher dividends than earnings may result in declining Net Assets Per Share.."


Well your statement is partly true only right?

Not sure why a company would pays higher dividends than earnings consistently.
No company can afford to do that in any case.
AHPL has not done it either.

There are companies which pay higher dividend % out of the earning made

AHPL is one such. But it does not decline net assets.
It will not make it grow.

Juts adding some feedback as I think you statement needs to be revisited right?

A company that pays higher dividends than earnings may result in declining Net Assets Per Share..

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[yellow knifeTop contributor]

Agree with you SLS

No company can continuously pay dividends than what they earn ...if so you must be doing that with the reserves already generated...

AHPL's growth is not shown in revenue.. Companies where relative market share is high and relative growth is low, often become paymasters of dividends....

Yet can it maintain the same Dividend next year unless Earnings  increased...? this is what I wanted to raise..

[dhanurrox]

AHPL is made seesaw regularly buy index controllers. Thats certain.

[yellow knifeTop contributor]

AHPL the holding company fopr the 5 star city hotels and property development operations for JKH PLC posted a net profit of Rs 338.02 million for the 1st Q of 2016 improving 12% on YoY basis.

Revenue incresed by 14% and cost of sales increased by 9%.

The net assets of the company declined to Rs 51 from 53 per share.

AHPL subsidiary Trans Aisa Hotel PLC  posted a net profti for Rs 90.7 Million improving from a net loss of Rs 32.31 Million YoY posted .

JKH was lobbying for removal of minimum room rate and that will be legislated from Jan 2018 and will be helpful to the company's performance..

  Source : Mirror Business

[BackstageTop contributor]

Thanks YK. Your outlook on this as a dividend cow of the future really interest me. Next two years will be the gap time before the big projects start opening their doors and changing the game for City hotels. The minimum rate cancellation will be the start of a new dynamic. AHPL should do well in the gap time.

[yellow knifeTop contributor]

AHPL posted a net profit of Rs 280.12 Million for the first quarter ended 30th June 2017.

It is 17% fall on YoY basis due to escalating costs for services provided . EPS for the quarter fell to .63 from .77 YoY.

Revenue remained flat YoY at Rs 1.92 Billion while the cost of sales increased by 6% to reach Rs 871.70 Million.

[The Invisible]

Asian Hotels and Properties posts losses in June

ECONOMYNEXT- Sri Lanka's Asian Hotels and Properties Plc (AHPL) plunged into a net loss of 328.3 million rupees in the June quarter from a 64.9 million rupee profit a year earlier, the firm said, after the Easter Sunday bombings.




The firm, a part of the John Keells Group operating its Cinnamon brand city hotels in Colombo, posted a loss per share of 74 cents, its interim financial report showed.




AHPL's share closed at 42.70 rupees on Friday, up 2.70 rupees.




Cinnamon Grand, an AHPL property, was one of the three luxury hotels bombed by Jihadist terrorists in the Easter Sunday attack.




Tourist arrivals to Sri Lanka plunged in the following months, down 71 percent in May and 57 percent in June.



John Keells Group Chairman Krishan Balendra on Thursday said that Cinnamon hotels' advance bookings in Sri Lanka, including its hotels outside Colombo were 75 percent of the levels seen last year, showing signs of recovery.




AHPL's revenue for the June quarter fell 48 percent from a year earlier to 861 million rupees, while cost of sales fell 23 percent to 629.2 million rupees and gross profits fell 72 percent to 2319 million rupees.




Finance costs fell 48 percent to 3.9 million rupees. Tax expenses were down 92 percent to 3.7 milion rupees.




Borrowings remained unchanged at 165.5 million rupees in June, from the start of the financial year three months earlier.



(Colombo/Jul26/2019)