SEHK:8201

Stock Analysis Report

PPS International (Holdings)

Executive Summary

PPS International (Holdings) Limited, an investment holding company, primarily provides environmental services in Hong Kong and the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has PPS International (Holdings)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8201's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.0%

8201

1.7%

HK Commercial Services

0.2%

HK Market


1 Year Return

-54.3%

8201

26.0%

HK Commercial Services

-22.0%

HK Market

Return vs Industry: 8201 underperformed the Hong Kong Commercial Services industry which returned 28.1% over the past year.

Return vs Market: 8201 underperformed the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

8201IndustryMarket
7 Day-4.0%1.7%0.2%
30 Day-36.0%-4.0%-10.8%
90 Day-43.5%7.6%-16.5%
1 Year-54.3%-54.3%28.8%26.0%-19.1%-22.0%
3 Year-80.5%-82.9%-45.0%-49.0%-3.7%-13.4%
5 Year-99.2%-99.4%-65.8%-69.2%-15.2%-28.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PPS International (Holdings) 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: 8201 (HK$0.1) is trading below our estimate of fair value (HK$0.64)

Significantly Below Fair Value: 8201 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8201 is good value based on its PE Ratio (9.4x) compared to the Commercial Services industry average (10.7x).

PE vs Market: 8201 is poor value based on its PE Ratio (9.4x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8201's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8201 is good value based on its PB Ratio (0.2x) compared to the HK Commercial Services industry average (1x).


Next Steps

Future Growth

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

26.9%

Forecasted Commercial Services 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 PPS International (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 PPS International (Holdings) performed over the past 5 years?

38.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8201 has high quality earnings.

Growing Profit Margin: 8201's current net profit margins (1.6%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 8201 has become profitable over the past 5 years, growing earnings by 38.5% per year.

Accelerating Growth: 8201's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8201 had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Commercial Services industry average (13.3%).


Return on Equity

High ROE: 8201's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is PPS International (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 8201's short term assets (HK$226.6M) exceed its short term liabilities (HK$81.9M).

Long Term Liabilities: 8201's short term assets (HK$226.6M) exceed its long term liabilities (HK$11.6M).


Debt to Equity History and Analysis

Debt Level: 8201's debt to equity ratio (15.7%) is considered satisfactory.

Reducing Debt: 8201's debt to equity ratio has increased from 9.4% to 15.7% over the past 5 years.


Balance Sheet

Inventory Level: 8201 has a high level of physical assets or inventory.

Debt Coverage by Assets: 8201's debt is covered by short term assets (assets are 6.7x 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: 8201 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 8201 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is PPS International (Holdings)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8201's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8201'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 8201's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8201's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8201 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 8201'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?

3.0yrs

Average management tenure


CEO

Shaoheng Yu (34yo)

2.42s

Tenure

HK$1,239,000

Compensation

Mr. Shaoheng Yu has been Chairman of the Board of PPS International (Holdings) Limited since July 2, 2019. Mr. Yu has been Compliance Officer at PPS International (Holdings) Limited. since January 11, 201 ...


CEO Compensation Analysis

Compensation vs Market: Shaoheng's total compensation ($USD159.83K) is about average for companies of similar size in the Hong Kong market ($USD227.09K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shaoheng Yu
Chairman2.42yrsHK$1.24m74.99% HK$38.9m
Tin Lai
Executive Director1.75yrsHK$972.61kno data
Woon Wing Chan
Company Secretary3.5yrsno datano data
Xiaozheng Zhang
General Manager3.92yrsno datano data

3.0yrs

Average Tenure

36.5yo

Average Age

Experienced Management: 8201's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shaoheng Yu
Chairman2.42yrsHK$1.24m74.99% HK$38.9m
Tin Lai
Executive Director1.75yrsHK$972.61kno data
Tsz Ching Kwong
Independent Non-Executive Director4yrsHK$120.00kno data
Hiu-Fong Wong
Independent Non-Executive Director2.08yrsHK$120.00kno data
Enhai Meng
Independent Non-Executive Director1.75yrsHK$110.00kno data

1.8yrs

Average Tenure

35yo

Average Age

Experienced Board: 8201'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 been diluted in the past year, with total shares outstanding growing by 28.1%.


Top Shareholders

Company Information

PPS International (Holdings) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PPS International (Holdings) Limited
  • Ticker: 8201
  • Exchange: SEHK
  • Founded: 1978
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: HK$51.840m
  • Shares outstanding: 540.00m
  • Website: https://www.ppsintholdings.com

Number of Employees


Location

  • PPS International (Holdings) Limited
  • Capital Tower
  • Tower A
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8201SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2013

Biography

PPS International (Holdings) Limited, an investment holding company, primarily provides environmental services in Hong Kong and the People’s Republic of China. It operates through Environmental and Cleaning, Money Lending, and Investments segments. The company offers public area and office cleaning services, such as cleaning of public areas, carpets, floors, toilets, changing rooms, lifts, and escalators; and emptying of garbage bins at commercial buildings and their tenants, residential complexes, shopping arcades, and hotels, as well as at public transport facilities, such as airports, ferries, ferry terminals, and cargo and logistics centers and depots. It also provides overnight kitchen cleaning services primarily at private clubs and hotels; external wall and window cleaning services; stone floor maintenance and restoration services; pest control and fumigation services; and waste management and disposal solutions, such as collection, transportation, and disposal of household waste, construction waste, and trade waste, as well as sells recyclable waste, such as paper, metal, and plastic waste. In addition, the company provides housekeeping services at local boutique hotels, hostels, and serviced apartments; secure and confidential waste destruction services for commercial clients; sanitation solutions for yacht; and cleaning and waste management solutions for renovated apartments. Further, it engages in provision of airline catering support services; and money lending and financial assets investment businesses. PPS International (Holdings) Limited was founded in 1978 and is headquartered in North Point, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 14:07
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.