tag:blogger.com,1999:blog-6213354074634538714.post7395589713489990583..comments2024-03-29T22:22:39.118+08:00Comments on (The) Boring Investor: Will GL Rise Like Mandarin Oriental?Lee Chin Waihttp://www.blogger.com/profile/10250390011842795509noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6213354074634538714.post-79134732358280859322017-12-01T00:05:52.810+08:002017-12-01T00:05:52.810+08:00Hi,
Thks for pointing this out. For FY2017, there...Hi,<br /><br />Thks for pointing this out. For FY2017, there was a one-off settlement of a legal claim of USD10.1M. Adding this back, the ROA should be around (43+10)/1075 = 4.9%.<br /><br />I took a quick glance of Millennium & Copthorne's results for FY2016 ending in Dec 2016. Although not directly comparable as M&C has hotels outside UK, its ROA is lower, at GBP98/4731 = 2.1%. Its admin expense as % of revenue is also higher, at GBP382/926 = 41.3%. I supposed expenses are higher overseas compared to Singapore.Lee Chin Waihttps://www.blogger.com/profile/10250390011842795509noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-21899618914107878682017-11-30T08:36:16.216+08:002017-11-30T08:36:16.216+08:00Hello, thank you for the quality post. I have been...Hello, thank you for the quality post. I have been reading your blog for a few years now, and I always appreciate the information. Helps to keep me grounded in reality!<br /><br />Your article has triggered my interest to take a look at GL.<br />One doubt I have is regarding the returns.<br />For example, the return on asset for the hotel segment for 2017 is 41/1075 = 3.8%<br />This seems hardly attractive and is comparable to some of the (not so cheap) REITs we have in Singapore.<br />If the hotels are deeply undervalued, I would expect a higher ROA.<br />Is this a sign of some inefficiency? For example, admin expense is 1/3 of revenue, which seems high.<br /><br />Would like to hear your thoughts about this.<br />Thank you!Gohhttps://www.blogger.com/profile/03725184452506424976noreply@blogger.com