CICC's report indicates that Shangri-La (00069.HK) recorded a 4% year-on-year increase in first-half revenue to $1.049 billion, a 4% year-on-year decrease in EBITDA to $0.382 billion, and a year-on-year drop of about 28% in net profit to $0.095 billion. The overall EBITDA profit margin for the first half was about 24%, with an EBITDA profit margin of 30% including joint venture companies.

CICC pointed out that Shangri-La's mid-term performance was slightly below expectations, mainly due to the opening of the JEN Hotel in Kunming and rising staff costs, which in turn lowered EBITDA. The bank indicated that considering the increased costs of new project openings and staff recruitment, the EBITDA forecast for this year and next year has been revised down to $0.812 billion and $0.843 billion respectively, with the target price lowered by 16% to $6.3, maintaining its "outperform" rating.