HUNA.N0000

[yellow knifeTop contributor]

" Middle income trap" is a nice term we often hear with the increase of per capita income..

It is the first time I came across such similar event in Hotel Industry.

After meeting refurbishment cost last year with entirely from internally generated funds now the hotel faces a problem of higher depreciation and lower income due to he hotel’s transformation from 
 ordinary 3 star to small luxury” resulting in its rejection by the typical
low end market segment that used to patronize the hotel
in the past, decreasing the volume of occupation.

[yellow knifeTop contributor]

Revenue has fallen due to above " status change" and profit has gone down as depreciation has increased by 8 million

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[yellow knifeTop contributor]

EPS has fallen after refurbishment and after enjoying two good years of performance

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[yellow knifeTop contributor]

Market value is over valued when compare with the earnings though Net Assets are in par..

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[yellow knifeTop contributor]

PE ratio has reach too high making the market value unattractive. Further the hotel may have to incur additional marketing expenditure to tap upper end customers which too will reduce profit further..

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[yellow knifeTop contributor]

This company shows a risk of buying shares of one single hotel. AHUN, AHPL, JKL consist of a range of hotels thus refurbishment closure of one hotel can be absorbed by the earnings of others ...

[yellow knifeTop contributor]

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[yellow knifeTop contributor]

Small Luxury Hotels is a connection of e-promoting of such category and Hunnas located in a beautiful environment may find Riches in the Niches with this campaign..

[yellow knifeTop contributor]

Often data is presented in a manner attractive. However further mining to past shows how attractive these data.

Quote from Page 19 of 2015/16 Annual Report of Hunnas Falls

" The major refurbishment which reduced the bottom line the previous year helped us increase room occupancy thus improving our profits during the year under review."

Page 12

" PAT grew by 105%"

To support the statements..

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However keeping past data helps us to see the big picture...

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[yellow knifeTop contributor]

Even though the top line of the company has not shown wild fluctuation, the Net Profit Margin has come down with heavy spending on refurbishments.

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[yellow knifeTop contributor]

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[yellow knifeTop contributor]

Company made last dividend payments in 2014

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[yellow knifeTop contributor]

Net Assets of this company also stays above or close to  market price .

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[dhanurrox]

Financials released today.Not that good.

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[HAL9000Top contributor]

HUNA repisitioned it as a small luxary hotel as highlighted above. It's making a real struggle to come out of losses since then.

[yellow knifeTop contributor]

The performance of Hunnas Falls has fallen during the first half of the year compared to last year.

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[yellow knifeTop contributor]

Mystery of Nature Unfold 2017/18

Hunnas Falls despite its location has failed to attract tourists and revenue has dropped creating losses.

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[yellow knifeTop contributor]

In certain shares, the market price is not driven by performance and Hunnas Falls is one such.

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[yellow knifeTop contributor]

EPS has gone down to negative values.

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[yellow knifeTop contributor]

Market Value often moves closer to Net Assets

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[yellow knifeTop contributor]

Revenue of Ramboda Falls , another small hotel has surpassed Hunnas Falls.

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[yellow knifeTop contributor]

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[Ethical TraderTop contributor]

Thanks.

[spw19721Active Member]

Nice explanation YK. thanks for your efforts .

[pjrngroup]

Thank you YK.