Brokers' take

Shangri-La Asia Ltd | Buy Fair value: HK$20.00 Aug 27 close: HK$11.78 OCBC Investment Research, Aug 27

SHANGRI-LA Asia's H1 2018 results were solid with Patmi (profit after tax and minority interests) increasing 147.8 per cent year-on-year (y-o-y) to US$152.9 million or 67.2 per cent of our initial full-year forecast. H1 2018 Patmi also came to 65.9 per cent of the street consensus estimate of US$232 million. H1 2018 revenue increased 18.8 per cent y-o-y to US$1.2 billion, or 49.8 per cent of our full-year forecast, while Ebitda (earnings before interest, taxes, depreciation and amortisation) increased 22.2 per cent to US$301.5 million.

The 78 per cent y-o-y increase in share of profit of associates took us by surprise, with H1 2018 numbers making up 69 per cent of our initial full-year forecast.