China Public Procurement (SEHK:1094) - Share price, News & Analysis

1094 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

1094 Stock Overview

China Public Procurement Limited, an investment holding company, engages in the trading of various products in the People’s Republic of China.

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap (HK$407M)

China Public Procurement Competitors

Suoxinda Holdings

SEHK:3680

HK$568.3m

CCID Consulting

SEHK:2176

HK$248.5m

Maxnerva Technology Services

SEHK:1037

HK$207.0m

Vision Values Holdings

SEHK:862

HK$521.9m

Price History & Performance

Summary of all time highs, changes and price drops for China Public Procurement
Historical stock prices
Current Share Price	HK$1.34
52 Week High	HK$3.00
52 Week Low	HK$0.17
Beta	-0.53
1 Month Change	0%
3 Month Change	2.29%
1 Year Change	601.57%
3 Year Change	362.07%
5 Year Change	-33.00%
Change since IPO	-98.90%

Shareholder Returns

	1094	HK IT	HK Market
7D	-0.7%	10.7%	3.1%
1Y	601.6%	-25.4%	-21.2%

Return vs Industry: 1094 exceeded the Hong Kong IT industry which returned -25.4% over the past year.

Return vs Market: 1094 exceeded the Hong Kong Market which returned -21.2% over the past year.

Price Volatility

Is 1094's price volatile compared to industry and market?
1094 volatility
1094 Average Weekly Movement	5.0%
IT Industry Average Movement	6.9%
Market Average Movement	6.9%
10% most volatile stocks in HK Market	13.7%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1094 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 1094's weekly volatility has decreased from 22% to 5% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	108	Siyuan Wu	https://www.cpphk1094.com

China Public Procurement Limited, an investment holding company, engages in the trading of various products in the People’s Republic of China. It operates through four segments: Public Procurement, Trading Business, Provision of Corporate IT Solution, and Rental Income. The company’s activities also include the development and operation of electronic public procurement platforms; and provision of procurement information and other added value services, including supplier authentication, financial services, supply chain management, etc., as well as provision of public procurement services to users of the procurement platforms.

China Public Procurement Fundamentals Summary

How do China Public Procurement's earnings and revenue compare to its market cap?
1094 fundamental statistics
Market Cap	HK$407.39m
Earnings (TTM)	-HK$21.86m
Revenue (TTM)	HK$119.16m

3.3x

P/S Ratio

-18.0x

P/E Ratio

Is 1094 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1094 income statement (TTM)
Revenue	HK$119.16m
Cost of Revenue	HK$94.69m
Gross Profit	HK$24.47m
Other Expenses	HK$46.33m
Earnings	-HK$21.86m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.075
Gross Margin	20.54%
Net Profit Margin	-18.35%
Debt/Equity Ratio	13.2%

How did 1094 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 1094 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1094?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1094. This is calculated by dividing 1094's market cap by their current preferred multiple.
What is 1094's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$407.39m

1094 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/Revenue	3.3x
Enterprise Value/EBITDA	-45.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 1094's PS Ratio compare to its peers?

1094 PS Ratio vs Peers

The above table shows the PS ratio for 1094 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	3.4x
3680 Suoxinda Holdings	1.2x	n/a	HK$568.3m
2176 CCID Consulting	0.9x	n/a	HK$248.5m
1037 Maxnerva Technology Services	0.3x	n/a	HK$207.0m
862 Vision Values Holdings	10.9x	n/a	HK$521.9m
1094 China Public Procurement	3.3x	n/a	HK$407.4m

Forward PS

Price-To-Sales vs Peers: 1094 is good value based on its Price-To-Sales Ratio (3.3x) compared to the peer average (3.4x).

Price to Earnings Ratio vs Industry

How does 1094's PE Ratio compare vs other companies in the HK IT Industry?

Price-To-Sales vs Industry: 1094 is expensive based on its Price-To-Sales Ratio (3.3x) compared to the Hong Kong IT industry average (1.1x)

Price to Sales Ratio vs Fair Ratio

What is 1094's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1094 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1094's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1094 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1094's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1094's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1094's PEG Ratio to determine if it is good value.

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Future Growth

How is China Public Procurement 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

28.4%

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.

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Examine China Public Procurement'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.
China Public Procurement competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has China Public Procurement performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

73.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1094 is currently unprofitable.

Growing Profit Margin: 1094 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 1094 is unprofitable, but has reduced losses over the past 5 years at a rate of 73.4% 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 (-4.1%).

Return on Equity

High ROE: 1094 has a negative Return on Equity (-11.15%), as it is currently unprofitable.

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Financial Health

How is China Public Procurement's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 1094's short term assets (HK$29.0M) do not cover its short term liabilities (HK$79.9M).

Long Term Liabilities: 1094's short term assets (HK$29.0M) do not cover its long term liabilities (HK$69.8M).

Debt to Equity History and Analysis

Debt Level: 1094's net debt to equity ratio (3.1%) is considered satisfactory.

Reducing Debt: 1094's debt to equity ratio has reduced from 15.6% to 13.2% over the past 5 years.

Balance Sheet

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 sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 1094 has sufficient cash runway for 1.4 years if free cash flow continues to grow at historical rates of 58% each year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1094 has not reported any payouts.

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Management

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

0.5yrs

Average management tenure

CEO

Siyuan Wu (27 yo)

0.58

Tenure

Ms. Siyuan Wu serves as Chief Executive Officer and Executive Director of China Public Procurement Limited since November 19, 2021 and also serves as its Executive Chairman since April 29, 2022. She gradua...

Leadership Team

Experienced Management: 1094's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.

Board Members

Experienced Board: 1094'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 20%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31