Elevator Pitch
Hong Kong-listed luxury hotel owner The Hongkong and Shanghai Hotels Limited (OTCPK:HKSHY) (OTC:HKSHF) [45:HK], or HSH, is currently trading at 0.32 times P/B, and 0.29 times price-to-adjusted net asset value assuming the value of HSH’s hotels and golf courses were adjusted to fair market value. HSH has only traded lower once in the past decade, at 0.30 times P/B in March 2009 during the Global Financial Crisis.
While the stock's current cheapness is justified by its weak 1H2019 results (underlying profit down -39% YoY) and the bleak near-term outlook