SEHK:2258

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Watts International Maritime Engineering

Executive Summary

Watts International Maritime Engineering Limited provides port, waterway, and marine engineering services in the People's Republic of China.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has Watts International Maritime Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2258's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

2258

1.5%

HK Construction

0.7%

HK Market


1 Year Return

-30.6%

2258

-19.9%

HK Construction

0.4%

HK Market

Return vs Industry: 2258 underperformed the Hong Kong Construction industry which returned -19.9% over the past year.

Return vs Market: 2258 underperformed the Hong Kong Market which returned 0.4% over the past year.


Shareholder returns

2258IndustryMarket
7 Day-5.6%1.5%0.7%
30 Day-21.8%0.3%-1.0%
90 Day-25.3%-0.09%9.6%
1 Year-28.1%-30.6%-15.7%-19.9%4.5%0.4%
3 Yearn/a-37.3%-45.2%0.2%-10.6%
5 Yearn/a-36.6%-47.4%9.9%-8.5%

Price Volatility Vs. Market

How volatile is Watts International Maritime Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Watts International Maritime Engineering undervalued compared to its fair value and its price relative to the market?

4.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2258 (HK$0.68) is trading above our estimate of fair value (HK$0.49)

Significantly Below Fair Value: 2258 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2258 is good value based on its PE Ratio (5x) compared to the HK Construction industry average (8.3x).

PE vs Market: 2258 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2258's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2258's PB Ratio (0.8x) is in line with the HK Construction industry average.


Next Steps

Future Growth

How is Watts International Maritime Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.2%

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 Watts International Maritime Engineering 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 Watts International Maritime Engineering performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2258 has a high level of non-cash earnings.

Growing Profit Margin: 2258's current net profit margins (4.9%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 2258's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: 2258's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2258 had negative earnings growth (-23%) over the past year, making it difficult to compare to the Construction industry average (-7.7%).


Return on Equity

High ROE: 2258's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Watts International Maritime Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 2258's short term assets (CN¥2.8B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: 2258's short term assets (CN¥2.8B) exceed its long term liabilities (CN¥338.7M).


Debt to Equity History and Analysis

Debt Level: 2258's debt to equity ratio (8.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2258's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2258's debt is well covered by operating cash flow (60.7%).

Interest Coverage: 2258 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Watts International Maritime Engineering current dividend yield, its reliability and sustainability?

6.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2258's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 2258's dividend (6.47%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.87%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2258's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2258's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25%), 2258's dividend payments are 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?

1.4yrs

Average management tenure


CEO

Yun Wan (41yo)

1.42yrs

Tenure

CN¥584,000

Compensation

Ms. Wan Yun has been Chief Executive Officer at Watts International Maritime Engineering Limited since March 27, 2019 and its Executive Director since April 9, 2018. Ms. Wan joined the Group in January 201 ...


CEO Compensation Analysis

Compensation vs Market: Yun's total compensation ($USD83.73K) is below average for companies of similar size in the Hong Kong market ($USD232.25K).

Compensation vs Earnings: Yun's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xiuchun Wang
Executive Chairman of the Board1.42yrsCN¥621.00kno data
Yun Wan
CEO & Executive Director1.42yrsCN¥584.00kno data
Olive Chen
Executive Director2.33yrsCN¥280.00k6.75% CN¥37.9m
Lijiang Wang
Company Secretary & Executive Director2.33yrsCN¥364.00kno data
Sheng Ye
Chief Financial Officer1.42yrsno datano data
Xifeng Wang
Deputy General Manager of Third Harbor Maritimeno datano datano data
Zhang Hanchun
Deputy General Manager of Third Harbor Maritime1.58yrsno datano data
Likai Wang
Executive Director0.17yrno datano data
Xiao Zhang
Joint Company Secretary1yrno datano data
Bin Zhou
General Manager of Third Harbor Maritime0.50yrno datano data
Huina Wang
General Manager of Zhejiang Benteng Municipalno datano datano data

1.4yrs

Average Tenure

41.5yo

Average Age

Experienced Management: 2258's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiuchun Wang
Executive Chairman of the Board1.42yrsCN¥621.00kno data
Yun Wan
CEO & Executive Director1.42yrsCN¥584.00kno data
Olive Chen
Executive Director2.33yrsCN¥280.00k6.75% CN¥37.9m
Lijiang Wang
Company Secretary & Executive Director2.33yrsCN¥364.00kno data
Likai Wang
Executive Director0.17yrno datano data
Dajian Sun
Independent Non-Executive Director1.83yrsCN¥176.00kno data
Shizhong Wang
Non-Executive Director2.67yrsCN¥408.00k38.22% CN¥214.5m
Hongwei Wang
Independent Non-executive Director1.83yrsCN¥176.00kno data
Sze Ming How
Independent Non-executive Director1.83yrsCN¥176.00kno data

1.8yrs

Average Tenure

43yo

Average Age

Experienced Board: 2258's board of directors are not considered experienced ( 1.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Watts International Maritime Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Watts International Maritime Engineering Limited
  • Ticker: 2258
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$561.272m
  • Shares outstanding: 825.40m
  • Website: https://www.shbt-china.com

Number of Employees


Location

  • Watts International Maritime Engineering Limited
  • Tower 17
  • 5th Floor
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2258SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2018

Biography

Watts International Maritime Engineering Limited provides port, waterway, and marine engineering services in the People's Republic of China. The company operates through two segments, Ports Infrastructure and Waterway Engineering. It engages in port infrastructure works, including wharf construction; water and other engineering projects comprising waterway dredging improvement and hydraulic reclamation; and municipal engineering projects, such as urban public infrastructure construction, including highways, bridges, and tunnels, as well as urban greening and building construction. The company was incorporated in 2017 and is headquartered in Shanghai, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/02 13:07
End of Day Share Price2020/07/31 00:00
Earnings2019/12/31
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.