Hongkong and Shanghai Hotels' earnings boost from unusual items may not be sustainable, indicating potential lower underlying earnings power than statutory profit. Investors should consider the company's risks and balance sheet strength for a comprehensive financial health understanding.

The company's consistent revenue shrinkage and stock price decline over the years make it a risky investment. Investors are advised to consider the risks associated with the company, including its 3 warning signs.

Investors' bullish stance on Hongkong and Shanghai Hotels, despite its high P/S ratio and lower than industry growth forecasts, could lead to future disappointment. The high P/S ratio could be hard to sustain without significant improvement in medium-term performance.

Hongkong and Shanghai Hotels' stock price drop over the last five years aligns with its weak performance. Not ideal for risk averse investors. A clear demonstration of company growth is needed despite recent price increase.