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Global Research

2013 Asian hotel RevPAR performance
has been sluggish
YTD 2014, growth has been improving
for HK, Singapore, Tokyo and KL;
China continues to face severe lavish
spending curbs
Prefer Mandarin Oriental (OW) given its
leverage to Hong Kong and other Asian
cities, while we are Neutral on Shangri-
La given its high leverage to China

HSBC hosted Jones Lang LaSalle Hotels (JLLH) for a
luncheon in Singapore on 7 July 2014. Below are our
impressions of the highlights.
Lacklustre 2013 growth: Overall, Asia showed a lacklustre
performance in 2013. Growth in gateway cities such as Hong
Kong and Singapore had slowed substantially after years of
strong RevPAR growth, while China and Southeast Asia
also had mixed performances. India faced abundant supply
and had RevPAR declines.
A better YTD 2014: There have been signs of improvement
for some Asian cities. Hong Kongs and Singapores upscale
hotel RevPAR growth rebounded to 5-6% in Jan-April 2014
backed by improving demand and restricted supply, while
Kuala Lumpur benefited as an alternative destination to
Thailand. Tokyo upscale hotel RevPAR grew more than
15% y-o-y, benefiting from more travellers amid a weak
currency. Meanwhile, China is facing ample supply and
lavish spending curbs, while Bangkok upscale hotels faced a
25-30% RevPAR decline from political uncertainties.
We prefer Mandarin Oriental (MOH) over Shangri-La
(SHLA): The trends set out by JLLH support our preference
for Mandarin Oriental (MAND SP, OW, TP: USD2.2) over
Shangri-La (69 HK, N, TP: HKD12.8) given MOHs
leverage to the Asian and European hotel markets, while
SHLAs remains overly leveraged to the China hotel market.
Looking for more Local Insights? HSBC will also host a
Jones Lang LaSalle Hotels NDR in Hong Kong on 23 July
2014. Please contact our sales colleagues to sign up.
Industrials
Asia Hotels

Asian Hotels
Jones Lang LaSalle Hotels Singapore
luncheon highlights
10 July 2014
Stephen Wan*
Analyst
The Hongkong and Shanghai Banking Corporation Limited
+852 2996 6566 stephenwan@hsbc.com.hk
Mark Webb*
Head of Transport and Conglomerate Research, Asia Pacific
The Hongkong and Shanghai Banking Corporation Limited
+852 2996 6574 markwebb@hsbc.com.hk
View HSBC Global Research at: http://www.research.hsbc.com
*Employed by a non-US affiliate of HSBC Securities (USA) Inc,
and is not registered/qualified pursuant to FINRA regulations
Issuer of report: The Hongkong and Shanghai Banking
Corporation Limited
Disclaimer & Disclosures
This report must be read with the
disclosures and the analyst certifications
in the Disclosure appendix, and with the
Disclaimer, which forms part of it



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Industrials
Asia Hotels
10 July 2014
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HSBC hosted Jones Lang LaSalle Hotels (JLLH)
at a luncheon in Singapore on 7 July 2014. Below
are the highlights.
2013 performance
While most gateway cities (such as Singapore,
Hong Kong, New York, London, Dubai) had high
RevPARs in absolute terms, growth overall was
lacklustre (in USD terms) in 2013.
Singapore RevPAR had 1.1% growth, while
Hong Kong RevPAR fell 2.0%; both cities
faced weaknesses after years of strong RevPAR
growth since the global financial crisis. The
upscale segment fared better especially for HK
lower-tiered hotels in the city priced
themselves competitively after the cessation of
Chinese zero fare tour groups in 2013 spurred
hoteliers worries of weak demand.
China had a mixed performance, with
Shanghai and Guangzhou both having 3.1%
RevPAR growth, while Beijing RevPAR
declined 5.2% as the capital faced even more
stringent lavish spending curbs than other
Chinese cities. Upscale hotels have been more
adversely affected given the high supply of
luxury hotels across China.
Southeast Asia also had mixed performances,
with Kuala Lumpur growing 3.7%, Manila
falling 3.1% from ample supply, and Bangkok
growing 20.5% from a low base
Jakarta (-5.5%) and Tokyo (-8.7%) had
decent growth in local currency terms but
both were affected by their currencies
depreciation.
India faced strong supply growth, with
RevPARs falling for Mumbai (-6.6%),
Bangalore (-7.3%), New Delhi (-16.8%) and
Chennai (-22.1%)
JLLH Singapore luncheon
highlights
2013 Asian hotel RevPAR performance has been sluggish
YTD 2014, growth has been improving for HK, Singapore, Tokyo
and KL; China continues to face lavish spending curbs
We prefer Mandarin Oriental (OW) given its leverage to Hong
Kong and other Asian cities, while we are Neutral on Shangri-La
given its high leverage to China


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Industrials
Asia Hotels
10 July 2014
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1. RevPAR performance in 2013 (in USD terms)

Source: Jones Lang LaSalle

YTD 2014 performance and
medium-term issues
While the overall environment is still tough,
fundamentals have improved for some cities, in
particular Hong Kong, Singapore, Tokyo and
Kuala Lumpur.
JLLH provided charts on upscale hotels Jan-Apr
2014 y-o-y RevPAR growth across various Asian
cities please note the growth numbers provided
here are HSBC estimates from the charts
provided, in local currency terms:
Singapore and Hong Kong upscale hotels
had a RevPAR y-o-y growth rebound to
approximately 5-6%. These cities are
fundamentally undersupplied and gateway
hubs which attract both leisure and business
travellers, but Hong Kong may face slower
visitor growth in the longer term given
outbound China visitors are targeting other
destinations after visiting Hong Kong.
Shanghai upscale hotels RevPAR rebounded
to around 4%, supported by demand from
domestic travellers, despite weak foreign visitor
growth, while Beijing upscale continue to be
plagued by the lavish spending curbs and
RevPAR declined 2-3%. Problems remain in the
medium to longer term, given that China faces
issues of oversupply and a stringent lavish
spending curb. Multinational corporations are
also viewing China as less of a destination for
investment given the higher labour costs, while
pollution is starting to deter tourists.
Tokyo upscale hotel performance remained
supported by a weak currency and strong
visitor growth, with RevPAR growing more
than 15%. In the medium term, the outlook
remains promising given the expectation of
more 2020 Olympics-related business
travellers along with the Japanese
governments relaxation of visas.
Southeast Asia performance remains mixed,
with Manila RevPAR declining 1% from the
continued abundant supply, while Kuala
Lumpur luxury RevPAR grew more than
15% as it served as an alternative destination
to Bangkok, although heavy supply will be
coming and will place pressure on RevPAR in
the medium term. Bangkok upscale hotel
RevPAR fell 29% from the political
uncertainties and may continue this
momentum for the remainder of the year.
India remains oversupplied with hotels and
Chennai luxury (-17%), Bangalore luxury
(-16%), New Delhi luxury (-9%) and
Mumbai luxury hotels (-7%) have all
suffered under this backdrop.

2. RevPAR performance in Jan-Apr 2014 (in local currency)
Source: Jones Lang LaSallle, HSBC estimates
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Industrials
Asia Hotels
10 July 2014
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We prefer Mandarin Oriental
to Shangri-La
The trends provided by JLLH support our thesis
of preferring Mandarin Oriental over Shangri-La
Asia. We estimate MOH has 42% of its 2013
attributable EBITDA (subsidiaries and associates)
in Hong Kong, 31% in other Asia (we estimate
this is mostly Tokyo and Singapore), 23% in
Europe and 4% in Americas. Stronger growth in
Hong Kong, Singapore and Tokyo will be positive
for the company. In addition, MOH is expanding
its network of managed rooms, which we argue is
asset light, high ROE and has high profit margins.
We estimate Shangri-La, on the other hand, has
60% of its attributable rooms in the China hotel
market. While inexpensive on valuation (12x 2014e
EV/EBITDA), we argue an oversupplied China
hotel market along with stringent lavish spending
curbs will continue to weigh on the stock.
We make no changes to Shangri-Las 2014-16e
earnings forecasts. We make no changes to
Mandarin Orientals 2014-15e earnings forecasts,
but introduce 2016e earnings in this report.
Valuation and risks
Mandarin Oriental (MAND SP, OW, current
price USD1.91, target price USD2.2)
We value MOH via a 2014e EV/EBITDA of 13x
(from an average of 14x in the past ten years) on
its subsidiaries and a 20x PE for its associates,
and arrive at our target price of USD2.2.

3. HSBC appraised valuation of Mandarin Oriental
USDm
EBITDA (2014e) 173
EV/EBITDA 13
EV 2,252
Add: Associates (20x 2014e PE) 356
Less: Net debt (2014e) -396
Add: Others (2014e) 2
Equity value 2,214
TP (USD) 2.2
Note: Numbers are subject to some rounding differences
Source: HSBC estimates
Under our research model, for stocks without a
volatility indicator, the Neutral band is 5ppt above
and below the hurdle rate of 8.5% for Hong Kong
stocks. As the target price implies a potential return
(including 2014e dividend) of 19%, above the
Neutral band, we reiterate our Overweight rating.
Potential return equals the percentage difference
between the current share price and the target price,
including the forecast dividend yield when indicated.
The key downside risk is a sharp slowdown in the
Hong Kong and European economies, where
MOHs most important hotels are located.
Shangri-La (69 HK, N, current price HKD11.92,
target price HKD12.8)
We value SHLA via a 2014e EV/EBITDA of 13x
(from an average of 16x in the past ten years) on
its subsidiaries and a 1.0x PB on its associates,
and arrive at our target price of HKD12.8.
4. HSBC appraised valuation of Shangri-La
USDm
EBITDA (2014e) 492
EV/EBITDA 13
EV 6,395
Add: AJCE (1.0x FY14e PB) 3,254
Less: Net debt (2014e) -3,951
Less: Others (2014e) -565
Equity value 5,124
TP (in USD) 1.64
TP (in HKD) 12.8
Source: HSBC estimates
Under our research model, for stocks without a
volatility indicator, the Neutral band is 5ppt above
and below the hurdle rate of 8.5% for Hong Kong
stocks. As the target price implies a potential return
(including 2014e dividend) of 9%, within the
Neutral band, we reiterate our Neutral rating.
Potential return equals the percentage difference
between the current share price and the target price,
including the forecast dividend yield when indicated.
The key upside risk is a vast improvement in
China RevPAR growth. The key downside risk is
unexpected events, such as natural disasters or
political unrest in China, where the majority of
Shangri-Las portfolio is situated.


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Asia Hotels
10 July 2014
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Financials and
valuations

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Asia Hotels
10 July 2014


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Financials & valuation: Mandarin Oriental Intl Overweight

Financial statements
Year to 12/2013a 12/2014e 12/2015e 12/2016e
Profit & loss summary (USDm)
Revenue 669 694 726 761
EBITDA 164 173 181 193
Depreciation & amortisation -60 -61 -62 -63
Operating profit/EBIT 104 112 119 130
Net interest -16 -19 -17 -16
PBT 117 111 120 137
HSBC PBT 106 111 120 137
Taxation -20 -20 -24 -27
Net profit 96 90 96 109
HSBC net profit 88 90 96 108
Cash flow summary (USDm)
Cash flow from operations 152 153 161 174
Capex -39 -26 -26 -20
Cash flow from investment -419 -26 -26 -20
Dividends -70 -70 -75 -100
Change in net debt 342 -82 -60 -54
FCF equity 100 110 116 131
Balance sheet summary (USDm)
Intangible fixed assets 43 57 54 51
Tangible fixed assets 1,441 1,366 1,333 1,293
Current assets 398 419 433 441
Cash & others 316 335 345 349
Total assets 2,018 1,980 1,957 1,923
Operating liabilities 163 167 173 179
Gross debt 795 732 682 632
Net debt 479 396 337 283
Shareholders funds 989 1,009 1,030 1,039
Invested capital 1,401 1,340 1,302 1,257

Ratio, growth and per share analysis
Year to 12/2013a 12/2014e 12/2015e 12/2016e
Y-o-y % change
Revenue 3.1 3.8 4.6 4.8
EBITDA 20.9 5.4 4.3 6.6
Operating profit 26.7 7.3 5.9 9.4
PBT 32.0 -5.1 8.8 13.7
HSBC EPS 26.6 3.1 6.1 13.1
Ratios (%)
Revenue/IC (x) 0.6 0.5 0.5 0.6
ROIC 5.9 6.5 6.9 7.9
ROE 8.9 8.9 9.3 10.4
ROA 5.9 5.5 5.8 6.5
EBITDA margin 24.6 24.9 24.9 25.3
Operating profit margin 15.6 16.1 16.3 17.1
EBITDA/net interest (x) 10.4 9.1 10.5 12.4
Net debt/equity 48.1 39.0 32.5 27.0
Net debt/EBITDA (x) 2.9 2.3 1.9 1.5
CF from operations/net debt 31.7 38.6 47.7 61.5
Per share data (USD)
EPS Rep (fully diluted) 0.10 0.09 0.10 0.11
HSBC EPS (fully diluted) 0.09 0.09 0.10 0.11
DPS 0.07 0.07 0.08 0.10
Book value 0.99 1.01 1.03 1.04


Valuation data
Year to 12/2013a 12/2014e 12/2015e 12/2016e
EV/sales 3.0 3.2 2.9 2.7
EV/EBITDA 12.4 12.7 11.8 10.8
EV/IC 1.4 1.6 1.6 1.6
PE* 18.9 21.1 19.9 17.6
P/Book value 1.7 1.9 1.9 1.8
FCF yield (%) -15.9 8.0 7.1 8.1
Dividend yield (%) 4.2 3.7 3.9 5.2
Note: * = Based on HSBC EPS (fully diluted)


Issuer information
Share price (USD) 1.91 Target price (USD) 2.20
1
5
.
2
Reuters (Equity) MOIL.SI Bloomberg (Equity) MAND SP
Market cap (USDm) 1,917 Market cap (USDm) 1,917
Free float (%) 25 Enterprise value (USDm) 2185
Country Hong Kong Sector Hotels Restaurants & Leisure
Analyst Stephen Wan Contact +852 2996 6566


Price relative
Source: HSBC


Note: price at close of 08 Jul 2014
1
1.2
1.4
1.6
1.8
2
1
1.2
1.4
1.6
1.8
2
2012 2013 2014 2015
Mandarin Oriental Intl Rel to HANG SENG INDEX

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Industrials
Asia Hotels
10 July 2014


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Financials & valuation: Shangri-La Asia Ltd Neutral

Financial statements
Year to 12/2013a 12/2014e 12/2015e 12/2016e
Profit & loss summary (USDm)
Revenue 2,081 2,191 2,441 2,637
EBITDA 526 492 520 569
Depreciation & amortisation -322 -345 -367 -388
Operating profit/EBIT 204 147 153 180
Net interest -99 -120 -127 -128
PBT 551 188 206 248
HSBC PBT 159 188 206 248
Taxation -110 -57 -62 -75
Net profit 392 86 94 113
HSBC net profit 66 86 94 113
Cash flow summary (USDm)
Cash flow from operations 839 629 681 714
Capex -730 -650 -650 -650
Cash flow from investment -699 -650 -650 -650
Dividends -48 -63 -69 -83
Change in net debt 142 283 252 252
FCF equity -308 -278 -248 -237
Balance sheet summary (USDm)
Intangible fixed assets 94 94 94 94
Tangible fixed assets 7,985 8,290 8,573 8,835
Current assets 1,081 811 589 360
Cash & others 697 414 162 -89
Total assets 12,349 12,465 12,616 12,747
Operating liabilities 832 901 1,002 1,072
Gross debt 4,365 4,365 4,365 4,365
Net debt 3,668 3,951 4,203 4,455
Shareholders funds 6,374 6,397 6,422 6,453
Invested capital 7,630 7,879 8,091 8,306

Ratio, growth and per share analysis
Year to 12/2013a 12/2014e 12/2015e 12/2016e
Y-o-y % change
Revenue 1.2 5.3 11.4 8.0
EBITDA -4.7 -6.6 5.7 9.4
Operating profit -16.2 -28.0 4.1 17.8
PBT 13.8 -65.8 9.5 20.4
HSBC EPS -57.4 29.8 9.5 20.4
Ratios (%)
Revenue/IC (x) 0.3 0.3 0.3 0.3
ROIC 2.2 1.3 1.3 1.5
ROE 1.1 1.3 1.5 1.8
ROA 4.4 1.8 1.9 2.1
EBITDA margin 25.3 22.4 21.3 21.6
Operating profit margin 9.8 6.7 6.3 6.8
EBITDA/net interest (x) 5.3 4.1 4.1 4.4
Net debt/equity 53.2 56.9 60.1 63.1
Net debt/EBITDA (x) 7.0 8.0 8.1 7.8
CF from operations/net debt 22.9 15.9 16.2 16.0
Per share data (USD)
EPS Rep (fully diluted) 0.13 0.03 0.03 0.04
HSBC EPS (fully diluted) 0.02 0.03 0.03 0.04
DPS 0.02 0.02 0.02 0.03
Book value 2.04 2.04 2.05 2.06


Valuation data
Year to 12/2013a 12/2014e 12/2015e 12/2016e
EV/sales 2.8 2.8 2.6 2.4
EV/EBITDA 11.0 12.3 12.0 11.3
EV/IC 0.6 0.6 0.6 0.6
PE* 72.5 55.8 51.0 42.3
P/Book value 0.8 0.7 0.7 0.7
FCF yield (%) -1.9 -4.6 -3.8 -3.5
Dividend yield (%) 1.0 1.3 1.4 1.7
Note: * = Based on HSBC EPS (fully diluted)


Issuer information
Share price (HKD) 11.92 Target price (HKD) 12.80
7
.
4
Reuters (Equity) 0069.HK Bloomberg (Equity) 69 HK
Market cap (USDm) 4,818 Market cap (HKDm) 37,339
Free float (%) 46 Enterprise value (USDm) 5524
Country Hong Kong Sector HOTELS RESTAURANTS &
LEISURE
Analyst Stephen Wan Contact +852 2996 6566


Price relative
Source: HSBC


Note: price at close of 08 Jul 2014
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2012 2013 2014 2015
Shangri-La Asia Ltd Rel to HANG SENG INDEX


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Industrials
Asia Hotels
10 July 2014
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Appendix


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Industrials
Asia Hotels
10 July 2014
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JLLH also spent part of the discussion on the
hotel transaction market. While not directly
involved in our stock calls, we believe this is
nevertheless interesting.
2013 had been a strong year for hotel transactions
(nearly USD8bn of hotels transacted in 2013,
compared with USD2-3bn in 2012), driven by
activities in Singapore and Japan, while price per
key also increased 107% from USD126,000 to
USD261,000 (HSBC estimates). Transaction
value in 1H14 was slightly below USD3bn and
similar to 1H13. The main buyers for hotels are
property companies, corporates, high net worth
individuals, and REITS and hotel / service
apartment operators. The main sellers are
investment and private equity funds, corporates
and property companies

5. Asian hotel buyers and sellers

Note: HNWI = High Net Worth Individuals, SA = Service Apartment
Source: Jones Lang LaSalle, HSBC estimates

Given the higher price per key, we argue there
will be less opportunity for hoteliers to acquire
hotels at value-accretive prices.

32%
19%
24%
28%
15%
16%
14%
11%
4%
32%
0%
20%
40%
60%
80%
100%
Buyer Seller
Property Co Corporates HNWI
REIT Hotel / SA operator Bank / Institutions
Funds
Asia hotel transaction
market


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Industrials
Asia Hotels
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Disclosure appendix
Analyst Certification
The following analyst(s), economist(s), and/or strategist(s) who is(are) primarily responsible for this report, certifies(y) that the
opinion(s) on the subject security(ies) or issuer(s) and/or any other views or forecasts expressed herein accurately reflect their
personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific
recommendation(s) or views contained in this research report: Stephen Wan and Mark Webb.
Important disclosures
Equities: Stock ratings and basis for financial analysis
HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which
depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations.
Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities
based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon;
and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative,
technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating.
HSBC has assigned ratings for its long-term investment opportunities as described below.
This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when
HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at
www.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of this
website.
HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's
existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating
systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research
report. In addition, because research reports contain more complete information concerning the analysts' views, investors
should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not
be used or relied on in isolation as investment advice.
Rating definitions for long-term investment opportunities
Stock ratings
HSBC assigns ratings to its stocks in this sector on the following basis:
For each stock we set a required rate of return calculated from the cost of equity for that stocks domestic or, as appropriate,
regional market established by our strategy team. The price target for a stock represents the value the analyst expects the stock
to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the
potential return, which equals the percentage difference between the current share price and the target price, including the
forecast dividend yield when indicated, must exceed the required return by at least 5 percentage points over the next 12 months
(or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be
expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points
for a stock classified as Volatile*). Stocks between these bands are classified as Neutral.
Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility
status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review,
expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily
triggering a rating change.


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Asia Hotels
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*A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12
months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However,
stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past
month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating,
however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change.
Rating distribution for long-term investment opportunities
As of 09 July 2014, the distribution of all ratings published is as follows:
Overweight (Buy) 45% (31% of these provided with Investment Banking Services)
Neutral (Hold) 37% (32% of these provided with Investment Banking Services)
Underweight (Sell) 18% (25% of these provided with Investment Banking Services)

Share price and rating changes for long-term investment opportunities
Shangri-La Asia Ltd (0069.HK) Share Price performance HKD Vs HSBC rating
history
Recommendation & price target history
From To Date
Overweight Neutral 12 January 2012
Neutral Underweight 19 March 2012
Underweight Neutral 19 August 2013
Neutral Underweight 27 February 2014
Underweight Neutral 19 March 2014
Target Price Value Date
Price 1 24.00 25 July 2011
Price 2 20.50 28 August 2011
Price 3 15.00 12 January 2012
Price 4 14.00 19 March 2012
Price 5 15.00 21 March 2013
Price 6 13.50 19 August 2013
Price 7 12.70 22 August 2013
Price 8 13.00 27 February 2014
Price 9 12.80 19 March 2014
Source: HSBC

Source: HSBC

Mandarin Oriental Intl (MOIL.SI) Share Price performance USD Vs HSBC
rating history
Recommendation & price target history
From To Date
Overweight Neutral 01 August 2011
Neutral Overweight 10 November 2011
Target Price Value Date
Price 1 2.30 01 August 2011
Price 2 2.00 10 November 2011
Price 3 2.10 12 January 2012
Price 4 2.00 17 July 2012
Price 5 1.90 29 July 2012
Price 6 1.80 07 March 2013
Price 7 1.95 02 August 2013
Price 8 2.20 27 February 2014
Source: HSBC

Source: HSBC

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12
Industrials
Asia Hotels
10 July 2014
abc
HSBC & Analyst disclosures
Disclosure checklist
Company Ticker Recent price Price Date Disclosure
MANDARIN ORIENTAL INTL MOIL.SI 1.91 08-Jul-2014 2, 6, 7
SHANGRI-LA ASIA LTD 0069.HK 11.92 08-Jul-2014 6
Source: HSBC
1 HSBC has managed or co-managed a public offering of securities for this company within the past 12 months.
2 HSBC expects to receive or intends to seek compensation for investment banking services from this company in the next
3 months.
3 At the time of publication of this report, HSBC Securities (USA) Inc. is a Market Maker in securities issued by this
company.
4 As of 31 May 2014 HSBC beneficially owned 1% or more of a class of common equity securities of this company.
5 As of 31 May 2014, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of investment banking services.
6 As of 31 May 2014, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of non-investment banking securities-related services.
7 As of 31 May 2014, this company was a client of HSBC or had during the preceding 12 month period been a client of
and/or paid compensation to HSBC in respect of non-securities services.
8 A covering analyst/s has received compensation from this company in the past 12 months.
9 A covering analyst/s or a member of his/her household has a financial interest in the securities of this company, as
detailed below.
10 A covering analyst/s or a member of his/her household is an officer, director or supervisory board member of this
company, as detailed below.
11 At the time of publication of this report, HSBC is a non-US Market Maker in securities issued by this company and/or in
securities in respect of this company

HSBC and its affiliates will from time to time sell to and buy from customers the securities/instruments (including derivatives)
of companies covered in HSBC Research on a principal or agency basis.
Analysts, economists, and strategists are paid in part by reference to the profitability of HSBC which includes investment
banking revenues.
Whether, or in what time frame, an update of this analysis will be published is not determined in advance.
For disclosures in respect of any company mentioned in this report, please see the most recently published report on that
company available at www.hsbcnet.com/research.
Additional disclosures
1 This report is dated as at 10 July 2014.
2 All market data included in this report are dated as at close 08 July 2014, unless otherwise indicated in the report.
3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its
Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research
operate and have a management reporting line independent of HSBC's Investment Banking business. Information Barrier
procedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/or
price sensitive information is handled in an appropriate manner.


13
Industrials
Asia Hotels
10 July 2014
abc
Disclaimer
* Legal entities as at 30 May 2014
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Securities Branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Branch; HSBC
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Hongkong and Shanghai Banking Corporation Limited, New Zealand Branch incorporated in Hong Kong
SAR; The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch
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Mark Webb
Regional Head of Conglomerate and Transport Research
+852 2996 6574 markwebb@hsbc.com.hk
Parash Jain
Analyst
+852 2996 6717 parashjain@hsbc.com.hk
Shishir Singh
Analyst
+852 2822 4292 shishirkumarsingh@hsbc.com.hk
Stephen Wan
Analyst
+852 2996 6566 stephenwan@hsbc.com.hk
Rajani Khetan
Analyst
+852 3941 0830 rajanikhetan@hsbc.com.hk
Jingyuan Zhai
Associate
+852 3941 7009 jocelynzhai@hsbc.com.hk
Aric Hui
Associate
+852 2822 3165 ariccshui@hsbc.com.hk


Conglomerate and Transport (Asia-Pacific)