Magnificent Hotel Investments, Shun Ho Property, and Shun Ho Holdings Joint Announcement: Positive Profit Alert and Reduction in Loss

Key Points for Investors

• Significant improvement in profitability: All three companies – Magnificent Hotel Investments Limited (MHI), Shun Ho Property Investments Limited (SHP), and Shun Ho Holdings Limited (SHH) – are forecasting notable increases in net profit before property revaluation and depreciation for the financial year ended 31 December 2025 (FY2025).
• Reduction in net losses after revaluation and depreciation: Net losses after property revaluation and non-cash depreciation are expected to decrease substantially compared to FY2024, signaling improved financial health and operational efficiency.
• Underlying drivers: The improvements are mainly attributed to increased hotel revenues, reduced hotel operating costs, and lower finance costs across the Groups.
• Potentially price-sensitive information: The expected profitability improvements and reduction in losses may significantly impact share prices, making this announcement highly relevant for shareholders and investors.
• Preliminary nature of information: The figures provided are based on unaudited consolidated management accounts and have not yet been reviewed by auditors. Final results may differ when officially published in March 2026.

Detailed Financial Highlights

Further Analysis

• MHI: Expected net profit before revaluation and non-cash depreciation is at least HK\$155 million, representing a 49% increase (HK\$51 million) over FY2024. The improvement is driven by higher hotel revenues, reduced operating costs, and lower finance expenses. After revaluation and depreciation, net profit is expected to be HK\$8 million, a turnaround from last year’s loss of HK\$45 million.
• SHP: Net profit before revaluation and depreciation is forecasted at least HK\$180 million (+23%). Inclusion of property revaluation and depreciation still results in a net loss, but the loss is reduced to HK\$178 million from HK\$290 million in FY2024, reflecting a substantial narrowing of losses due to reduced property revaluation and depreciation charges.
• SHH: Net profit before revaluation and depreciation will reach at least HK\$90 million (+26%). The net loss after revaluation and depreciation is expected to be HK\$105 million, compared to HK\$166 million in FY2024, again showing a meaningful decrease in losses.

Implications for Shareholders and Investors

• Substantial improvement in underlying profitability: The positive profit alert signals a return towards profitability for MHI and a significant reduction in losses for SHP and SHH. This is likely to be viewed favorably by the market.
• Operational turnaround: The Groups are benefiting from increased revenues and cost efficiencies, which could suggest further improvement in future financial periods.
• Share price sensitivity: These improvements, especially the reversal from losses to profits and narrowing of losses, are potentially price-sensitive and may drive upward movement in share prices.
• Risk factors: The disclosed figures are preliminary and unaudited; investors must await the official, audited annual results due in March 2026 for final confirmation.
• Caution advised: Shareholders and potential investors should exercise caution in dealing with shares, as the final results may differ from these preliminary estimates.

Board and Management

The Boards of MHI, SHP, and SHH each comprise four Executive Directors: Mr. William Cheng Kai Man (Chairman), Mr. Albert Hui Wing Ho, Madam Kimmy Lau Kam May, and Madam Ng Yuet Ying; one Non-executive Director: Madam Mabel Lui Fung Mei Yee; and three Independent Non-executive Directors: Mr. Chan Kim Fai, Mr. Lam Kwai Cheung, and Mr. Warren Liu Yuk Cho.

Conclusion

The joint announcement from Magnificent Hotel Investments, Shun Ho Property Investments, and Shun Ho Holdings points to a substantial turnaround in profitability and reduction in losses for FY2025, driven by stronger hotel performance and cost savings. The information is highly relevant for shareholders and investors, and could be a catalyst for share price movement. However, as the results are preliminary and unaudited, caution is advised until the final audited results are released.

Disclaimer

This article is based on preliminary unaudited financial information disclosed by Magnificent Hotel Investments Limited, Shun Ho Property Investments Limited, and Shun Ho Holdings Limited. Investors should exercise caution and not rely solely on this information for investment decisions. Final audited results may differ and are expected to be published in March 2026.

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