SEHK:1865

Stock Analysis Report

Pipeline Engineering Holding

Executive Summary

Pipeline Engineering Holdings limited, an investment holding company, engages in infrastructural pipeline construction and related engineering services primarily for gas, water, telecommunications, and power industries services.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.

Share Price & News

How has Pipeline Engineering Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

1865

0.6%

HK Construction

0.3%

HK Market


1 Year Return

n/a

1865

-14.9%

HK Construction

1.3%

HK Market

Return vs Industry: Insufficient data to determine how 1865 performed against the Hong Kong Construction industry.

Return vs Market: Insufficient data to determine how 1865 performed against the Hong Kong Market.


Shareholder returns

1865IndustryMarket
7 Day-3.6%0.6%0.3%
30 Day-7.8%-4.7%0.5%
90 Day17.8%-10.5%-4.6%
1 Yearn/a-11.1%-14.9%4.9%1.3%
3 Yearn/a-25.3%-33.6%15.3%3.7%
5 Yearn/a0.004%-15.1%20.0%-0.006%

Price Volatility Vs. Market

How volatile is Pipeline Engineering Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pipeline Engineering Holding undervalued compared to its fair value and its price relative to the market?

186.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1865's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1865's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1865 is poor value based on its PE Ratio (186.7x) compared to the Construction industry average (10.3x).

PE vs Market: 1865 is poor value based on its PE Ratio (186.7x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1865's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1865 is overvalued based on its PB Ratio (4.8x) compared to the HK Construction industry average (1.1x).


Next Steps

Future Growth

How is Pipeline Engineering Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1865's forecast earnings growth (15.6% per year) is above the savings rate (2%).

Earnings vs Market: 1865's earnings (15.6% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

High Growth Earnings: 1865's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1865's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1865's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1865's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pipeline Engineering Holding performed over the past 5 years?

-84.8%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1865's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: 1865's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1865 had negative earnings growth (-84.8%) over the past year, making it difficult to compare to the Construction industry average (-12.4%).


Return on Equity

High ROE: 1865's Return on Equity (1.9%) is considered low.


Return on Assets

ROA vs Industry: 1865's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 1865's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pipeline Engineering Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 1865's short term assets (SGD39.1M) exceeds its short term liabilities (SGD12.2M)

Long Term Liabilities: 1865's short term assets (39.1M) exceeds its long term liabilities (2.0M)


Debt to Equity History and Analysis

Debt Level: 1865's debt to equity ratio (7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1865's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1865's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1865's interest payments on its debt are well covered by EBIT (99x coverage).


Balance Sheet

Inventory Level: 1865 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1865's debt is covered by short term assets (assets are 15.676820x debt).


Next Steps

Dividend

What is Pipeline Engineering Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage4.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1865's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1865's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1865's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1865's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1865's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Pipeline Engineering Holding's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Michael Shi (57yo)

1.2yrs

Tenure

S$148,000

Compensation

Mr. Shi Guan Wah, also known as Michael, is a co-founder of Pipeline Engineering Holding limited Group and has been a director of HSC Pipeline Engineering since January 1993. He has been a Director of Pipe ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Michael's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.2yrs

Average Tenure

47yo

Average Age

Experienced Management: 1865's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

0.7yrs

Average Tenure

43yo

Average Age

Experienced Board: 1865's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Lincoln Kwok (43yo)

    Financial Controller

    • Tenure: 1.3yrs
  • Michael Shi (57yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: S$148.00k
  • Guan Shi (54yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$139.00k
  • Hong Shi (32yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$97.00k
  • Hau-zen Hwang (47yo)

    Company Secretary

    • Tenure: 1.2yrs

Board Members

  • Benjamin Choo (43yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Michael Shi (57yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: S$148.00k
  • Guan Shi (54yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$139.00k
  • Hong Shi (32yo)

    Executive Director

    • Tenure: 1.3yrs
    • Compensation: S$97.00k
  • Choong Cher (57yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Soon Chiam (39yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Jiamin Feng (34yo)

    Non-Executive Director

    • Tenure: 0.08yrs

Company Information

Pipeline Engineering Holding Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pipeline Engineering Holding Limited
  • Ticker: 1865
  • Exchange: SEHK
  • Founded: 1996
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$975.200m
  • Shares outstanding: 920.00m
  • Website: https://www.pipeline-engineering-holdings.com

Number of Employees


Location

  • Pipeline Engineering Holding Limited
  • 36 Sungei Kadut Avenue
  • Singapore
  • 729661
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1865SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2019

Biography

Pipeline Engineering Holdings limited, an investment holding company, engages in infrastructural pipeline construction and related engineering services primarily for gas, water, telecommunications, and pow ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:55
End of Day Share Price2019/10/23 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.