Goldman Sachs lowers the target price of Shangri-La Asia to HKD 5 with a rating of "Sell"

Goldman Sachs research report indicates that Shangri-La Asia (00069.HK) achieved a net profit of USD 58 million in the first half of this year, a year-on-year decline of 39%. The group maintains a stable interim dividend of HKD 0.05 per share, which, after excluding special items, implies a payout ratio of 45%. Assuming the final dividend for the second half is HKD 0.10, Goldman Sachs forecasts a total dividend of HKD 0.15 for the year, implying a current dividend yield of 3%.

Goldman Sachs has lowered its effective EBITDA forecast for Shangri-La for 2025 to 2027 by 6% to 7%, and has reduced its target price from HKD 5.20 to HKD 5. However, considering the slow progress in debt reduction, it believes there is limited room for revaluation and maintains a "Sell" rating within its hotel coverage