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.

Risks

  • China Public Procurement has significant price volatility in the past 3 months.
  • China Public Procurement is not covered by any analysts.

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

38.8%

1094

0.05%

HK IT

-2.7%

HK Market


1 Year Return

-61.8%

1094

-12.0%

HK IT

-9.4%

HK Market

1094 underperformed the IT industry which returned -12% over the past year.

1094 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

1094IndustryMarket
7 Day38.8%0.05%-2.7%
30 Day61.9%4.8%2.0%
90 Day19.3%-3.3%-5.8%
1 Year-61.8%-61.8%-10.5%-12.0%-6.1%-9.4%
3 Year-96.1%-96.1%-13.7%-17.7%14.3%2.7%
5 Year-98.9%-98.9%35.6%20.3%16.7%-2.8%

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 based on future cash flows and its price relative to the stock market?

0.32x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for China Public Procurement to establish if it is available at moderate discount.

Unable to calculate intrinsic value for China Public Procurement to establish if it is available at substantial discount.


Price Based on Earnings

China Public Procurement is loss making, we can't compare its value to the HK IT industry average.

China Public Procurement is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for China Public Procurement, we can't assess if its growth is good value.


Price Based on Value of Assets

China Public Procurement is good value based on assets compared to the HK IT industry average.


Next Steps

Future Growth

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

16.6%

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

China Public Procurement does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare China Public Procurement's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare China Public Procurement's 1-year growth to the HK IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if China Public Procurement has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if China Public Procurement has efficiently used its assets last year compared to the HK IT industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if China Public Procurement improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is China Public Procurement's financial position?


Financial Position Analysis

China Public Procurement's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

China Public Procurement's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

China Public Procurement's level of debt (20.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (3% vs 20.9% today).


Balance Sheet

Low level of unsold assets.

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.

China Public Procurement has less than a year of cash runway based on current free cash flow.

China Public Procurement has less than a year of cash runway if free cash flow continues to reduce 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 and Payments Analysis

Unable to evaluate China Public Procurement's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate China Public Procurement's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as China Public Procurement has not reported any payouts.

Unable to verify if China Public Procurement's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as China Public Procurement has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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)

4.2yrs

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

The average tenure for the China Public Procurement board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by China Public Procurement individual insiders 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: 4.2yrs
    • Compensation: HK$748.00k
  • Qian He (47yo)

    Executive Director

    • Tenure: 4.7yrs
    • Compensation: HK$174.00k
  • Shengfeng Du (57yo)

    Chief Operating Officer

    • Tenure: 4.2yrs

Board Members

  • Limin Chen (57yo)

    Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: HK$300.00k
  • Xiang Deng (46yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: HK$305.00k
  • Jinwei Zheng (50yo)

    Chairman & CEO

    • Tenure: 4.2yrs
    • Compensation: HK$748.00k
  • Qian He (47yo)

    Executive Director

    • Tenure: 4.7yrs
    • 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: 1.2yrs
    • Compensation: HK$108.00k
  • Peng Xu (50yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • 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$74.332m
  • 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 Analysis2019/09/23 12:41
End of Day Share Price2019/09/23 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.