SEHK:1183

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MECOM Power and Construction

Executive Summary

MECOM Power and Construction Limited, an investment holding company, operates as an integrated construction engineering contractor in Macau. More Details


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has MECOM Power and Construction's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1183's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.6%

1183

2.6%

HK Construction

-0.3%

HK Market


1 Year Return

132.3%

1183

-13.2%

HK Construction

0.7%

HK Market

Return vs Industry: 1183 exceeded the Hong Kong Construction industry which returned -13.7% over the past year.

Return vs Market: 1183 exceeded the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1183IndustryMarket
7 Day12.6%2.6%-0.3%
30 Day37.7%-0.9%0.2%
90 Day93.9%2.5%0.3%
1 Year143.2%132.3%-8.7%-13.2%4.9%0.7%
3 Yearn/a-36.0%-44.0%-5.8%-16.1%
5 Yearn/a-39.6%-49.9%14.0%-5.4%

Price Volatility Vs. Market

How volatile is MECOM Power and Construction's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MECOM Power and Construction undervalued compared to its fair value and its price relative to the market?

42.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1183 (HK$2.23) is trading above our estimate of fair value (HK$0.49)

Significantly Below Fair Value: 1183 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1183 is poor value based on its PE Ratio (42.6x) compared to the HK Construction industry average (9.1x).

PE vs Market: 1183 is poor value based on its PE Ratio (42.6x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1183's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1183 is overvalued based on its PB Ratio (6.6x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

How is MECOM Power and Construction forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as MECOM Power and Construction has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has MECOM Power and Construction performed over the past 5 years?

-13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1183 has a high level of non-cash earnings.

Growing Profit Margin: 1183's current net profit margins (9.9%) are lower than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: 1183's earnings have declined by 13.6% per year over the past 5 years.

Accelerating Growth: 1183's earnings growth over the past year (65.9%) exceeds its 5-year average (-13.6% per year).

Earnings vs Industry: 1183 earnings growth over the past year (65.9%) exceeded the Construction industry -7%.


Return on Equity

High ROE: 1183's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is MECOM Power and Construction's financial position?


Financial Position Analysis

Short Term Liabilities: 1183's short term assets (MOP470.9M) exceed its short term liabilities (MOP108.0M).

Long Term Liabilities: 1183 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1183 is debt free.

Reducing Debt: 1183 had no debt 5 years ago.

Debt Coverage: 1183 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1183 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is MECOM Power and Construction current dividend yield, its reliability and sustainability?

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1183's dividend (2%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1183's dividend (2%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.83%).


Stability and Growth of Payments

Stable Dividend: 1183 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1183 has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (105%), 1183's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

Sotto Tou (52 yo)

no data

Tenure

MO$4,201,000

Compensation

Mr. Sou Kun Tou, also known as Sotto, serves as an Executive Director, Deputy Chairman of the Board and Chief Executive Officer of the MECOM Power and Construction Limited. Mr. Sou is responsible for the d ...


CEO Compensation Analysis

Compensation vs Market: Sotto's total compensation ($USD526.28K) is above average for companies of similar size in the Hong Kong market ($USD346.00K).

Compensation vs Earnings: Sotto's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Sou Tou
Deputy Chairman of the Board & CEOno dataMO$4.20mno data
Kiu Cho Cheung
Independent Non-Executive Director2.75yrsMO$161.00kno data
Po Yi Chan
Independent Non-Executive Director2.75yrsMO$161.00kno data
Lam Kuok
Founder & Executive Chairmanno dataMO$4.20mno data
Weng Lio
Independent Non-Executive Director0.83yrMO$13.00kno data

2.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 1183's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MECOM Power and Construction Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MECOM Power and Construction Limited
  • Ticker: 1183
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$2.542b
  • Shares outstanding: 1.19b
  • Website: https://www.mecommacau.com

Number of Employees


Location

  • MECOM Power and Construction Limited
  • Praca Kin Heng Long-Heng Hoi Kuok
  • Units Q, R and S, 6th Floor
  • Macau
  • Macau

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1183SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2018

Biography

MECOM Power and Construction Limited, an investment holding company, operates as an integrated construction engineering contractor in Macau. The company operates through three segments: Construction and Fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 13:06
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.