SEHK:803

Stock Analysis Report

Prosperity International Holdings (H.K.)

Executive Summary

Prosperity International Holdings (H.K.) Limited, an investment holding company, engages in the real estate investment, development, and leasing business in the People’s Republic of China, Macau, Malaysia, Taiwan, and internationally.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Prosperity International Holdings (H.K.)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 803's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

803

19.4%

HK Trade Distributors

5.3%

HK Market


1 Year Return

-81.6%

803

-33.9%

HK Trade Distributors

-20.4%

HK Market

Return vs Industry: 803 underperformed the Hong Kong Trade Distributors industry which returned -69.1% over the past year.

Return vs Market: 803 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

803IndustryMarket
7 Day-5.6%19.4%5.3%
30 Day-19.3%-19.3%-8.5%
90 Day-39.1%-25.7%-14.7%
1 Year-78.3%-81.6%-31.3%-33.9%-17.6%-20.4%
3 Year-93.5%-94.5%-30.1%-36.3%-2.5%-12.3%
5 Year-96.4%-97.0%-59.5%-66.3%-5.7%-20.9%

Price Volatility Vs. Market

How volatile is Prosperity International Holdings (H.K.)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Prosperity International Holdings (H.K.) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 803 (HK$0.07) is trading below our estimate of fair value (HK$0.43)

Significantly Below Fair Value: 803 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 803 is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: 803 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 803's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 803 has negative assets, so we can't compare its PB Ratio to the HK Trade Distributors industry average.


Next Steps

Future Growth

How is Prosperity International Holdings (H.K.) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.7%

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 Prosperity International Holdings (H.K.) 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 Prosperity International Holdings (H.K.) performed over the past 5 years?

-38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 803 is currently unprofitable.

Growing Profit Margin: 803 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 803 is unprofitable, and losses have increased over the past 5 years at a rate of -38.5% per year.

Accelerating Growth: Unable to compare 803's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 803 is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (-0.08%).


Return on Equity

High ROE: 803 has a negative Return on Equity (-355.46%), as it is currently unprofitable.


Next Steps

Financial Health

How is Prosperity International Holdings (H.K.)'s financial position?


Financial Position Analysis

Short Term Liabilities: 803's short term assets (HK$3.5B) do not cover its short term liabilities (HK$5.1B).

Long Term Liabilities: 803's short term assets (HK$3.5B) exceed its long term liabilities (HK$814.1M).


Debt to Equity History and Analysis

Debt Level: 803's debt to equity ratio (367.7%) is considered high.

Reducing Debt: 803's debt to equity ratio has increased from 54.7% to 367.7% over the past 5 years.


Balance Sheet

Inventory Level: 803 has a high level of physical assets or inventory.

Debt Coverage by Assets: 803's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 803 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 803 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 35.8% per year.


Next Steps

Dividend

What is Prosperity International Holdings (H.K.)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 803's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 803'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 803's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 803's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 803 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 803'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?

0.7yrs

Average management tenure


CEO

Qiangming Xie (28yo)

0.67

Tenure

Mr. Qiangming Xie serves as Chief Executive Director at Prosperity International Holdings (H.K.) Limited since July 08, 2019. He has been an Executive Director at China Billion Resources Limited since Sept ...


Leadership Team

NamePositionTenureCompensationOwnership
Ben Koon Wong
Co-Founderno dataHK$7.82m23% HK$17.9m
Siu Keung Kong
CFO & Company Secretaryno dataHK$3.01mno data
Gloria Wong
Executive Director9.67yrsHK$1.68mno data
Qiangming Xie
CEO & Executive Director0.67yrno data15.52% HK$12.1m
Xianfang Huang
Chief Mining Engineer9.67yrsno datano data
Qiaoming Nie
Executive Director0.67yrno datano data
Xin Ma
Executive Director0.67yrno datano data
Tsz Kit Liu
Financial Controllerno datano datano data
Yee Man Lee
Chief Accounting Officer of PMHLno datano datano data

0.7yrs

Average Tenure

40yo

Average Age

Experienced Management: 803's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ben Koon Wong
Co-Founderno dataHK$7.82m23% HK$17.9m
Gloria Wong
Executive Director9.67yrsHK$1.68mno data
Qiangming Xie
CEO & Executive Director0.67yrno data15.52% HK$12.1m
Qiaoming Nie
Executive Director0.67yrno datano data
Xin Ma
Executive Director0.67yrno datano data
Guisen Guan
Independent Non-Executive Director0.67yrno datano data
Xiaotian Yan
Independent Non-Executive Director0.42yrno datano data
Gen Zhao
Independent Non-Executive Director0.67yrno datano data

0.7yrs

Average Tenure

37.5yo

Average Age

Experienced Board: 803's board of directors are not considered experienced ( 0.7 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 been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

Company Information

Prosperity International Holdings (H.K.) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prosperity International Holdings (H.K.) Limited
  • Ticker: 803
  • Exchange: SEHK
  • Founded: 1980
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$77.932m
  • Shares outstanding: 1.34b
  • Website: https://www.pihl-hk.com

Number of Employees


Location

  • Prosperity International Holdings (H.K.) Limited
  • West Tower
  • Unit 2207, 22/F
  • Sheung Wan
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
803SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2001

Biography

Prosperity International Holdings (H.K.) Limited, an investment holding company, engages in the real estate investment, development, and leasing business in the People’s Republic of China, Macau, Malaysia, Taiwan, and internationally. It is also involved in the trading of clinker, cement, granulated blast furnace slag, and other building materials, as well as steel. In addition, the company engages in mining, processing, and trading of iron ore, iron ore equipment, and raw materials; mining and processing granite; and selling granite products. Further, it is involved in the provision of advisory, planning, and administrative services; human resource services; and transportation services. The company was founded in 1980 and is headquartered in Sheung Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:54
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
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.