Summary of the report
Company overview
The company is a tourism group located in Saipan and Guam. Its main businesses include hotels and resorts, high-end tourism retail and destination services, accounting for 66% and 5% of 2018 revenue, respectively. The company has 4 hotels and resorts, 13 brand stores and 3 sightseeing tours of key Saipan attractions in Saipan and Guam.
FY2016-FY2018, the company's revenue is about $81.23 million, $89.43 million and $100m, respectively, CAGR is 10%; net profit is about 12.46 million, 13.13 million and 11.76 million, respectively.
Industry status and prospects
According to Frost&Sullivan, the total number of visitors to Saipan continues to grow, from 430000 in 2013 to 650000 in 2017, with a compound annual growth rate of 11%. This mainly benefits from 1. 5%. Visa-free policy for Chinese and South Korean residents. two。 Airlines have increased the number of direct flights from second-tier cities to Saipan. 3.CNMI series of promotional activities. The number of Saipan tourists is expected to reach 830000 by 2022, with a compound growth rate of 5.1 per cent from 2018 to 2022.
Revenue from Symbian's tourism market grew at a compound rate of 14 per cent from 2013 to 2017, from 340 million to $580 million. The market size is expected to reach US $970 million by 2022, with a compound growth rate of 10.5% advantages and opportunities from 2018 to 2022.
In Saipan and Guam, the hotel revenue, the number of properties and the number of rooms sold in Saipan are the largest market participants, accounting for 33.7% of the industry revenue and 24.5% of the rooms sold.
Experienced management team and executive ability
Weakness and risk
The business is sensitive to the overall macroeconomic and political environment.
Disruptions and price increases between Sabai and Guam may have an impact on performance.
Investment valuation
Based on the IPO price (HK $3.54-HK $4.48) and 2018 net profit of US $11.76 million (per HK $7.84 to HK $1), the post-IPO market capitalization corresponds to the 2018 fully diluted pro forma price-to-earnings ratio of 13.8-17.5 times, similar to the industry valuation. Finally, the IPO was given a special rating of "6".