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2258

Watts International Maritime SEHK:2258 Stock Report

Last Price

HK$0.41

Market Cap

HK$321.9m

7D

-2.4%

1Y

-29.3%

Updated

18 Aug, 2022

Data

Company Financials
2258 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends2/6

2258 Stock Overview

Watts International Maritime Company Limited, an investment holding company, operates as a port, waterway, and marine and municipal public engineering services provider in the People's Republic of China.

Watts International Maritime Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Watts International Maritime
Historical stock prices
Current Share PriceHK$0.41
52 Week HighHK$0.80
52 Week LowHK$0.28
Beta0.11
1 Month Change36.67%
3 Month Change24.24%
1 Year Change-29.31%
3 Year Change-58.59%
5 Year Changen/a
Change since IPO-69.17%

Recent News & Updates

Jul 22
Here's What's Concerning About Watts International Maritime's (HKG:2258) Returns On Capital

Here's What's Concerning About Watts International Maritime's (HKG:2258) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Jun 17
Watts International Maritime (HKG:2258) Is Increasing Its Dividend To HK$0.016

Watts International Maritime (HKG:2258) Is Increasing Its Dividend To HK$0.016

The board of Watts International Maritime Company Limited ( HKG:2258 ) has announced that the dividend on 16th of...

May 04
Watts International Maritime (HKG:2258) Is Paying Out A Larger Dividend Than Last Year

Watts International Maritime (HKG:2258) Is Paying Out A Larger Dividend Than Last Year

Watts International Maritime Company Limited ( HKG:2258 ) has announced that it will be increasing its dividend on the...

Shareholder Returns

2258HK ConstructionHK Market
7D-2.4%2.7%1.5%
1Y-29.3%-12.7%-20.8%

Return vs Industry: 2258 underperformed the Hong Kong Construction industry which returned -12.7% over the past year.

Return vs Market: 2258 underperformed the Hong Kong Market which returned -20.8% over the past year.

Price Volatility

Is 2258's price volatile compared to industry and market?
2258 volatility
2258 Average Weekly Movement27.6%
Construction Industry Average Movement7.0%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 2258 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 28% a week.

Volatility Over Time: 2258's weekly volatility has increased from 16% to 28% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2017603Yun Wanhttps://www.shbt-china.com

Watts International Maritime Company Limited, an investment holding company, operates as a port, waterway, and marine and municipal public engineering services provider in the People's Republic of China. It operates through two segments, Marine Construction and Municipal Public Construction. The Marine Construction segment includes infrastructure construction of ports, waterway engineering, and other services.

Watts International Maritime Fundamentals Summary

How do Watts International Maritime's earnings and revenue compare to its market cap?
2258 fundamental statistics
Market CapHK$321.91m
Earnings (TTM)HK$54.43m
Revenue (TTM)HK$2.62b

6.2x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2258 income statement (TTM)
RevenueCN¥2.26b
Cost of RevenueCN¥2.06b
Gross ProfitCN¥207.77m
Other ExpensesCN¥160.71m
EarningsCN¥47.06m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)0.057
Gross Margin9.18%
Net Profit Margin2.08%
Debt/Equity Ratio17.7%

How did 2258 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

23%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2258 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2258?

Other financial metrics that can be useful for relative valuation.

2258 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 2258's PE Ratio compare to its peers?

2258 PE Ratio vs Peers
The above table shows the PE ratio for 2258 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.7x
368 Superland Group Holdings
28.6xn/aHK$360.0m
1953 Rimbaco Group Global
69.5xn/aHK$441.0m
2863 Golden Faith Group Holdings
11.5xn/aHK$246.3m
1582 CR Construction Group Holdings
5.1xn/aHK$242.5m
2258 Watts International Maritime
6.2xn/aHK$321.9m

Price-To-Earnings vs Peers: 2258 is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (28.7x).


Price to Earnings Ratio vs Industry

How does 2258's PE Ratio compare vs other companies in the HK Construction Industry?

Price-To-Earnings vs Industry: 2258 is good value based on its Price-To-Earnings Ratio (6.2x) compared to the Hong Kong Construction industry average (11.5x)


Price to Earnings Ratio vs Fair Ratio

What is 2258's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2258 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2258's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 2258 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2258 (HK$0.41) is trading above our estimate of fair value (HK$0.25)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.3%

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 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.


Discover growth companies

  • Examine Watts International Maritime's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Watts International Maritime competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Watts International Maritime performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.2%

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 (2.1%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 2258's earnings have declined by 17.2% per year over the past 5 years.

Accelerating Growth: 2258's earnings growth over the past year (0.5%) exceeds its 5-year average (-17.2% per year).

Earnings vs Industry: 2258 earnings growth over the past year (0.5%) exceeded the Construction industry -13.2%.


Return on Equity

High ROE: 2258's Return on Equity (6.7%) is considered low.


Discover strong past performing companies

Financial Health

How is Watts International Maritime's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2258's short term assets (CN¥2.5B) exceed its short term liabilities (CN¥2.3B).

Long Term Liabilities: 2258's short term assets (CN¥2.5B) exceed its long term liabilities (CN¥282.6M).


Debt to Equity History and Analysis

Debt Level: 2258 has more cash than its total debt.

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

Debt Coverage: 2258's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2258's interest payments on its debt are well covered by EBIT (49.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.70%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2258's dividend (3.7%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 2258's dividend (3.7%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.27%).


Stability and Growth of Payments

Stable Dividend: 2258 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2258 has only been paying a dividend for 3 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.8%), 2258's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 2258 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure


CEO

Yun Wan (43 yo)

3.42yrs

Tenure

CN¥618,000

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 ($USD91.14K) is below average for companies of similar size in the Hong Kong market ($USD244.40K).

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


Leadership Team

Experienced Management: 2258's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: 2258's board of directors are considered experienced (4.1 years average tenure).


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

Watts International Maritime Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Watts International Maritime Company Limited
  • Ticker: 2258
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Implied Market Cap: HK$321.906m
  • Shares outstanding: 825.40m
  • Website: https://www.shbt-china.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.