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Prosper Construction Holdings Limited (HK:6816)
:6816
Hong Kong Market
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Prosper Construction Holdings Limited (6816) AI Stock Analysis

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HK:6816

Prosper Construction Holdings Limited

(6816)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score of 43 reflects significant financial challenges, including declining revenue, negative profitability, and high leverage. Technical analysis shows mixed signals, with short-term weakness but some longer-term support. Valuation is unattractive due to negative profitability and lack of dividend yield.

Prosper Construction Holdings Limited (6816) vs. iShares MSCI Hong Kong ETF (EWH)

Prosper Construction Holdings Limited Business Overview & Revenue Model

Company DescriptionProsper Construction Holdings Limited (6816) is a diversified construction company primarily engaged in the provision of civil engineering and construction services. The company operates across various sectors including residential, commercial, and infrastructure projects, offering a wide range of services such as project management, design-build solutions, and construction contracting. With a commitment to quality and sustainability, Prosper Construction Holdings aims to deliver innovative solutions that meet the evolving needs of its clients.
How the Company Makes MoneyProsper Construction Holdings generates revenue through multiple streams, primarily from executing construction contracts for public and private sector projects. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and unit price contracts, allowing flexibility in pricing based on project requirements. Key revenue streams include income from construction services, project management fees, and maintenance services. The company also benefits from strategic partnerships with local governments and private developers, which help secure contracts and expand its project portfolio. Additionally, Prosper Construction Holdings may leverage economies of scale and operational efficiencies to enhance profitability on larger projects.

Prosper Construction Holdings Limited Financial Statement Overview

Summary
Prosper Construction Holdings Limited faces significant financial challenges, including declining revenue, negative profitability, high leverage, and cash flow difficulties. The company's financial health is under pressure, requiring strategic improvements in cost management, debt reduction, and operational efficiency.
Income Statement
30
Negative
Prosper Construction Holdings Limited has experienced declining revenue over the past few years, with a negative revenue growth rate of -7.34% in the most recent year. The company also shows negative profitability metrics, including a net profit margin of -9.75% and an EBIT margin of -4.17%, indicating operational challenges. The gross profit margin has slightly decreased from the previous year, reflecting pressure on cost management.
Balance Sheet
25
Negative
The company's balance sheet reveals a high debt-to-equity ratio of 12.02, indicating significant leverage and potential financial risk. The return on equity is negative at -109.71%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability and a high reliance on debt financing.
Cash Flow
20
Very Negative
Cash flow analysis shows negative operating cash flow and free cash flow, with a significant decline in free cash flow growth of -84.50%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is slightly above 1, it is primarily due to negative net income, which is not a positive indicator.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.02B1.63B2.13B2.88B3.19B1.47B
Gross Profit148.16M130.13M181.10M210.58M192.82M80.29M
EBITDA-44.69M-68.11M-59.02M114.45M109.41M66.50M
Net Income-166.46M-159.10M-188.90M-12.19M2.58M13.59M
Balance Sheet
Total Assets5.13B5.28B5.04B4.89B4.44B1.75B
Cash, Cash Equivalents and Short-Term Investments466.92M314.93M382.40M565.65M390.65M277.88M
Total Debt1.92B1.74B1.78B1.29B1.36B447.89M
Total Liabilities4.88B4.97B4.56B4.27B3.79B1.20B
Stockholders Equity88.29M145.02M315.06M507.79M543.42M535.19M
Cash Flow
Free Cash Flow-185.85M-57.14M-943.13M265.28M-711.60M-238.68M
Operating Cash Flow-183.52M-53.11M-882.70M311.49M-604.32M-175.00M
Investing Cash Flow-91.22M-83.84M172.51M-23.84M-164.04M-123.65M
Financing Cash Flow111.93M118.09M535.82M-75.53M873.05M174.61M

Prosper Construction Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.21
Price Trends
50DMA
0.23
Negative
100DMA
0.17
Positive
200DMA
0.14
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
53.06
Neutral
STOCH
73.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6816, the sentiment is Positive. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6816.

Prosper Construction Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$99.76M20.591.80%-37.55%-41.28%
57
Neutral
HK$241.92M-53.25%-45.46%-329.88%
55
Neutral
HK$100.72M5.825.68%23.93%425.00%
45
Neutral
HK$130.20M-1.36-33.39%-34.49%-496.53%
43
Neutral
HK$174.40M-98.05%14.57%13.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6816
Prosper Construction Holdings Limited
0.22
0.10
83.33%
HK:1413
Kwong Luen Engineering Holdings Limited
0.09
-0.04
-30.77%
HK:1751
Kingland Group Holdings Limited
1.00
0.52
108.33%
HK:2227
Solis Holdings Ltd.
0.11
0.03
37.50%
HK:3878
Vicon Holdings Limited
0.20
-0.04
-16.67%

Prosper Construction Holdings Limited Corporate Events

Prosper Construction Clarifies 2024 Annual Report Details
Oct 10, 2025

Prosper Construction Holdings Limited has issued a supplementary announcement regarding its 2024 Annual Report. The company clarified that certain related party transactions disclosed in the report do not constitute connected transactions under the Listing Rules, while others have complied with the necessary requirements. Additionally, the company confirmed that 80 million shares are available for issue under its Share Option Scheme, representing 10% of the issued shares. This announcement provides clarity on regulatory compliance and shareholder interests.

Prosper Construction’s Framework Agreement Rejected and Expired
Oct 8, 2025

Prosper Construction Holdings Limited announced that the ordinary resolution regarding the New Products Sale and Purchase Framework Agreement was rejected by shareholders during the Extraordinary General Meeting held on October 8, 2025. As a result, the agreement automatically expired on the same day, impacting the company’s planned transactions and proposed annual caps.

Prosper Construction Aligns with Qingdao’s Vision for Shipping Hub Development
Sep 18, 2025

Prosper Construction Holdings Limited announced its strategic alignment with the Qingdao government’s Mid-Term Plan and 2035 Vision for the Development of Qingdao International Shipping Centre. The company, in collaboration with its controlling shareholder Haifa Group, aims to capitalize on the plan by enhancing its cross-border trade operations and establishing itself as a procurement hub. This move is expected to unlock significant business opportunities and strengthen the company’s market position, leveraging Qingdao’s geographical advantages and integrating shipping, trade, and financial services.

Prosper Construction Announces EGM for New Framework Agreement Approval
Sep 16, 2025

Prosper Construction Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a new framework agreement with Shenzhen Defu Supply Chain Company Limited. This agreement involves the purchase of branded consumer electronic products over the next three years, which could enhance the company’s distribution capabilities and market positioning.

Prosper Construction Holdings Limited Reports Increased Revenue but Sustained Losses in H1 2025
Aug 28, 2025

Prosper Construction Holdings Limited reported its unaudited consolidated results for the first half of 2025, revealing a revenue increase to HK$894,705,000 from HK$508,954,000 in the same period of 2024. Despite the revenue growth, the company faced a loss of HK$58,238,000, slightly improved from the previous year’s loss of HK$59,029,000, highlighting ongoing financial challenges.

Prosper Construction Holdings to Review Interim Results and Dividend Declaration
Aug 15, 2025

Prosper Construction Holdings Limited has announced that its board of directors will convene on August 28, 2025, to review and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of a dividend, highlighting the company’s ongoing financial management and potential shareholder returns.

Prosper Construction Holdings Issues Profit Warning for Interim 2025
Aug 15, 2025

Prosper Construction Holdings Limited has issued a profit warning, indicating an expected loss before taxation of no less than HK$49 million for the first half of 2025. This marks an improvement from the previous year’s loss of HK$62 million. The general construction segment showed a gross profit increase of HK$28 million, but the marine engineering segment underperformed, leading to a gross profit reduction of HK$16 million. Despite improvements, the operating profit was insufficient to cover costs, resulting in the expected loss.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025