SEHK:1094

Stock Analysis Report

China Public Procurement

Executive Summary

China Public Procurement Limited, an investment holding company, provides public procurement services in the People’s Republic of China.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

How has China Public Procurement's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.9%

1094

-1.1%

HK IT

0.3%

HK Market


1 Year Return

-51.7%

1094

-2.1%

HK IT

1.3%

HK Market

Return vs Industry: 1094 underperformed the Hong Kong IT industry which returned -2.1% over the past year.

Return vs Market: 1094 underperformed the Hong Kong Market which returned 1.3% over the past year.


Shareholder returns

1094IndustryMarket
7 Day-7.9%-1.1%0.3%
30 Day-14.7%-1.7%0.5%
90 Day30.0%-5.4%-4.6%
1 Year-51.7%-51.7%-0.4%-2.1%4.9%1.3%
3 Year-96.1%-96.1%-13.7%-17.9%15.3%3.7%
5 Year-98.9%-98.9%35.3%20.1%20.0%-0.006%

Price Volatility Vs. Market

How volatile is China Public Procurement's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Public Procurement undervalued compared to its fair value and its price relative to the market?

0.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1094's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1094's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1094 is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: 1094 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 1094's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1094 is good value based on its PB Ratio (0.3x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

How is China Public Procurement forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.9%

Forecasted Software 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 China Public Procurement 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 China Public Procurement performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1094 is unprofitable, but has reduced losses over the past 5 years at a rate of 36.3% per year.

Accelerating Growth: Unable to compare 1094's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1094 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (-3.7%).


Return on Equity

High ROE: 1094 has a negative Return on Equity (-9.77%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1094 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1094 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is China Public Procurement's financial position?


Financial Position Analysis

Short Term Liabilities: 1094's short term assets (HK$31.5M) do not cover its short term liabilities (HK$66.1M)

Long Term Liabilities: 1094's short term assets (31.5M) do not cover its long term liabilities (74.8M)


Debt to Equity History and Analysis

Debt Level: 1094's debt to equity ratio (20.9%) is considered satisfactory

Reducing Debt: 1094's debt to equity ratio has increased from 3% to 20.9% over the past 5 years.


Balance Sheet

Inventory Level: 1094 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1094's debt is not covered by short term assets (assets are 0.9x 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: 1094 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1094 has less than a year of cash runway if free cash flow continues to grow at historical rates of 57.5% each year.


Next Steps

Dividend

What is China Public Procurement's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1094's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1094's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1094's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1094's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1094's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Public Procurement's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average board tenure


CEO

Jinwei Zheng (50yo)

4.3yrs

Tenure

HK$748,000

Compensation

Mr. Jinwei Zheng, EMBA, BEng has been the Chief Executive Officer of China Public Procurement Limited since July 15, 2015, Chairman since June 7, 2016 and as its Executive Director since December 23, 2014. 


Board Age and Tenure

2.8yrs

Average Tenure

48yo

Average Age

Experienced Board: 1094's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 1094 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$11,760,18830 Jul 19
Gegeng Huang
EntityIndividual
Shares34,897,000
Max PriceHK$0.34

Ownership Breakdown


Management Team

  • Jinwei Zheng (50yo)

    Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: HK$748.00k
  • Qian He (47yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$174.00k
  • Shengfeng Du (57yo)

    Chief Operating Officer

    • Tenure: 4.3yrs

Board Members

  • Limin Chen (57yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$300.00k
  • Xiang Deng (46yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: HK$305.00k
  • Jinwei Zheng (50yo)

    Chairman & CEO

    • Tenure: 4.3yrs
    • Compensation: HK$748.00k
  • Qian He (47yo)

    Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$174.00k
  • Jun Jiang (40yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$360.00k
  • Jianguo Zhang (49yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$108.00k
  • Peng Xu (50yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: HK$109.00k
  • Shuai Wang (45yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: HK$7.00k

Company Information

China Public Procurement Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Public Procurement Limited
  • Ticker: 1094
  • Exchange: SEHK
  • Founded:
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$62.816m
  • Shares outstanding: 209.39m
  • Website: https://www.cpphk1094.com

Number of Employees


Location

  • China Public Procurement Limited
  • Unit 501
  • 5th Floor
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1094SEHK (The Stock Exchange of Hong Kong Ltd.)HKD0.1HKHKDNo data
1094SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2002

Biography

China Public Procurement Limited, an investment holding company, provides public procurement services in the People’s Republic of China. It operates through four segments: Public Procurement, Trading Busin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:39
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.