SEHK:6816

Stock Analysis Report

Prosper Construction Holdings

Executive Summary

Prosper Construction Holdings Limited provides marine construction and engineering services in Hong Kong, Indonesia, Macao, Malaysia, the Philippines, and Pakistan.


Snowflake Analysis

Mediocre balance sheet with poor track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6816's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

6816

-0.8%

HK Construction

0.2%

HK Market


1 Year Return

n/a

6816

-34.8%

HK Construction

-22.0%

HK Market

Return vs Industry: Insufficient data to determine how 6816 performed against the Hong Kong Construction industry.

Return vs Market: Insufficient data to determine how 6816 performed against the Hong Kong Market.


Shareholder returns

6816IndustryMarket
7 Day-3.2%-0.8%0.2%
30 Day-23.8%-11.8%-10.6%
90 Day-26.5%-17.8%-15.8%
1 Yearn/a-31.4%-34.8%-19.1%-22.0%
3 Year-7.0%-12.9%-47.0%-52.6%-3.7%-13.4%
5 Yearn/a-55.9%-62.3%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Prosper Construction Holdings undervalued compared to its fair value and its price relative to the market?

40.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6816 (HK$0.61) is trading above our estimate of fair value (HK$0.35)

Significantly Below Fair Value: 6816 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6816 is poor value based on its PE Ratio (40.4x) compared to the Construction industry average (7.9x).

PE vs Market: 6816 is poor value based on its PE Ratio (40.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6816's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6816 is overvalued based on its PB Ratio (0.9x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

How is Prosper Construction Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.4%

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 Prosper Construction Holdings 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 Prosper Construction Holdings performed over the past 5 years?

-27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6816 has high quality earnings.

Growing Profit Margin: 6816's current net profit margins (2.3%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 6816's earnings have declined by -27.7% per year over the past 5 years.

Accelerating Growth: 6816's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6816 had negative earnings growth (-60.3%) over the past year, making it difficult to compare to the Construction industry average (-2.5%).


Return on Equity

High ROE: 6816's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is Prosper Construction Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6816's short term assets (HK$703.7M) exceed its short term liabilities (HK$402.1M).

Long Term Liabilities: 6816's short term assets (HK$703.7M) exceed its long term liabilities (HK$9.3M).


Debt to Equity History and Analysis

Debt Level: 6816's debt to equity ratio (45.5%) is considered high.

Reducing Debt: 6816's debt to equity ratio has increased from 22.4% to 45.5% over the past 5 years.

Debt Coverage: 6816's debt is well covered by operating cash flow (22.1%).

Interest Coverage: 6816's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: 6816 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6816's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is Prosper Construction Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6816's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6816's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6816's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6816's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6816 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6816's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Qi Cui (56yo)

no data

Tenure

HK$1,560,000

Compensation

Mr. Qi Cui serves as Chief Executive Officer at Prosper Construction Holdings Limited and has been its Executive Director since October 6, 2015. He was Chairman of the Board of Prosper Construction Holding ...


CEO Compensation Analysis

Compensation vs Market: Qi's total compensation ($USD201.22K) is about average for companies of similar size in the Hong Kong market ($USD226.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Luqiang Liu
Chairman of the Board1.5yrsno datano data
Qi Cui
CEO & Executive Directorno dataHK$1.56mno data
Ming Yu
Chief Engineerno dataHK$1.19mno data
Hongbin Ding
COO & Executive Director0.75yrno datano data
Shuang Jiang
Executive Director0.92yrno datano data
Zhenshan Yang
Executive Director0.92yrno datano data
Baldwin Lee
Company Secretaryno datano datano data

0.9yrs

Average Tenure

50yo

Average Age

Experienced Management: 6816's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Luqiang Liu
Chairman of the Board1.5yrsno datano data
Qi Cui
CEO & Executive Directorno dataHK$1.56mno data
Hongbin Ding
COO & Executive Director0.75yrno datano data
Shuang Jiang
Executive Director0.92yrno datano data
Zhenshan Yang
Executive Director0.92yrno datano data
Chi Man Cheung
Independent Non-Executive Director2.67yrsHK$224.00kno data
Yaping Wang
Independent Non-Executive Director1.5yrsHK$52.00kno data
Xuezhan Cheng
Independent Non-Executive Director1.33yrsHK$10.00kno data
Xuejun Wang
Non-Executive Director1.5yrsno datano data

1.5yrs

Average Tenure

51yo

Average Age

Experienced Board: 6816's board of directors are not considered experienced ( 1.5 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

Prosper Construction Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prosper Construction Holdings Limited
  • Ticker: 6816
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: HK$488.000m
  • Shares outstanding: 800.00m
  • Website: https://www.prosperch.com

Number of Employees


Location

  • Prosper Construction Holdings Limited
  • K Wah Centre
  • 5th Floor, Unit Nos. 04-05
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6816SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2016

Biography

Prosper Construction Holdings Limited provides marine construction and engineering services in Hong Kong, Indonesia, Macao, Malaysia, the Philippines, and Pakistan. Its marine construction services include dredging and non-dredging ground treatment works, reclamation works, pier construction works, offshore facilities foundation works, and marine transportation works. The company is also involved in leasing and trading vessels. Prosper Construction Holdings Limited was founded in 1995 and is headquartered in North Point, Hong Kong. As of August 16, 2018, Prosper Construction Holdings Limited operates as a subsidiary of Qingdao West Coast Holdings (Internation) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 14:02
End of Day Share Price2020/04/03 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.